Quality Progress - January 2015 - 44

INNOVATION IMPERATIVE BY PETER MERRILL The Business of Innovation Use ISO 9001:2015 to build innovation into your business strategy MOST IN the quality community know based thinking" starts. Context means more easily as the world has become more that the draft international standard (DIS) you must ask, "What are the external and transparent. This means customer feed- version of ISO 9001:2015, which is to be internal issues that affect your business back about your performance will be more finalized and published later this year, has strategy?" All of these issues introduce available for people to see. Thus, clause included language regarding "risk-based risk and opportunity. The standard is help- 4.1 introduces opportunity thinking, and thinking." Clause 6.1 is titled "Actions to ful and lists examples of these issues. You this is great fuel for the innovator. address risks and opportunities." If you should work through them to find which look closer, the revised standard has been are most important for you and why. Don't will have noted that clause 4.2 introduces designed to draw you into a business forget you are thinking at a strategic level interested parties and subtly gets users strategy, and bear in mind, if your business in clause 4. thinking about social responsibility (SR). If you've read the draft standard, you The list of examples in the clause starts Members of ASQ have treated SR seriously with the easiest issues. If there has been a for the last five years. Some dismiss this as change in the legal and regulatory require- do-gooding, but increasing evidence shows cussed how implementing the revised ISO ments that affects your customer, then it should be a vital part of your strategy. 9001 standard is an opportunity to move that immediately creates opportunity. For Pepsi has demonstrated this in a major your organization toward introducing in- the customer, that may appear as a restric- way in its own business strategy. Accord- novation. In this column, I will dive deeper tion. For you, it is an opportunity to ease ing to CEO Indra Nooyi: "We looked at eat- and show you how to use the opening the customer's pain points by innovating. ing and drinking habits of the people, we clauses of the standard to build innovation You don't necessarily change your product, realized there was a need to have healthier into your business strategy. but maybe provide a new service to assist products and good-for-you products. Then the customer. we realized we cannot tell the customers strategy does not include innovation, you have a bleak future. In my September 2014 column,1 I dis- There are still people who carry with them the outdated ideas of the standard's In the marketplace, change-and there- that healthier products would cost more 1994 version and only think linearly. The fore your context-is moving faster than and may be tasteless. So, we adopted a ISO 9000 world changed 15 years ago, ever. Much of the change your customer strategy and that transformation worked and the standard now requires systems experiences is the result of technology. well."2 thinking. The Baldrige criteria have Technology eases some problems, but it always stressed the importance of "link- also creates new needs. Again, find your Risks and opportunities ages"-links between the components of customer's pain and ask yourself, "How Moving into clause 5, the "input informa- a performance management system- and can you serve your customer in this new tion" for leadership decisions includes the ISO 9001 is sometimes criticized for not context?" At the same time, you should threats and opportunities your business stressing this enough. But have no doubt, conduct competitive analysis and find faces. Expert and author Rita McGrath has ISO 9001 is a management system, and what your competition is doing to ease done excellent work here, in many ways according to ISO 9000:2005, clause 3.2.1, a your customer's pain. superseding expert and author Michael Por- system is a "set of interrelating and inter- The other issues you must examine are ter's original work on business strategy.3, 4 the cultural and sociological changes that She showed how competitive advantage is affect you externally. You are probably transient. This underlines the need for you 4, 5 and 6 of ISO 9001 and show how link- tired of hearing about social media, but to evaluate your threats and opportunities ages are vital to make the system work. this ties to technology, and simple matters, continually in this fast-changing world. acting elements." In this column, I will focus on clauses such as registering online for courses and Clause 5 on leadership encourages you Context and risk conferences, has changed dramatically in to start to "set objectives compatible with Clause 4.1 of ISO/DIS 9001:2015 introduces just five years. the strategic direction and context of the the term "context," and this is where "risk- 44 QP * www.qualityprogress.com Customers also can voice opinions organization." The importance of address- http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - January 2015

Up Front
LogOn
Expert Answers
Keeping Current
Mr. Pareto Head
Total Quality’s Leader
Narrow(er) Focus
Dissecting the Differences
Separate Steps
Innovation Imperative
Measure for Measure
Quality in the First Person
Career Corner
Statistics Roundtable
Standards Outlook
QP Toolbox
QP Reviews
One Good Idea
Back to Basics

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