EFQM or ISO?

Probably the most consistently read post on this entire blog is the one where I contrast the approaches of ISO 9001 and EFQM. It would seem to be a topic that interests people, especially in the Middle East.

Occasionally it leads to questions like “which one is best?” or “which one should we use?”.

In this post I will outline the factors that should be taken into consideration when making that choice, as EFQM and ISO 9001 tend to be used in different ways and to achieve different outcomes. Let’s look at the advantages of ISO 9001 application first.

The benefits of ISO 9001 certification

The main benefit that most companies receive from ISO 9001 certification is that it gives access to contracts and tendering processes. Many companies, when they put out tenders and pre-qualification questionnaires (PQQs) specify ISO 9001 either as a prerequisite or a requirement. It is widely used in Business to Business (B2B) supply chains as a pre-selection tool. This, as any fool can see, gives a certified company a significant advantage. Without certification it is excluded from many bidding processes. ISO 9001 is less widely used in B2C supplier relationships and therefore it is generally of lesser value for a B2C company (that is, a business that has the public rather than another business as its customer).

In situations where ISO 9001 is not actually NEEDED for contractual purposes, it can help a company develop a platform for a management system and therefore a consistent way of doing things. Obviously a company may well be able to develop a management system using its own gumption without going anywhere near ISO 9001, so the benefits it can deliver can be achieved by other means. It does, however, provide a ready made off-the-shelf package for management system development.

Where I think the benefits of ISO 9001 are over-stated are when people start rambling on about how much “improvement” it will deliver. Generally speaking it won’t. It will help provide a platform that COULD deliver improvement, but it won’t deliver improvement in itself, despite what the snake oil consultants might tell you. Remember, they may have a vested interest in having you believe that. In the words of Mandy Rice-Davies “They would say that, wouldn’t they?”

EFQM is a different beast altogether and just as mis-sold

The benefits of using EFQM

The EFQM Model is not a standard. There are no “met/not met” criteria and no respected and recognised certification processes that matter. I have never seen use of the EFQM Model being used as a pre-selection criteria on contracts, and it generally won’t give a company the advantage in a tendering process that ISO 9001 might. So what is it?

The EFQM is a framework for self diagnosis. It has a set of criteria and scoring methodology that enables a company to introspectively assess what its strengths and weaknesses are. Putting it simply, it is a more sophisticated SWOT analysis. It can help an organisation look objectively and holistically at itself and add balance to a strategic planning process. It can also develop a life of its own, get out of hand and deliver nothing but wasted effort. I refer you back to my earlier post for some background as to how that can happen.

So which is better?

I am saying there is no answer to that. The comparison is not one of “apples with apples”. ISO 9001 is not a diagnostic, and EFQM is not a standard. ISO 9001 might offer contract advantages, while EFQM will not. I could go on but, if anything, my message in this post is that if you are asking the question, you need to understand the needs of your company first, before being able to answer the question. The answer could well be “neither” or “both”

Hope this provides you with some food for thought.

Shaun Sayers

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What’s the Remedy for Inefficiency?

A recurring news story in the UK in recent times has been the squeeze on NHS resources. It seems there is hardly a day goes by without a story surfacing about an NHS failure, or a staffing or capacity problem, or something to do with a treatment that the NHS can’t afford to be liberal with. They are, we are told, in a situation where they simply do not have the resources. But is that strictly true? Surely if we were to be able to say that with confidence, we’d need to be comfortable that the delivery models were as slick as they could be and they were operating at full tilt. Is there anybody who would dare to make that claim? What I will agree with is that the NHS, given its current ways of working, probably can’t do much more than it does, it is however limited by two factors, money being only one of them. The other is its management system.

