What is a management system based on standards?

 

I have received requests to explain in a more specific way what is a management system based on standards, since there are many doubts about this issue, especially when it is mentioned that there are already many standardized management systems available to the organizations in the world. That is why on this occasion I will comment on this topic, since it is true that many people talk about these systems, but sometimes we do not  understand them in the same way. In order to do this, I will build on the concepts published by the International Organization for Standardization (ISO) itself.

A management system is the way in which an organization manages the interrelated parts of its business in order to achieve its objectives. These objectives can relate to a number of different topics, including product or service quality, operational efficiency, environmental performance, occupational health and safety and many more.

 

The level of complexity of the system will depend on each organization’s specific context. For some organizations, especially smaller ones, it may simply mean having strong leadership from the business owner, providing a clear definition of what is expected from each individual employee and how they contribute to the organization’s overall objectives, without the need for extensive documentation. More complex businesses operating, for example, in highly regulated sectors, may need extensive documentation and controls in order to fulfil their legal obligations and meet their organizational objectives.

The larger the organization, and the more people involved, the more common it is that there are some documented procedures, instructions, forms and records.

This helps to ensure that people do not do things "in their own way", but in the way the organization has planned.

That is, there is a minimum degree of order in the way in which the organization carries out its activities, so that time, money and other resources are used efficiently.

To be really effective and efficient, the organization can manage "the way things are done", systematizing them. This ensures that nothing important is left out of the system and that each person is clear about their responsibilities to do what, when, how, where and why.

The ISO management system standards make these successful practices available to all organizations.

As an example, ISO 9000 is a family of standards that is known under that generic title for convenience. This family consists of standards and guidelines related to the quality management system and support rules on terminology and specific tools, such as auditing. This family of ISO 9000 standards is primarily oriented towards “quality management”.

In plain language, the standardized definition of "quality" in ISO 9000 refers to all those characteristics of a product (or service) that are required by the customer. "Quality management" means what the organization does to ensure that its products meet customer requirements.

ISO 9000 covers the way in which an organization performs its work, and not directly the result of that work. In other words, they are oriented to processes and not to products, at least, not directly.

However, the way in which the organization manages its processes will obviously affect its final product, in relation to the fact that everything is done to ensure that the product meets the customer's requirements.

ISO 9000 are not product standards. The quality management system standards in the ISO 9000 family establish requirements for what the organization must do to handle the processes that affect quality.

Something equivalent with respect to different productive aspects are covered by other management system standards.

ISO management system standards (MSS) help organizations improve their performance by specifying repeatable steps that organizations consciously implement to achieve their goals and objectives, and to create an organizational culture that reflexively engages in a continuous cycle of self-evaluation, correction and improvement of operations and processes through heightened employee awareness and management leadership and commitment.

The benefits of an effective management system to an organization include:

 

• More efficient use of resources and improved financial performance

• Improved risk management and protection of people and the environment

• Increased capability to deliver consistent and improved services and products, thereby increasing value to customers and all other stakeholders

 

MSSs are the result of consensus among international experts with expertise in global management, leadership strategies, and efficient and effective processes and practices. MSS standards can be implemented by any organization, large or small.

The management system standards provide the organization with a role model to establish and operate its own management system.

This model incorporates the characteristics that experts in this field have agreed on what “the state of the art” represents. A management system that follows the model - in accordance with the "standard" - is developed on a solid basis of "state of the art" practices.

ISO’s management system standards (MSS) are among the most widely used and recognized documents that ISO publishes. They include standards such as ISO 9001, ISO 14001 and ISO 50001, which apply to quality management, environmental management and energy management respectively. In fact, there are more than 80 MSSs. There’s a lot to know, and even experienced standards users might want to consult the complete list or find out more about how MSSs work.

One of the fundamental principles is that all the standards can work together. Those who already use an MSS in one part of their business, and are considering implementing additional ones in another area, will find that the process has been made as intuitive as possible. That’s thanks to the High-Level Structure (HLS). The concept of HLS is that management standards are structured in the same way, regardless of the domain of application. Users who are familiar with one MSS will immediately feel at ease with another, even when using if for the first time.

In addition to being laid out in the same way, there are some parts of a standard where identical text can be used. This improves coherence and recognition, simplifies use, and is defined in something called “Annex SL”. It means that in addition to having the same structure, MSSs can contain many of the same terms and definitions. This is particularly useful for those organizations that choose to operate a single (sometimes called “integrated”) management system that can meet the requirements of two or more MSSs being used simultaneously.

I invite you to watch the next video about management systems.

Annex SL plays a key role in the interoperability and user friendliness of standards for countless users of ISO management standards around the world. 

I hope this information helps you better understand what these standardized management systems are about.

 

Author:

Ernesto Palomares Hilton