How_Can_ISO9001_Help_Your_Business_Succeed

Technical Education

Transcript

00:00If you are considering the ISO 9001 or creating your own quality management system for your

00:19business you will not be alone. 85% of businesses who go down this road have under 250 members

00:25of staff, the typical definition of a small to medium sized enterprise SME in the United

00:31Kingdom. Around half the new businesses certifying to ISO 9001 have under 50 employees and some

00:38have less than 5. We can better understand the value of investing in creating a quality

00:46management system by looking at the challenges faced by small businesses and how they can

00:51be addressed through a structured quality management system.

00:56Growing too fast. Whilst growth is desirable, over-expansion is a serious error. Set realistic

01:02goals and expand only as needs dictate. With well-defined processes you'll be able to identify

01:10where the pinch points will come from taking on new business and react accordingly.

01:18Failing to track your finances. Look at businesses that fail and you'll find that many of them

01:24took on too much debt and failed to manage the cash flow. Managing the cash is critical

01:30in small businesses. Being close to customers and delivering on their expectations should

01:35mean that payments are made on time and queries delaying payments reduced.

01:41Lack of reserve capital. Be prepared for unexpected increases in the costs of things like utilities,

01:48materials and labour. Make sure you keep enough reserve cash to carry you through the

01:53tough times and seasonal slowdowns. By measuring and monitoring your process performance and

01:59driving an improvement in efficiency, you'll be able to keep costs to a minimum and be

02:05aware when overruns in labour or materials occur.

02:10Poor execution. Poor customer service and overall employee incompetence will quickly

02:15sink your business. Make sure your employees place a premium on customer service. Develop

02:21systems and processes for how tasks should be accomplished and create internal controls

02:26to monitor them. The core requirement of the ISO 9001 is meeting customer expectations

02:32and managing satisfaction. The regular audit of internal processes and measurements of

02:37satisfaction will ensure that the focus of customers is maintained.

02:41An inadequate business plan. A well thought out business plan forces you to think about

02:46the future and the challenges you'll face. It also forces you to consider your financial

02:51needs, your marketing and management plans, your competition and your overall strategy.

02:57Having a plan is critical but it's also important that the plan is communicated throughout the

03:02business and everybody knows their role and is trained to do their job. The ISO 9001 pays

03:08particular attention to this.

03:12Failing to change with the times. The ability to recognise opportunities and be flexible

03:16enough to adapt is crucial to surviving and thriving. Learn how to wear multiple hats,

03:23respond nimbly and develop new areas of expertise. The focus on customers and the requirement

03:29to continually improve will assist in keeping you focused on challenges in the marketplace.

03:35The system will also assist in ensuring that the agreed change is carried out in a structured

03:39manner. Ineffective marketing. Customers can't do business with you if they don't know that

03:44you're there. It doesn't cost a lot to advertise and promote your business through online marketing,

03:49social media, email, local searches and many more. With quality at the forefront of your

03:54business, your professionalism will reflect your reputation.

03:58Understanding competition. Customer loyalty doesn't just happen, you have to earn it.

04:03Support your competition and stay one step ahead of them. If you don't take care of your

04:08customers, your competition will. Measurement of customer satisfaction is a key part of

04:13the ISO 9001, so you'll be able to identify trends in retention and repeat purchase, two

04:18indicators of customer satisfaction.

04:22We can tangibly see the results from companies who have implemented quality management. 75%

04:28of businesses improve their levels of customer satisfaction and loyalty. 77% of businesses

04:36improve their operational performance. 74% of businesses acquire new customers and retain

04:43existing clients. 44%, nearly half of businesses achieve cost savings. That's ultimately reflected

04:52in the bottom line, or your company profits.

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