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The Importance of Leadership in ISO Management System Standards Background and Overview to ISO Management System Standards

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The Importance of Leadership in ISO Management System Standards Background and Overview to ISO Management System Standards The importance of leadership in ISO management system standards Background and overview to ISO Management system standards ISO has over the years published many management system standards for topics ranging from quality and environment to information security, business continuity management and records management. Despite sharing common elements, ISO management system standards all have different structures. This, in turn, results in some confusion and difficulties at the implementation stage. To help make the implementation process Introducing Annex SL Annex SL and its new structure should not smoother, ISO has completed work to present concerns for those organizations The new high level structure of Annex provide an identical structure, core text, that have embraced the management SL which will be adopted in all new ISO common terms and definitions for system philosophy, but could present a management system standards is outlined management system standards of the challenge for those that have certification below: future. This will ensure consistency among for the ‘badge on the wall’. future and revised management system Clause 1 Scope For example: There is increased reference standards and make integrated use simpler. to “organizational” context - the need to It will also make the standards easier to read Clause 2 Normative references demonstrate an understanding of the and, in so doing, be understood by users. Clause 3 Terms and definitions internal and external issues that impact on the business. These clauses are closely A brief overview of Annex SL’s Clause 4 Context of the organization linked to “leadership” which require that the management system is not held at high level structure Clause 5 Leadership arm’s length by management, but is linked ISO technical committees developing Clause 6 Planning to the strategic direction of the business. management system standards have to This means the business has to align its follow Annex SL. Annex SL harmonizes Clause 7 Support processes effectively. structure, text and terms and definitions, while leaving the standard’s developers Clause 8 Operation So Annex SL should assist management with the flexibility to integrate their specific system managers by: Clause 9 Performance evaluation technical topics and requirements. 1. Raising the standards in the boardroom Clause 10 Improvement 2. Aligning standards with the needs of the business. Why is leadership important in today’s business environment? Leadership, the ability to motivate groups of people towards a The difference between leadership and management common goal, is an important skill in today’s business world. Management is mostly about processes. Leadership is mostly about Without strong leadership, many otherwise good businesses fail. behaviour. Many of the world’s most respected leaders have several personality Management relies heavily on tangible measurable capabilities such traits in common. Some of the most recognizable traits are the as effective planning; the use of organizational systems; and the use ability to initiate change and inspire a shared vision, as well as of appropriate communications methods. knowing how to “encourage the heart” and model the skills and behaviours that are necessary to achieve the stated objectives. Good Leadership instead relies most strongly on less tangible and less leaders must also be confident enough in themselves to enable measurable things like trust, inspiration, attitude, decision-making, others to contribute and succeed. and personal character. These are all necessary to motivate an organization to achieve its management systems objectives. How is leadership being incorporated into today’s new ISO standards? Firstly let’s understand how Leadership is • the policy is communicated, understood Leadership and policy defined by ISO. and applied within the organization; Leadership needs to establish, review and ‘Leadership is the person or group of people • the integration of the management maintain a policy, but also needs to ensure who directs and controls an organization systems requirements into the that it is applied within the organization. at the highest level. Top management organization’s business processes and has the power to delegate authority and promoting the process approach; Roles and responsibilities provide resources within the organization. • the resources needed for the If the scope of the management system Leadership needs to ensure that management system are available; covers only part of an organization, then top responsibilities and authorities for relevant management refers to those who direct and • the management system achieves its roles are assigned, communicated and control that part of the organization.’ intended results; understood within the organization. • they take accountability of the Defining the responsibilities of effectiveness of the management system; Organizational change leadership according to Clause 5 • they communicate the importance of Leaders need to ensure the integrity of the an effective management system and of management system is maintained when This states that top management shall conforming to the management system changes are planned and implemented. demonstrate leadership and commitment by requirements; ensuring: Some of the above tasks will of course • they engage, direct and support people be delegated, but it is the management’s • the policy and objectives are established to contribute to the effectiveness of the responsibility to ensure they are planned, for the management system and management system; implemented and achieved. are compatible with the strategic direction and the context of the • promotion of continual improvement and organization. Please note the Context innovation; of the organization, clause 4, is a new • they support other relevant management requirement compared to the current roles to demonstrate their leadership as it versions and leadership will have to applies to their areas of responsibility. demonstrate an understanding of the business environment and its impact on the organization; What are the benefits? Let’s look at what is said about leadership by ISO as one of the 7 quality • A clear vision of the organization’s future is established management principles that underpin management systems. • Challenging goals and targets are set Leaders establish unity of purpose and direction of the organization. Shared values, fairness and ethical role models are established at They should create and maintain the internal environment in which • all levels of the organization people can become fully involved in achieving the organization’s objectives. • Trust is established and fear is eliminated Applying the principle of leadership typically ensures that: • People are provided with the required resources, training and freedom to act with responsibility and accountability • People will understand and be motivated towards the organization’s goals and objectives • People are inspired, encouraged and their contributions are recognized. • Activities are evaluated, aligned and implemented in a unified way • Miscommunication between levels of an organization will be minimized What does this mean for organizations and how can they prepare? The major additional or strengthened requirements for leadership compared to Act Plan the existing management system standard Agree change and Understand organizational requirements are: improvements and ensure context. 1. The ability to demonstrate an integrity of system. Establish strategy and system understanding of the business objectives. environment and how it impacts on Determine statutory and the organization’s strategy. The system regulatory requirements. objectives need to be compatible with this strategy and set at relevant levels within © BSI Group BSI/UK/625/SC/0715/en/BLD the organization. The organization needs Leadership Do to be able to demonstrate alignment Establish policy. between system objectives and its Communicate policy, strategic direction. objectives, importance 2. Ensuring they have identified the of system. Check significant risks that can have an impact Provide resources. on the achievement of the system Review performance of system. Allocate roles and responsibilities. objectives, for instance customer Promote continual improvement. satisfaction in the case of ISO 9001. Check alignment with strategy and business context. Maintain focus on system objectives. 3. Review the approach to process Review policy. Ensure risks and opportunities identification and management and are addressed. ensure there are clear responsibilities and authorities defined for those processes. How the processes contribute to the achievement of the system objectives 5. The process for managing change and Many of the leadership responsibilities are needs to be clearly identified. Measures improvement within the organization contained in the standard text of Annex SL. need to be established. should be reviewed and leaders need So the principles and requirements for the 4. Internal communication channels need to ensure that the effectiveness of the other management system standards will to be reviewed for their effectiveness and system is maintained during improvement be very similar, but with a changed focus to the policy needs to be applied within the and other organizational changes. for instance environmental management or organization. health and safety management. About BSI BSI (British Standards Institution) is the business standards company that Renowned for
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