By Parker This article will examine the many benefits of ISO 9001. Interviews with business leaders, published case studies by ISO, decades of experience, and decades of real-world examples will show how ISO 9001, the world’s most well-respected quality management standard, impacts customer satisfaction, employee productivity, sales revenue, company reputation, and quality.
We will discuss the marketing and internal benefits of ISO 9001 and how adoption can increase profitability. We’ll show you the many reasons ISO 9001 is right for your company.
The Internal Benefits Of ISO 9001
The most important benefits of ISO certification are often internal, not marketing. The International Organization for Standardization has confirmed this in a series of case studies that examine how ISO 9001 benefits companies in over 20 countries. These were the principal benefits identified:
- Customer satisfaction and loyalty improved
- Happy and more competent employees
- Superior quality products and services
- Increased efficiency, fewer errors, and less time wasted
- Lower overall risk
It should not be surprising that ISO 9001’s most valuable benefits are operational, rather than marketing. ISO 9001 was created to help companies improve their operations and bottom lines. Certifications and marketing benefits were added later.
Increased customer satisfaction and loyalty
ISO 9001 is all about customer satisfaction. The standard requires that you as an organization determine if customer needs have been met and monitor your customers’ subjective perceptions of it. A quality management system that is properly implemented will almost always deliver customer satisfaction.
It is crucial to meet and exceed customer expectations. Satisfied customers are more likely to return and develop loyalty. They may also generate additional revenue streams through word-of-mouth or written recommendations.
Happier, more competent employees
We discussed in How ISO 9001 Benefits employees how a strong ISO quality management system can have a positive impact on staff. These benefits typically include:
Empowered employees
A key factor in job satisfaction is the feeling of empowerment. ISO’s core principles include engaging and involving employees. This is a key factor in a happy and motivated workforce.
Training for employees / Professional growth
Employee training is another key tenet in ISO 9001. Employees respond positively to staff reviews and evaluations, training programs, and additional responsibilities. Employees love knowing that they are part of a growing company and that their career is secure.
Better understanding
Because ISO standards are so focused on customers and customers, staff can better understand how their actions impact the final product or service. This helps them to make informed decisions and help others.
Greater employee engagement
ISO 9001 promotes a supportive culture that fosters enthusiasm, engagement and increases productivity.
A productive workforce is one that is happy, motivated, well-trained, and competent. ISO 9001 is a significant benefit in this regard.
Better Quality Products and Services
Higher quality is often associated with – and expected from – ISO 9001 and certificated companies. This is one of the main benefits of implementing the standard. This point is clearly illustrated by the International Organization for Standardization case studies.
These case studies are very typical. The Plan-Do-Check-Act cycle is part of the 9001 Standard. Organizations can integrate this into a culture that encourages continuous improvement. This will ensure that processes are well managed and that opportunities for improvement can easily be identified and taken action on.
Improved efficiency, fewer mistakes, and less wasted time
Many of the requirements in the Standard result directly or indirectly in improvements in operational processes. These include efficiency and reliability. The requirements regarding employee competence, supplier controls, and updated documentation all contribute to reducing scrap, waste, and rework. Process approach and risk-based thinking are two fundamental concepts of ISO 9001. They help to integrate operational processes more efficiently and with less room for error.
Lower overall risks
The 9001 Standard includes risk-based thinking. The Standard states that risk-based thinking allows an organization to identify the potential factors that could cause its processes or quality management system to diverge from its planned results. It also allows the organization to establish preventive controls to minimize negative consequences and make the most of opportunities when they arise.
The Standard stresses that all employees must be involved in identifying and mitigating risk. It’s not just the top management who is responsible, but all employees. Organizations will see a reduction in overall risk once they have established a culture of risk awareness and put in place the controls required.
Marketing Benefits of ISO 9001 Certificate
A certificate certifying ISO 9001 is a powerful marketing tool. It is a powerful marketing tool that can be displayed on your company website and documents. These are the marketing benefits:
- Market share and sales growth
- Selling prerequisites met
- Access to international markets is easier
- Prestige
While marketing benefits may be valid, it is important to remember that ISO 9001 was created to help companies improve their operations. The most important benefits of ISO 9001 are operational (i.e. internal) and not marketing.
Conclusion
The most widely used quality management system in the world is ISO 9001. Recent data shows that more than one million companies worldwide have been certified. They come in all sizes and are from a wide range of industries. These certifications have many benefits that can impact both the culture of the company and the bottom line.
Every organization does not reap the same benefits from ISO 9001 certification. Implementation methods play a major role in determining the success of ISO 9001 certification. You can read our article about the ISO 9001 certification process to learn more.