NFIB

What a Small Business Can Learn from ISO Certification
02/ 16/ 2004

by Jeffrey Moses

The International Organization for Standardization (ISO) certification is an internationally recognized standard for quality management systems. The certification originated primarily as a method to standardize the manufacturing process from company to company, ensuring that specific parts and equipment meet standards for quality and precision during manufacture.

In 2000, the certification was modified and expanded so that service-based organizations could more easily apply the standards to their operations. The ISO 9001:2000 certification, as it is called, allows any type of company to standardize the quality of its operations. Receiving ISO certification requires special training of some employees, as well as in-house and external audits to make sure that specifications are being met. The initial certification process can take a year or longer, and can be costly in terms of employee hours required. Large companies often assign a team to complete the process -- but smaller companies with fewer employees usually do not have this luxury.

Small businesses, therefore, seldom pursue the ISO certification. Those that do often contract out their services to larger organizations that require or give preference to companies with ISO certification.

Nonetheless, any small company can benefit from understanding what the ISO certification involves. The certification itself may be beyond the scope and needs of a small business, but by adopting some of the required ISO procedures, a small company can streamline its operational procedures, improve customer satisfaction, upgrade employee skill and commitment and maintain quality month after month.

Aspects of ISO certification that can apply to small companies include:

Writing complete, detailed descriptions of every task performed by employees: These descriptions are not 'employee job descriptions.' Rather, they describe the tasks themselves, step-by-step from inception to completion. Every company can benefit from looking at its activities closely and determining important tasks that can be streamlined, changed or eliminated. Also, the complete and detailed description of tasks serve almost as an employee manual, allowing new employees to read about what they'll be doing. This saves time and expense in training.

Ongoing auditing or reviewing: By monitoring to make sure that employees are following the steps exactly as written, quality can be maintained. The ISO certification is an ongoing process, not a one-time event. Certification requires regular, scheduled in-house auditing, as well as an annual audit by an outside, impartial auditing organization. A small company probably would not bring in an outside organization to audit its dedication to maintaining adherence to documented processes. But paying close attention to sustaining the integrity of all tasks that are performed optimizes quality in every phase of operation.

Selecting individual employees to supervise the monitoring procedures: Once documentation is complete, one or more individuals need to be given responsibility for monitoring (the ISO term is 'auditing'). One of the best ways to accomplish this is to hold monthly or quarterly meetings that are dedicated to the topic. Managers and senior employees should be required to bring detailed records of how employees adhered to the written standards. The meeting can be short -- usually everything can be covered in half an hour or slightly longer.

Informing all employees about the ISO-like documentation: It's vital for the success of any program like this that all employees are involved and committed. The more informed about the process they are, the more they will value the company's commitment to quality in every task performed.

Many small businesses avoid adopting procedures or certifications that are common among larger corporations. But looking at guidelines designed to standardize and maintain quality management can benefit companies of all size.

More information can be found at the ISO Web site: www.iso.org.

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