Bridging The Gap Between Direct Management And Strategic Functioning

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ABOUT THE AUTHOR

Jim Moran, M.A.Ed., Founder of The International Management System Institute

As President of Simplify ISO Inc., and The Learning Alliance Inc. Jim has been teaching business professionals since 1977. He has implemented ISO Management Systems since 1992 with Fortune 500 companies, small to medium sized businesses and the Federal Governments of Canada and Africa.

He has designed and delivered Lead Auditor (and other) courses for BSI, QMI (now SAI Global), SGS and the CWB Group. He developed and delivered the Assessor Training Program for Medical Lab assessors who do medical lab accreditation assessment for IQMH – the Institute for Quality Management in Healthcare, Centre for Accreditation.

He served on PC 280 to contribute to ISO 20700:2017 Guidelines for management consultancy services, a standard published for use as a guideline for people or organizations for the assessment of management consulting services.

For further information or to comment on the Management System Professional program, feel free to contact Jim at Jim@imsipro.org or by phone/text at 519-859-4574 in Canada
Featured Article From the QMD Management Elements and Methods CMC
By Jim Moran, M.A.Ed.

The New Role of the Quality Manager in ISO 3.0
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Abstract

Quality, Environmental and Occupational Health and Safety Management System leadership is changing with a trend towards ‘stakeholder based capitalism’ and new demands from The International Organization for Standardization (ISO). ISO standards are now prioritizing management with an emphasis on “management systems,” expanded “stakeholder” constituencies, and a harmonization of elements (i.e. Annex SL structure - HLS).

Today's challenges require a more formal, standards-based management systems approach to a variety of organizational processes, such as risk management, automation, artificial intelligence, innovation, supply chain optimization, profitability, stakeholder expansion, and information security. There's a growing need for a professional who serves at a higher level in the organization as a “direct report” to top management. This person serves as a bridge between the direct management of quality, safety, environmental, information security, supply chain and other functions, and the strategic functioning of the enterprise. This person is a ‘Management System Professional’. This person will guide your organization to a higher level of performance using ISO 3.0 as a framework.

What is ‘ISO 3.0’?

In our view, ISO 1.0 was the first version of ISO 9001 – 1987 & 1994. ISO 2.0 was the second round ISO 2000 & 2008. ISO 3.0 is the whole series of Standards using the High Level Structure (HLS) designed for integration of other International Standards.

The Corporate World is Radically Changing

The Covid pandemic has altered the world as we know it. All levels of business and all sizes of businesses have been affected. World trade was impacted immediately and stakeholders took notice immediately.

Stakeholder-based capitalism is the new reigning corporate management theory, but not all organizations are equipped to respond to the new demands of this ideology. Organizations are now expected to consider the needs and interests of all stakeholders and are more environmentally responsible, less profit driven, and more socially minded than in the past. Covid has magnified the rate of change of focus to warp speed. The World Economic Forum recently updated its Davos Manifesto to emphasize that organizations must be stewards of the environment, respect human rights throughout the supply chain, and provide sustainable shareholder returns that don’t sacrifice the future for the present. Additionally, last year 181 multinational CEOs of the Business Roundtable updated their Statement on the Purpose of a Corporation to emphasize a shared “fundamental commitment to all of our stakeholders.”

While corporate responsibility has evolved with efforts to improve the lives of workers and the world in which organizations thrive, there still exists a gap in fulfilling that responsibility. These gaps have been magnified because of the Pandemic. There are no top management level “corporate accountability” executives. Even if there was such a post, there nevertheless exists a skill gap for that employee in knowing how to accomplish new corporate responsibility goals in a more ‘virtual’ world/ Further complicating the implementation of stakeholder capitalism is the potential credibility gap both inside and outside of the organization. For example, the organization will have to address the question of whether or not they have the ability to deliver what they promise in the face of conditions we’ve never faced in the history of the World. Priorities changed almost overnight. Organizations will also need to provide evidence to illustrate their corporate responsibility initiatives are working and that they are responding to these evolving standards, norms, and expectations.

