A Guide to the Internal and External Effects of an ISO Registration (Demo)

Venturing into business can be daunting, especially when entering an industry with many competitors. However, competitors aren’t the only challenges that you are bound to face; other challenges like customer service and product quality may also get in the way. While many decide on addressing these issues themselves, some try to acquire certification from assessing bodies that work with the International Organization for Standardization (ISO). There are many certifications or standards you can choose when going through the ISO registration process. One of the most popular is the ISO 9001, which involves checking the quality of products or services delivered by the company, and its customer relations. The ISO doesn’t conduct the assessments themselves, so you need to go to assessors like the International Standards Authority, Inc. to have the company go through the whole process. While many rely on the ISO 9001 to improve their business, many are skeptical about its true efficacy, and whether or not the benefits would last. Researchers Maders and Vries of the ISO.org say that there are true effects in going through the certification process, but it will depend on the performance of the company. The two state in their article that those who truly seek real improvement are those who gain more than those who wish to use the program only as a quick fix for their current hiccups. Applying for ISO 9001 registration means that your company will undergo assessment and auditing from the likes of the International Standards Authority, Inc. to improve the quality of your products, operations, and customer relations. Studies show that it is by working on these aspects of a company that the ISO 9001 can help in enhancing the financial performance of a business. Maders and Vries’s study shows that although the benefits don’t come right after the implementation, it does so as the program progresses. The two writers explain that the efficacy of the benefits is first brought out by the direct internal effects within the company, which includes improved control over production, quality of goods and services, productivity, and efficiency. Then the external effects come about as a result of improved operations. Once the certification is approved, it brings out even more benefits through the Signaling Theory, which states that the quality of a product is announced to prospective clientele through the newly acquired ISO 9001 certification, and will therefore draw them in. According to the article, those who wish to address external pressure with the certification will be able to improve operations, but those who truly wish for the company to grow can take it even further. That said, when trying to get ISO-certified, it is better to think of the company’s future rather than what customers think of the company now, so that you can get the most out of the process. After all, the ISO 9001 standard is all about creating trust and rapport with customers.