Advantage and disadvantage of ISO certification

International Organization for Standardization (ISO) certification has penetrated lives and has its advocates as well as adversaries. Today, any business that wants to improve its management system and is serious about business, knows about ISO 9001, ISO 45001 and ISO 14001. Many organisations are currently in pursuit of the certification in the hopes, that it is a great return on investment. The question then arises, are there any real-world benefits of acquiring ISO certification and are there any potential or hidden disadvantages? In this article, we make an honest attempt to discuss the advantages and disadvantages of acquiring ISO certification.

What is ISO certification?

ISO has published more than 20,000 quality measures for organisations in different sectors, ranging from aviation to food manufacturing. The aim of developing these standards is a way of setting requirements for specific management systems or items. Hence, the mission of ISO is to motivate and encourage the production of goods and services that are safer, more efficient and standardised. In one of two ways, organisations can become ISO certified or can conform to the ISO standards. This includes:

• Adhering to ISO recommendations without undergoing an external audit to obtain ISO certification.
• Adhering to ISO recommendations, undergoing an external audit to have their management systems assessed by an
• independent certification body, so that they can gain confirmation that they satisfy specific standards.

Obtaining ISO certification is more advantageous as it proves to all your stakeholders that you have successfully cleared the diligent requirements of a third-party certification body. For more information, we suggest that you familiarize yourself with the types of ISO certificates.

Advantages of ISO certification

Some of the advantages of acquiring ISO certification are dependent upon the standard that you have selected to implement in your organisation. For example, if you have selected ISO 9001, a standard that is popular for providing the guidelines which help organisations to develop their Quality Management Systems (QMS), you will enjoy benefits related to quality control, including better quality of goods/services, efficiency and consistency. Similarly, implementing ISO 14001, which focuses on environmental management will allow you to enjoy benefits such as better brand recognition amongst environmentally conscious consumers, greener products or services and lesser wastage.

However, in addition to the specific benefits that each standard brings, there are several benefits that are available to anyone who acquires and implements ISO management system within their organisation.

Increased marketability

Acquiring ISO certification is marked with heightened credibility with current and prospective clients alike. It proves that the organisation is dedicated to providing quality to its customers, which is no small advantage. This benefit manifests as increased customer retention and greater customer acquisition.

Reduced operational expenses

During the rigorous auditing process of ISO certifications, significant shortcomings in various operational areas are exposed. Moreover, the application of corrective actions helps to reduce operational expenses and enhance overall efficiency.

Better management control

ISO certification requires organisations to undergo repeated self-assessments, leading to a greater understanding of the company’s overall direction.

Improved internal communication

The process of securing ISO certification often serves to refocus an organisation’s priorities on placing its customers in all respects, including services and quality.

To know other advantages of ISO certification, read the article benefits of ISO certification.

Disadvantages of ISO certification

There are many potential hurdles for entrepreneurs who jump into the certification process before understanding or studying about ISO certification. These include:

Funding issues

The critics of ISO certification state that achieving certification can become very costly, especially for smaller firms. Although, in the long run, this investment is always substantiated, but initially, one needs to accumulate funds for the certification process.

Misunderstanding causes resource mismanagement

When owners and managers do not have an adequate understanding of the certification process or the standards themselves, they have been known to direct their organisation’s resources towards registration, only to find that they have completely misunderstood the requirements, resulting in wasted time and effort.

Significant emphasis on documentation

ISO certification relies heavily on documentation of internal operating procedures in all areas, including the management system. It requires organisations to create different types of documents and records. Types of documents include the policy, objectives, and work instructions for the management system.

Types of records include the findings of the audit program, how the audit results were mitigated and the progress of the management system. Therefore, critics state that this heavy emphasis on documentation is disadvantageous for the organisation. However, the requirements of ISO standards clearly states that you need to “strike a balance” in your documentation, where documenting every aspect of the processes is not required.

Conclusion

In the diverse world of management systems, nothing can be generalised. The advantages and disadvantages of ISO certification always differ from case to case. Additionally, you also need to consider whether companies themselves have made errors in their approach to consulting or during the certification process.

Many a times, managers arrange for a management system or an ISO certification at the very last moment, mostly as a consequence of already facing problems, or when a customer insists on certification. In such situations, it is not the management system or the ISO certification that is becoming disadvantageous, but the fault lies in the poor planning, improper documentation, lack of implementation and lack of managerial insight.