ISO 9001 and Quality: Turning the Tables on Current Business Doctrine (Demo)

The tale of quality and quantity starts with a coin. Only one side can face up; the bottom has to face down. If you want to focus on quality, you may need to settle for a lower production rate. If you want quantity, you may need to sacrifice QA checks to meet the deadline. As much as you want to strike a balance between the two, the coin example is highly likely. In today’s business, however, it’s not a choice at all. Quality is the name of the game, according to people like Forbes contributor Steve Denning. In his article, he used a peculiar example—French restaurants— to get his point across. The following is his take on quality and quantity in a nutshell:

“What the Michelin guide does is unambiguously maintain the priority of customers over money. Obviously, the successful restaurants do make a great deal of money. But that’s not the goal. Making money is the result.”

It’s a bit strange, but maybe there are lessons to be learned from Denning’s gastronomic quest. ISO 9001 certification, after all, places customer satisfaction as one of its priorities. Shareholder Value If you’ve grown up learning that money matters in business, it’s understandable. It means you probably grew up during the 1970s. At the time, the term “shareholder value” formed the bulk of business doctrine. Business were focused on external affairs (expansion) rather than internal (maximizing profit). Two economists, Michael Jensen and William Meckling, pointed out this problem in 1976. It’s “biting off more than you can chew.” As time passed, however, this dogma of business has begun taking its toll on other aspects, like customers. As it turned out, Jensen and Meckling’s “shareholder value” concept had many flaws. For one, Yves Smith of Naked Capitalism writes, the theory lacked legal basis. However, it was too late; the theory, for most entrepreneurs, has since become the law. Turning the Tables Compliance with global standards will definitely involve a hefty investment, not just prior to the certification process but also until the next ISO 9001 certification. Be sure you’re financially ready to tackle this endeavor if it will ultimately mean more satisfied customers. Although ISO has a specific standard for customer satisfaction, ISO 9001 specifies the general layout. Experts say a loyal customer has more weight than several temporary ones since the former has been satisfied with the business’s products and services for years. Studies show that it’s more cost-effective to keep loyal customers than attract new ones. Before you undergo certification from services like ISA Registrar, think about your business doctrine. Do you want to see a fat wallet or satisfied customers? (Source: “What The Legendary French Restaurants Tell Us About Ourselves,” Forbes, July 8, 2014)