ISO is Creating Standards to Enhance Stakeholder Return on Investment

ISO is taking on a bigger role than merely setting operational and product standards. ISO has added new standards and processes to help fill the gap between where organizations are and where they will need to be in these new, expanded areas of responsibility. Some of these include ISO 10004 Customer Satisfaction, ISO 31000 Risk Management, ISO 26000 Social Responsibility, ISO 55001 Asset Management, ISO 56002 Innovation Management, ISO 22301 Social Responsibility and ISO 9004 Managing for Sustained Success.

ISO is truly becoming the corporate accountability trend specialist by providing leadership, modeling, and visioning through the processes their standards delineate. Companies that wish to maintain a competitive position in the marketplace must reconceptualize ‘quality management’ and consider elevating the role of the traditional quality, environmental and/or safety Management Representative. The International Management Systems Institute (IMSI) is the first to develop a new certification that will help systems managers bridge this gap.

New Skills Needed to Understand and Deliver ISO 3.0 and Bridge the Gap

What skills and functions are needed to bridge the gap between strategic and tactical accountability? Today’s management system leaders need to be knowledgeable in a variety of skills that align with the broader accountability-based standards. These skills include an ability to lead in:
  • Risk management
  • Accountability
  • Stakeholder inclusion
  • Sustainability
  • Statistical analysis
  • Supply chain management
  • Company maturity/continuous improvement
  • Profitability/growth
  • IT security management
  • Automation
Quality experts will need to have the ability to gain support and operational resources to expand the ‘quality agenda’ both within the organization and outside the organization to all stakeholders and influencers (i.e. vendors, customers, governments, etc.). This senior level of organizational understanding and skills are necessary for effective implementation of a variety of ISO Standards, such as ISO 9001 Quality Management, ISO 14001 Environmental Management, ISO 45001 Occupational Health and Safety, ISO 10004 Customer Satisfaction, ISO 56002 Managing Innovation, ISO 13485 Medical Devices, ISO 55001 Asset Management, and many more.

But the traditional role of the quality manager is not obsolete, and companies can take advantage of the existing skill sets of their quality, environmental and safety management representatives to build a more collaborative role with top management that elevates the standard of quality and embeds it into every part of the organization. Current quality, safety, and environmental managers could be equipped to fill this need for an evolved management system role within their organization. The right training can help System Managers get recognized within their organizations as the ‘management systems’ expert and arm them with practical tools to improve organizational performance and enhance resilience in all industries across a variety of different standards.

Increasing the Value of Today’s Management Systems Professionals

There is a pool of existing talent that can step up to fill this new need for corporate accountability executives in those who are delivering management systems including Quality Management, Health and Safety Management, Environmental Management, Energy Management and other areas – certified and non-certified. These employees have the basic skill sets necessary to lead their organization’s quality agenda because of their ability to impose a repeatable, disciplined, and measurable process into areas where there can often be little accountability. These same disciplines are accustomed to internal and external review and meeting industry-accepted standards and practices (i.e. ISO Standards).

In order to meet the new demands of leadership and stakeholder accountability, existing ‘quality’ employees only need the additional skill sets noted above, plus the ability and support to present their solutions to senior level company executives who will need to respect their expertise. Once these new skill sets are mastered, the value of these individuals will increase; both in their own organizations and in their attractiveness to other organizations. In essence, they will be creating a broader career potential for themselves. Managers with a broader skill set can help Top Management meet various Standards requirements more easily by integrating your systems:
Duplication Can be Reduced by Integrating Management Systems and Bridge the Gap
Areas of Integration to reduce duplication Leadership Commitment Customer Focus Planning and Risk Management Resources Operations Performance Evaluation Improvement
Quality Management
ISO 9001
Environmental Management
ISO 14001
Occupational Health & Safety
ISO 45001
Information Security
ISO 27001
Corporate Accountability Can be Demonstrated by Enhancing Your Management Systems With These Additional ISO Standards
Enhancements in these areas Accountability Awareness Communication Employee Engagement Corporate Responsiveness Performance Evaluation Supporting other levels of Management
From these Standards
Managing for Sustained Success
ISO 9004
Risk Management
ISO 31000
Innovation Management
ISO 56002
Business Continuity
ISO 22301
Customer Satisfaction ISO 10004
Asset Management ISO 55001
How these Standards Link Together to Help Bridge the Gap
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Real-World Examples of an Integrated Management System Delivering Value


