ISO 9001-2008 and Corporate Acquisitions
Posted on November 21, 2010 | No Comments
Richard Desmarais asked:
Long before a company is announced to have been acquired by another, you can be assured that every penny spent by the acquired organization has been scrutinized. Do not ever expect any costs associated with ISO 9001 to be readily understood. ISO 9001 certified companies are subject to a 3-year maintenance cycle. Each passing year requires a 3rd party external audit by your registrar. Here’s how it works. The first audit you are subjected to is a 100% audit of your Quality Management System (QMS). If you pass, the 2nd year would be a 50% audit of your QMS. The 3rd year would be a 50% of the other portion of your QMS. The 4th year would be a 100% audit of the QMS, just like the 1st year. The 5th year is a 50% audit. The 6th year is a 50% audit. the 7th year is a 100% audit, and so on.
For global organizations or those with multiple branch offices, this might amount to significant expenditures. However, these expenditures are fully justified. Here are some of the benefits of ISO 9001:2008:
Fewer re-works Fewer rejects Improved overall quality Improved employee morale Improved employee retention Access to RFPs and other business that requires ISO 9001 certification Improved customer satisfaction Laser-like focus by the organization on its objectives and strategy Improved competitive advantage Reduced business risk Reduced barriers to trade Enhanced attractiveness to investment Improved brand reputation Greater profitability Higher return on assets Increased sales Streamlined and enhanced operations Reduces waste Enhances internal communications And on and on…
So it’s pretty clear from this extensive list that ISO 9001 can SAVE an organization a fair amount of money. That said the single greatest challenge for the Management Representative or anyone else responsible for ISO 9001 will be to PROVE to the senior management of the acquiring firm the value of maintaining the 9001 standard.
And the easiest way to prove how ISO 9001 works, saves money and improves quality is to MEASURE IT. Make a concerted effort to take a snapshot of key metrics and other business metrics before the ISO 9001 program is implemented. Then, continue compiling data as the years go by. Undoubtedly you will find the trending is in favour of ISO 9001. This is what you need to share and shout from the rooftops. Simply saying “we love ISO 9001″ and “it’s great” is not enough.
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Long before a company is announced to have been acquired by another, you can be assured that every penny spent by the acquired organization has been scrutinized. Do not ever expect any costs associated with ISO 9001 to be readily understood. ISO 9001 certified companies are subject to a 3-year maintenance cycle. Each passing year requires a 3rd party external audit by your registrar. Here’s how it works. The first audit you are subjected to is a 100% audit of your Quality Management System (QMS). If you pass, the 2nd year would be a 50% audit of your QMS. The 3rd year would be a 50% of the other portion of your QMS. The 4th year would be a 100% audit of the QMS, just like the 1st year. The 5th year is a 50% audit. The 6th year is a 50% audit. the 7th year is a 100% audit, and so on.
For global organizations or those with multiple branch offices, this might amount to significant expenditures. However, these expenditures are fully justified. Here are some of the benefits of ISO 9001:2008:
Fewer re-works Fewer rejects Improved overall quality Improved employee morale Improved employee retention Access to RFPs and other business that requires ISO 9001 certification Improved customer satisfaction Laser-like focus by the organization on its objectives and strategy Improved competitive advantage Reduced business risk Reduced barriers to trade Enhanced attractiveness to investment Improved brand reputation Greater profitability Higher return on assets Increased sales Streamlined and enhanced operations Reduces waste Enhances internal communications And on and on…
So it’s pretty clear from this extensive list that ISO 9001 can SAVE an organization a fair amount of money. That said the single greatest challenge for the Management Representative or anyone else responsible for ISO 9001 will be to PROVE to the senior management of the acquiring firm the value of maintaining the 9001 standard.
And the easiest way to prove how ISO 9001 works, saves money and improves quality is to MEASURE IT. Make a concerted effort to take a snapshot of key metrics and other business metrics before the ISO 9001 program is implemented. Then, continue compiling data as the years go by. Undoubtedly you will find the trending is in favour of ISO 9001. This is what you need to share and shout from the rooftops. Simply saying “we love ISO 9001″ and “it’s great” is not enough.
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