Business Systems

Lisa Martinez

Playbook adapted from Industry standard on the ISO website transferred verbatim as not to lose any context. www.iso.org

Table of Contents

Predict external stakeholder requirements for all associated management activities

Introduction of Purpose Organizational Excellence

Mutual Understanding of the Terminology

BMS - External Stakeholders

Principle 1: Customer Focus

Principle 2: Leadership

Principle 3: People Involvement

Principle 4: Process Approach

Principle 5: Systems Approach to Management

Principle 6: Factual Approach to Decision Making

Principle 7: Mutually Beneficial Approach to Suppliers

Principle 8: Financial Management Symptoms

Organizational

Excellence

•This document provides a general perspective on the quality management principles within ISO 9000:2000 series.

•It gives an overview of these principles and serves as a basis for Continuous Improvement and Organizational Excellence.

•Start with the end in mind to achieve excellence by design.

oA business value case for Enterprise and Business Architecture

www.iso.org

Introduction and Purpose

ISO-9001

Mutual Understanding of the Terminology for…Suppliers, Customers and Regulators

This International Standard is applicable to the following:

•Organizations seeking advantage through the implementation of a quality management system;

•Organizations seeking confidence from their suppliers that their product requirements will be satisfied;

oUsers of the products;

verbatim from the www.ISO.org 9001 series source to ensure consistency

Global Practice BMS Policy •Decompose the BMS component “policy” to

understand the duplication across these

“BUSINESS” subjects.

•Corporate Policy - The corporate policy

intends to guide the affects of external and

internal scenarios known and knowable to

any organization.

oUsually, a documented set of broad

guidelines <Blueprint>, formulated

after an analysis of all internal and

external factors <Domains> that can

affect a firm's objectives, operations, and

plans.<value streams> Formulated by

the firm's board of directors, corporate

policy lays down the firm's response to

known and knowable situations and

circumstances. <Scenarios>

External Stakeholder Interest

• ISO 9001 Quality Management

•These principles can be used by senior

management as a framework to guide their

organizations towards improved performance.

o Principle 1: Customer focus

o Principle 2: Leadership

o Principle 3: Involvement of people

o Principle 4: Process approach

o Principle 5: System approach to management

o Principle 6: Continual improvement

o Principle 7: Factual approach to decision making

o Principle 8: Mutually beneficial supplier relationships

Scenario Page 1

Business Architecture is defined as a blueprint of the business to provide an understanding of the organization and is

used to align Strategic Objectives to tactical demands.

The most fundamental part of the business architecture is that it represents a business. The business goes beyond

the boundaries of the organization to include outsourced and stakeholder interest.

Adapted from ISO see index.

Principle 5: System approach to management

Principle 6: Continual improvement

Engineering Marketing SalesOperations

Delivery

Technical Support

Principle 2: Leadership

Principle 1: Customer focus

Principle 3: Involvement of people

Principle 4: Process approach

Principle 8: Mutually beneficial supplier relationships

Principle 7: Factual approach to decision making

Desired End StateQuality Management Principle 1: Customer Focus

• Effective alignment with the customer expectation and needs for operational excellence

o Increased effectiveness in the use of the organization's resources to enhance customer satisfaction.

o Improved customer loyalty leading to repeat business.

• Increased revenue and market share obtained through flexible and fast responses to market opportunities.

Symptoms threatening your Customers • Inconsistent understanding of the customer needs and expectations.

• Inability to align the objectives of the organization with customer needs and expectations systemically.

• Communicating customer needs and expectations throughout the organization.

•Measuring customer satisfaction and acting on the results.

• Systematically managing customer relationships.

• Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).

ISO 9001 Quality Management

Principle 1 Customer Focus

Touchless Ordering Revenue Reporting

Leadership Symptoms

• Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers,

local communities and society as a whole.

• Establishing a clear vision of the organization's future.

• Setting challenging goals and targets.

• Creating and sustaining shared values, fairness and ethical role models at all levels of the organization.

• Establishing trust and eliminating fear.

• Providing people with the required resources, training and freedom to act with responsibility and accountability.

• Inspiring, encouraging and recognizing people's contributions.

Desired End StateQuality Management Principle 1: Leadership

•People struggle to understand and often lack the evidence to get motivated towards the

organization's goals and objectives.

•Unable to execute activities nor ensure they are evaluated, aligned and implemented in a unified

way.

•Miscommunication between levels of an organization will be minimized.

•Unable to acknowledge corporate policies therefore definitions for enterprise business data reports

higher than expected data quality defect impacting the customer and operational effectiveness.

ISO 9001 Quality

Management Principle 2 Leadership

Industry standards

measure all associated

management activities

Stakeholder

Management

People Involvement Symptoms

•Motivated, committed and involved people within the organization.

• Innovation and creativity in furthering the organization's objectives.

•People being accountable for their own performance.

•People eager to participate in and contribute to continual improvement.

Desired End State

Quality ISO 9001 Quality Management Principle 3

People Involvement

• High Percentages of People lack a clear understanding of the importance of their contribution and role in the

organization.

• The concept of open communication hasn’t been realized by having open and constructive conversations

about constraints and barriers with their direct manager.

• People lack accountability and rarely show behaviors that they accept ownership of problems and their

responsibility for solving them.

• Few people effectively evaluate and fail to define their own personal goals and objectives and often have not

defined them in a manner to measure performance against them.

