Quality Management System - the return on investment
ISO 9001 pays back
When you need to stand out for great customer service, customer experience or product quality, one of the most popular and effective ways is through ISO 9001 Quality Management System (QMS) implementation and certification.
ISO 9001 has evolved into a business management tool, helping with risk and resilience. And applies equally well to service industries as it does to product manufacturers.
With expert assistance, the process of implementing is not arduous, doesn’t take long, nor costs as much as many expect. And the outcome certainly does not make your business processes unwieldy or inflexible. In fact quite the opposite, many organisations I have worked with have found it an invaluable platform to drive innovation and improve performance.
I have not come across a single business that has regretted, or not seen the benefits, of ISO 9001 implementation, be they tangible or otherwise.
Financial case
It is often easier to make a business case with some information on the expected return on investment (ROI) and whilst financial ROI is difficult to calculate, predict or in some cases publicise for competition reasons, there is some statistics out there.
For example; the American Society for Quality (ASQ) completed a study that showed that for every $1 invested in your Quality Management System, you could expect to see a $16 reduction in costs, a $3 increase in profits and an additional $6 in new revenue
Quality Management System - return on investment in numbers
On average, they also saw that quality management reduced overall costs by 4.8 which is significant, - what business would turn away those kind of cost reductions, profit increases and additional revenue?
However, to give some extra context, compare these figures against say the average operating profits for the UK construction industry; where profit margins of between 1.5 and 2% is not uncommon. A cost saving of 4.8% will really make a difference to the bottom line. The investment therefore, begins to look even more appealing, to any industry.
There are other statistics out there too; including that certified organisations on average are being paid 7% more than non-certified competitors.
There are of course many other great reasons to implement and certify with ISO 9001. Find out more from a previous blog post (http://ow.ly/AhAU50pSeuH).
So many successful businesses must be right
There are now well over one million organisations in over 170 countries certified to ISO 9001 and I dare say a fair number of organisations that may not be officially certified.
The International accreditation forum saw a growth of 7% globally of ISO 9001 certification between 2015 and 2016 alone. The number of current certified organisations and the growth all point towards the significance of this standard for underpinning quality management, which in turn can help your business increase profitability, reduce costs and become more competitive.
If you need further advice, training, or help with implementing or getting certification to this or any other standard please get in touch.
I get a great sense of achievement in helping clients like you, utilising my 20 years’ experience in quality management, to help you make a real difference to your business. This is why I do what I do.
Lets get your business certified and working towards a return on a great investment.