In 2014 the NHS was allocated a budget of £95.6 billion. By any standards that is an eye watering sum. I can’t help thinking that SHOULD be enough. If we imagine for a moment that the UK had no NHS and decided to establish one tomorrow, and its budget was to be £95 billion – would anybody in their right mind design it to look like the one that has evolved? I very much doubt it. The current system is inefficient. Culturally it has evolved with some ingrained unhealthy attitudes, one being the apparent priority of staff interests over the interests of the customer and stakeholder. I’d argue that any organisation that starts to prioritise the interests of staff over customers will soon start viewing customers and their needs and whims as an inconvenience. It is also, by any measure, inefficient.

Now I am not saying that it does not deliver in the main a series of EFFECTIVE outcomes, however the ability to cite a range of good outcomes does not negate the accusation of inefficiency. Frankly anybody given enough resource should be able to eventually deliver inefficient effectiveness, but who can afford that? Moreover, if inefficiency is the root of the problem, then is more resource the solution, or does it just make things worse?

My ten cents …

Shaun Sayers

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Risk Exposure

This is a follow up article to Karel Simpson’s previous guest post entitled “Risk Perception & Tolerance” which you can view here.

Karel Simpson is Corporate Risk Manager at GardaWorld.

In my last article I raised the question on what affects risk perception and tolerance to which I alluded to some elements believed to affect this.  What I did not touch on was the effect on persons who live in amongst different types of risk and to which activities are habitual, just part of everyday life.

I have travelled through Kabul recently and watch the driving which is a push your way in to a gap that your vehicle virtually fits, no second thought to the risk of damaging the vehicle itself.  Then you watch the people who wander across the road in front of vehicles and do not seem phased by the closeness of the vehicles that pass.  Sometimes this is families with children and been sitting in the road to beg, maybe this is a means to an end and a choice taken away and therefore their tolerance is increased.  Is it the fact that they have lived through turmoil and that they do not perceive the risk in the same way as someone who is not exposed to these risks.

You can of course also draw conclusions from this that training and education may not be on road safety in a country such as Afghanistan as perhaps it is in somewhere such as the United Kingdom or the United States.

Take this to a work element that we are familiar with, particularly one I have seen through my own experience and that is roofers.  Roofers work on a roof at heights all day long and seem unphased to the risk of falling.  Not to say they do not take precautions and measures as needed.  I am sure though people have seen the guys I am talking about, sat perched on the roof without a care in the world, nothing to stop there fall and yet are not phased.  I climb onto a roof and let me put it this way. I am not one for heights. I feel uncomfortable, this is not my environment, not my comfort zone and I can identify the risks quite clearly.  So why do roofers not look or appear that this bothers them.

Is this because this is their habitat, where for 6, 7 or perhaps 8 hours a day they spend their time. Does something that surrounds you every day suddenly just become ‘normal’? Then if so how can this be prevented? After all the whole idea of understanding risk perception and tolerance is indeed to try and assist or improve a person’s judgement.  Do this and then the management of risk can come into play ensuring that people continue to work efficiently, effectively and safely, ready to return another day.

In the literature reviewed the exposure to risk was shown across various topics and specific areas to have an effect on how a person would judge risk, with the literature clearly drawing a comparison between exposure and judgement. Campo-Martinez et al. (2010) found in the research they conducted that when a tourist has already visited a destination then their perception of risk also declines for that destination of which is supported by the research of Fuchs and Reichel (2011).

Although in contrast, an interesting article on risk taking in extreme sports was reviewed by Peake (2013) in which looks at the recent study of risk taking behaviour by Dr. Erik Monaterio, a New Zealand based psychiatrist who studies risk. This research found that in extreme sports the risk taking is tolerated in order to gain that thrill and although a serious injury is expected every 200 – 300 jumps this was seen as part of the acceptance by the base jumpers questioned; even with 2/3rds of the jumpers suffering a serious injury already.

My personal conclusion is that two different elements come into play here.  In regards to the tourists it is their perception that is being affected, the more they are exposed to the risk and perhaps the lack of a threat being evidenced, they start to perceive a lower threat.  We can argue if this is right or wrong in a future article as this could be an uneducated guess or simply they feel more comfortable because surroundings become familiar.

