HYPOTHESIS: CERTIFICATION IS A FLAWED BUSINESS MODEL
Hypothesis Boundary
We refer here very specifically to Quality Management System ISO 9000 certifications. However, it naturally extends to any system certifications such as EMS – ISO 14000s, OHSAS 18000s, ISO 22000, and a host of others. Some part of the discussion is bound to extend to the product certification category, but in general the discussion is not meant to cover aspects relating to the business of product certifications. And obviously, this is not to be confused with personnel certifications. Also, please note that, here we are not questioning the intent, content, understanding, implementation, effectiveness of implementation and its added value. We are referring to the specific business of third party auditing & certification after implementation.
THE SCRUTINY
Business means adding value to customers. This value addition, without exception, is expected to create a cycle of higher value additions for its customer. For Products / manufacturing businesses, value is associated with the physically identifiable end products. The car that you brought has to add value to your work & life, many times over the price tag of the car itself. Thus here this notion of adding value is very straight forward. Requirement & thus the basic expected value addition is largely well defined. Or, if not well defined by the customer, the onus of discovering the requirements is on the organisations. Yes, we need Howard Moskowitz’s to tell us that we like extra chunky spaghetti sauce. Perhaps Jobs summed it best with “It’s not the customer’s job to know what they actually want”.
For many service organisations also, this notion of adding value to customer is quite clear. A fellow, who is say into testing services say for metallurgical characteristic, is providing a critical service of elaborating metallurgy of the sample specimen. His prognosis may be of immense importance in product design or improvements. Thus, from his customers’ point of view the value added from service is not limited to the results of investigation of the metallurgy. It could be much more significant. For the service provider, he may not even be aware of his exact contribution to the cycle of higher value additions. But, he never confuses, the ‘certificate’ containing the test results as his final product. His business model is not about printing of the certificates. His business model relies on being of assistance to the customer, in a manner desired.
From this point of view of ‘adding value to the customer’, what is the business model of a Certification Body? On lines similar to earlier example the Business of Certification to Quality Management system is expected to add value & create a ripple effect of higher value addition for the customer. However this perceived value addition is not very straight forward. Every single survey, every single article, every single opinion presented in favour of management systems based on ISO 9001 are not about certification of the system. Rather they are about the benefits of wholehearted appreciation & implementation of the system. These benefits are, for the organisations to claim, with or without certification.
What, then, is the value added by certification of an established QMS?
Bio:
Arvind Chavan: With more than a decade of experience in the field of management systems, Arvind has seen quality management system implementation exercise from every angle. He has served at all designations from an Assistant to Management Representative, Internal Auditor, Junior Consultant, Consultant, Project Leader, Auditor, Lead Auditor and Trainer. In all this endeavours he has not lost focus of Value addition through Management Systems standards. He routinely appeals, “When Quality hurts, knock my door”.