A Quality Management System (QMS) is a set of policies and processes that enable organisations to meet the needs and requirements of their customers. A good QMS will instil a culture of quality and continuous improvement within an organisation.
Implementing a formal QMS such as ISO 9001 can result in several key business benefits that give businesses an advantage over their competitors. A Harvard Business School study found that 65% of organisations see at least $25,000 saving within one year of adopting ISO 9001. An impressive 27% percent of organisations realise savings of at least $100,000. Learn more about the benefits of ISO 9001 below.
Increase customer satisfaction
ISO 9001 defines quality as meeting and exceeding customer expectations. The QMS promotes a customer-centric business and puts a large emphasis on achieving customer satisfaction. The more satisfied customers are, the easier customer retention and growth becomes.
Win more business
Increased customer satisfaction enables organisations to market themselves more effectively thanks to a growing number of advocates for their products and services. An increase in positive reviews, referrals and recommendations will see organisations gain competitive advantage and ultimately win more customers.
Gain international recognition
ISO 9001 is an internationally recognised standard, enabling businesses to stand out from competitors on the global stage and explore new market sectors where quality certification is a requirement.
Strategic and Operational Benefits
Increase efficiency and reduce waste
A QMS will support businesses to ensure their processes are as efficient and consistent as possible, reducing any unnecessary waste in terms of time or resources, and ultimately improving their bottom line.
Prepare for growth
Growth is the aim for almost any business, but in the absence of quality and efficient processes, growth can also exacerbate wasteful practices, reducing profit margins. It can also expose weak points in processes that can bring operations to a halt. A QMS promotes scalable processes that allow businesses to grow with confidence.
Risk Reduction Benefits
Reduce costly errors
A QMS supports the implementation of best-practice processes to achieve greater consistency in operations and delivery of products and services. This reduces the likelihood of costly mistakes that could lead to rework, refunds, lost business, legal action or regulatory fines.
Mitigate regulatory risk
A QMS can mitigate regulatory risk by supporting organisations to remain compliant with legislation, regulations and standards most relevant to their operations and landscape.
Reputational and Cultural Benefits
Improve employee experience
A well implemented QMS will increase the quality of internal processes (e.g. employee onboarding) and communication, increasing employee satisfaction. Additionally, a Harvard Business Review study found that employee earnings grew more rapidly post-ISO certification when compared with organisations who did not adopt ISO. Improved earnings and employee experience increases an organisation’s ability to attract the best talent. In other words, quality breeds quality.
Increase employee engagement
Implementation of a QMS will encourage all employees and personnel to consider and address risks and identify opportunities for further improvement. An engaged workforce leads to higher job satisfaction and allows business to reap the benefits of their employees’ knowledge, skills and creativity.
A culture of continuous improvement is a core principle of any good QMS and is a theme that runs throughout the ISO 9001 standard. The benefits realised from implementing a QMS are not a one-time boost. They can grow exponentially over time as an organisation uses the QMS framework to continuously improve the quality of its products and services and the satisfaction of its customers.