The extreme sports element of perception is shown to be accepted and that the tolerance in fact is adjusted, why because they see a positive in the outcome in the thrill seeking experience.  This to me is risk management being used perfectly.  Risk can be positive as well as negative.  An assessment is made, a risk is identified in this scenario but the outcome from the risk is deemed to be a positive result and one worth taking.

This is a snapshot and of course other risk exposures exist that I will look to discuss at a later date.

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What will an auditor accept?

A few days ago an old acquaintance of mine called Pat (we go way back) called me up for a piece of advice. She wanted to rejig the way she did her internal audits and asked me if her auditor (from BSI as it happens, although that is by the by) would accept the changes she wanted to make, or would he judge it to be non-conforming. I get asked similar questions quite often and, sadly, there is only one answer. It depends on who your auditor is. Get a good auditor with an open mind and you’re ok, get one that equates “different” with “non-conforming” and you won’t. Most of you will know that finding yourself with a “Type B” is a far from uncommon circumstance. As an example I’ve encountered a few individuals who refuse to accept the use of cloud based document control systems as conforming to the document control requirements of the ISO standards.

ANYWAY. There is a solution to such intransigence and this is it.

1. Drop the Technical Manager in your certification body a line and run it past him or her – over the phone is better. Whilst I have encountered my fair share of nit-wit third party auditors, I can’t say the same about Technical Managers. Technical Managers have always been (in my experience at least) sensible, professional people that will listen to you and with whom you can reason.

2. Assuming the Technical Manager judges your intentions as conforming to the standard, get his/her confirmation in an email.

3. At the time of your audit, in the event your auditor takes a contrary view, produce the email. If there is a disagreement you have the right of appeal, and the person who will assess the merits of the appeal will be ….. the technical manager. In other words, you both know the appeal will go your way.

That 3 step approach should kill 99% of all known germs. The other useful bi-product of this manoeuvre is that it gives the Technical Manager a few more “eyes on the ground”, and helps identify (let’s be diplomatic) any “training needs” of the troops.

Hope this comes in useful to some of you someday.

Shaun Sayers

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Risk Perception & Tolerance

The third in a series of guest posts by Karel Simpson, Corporate Risk Manager at GardaWorld. Karel’s Blog is linked in the blogroll (bottom left hand side of this page) You can read Karel’s earlier posts on ISO 31000 on this blog

Part 1

Part 2

Have you watched the home video clip shows? The likes of You’ve Been Framed? If you have you will have noticed that people do silly things and take risks that you and I (maybe) would not. Of course you may be sat smiling and thinking to yourself that you might.  This led me to examine the topic of risk perception and tolerance – to try to establish what sort of things make people tick.

I was fascinated at my ultimate findings and I plan to discuss risk perception and tolerance as I continue to study this in my own time, as a personal quest and thirst for learning to share on this blog, hoping that it is of interest to someone. So I will look to post and discuss my ongoing research as I progress, with a snippit below.

So what are the definitions that I would use for Risk Perception and Tolerance? Rosa (2003) defines risk as a situation of “an event where something of human value (including humans themselves) is at stake and where the outcome is uncertain”. Sjoberg et al.(2004) gives the opinion that risk perception is the subjective assessment of the probability of a specified type of accident happening and how concerned we are with the consequences. I think these two fit well together but perhaps would lean more with Sjoberg.

The specific definition of risk tolerance is unlike perception in that the literature tends to not be too opinionated on the specifics and is much in agreement; although the literature is heavily focused on the financial markets as an industry the definition is applicable to all scenarios.  Fox (2012) reflects on risk tolerance being the amount of uncertainty that is willing to be accepted in a particular risk category. This definition although not exactly word for word in the literature available is supported by the views of Lehmann et al. (2009).

So the big question is what can affect risk perception and risk tolerance? What do you think? We will look at this throughout the following posts and blogs over the next few weeks and months.

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