ISO (International Organisation for Standardisation) was founded in 1947 with the aim of bringing some international standardisation to manufacturing quality and traceability.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Some years ago on Melbourne radio, one company started promoting its products as those built to the exacting standards demanded by ISO9000.
I’m sure this advertisement caught the attention of many in the manufacturing sector, probably to the detriment of the advertisers who had either failed to realise what ISO Certification was really about, or was trying to hoodwink and unknowing public.
In any case the advertisement was “pulled” within days.
ISO Certification does not dictate that products are best of class.
Its purpose is to establish system and order, to improve documentation and traceability.
In essence it puts order into businesses that without it may be otherwise somewhat chaotic.
That’s the good news.
So what’s the catch?
A study by Mike Tushman of Harvard Business School and Mary Benner of the Warton school showed that the adoption of ISO9000 may come with a “sting in the tail”.
In the years immediately following ISO implementation business outcomes improved in terms of reduced defect, less waste and rework, improved quality and more repeatability in terms of all processes.
Customers, especially the bigger ones, loved this.
These customers were eager to see all of their suppliers embrace ISO9000.
Of course in the wake of this many others followed suit, or in some cases were pushed into accreditation by their upper tier customers.
However, after several years of working with the system and order dictated by ISO, the innovation of these accredited companies collapsed.
No longer was there so much free-thinking and an ability to step outside the boundary dictates of ISO.
The result the study revealed was that within five to seven years at the most, innovation output plummeted, these companies became slaves to the ISO regime and stagnated.
What’s the message?
ISO9000 accreditation may be necessary and indeed essential, especially if you are a supplier to the majors, but beware its downside.
The more system and rigour you bring into your organisation, the greater the need to implement some systematic means of innovation into your business as a cultural part of its DNA.
