ViewPoint Espresso Collection – Capturing value from the new ISO requirements # 6 – May 2019 – Comparative view
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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
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September 2018 is when the transition period ended for ISO 9001 and ISO 14001 and all companies had to be aligned with the new requirements in the 2015-editions
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 requirements
Now, 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 4 years ago â–Ş What kind of benefits and value the new requirement are creating for the company
ISO Requirements in Focus We have applied the same investigation format to the following set of new ISO requirements, which we have considered 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 A comparative study of the benefits and value that the new requirements created for the company is the focus of this Espresso. Results are first presented cumulated for Quality and Environmental certified companies and then separately for the two standards.
The benefits marked in the following slides comes from the scores given by respondents to the following question: Based on your experience and perception, please rate how much the new requirement contributes, or will 1. No 2. Low 3. Moderate 4. High contribute, to the achievement of the listed possible benefits. contribution at all
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contribution
contribution
contribution
Benefits, overall view (consolidation of quality and environmental) The chart below shows the contribution of each of the 5 requirements in focus to the list of identified benefits.
Relevant benefit (≥3) on a scale 1 to 4 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
– Achievement of strategic objectives – Ability to meet customers’ needs
Improved financial results
– Ability to manage risks
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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▪ It is clear that the new requirements particularly bring benefits within four well defined areas:
– Increase of top management commitment and engagement ▪ The new requirements seem to have less beneficial impact on financial and market results or relations with stakeholders other than their customers (i.e. authorities, employees, suppliers, banks and insurance companies). ▪ Requirements 5.1 and 7.4 are generating additional benefits, such as strengthening brand reputation, legal compliance, employee engagement and communication with stakeholders.
Benefits, Quality (ISO 9001:2015) The chart below shows the contribution of each of the 5 requirements in focus to the list of identified benefits relevant to the Quality Management System.
Relevant benefit (≥3) on a scale 1 to 4 Benefit specific for Quality companies only
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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▪ The results for the quality-certified companies pretty much mirror the overall picture. There are only two distinct differences. ▪ Strengthened attention in requirement 5.1 on leadership and commitment from top management is considered a vehicle for improving the company’s competitive advantage. ▪ Increased focus on communication with requirement 7.4, in particular externally, is seen as an effective contributor for improving the company’s supply chain management. ▪ In addition, it should be noted that the benefit identified for the ability to meet legal requirements from the requirements in 5.1 and 7.4 in the overall view does not show up for ISO 9001.
Benefits, Environment (ISO 14001:2015) The chart below shows the contribution of each of the 5 requirements in focus to the list of identified benefits relevant to the Environmental Management System.
Relevant benefit (≥3) on a scale 1 to 4 Benefit specific for Env. companies only
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 7.4 address Communication risks and opportunities*
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 *) No survey
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▪ The inherent nature of environmental certification is very visible in a few distinct differences for companies certified to ISO 14001. ▪ The requirements in 4.1 and 4.2 (context and interested parties) are, together with requirements in 5.1 and 7.4, seen as effective means for strengthening the ability to meet legal requirements and improve the public image. ▪ Requirement 6.1 on risk management is not really considered to be generating new benefits for ISO 14001 certified companies in the same way as it is for companies certified to ISO 9001. ▪ The new requirement on communication (7.4) is seen as an effective means for improving relations with regulators and authorities.
Methodology and Sample
2018 2019
These Espresso surveys were conducted between May 2018 and March 2019.
2938
They involved 2938 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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