ViewPoint Espresso Collection – Capturing value from the new ISO requirements # 5 – April 2019 – Internal & External Communication
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Setting the Scene
ISO (International Organization for Standardization) released the new version of the ISO 9001 and ISO 14001 standards in 2015 and more recently the ISO 45001.
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September 2018 is when the transition period for these two schemes ended and all companies had to be aligned with the new requirements in ISO 9001 and ISO 14001.
In 2015 we surveyed our customers before they started their journey towards the transition to the new standards. For each of the most relevant new requirements, we asked how they will implement and plan to be compliant to the new requirement.
Today in 2019, we are repeating our investigation limited to those companies that have already completed the adoption of the new standard version, with the aim of understanding: â–Ş How they have actually met and satisfied the specific standard requirements in comparison with what they planned to do 3 years ago. â–Ş What kind of benefits and value the new requirement created or is expected to create for the company.
ISO Requirements in Focus We will apply the same investigation format to the following set of new ISO requirements, which we consider the most relevant within the wider full set of new requirements brought in by ISO in the new Standard version: 4.1 – Understanding the organisation and its context 4.2 – Understanding the needs and expectations of interested parties 5.1 – Leadership and commitment 6.1 – Actions to address risks and opportunities 7.4 - Communication The requirement in focus is 7.4 – Communication: Clause 7.4 requires the organization to determine the internal and external communications relevant to the management system. The reason for requiring a more structured approach for communication, is due to an extended flow and availability of information and data together with the need to ensure reliable information. The organization has to identify the relevant stakeholders and decide on what, when and how to communicate with them.
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Question 1a – Means for meeting the requirement Among the following INTERNAL COMMUNICATION topics, please mark WHAT your company management system includes:
83%
Company policy and objectives
65%
Organizational changes, responsibilities and authorities Changes in your company management systems
60%
Reporting on non-conformities, incidents/accidents
60% 58%
Risks and opportunities for the company
56%
Performance of your company management system
54%
Output of the management review
46%
Company strategy
45%
Changes in relevant regulation and legislation
42%
Collection of feedback from employees Overall performance of your company (financial performances or other)
38% 36%
Information related to new products/services* Information related to environmental footprint of products**
35% 34%
Major business changes Information related to participation of your company in initiatives/events Other
30% 2%
MS = Management System *) Standard specific requirement for ISO 9001 only
**) Standard specific requirement for ISO 14001 only
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▪ Company policy and objectives is by far the most leveraged topic in internal communication ▪ Changes (organizational and related to the MS) are the 2nd and 3rd topics, followed by information around non-conformities/incidents/accidents ▪ There is some variation between quality and environment (not visible in this consolidated chart): – Changes in regulation/legislation is predominant for environment (63%) versus for quality (38%) – Performance of the environmental MS (71%) is rated higher (hence more used as a topic in internal communication) than performance of the quality MS (50%) – Company strategy as a topic is rated higher for environment (58%) than for quality (41%)
Question 1b – Means for meeting the requirement Among the following EXTERNAL COMMUNICATION topics, please mark WHAT your company management system includes:
67%
Company policies, vision and values etc.
