ViewPoint Espresso Collection – Capturing value from the new ISO requirements # 1 – June 2018 - Understanding the Context
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Setting the Scene
ISO (International Organization for Standardization) has released the new version of both standards ISO 9001 and ISO 14001 in 2015 (more recently the ISO 45001).
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September 2018 is when the transition period for these two schemes will end and all companies will have to be aligned with the new requirements posed by ISO
In 2015 we surveyed our customers before they started their journey towards the transition to the new standard and, for each of the new relevant requirements, have asked how they will implement and be compliant to the new requirement
Today in 2018 we repeat our investigation limitedly to those companies that have already completed the adoption of the new standard version, with the aim of understanding:  How they have really met and satisfied the specific standard requirement, in comparison with what they planned to do 3 years ago  What kind of benefit and value the new requirement created or will 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 in this Espresso survey is 4.1 – Understanding the organisation and its context: “The organisation shall determine external and internal issues that are relevant to its purpose and its strategic direction and that affect its ability to achieve the intended result(s) of its management system”
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Question 1 – Means for meeting the requirement How have you met the requirement (4.1) in your organisation? Mark initiatives that your organisation has implemented (multiple answers are allowed)
By discussing the context during the management review meeting
72%
By running a risk assessment on external and internal issues
60%
Through meetings with proper functions (e.g. marketing, purchase, sales, HR, HSE, etc.) where the context is periodically analysed and discussed
42%
By running SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis at a given frequency (e.g. every year)
37%
By providing evidence that the context is analysed during the strategic planning process or embedded into the strategy document
27%
Through a defined, structured and documented process looking at external (political, economic, legal, etc.) and internal issues By running/buying a market analysis of the external context Other initiatives
Don't know
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22% 7%
The top 3 means adopted by companies reflect what was in their plans almost 3 years ago Some of the means are actually used more than what was previously expected by companies: – Risk Assessment: +22% – Management review: +12% – SWOT analysis: +7% Little variations between Quality and Environment: – Management review is more adopted by companies with certified EMS (76% vs 71%) – Same for Risk Assessment (65% vs 57%)
4% 1%
– SWOT is a more preferred option by certified QMS (40% vs 31%)
Question 2 – Benefits from implementing the requirement Please rate how much the new requirement (4.1) 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 (4.1) in focus in this Espresso survey 1 No contribution at all
1
2 Low contribution
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3 2,50
Improved financial results Advantages with tax, banks or insurance companies
3 Moderate contribution
3,00 2,70
– Ability to meet customer requirement/improved CS
Providing a competitive advantage
2,80
– Improved commitment and engagement from top management
Improving public image
2,80
– Achievement of strategic objectives
Creation of new market opportunities
2,90
Ability to meet legal requirements
3,10
Customer satisfaction/meet customer needs Better relations with relevant authorities
2,60 3,20
Identification/management of risks
3,10
Top management commitment & engagement Enhanced employees engagement
2,80
Improved communication with stakeholders
2,80
Improvement in management of suppliers
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The adoption of this requirement by companies led to positive contribution (≥ 3) and hence generation of value, for: – Identification of risks
2,10
Achievement of strategic objectives
5
4 High contribution
2,70
Some variations between Quality and Environment: – For certified EMS this is a further aid for meeting legal requirements and also for improving public image as well as relation with relevant authorities – For certified QMS this is also seen as a leverage for achieving a competitive advantage
Because of the nature of this requirement, benefits of financial nature are not ranked high
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
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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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
Methodology and Sample
May
2018
This Espresso survey was conducted in May 2018.
490
It involved 490 professionals in companies across different industries in Europe, North America, Central & South America and Asia.
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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