Integrated systems can apply processes from these complementary Standards in a variety of different ways:
  • Oversee the collection of customer satisfaction data from more ‘Interested Party’ viewpoints
  • Analyze customer satisfaction data and proposing ideas for improvement
  • Monitor stakeholder engagement and commitment to the achievement of the organization's objectives
  • Standardize facilities management to include environmental, health and safety and infrastructure perspectives
  • Evaluate and implement risk management processes and practices
  • Leverage improvements found in one area to benefit the entire organization
  • Manage risks more efficiently to give an organization a better ‘radar’ system
  • Synergize Audit activities to create more value and find more harmonized improvement opportunities
Integrating These Standards Will Help Bridge the Gap and Benefit the Bottom Line

The new management system professional will become more valuable to organizations because of the unique benefits they’ll be able to offer in their new role as they integrate your Management Systems. Companies who invest in enhancing their quality, environmental or safety manager’s training can reap the following benefits:
  • Improved ‘Return On Investment’ (ROI) Make ISO pay dividends to the organization
  • Integrated System savings include reduced internal audit time and reduced Registrar costs
  • There are fewer interruptions with an integrated system
  • It becomes easier to spot trends across processes and find process improvement opportunities
  • Reducing duplication across the organization improves efficiency and enhances communication
  • Improved communication (and employee buy-in) of company objectives and expectations
  • Cost savings in professional development by training employees with the most essential, practical information to save you time and money on management system improvements.
  • Training savings from having an employee obtain skills in a variety of core areas that can be applied to many different ISO management system standards, such as 9001, 14001, 13485, 22000, 50001, 22301, 27000, etc.
  • The ability to implement Next Generation Auditing skills (IRCA Paper: https://annexsite.files.wordpress.com/2014/10/next-generation-auditing.pdf
  • An employee who possesses new management system leadership skills and can help top management train others in their company on these skills to save money on future trainings
Train Your Management System People to Integrate and Enhance You Current Standards

When you do, your training investment is compounded by training future trainers. Not only will an investment in creating a Management System Professional increase their value to your organization, these professionals will be able to ‘clone’ themselves and create more value by mentoring more Professionals.

Management Systems Professionals will be able to…
  • Provide employees with ISO standards-based skills and perspectives that will help them guide their organizations into new, more future-aligned approaches such as wider stakeholder bases, more sustainable operations, more risk and probability-based decision making and an expanded use of ISO Standards.
  • Equip ‘quality’ employees with the tools to help internally market the value and positive impact of this more advanced and integrated systems approach to managing.
  • Give ‘quality’ employees an expanded career potential in terms of organizational influence, compensation, and occupational demand.
  • Offer a curriculum consisting of Standards that are internationally recognized and used. This makes the learning you'll get universal and portable.
  • Help employees implement projects to enhance their existing Quality Management Systems and integrate a number of Systems for greater organizational benefit.
The Time IS NOW!

We have come from an ISO 9001 Standard that required 20 documented procedures in 1987 to one that has no specific documented procedures required in 2015. There are now many ISO Standards designed in the ‘High Level Structure’ format that can be successfully integrated into an existing system to create synergies that have not been possible before.

The sooner your organization sees the value in an ‘Integrated Management System’, the sooner you’ll be able to strengthen your organization, compete better and set your sights on long term sustainability. By integrating your systems, you’ll be in a much stronger position to bridge the gap between direct functioning and strategic functioning.

This is your opportunity to leverage the investment you’ve made in your Management System, streamline your operation to realize a bigger return on your ISO Management System asset.
News Quality Management Division 06/07/2021 12:05pm CDT

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