63%
Complaints handling and feedback
59%
Customer satisfaction feedback
54%
Mandatory communications towards authorities Information related to provision and delivery of products/services to customers* Environmental requirements to contracted companies and hired personnel**
54% 50% 49%
Performance related to the management system Requirements to external providers of products and services*
46%
Marketing communication on your products / company
46% 43%
Crisis and emergency response
41%
Collecting views from interested parties Information related to participation of your company in initiatives/events Overall performance of your company (financial performances or other) Information to interested parties regarding product recalls* Other
37% 32% 26% 1%
MS = Management System *) Standard specific requirement for ISO 9001 only
**) Standard specific requirement for ISO 14001 only
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▪ Company policies, vision and values (1st) is the top used topic for 2 in 3 companies, followed by complaints handling and customer satisfaction feedback ▪ There is some variation between quality and environment (not visible in this consolidated chart): – Performance related to the management system is much more used as a topic for environment (68%) than for quality (41%) – Crisis and emergency response is also much more used in external communication by environmental MS (62%) than by quality MS (36%) – Company policies, vision and values as a topic is more used for environment (82%) than for quality (61%) – Mandatory communication towards authorities is used more for environment (69%) than for quality (48%)
Question 2 – Benefits from implementing the requirement Please rate how much the new requirement (7.4) contributes, or will contribute, to the achievement of the listed possible benefits. Some of the listed general benefits might not be relevant or applicable to the specific requirement (7.4) in focus in this Espresso survey 1 No contribution at all
1,0
2 Low contribution
2,0
3,0 2,6
Improved financial results Advantages with tax, banks or insurance companies
3 Moderate contribution
Providing a competitive advantage
3,1
– Identification of risks
2,9
6
3,3 2,8
Identification/management of risks
3,1
Top management commitment & engagement
3,1
Enhanced employees engagement
3,1
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– Improving public image
3,0
Customer satisfaction/meet customer needs
Improvement in management of suppliers
– Top management commitment
3,1
Ability to meet legal requirements
Improved communication with stakeholders
– The achievement of strategic objectives
2,8
Improving public image
Better relations with relevant authorities
4,0
▪ The adoption of this requirement led to positive contributions (≥ 3) and hence generation of value for: – The ability to meet customer requirements/improved customer satisfaction
2,2
Achievement of strategic objectives Creation of new market opportunities
4 High contribution
3,0 2,9
– Enhanced employees engagement – The ability to meet legal requirements – Improved communication with stakeholders
▪ In addition (not visible in the chart): – Companies with a certified quality MS see this as a support also to manage suppliers (3,0) – Companies with a certified environmental MS see this also as a mean for better relations with authorities (3,0)
Question 2 – Benefits, overall view (cont’d) The chart below shows the contribution of each of the 5 requirements in focus to the list of identified benefits. The chart will be progressively updated when a new requirement is analysed. When all 5 requirements will be investigated, the chart will be complete
Relevant benefit (≥3) Benefits
4.1 – Understanding the organisation and its context
4.2 – Understanding the needs and expectations of interested parties
5.1 – Leadership and commitment
6.1 – Actions to address risks and opportunities
7.4 Communication
Improved financial results Advantages with tax/banks/insurance Achievement of strategic objectives Creation of new market opportunities Providing a competitive advantage Improving public image Ability to meet legal requirements Customer satisfaction/meet customer needs Better relations with authorities Identification/management of risks Top management commitment & engagement Enhanced employee engagement Improved communication with stakeholders Improvement in management of suppliers
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Insights from auditing management systems The chart below shows a complementary picture to the survey results. It displays statistics from Lumina™, based on audit findings by DNV GL. See where the shoe pinches for companies’ compliance to the new requirements: % of companies with non-conformities (ISO 9K)
% of companies with non-conformities (ISO 14K)
% of companies with non-severe findings (ISO 9K)
% of companies with non-severe findings (ISO 14K) 58%
60%
50% 27%
40% 31%
30%
20%
17% 11%
0%
8%
8%
3%
4%
4.1 – Understanding the organisation and its context
18%
21% 31%
12% 12%
10%
18%
5%
11%
7%
4.2 – Understanding the needs and expectations of interested parties
11% 14%
5%
4%
4% 1%
3% 1%
5.1 – Leadership and commitment
10%
9% 2%
6.1 – Actions to address risks and opportunities
7.4 Communication
4%
▪ The data shows the percentage of companies where the audit (ISO 9001:2015 or ISO 14001:2015) resulted in one or more findings in the requirements in focus in this Espresso collection ▪ Requirement 7.4 is lower in terms of failures for companies (i.e. audit findings) if compared to requirement 6.1 on risks & opportunities and more in line with the rest of the other new ISO requirements ▪ Lumina™ is the DNV GL performance benchmarking tool for management system certification; to learn more about Lumina™, visit www.dnvgl.com/lumina
Statistics based on more than 30,000 companies audited worldwide Standard: ISO 9001 and 14001 Management Systems (2015 version) Time frame: Jan 2015 – Dec 2018 Industry Sector: All Non-conformities include CAT1 and CAT2 type of NC; non-severe findings include Observations and Opportunities for improvement
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Methodology and Sample
March
2019
This Espresso survey was conducted in March 2019.
680
It involved 680 professionals in companies across different industries in Europe, North America, Central & South America and Asia certified to quality and environmental management systems.
▪ The sample consists of customers of DNV GL – Business Assurance and does not claim to be statistically representative of companies worldwide. ▪ The questionnaire was administered using the CAWI (Computer Assisted Web Interviewing) methodology.
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Thank You!
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