You know if a Management System is valuable only if it is fully used and the business performance of the organization meets all requirements.
The Management System is a tool that should be used to enable a structured control of a business. We have to measure the value of this tool based on expectations and requirements put on the organization.
The requirements on the Management System should be drawn from the performance needs expressed by external stakeholders. Top management often confirm and clarifies such needs, and set out ambitions for the business, in strategical plans. From such plans we should typically find requirements related to:
- Customers – How to add value to them.
- Suppliers – How to cooperate to gain mutual value.
- Products & services – What shall we offer to the market.
- Performance – Costs, delivery precision, response time.
- Flexibility – Standardized offers or customer driven solutions?
Such requirements should be specified in measurable performance indicators. By adding objectives for these performance indicators will it be possible to understand if the business performs as required.
But this is not enough to understand if the Management System add value to the organization. It is possible to have good performance without using the defined Management System. Then this is of no value. The same could be valid if we know that the defined Management System is used, but we have no information if the organization meet performance requirements.
To be able to monitor the usage of the Management System we conduct document controls, quality controls and audits. Doing this one can analyze if the Management System is described to a required level, the level of product & service quality compliance and if it is applied in all relevant part of the organization.
By combining the knowledge from this analysis of the Management System usage with the business performance it will possible to draw conclusions about the Management System business value.