• People lack the motivation to actively seek opportunities to enhance their competence, knowledge and

experience.

• Barriers to communication prevents the effective exchange of ideas and rarely do peers have bi-directional

sharing of knowledge and experience.0

ISO 9001 Quality

Management

Principle 3 People

Involvement

Engaged and Motivated

Employees

Effective Measures

against goals

Process Approach Symptoms

•People re-create and re-define activities outside their authority removing the capability necessary

to obtain a desired result.

• Lack of responsibility and accountability for managing key activities.

•Subjective methods used to analyze the same global capabilities as management activities.

•Few connected interfaces decoupling the business rules degrading the operational effectiveness

and integrity of key activities within and between the functions of the organization.

• Inability to identify the problem rather than symptom required to invest accordingly in the

resources, methods, and materials that will improve key activities of the organization.

•Significant gap in the methods used to evaluate risks, threats, consequences and impacts of

activities on customers, suppliers and other interested parties.

Desired End State

ISO Quality Management Principle 4: Process Approach

•Lower costs and shorter cycle times through effective use of resources.

•Lifecycle relationships enable a predictive connection between electronic records

for seamless access to business critical resources

• Investments produce and improve by execution of consistent and predictable

results.

•Focused and prioritized improvement opportunities to enable global delivery

ISO 9001 Quality

Management

Principle 4 Process

Approach

Interoperability

Replication Recovery and record

retention strategy

System approach to management

Symptoms• Inconsistent practices executed in structuring a system to failing to achieve the

organization's objectives in the most effective and efficient way.

•Gap in cross-functional understanding of the interdependencies between the

processes of the system.

•Lack of standard structured approaches that harmonize and integrate processes.

•Providing a better understanding of the roles and responsibilities necessary for

achieving common objectives and thereby reducing cross-functional barriers.

•Understanding organizational capabilities and establishing resource constraints

prior to action.

•Targeting and defining how specific activities within a system should operate.

•Continually improving the system through measurement and evaluation.

Desired End State

Quality Management Principle 5: System approach to management

• Integration and alignment of the processes that will best achieve the desired

results.

•Ability to focus effort on the key processes.

•Providing confidence to interested parties as to the consistency,

effectiveness and efficiency of the organization.

ISO 9001 Quality

Management

Principle 5 Systems

approach to

management

Principle 7: Factual

approach to decision

making

Financial Integrity

and Accountability

Desired End StateQuality Management Principle 7: Factual Approach to Decision

Making

• Making decisions and taking action based on factual analysis, balanced with experience and intuition

• Informed decisions.

• An increased ability to demonstrate the effectiveness of past decisions through reference to factual records.

• Increased ability to review, challenge and change opinions and decisions.

Factual approach to decision making Symptoms

• Inability to acquire data and information with confidence in the validity, accuracy, reliability and completeness

criteria

• Data rarely can acquired by those who need it and often can be accessed by those who shouldn’t have access

to the amount they’ve been granted.

• Expecting quality results using volume approaches

• People fail to analyze data and information using valid methods and industry standard tools.

o Bias or subjective to a single organization.

ISO 9001 Quality

Management

Principle 7: Factual

approach to decision

making

Principle 5 Systems

approach to management

Financial Integrity

and Accountability

Mutually beneficial supplier relationships -

Symptoms

• Inability to build relationships that balance short-term gains with long-term considerations.

• Inability to exploit expertise and resources with partners.

• Inconsistent methods used to identifying and select key suppliers.

• Inconsistent forms of communication without clarity and open lines of communication.

• No long term planning discussions or sharing of goals.

• Silo-ed development and improvement activities.

• Lack of a motivation and reward system for attainment of improvements or achievements by suppliers

Desired End StateQuality Management Principle 8: Mutually

beneficial supplier relationships

• Increased ability to create value for both parties.

• Flexibility and speed of joint responses to changing market or customer needs and expectations.

• Optimization of costs and resources.

ISO 9001 Quality

Management

Principle 8 Mutually

beneficial supplier

relationships

Expense ManagementStrategic Supplier

Relationships

Desired End State

•Lack of subject matter expertise and management procedures knowledge enabled in activities

oBoard of Directors formulated Corporate Policies to guide the Officers decisions, activities and rules to enable the strategy

• Inconsistent measurements used to predict the value of an investment.

oOut of the box capabilities never used under deliver and increase the people and process cost in a new investment

oDecision making and those made for the business erode in the ineffective use of IT Investments

Every ERP system comes equipped with the corporate financial policy capabilities “out of the box”, yet few people

understand and fewer find the connection in a conversation.

oPoor implementations when a business person answers a question they are not intended to answer. As a result

misunderstandings lead to unintended use of the investment.

oThe business lacks predictive processes to achieve the strategy and meet their performance goals as expected by external

stakeholders.

Financial Management Symptoms

• Ability to execute fact based decision making procedures based on external stakeholder performance

standards.

• Consistent performance metrics for all associated management activities

• Solid Business Architecture at the Corporate level for global delivery in any size organization.

• Ability to expand by function without degrading the corporate policies

• Systemic delivery of critical activities using source directly unassisted by IT

• Ability to recover without data loss

Corporate

Policies External Stakeholder

managementEnable consistent

capability metrics

Effectively prioritize

investment decisions

•OMG 98-12-09.pdf CORBAservices: Common Object Services

Specification

•ISO 9001 www.iso.org

•ANSI www.ansi.org