ISO 9001 – The 7 Fundamental Principles

Principle 1: Customer Focus

Customer satisfaction is a reflection of a company’s performance and the most crucial factor for sustainable success and delivery capability. Anticipating and, at times, exceeding customer expectations is the key principle among the 7. This is the core of quality work, requiring the entire organization to be aligned with it. Only a business that earns lasting trust from its customers and stakeholders can be successful in the long run. Each customer interaction provides an opportunity to add tangible value by meeting current expectations and understanding future ones, significantly contributing to building trust and customer loyalty.

This is the core of quality work

Customer satisfaction is a reflection of a company’s performance and the most crucial factor for sustainable success and delivery capability. Anticipating and, at times, exceeding customer expectations is the key principle among the 7.

To strengthen customer focus in the company, consider several actions:

Capture customer experiences:

• Conduct regular customer surveys to measure satisfaction.
• Gather feedback from customers through various channels, such as social media and direct communication.
• Use complaint handling and customer relations:
• Implement an effective process to handle complaints and resolve customer concerns promptly.
• Build strong relationships through personal contact and swift feedback.

Involve customers in development:

• Establish mechanisms to collect input and suggestions.
• Develop products and services in consultation with customers to ensure relevance.
• Results of consistent customer focus:
• Improved customer loyalty and retention:
• Satisfied customers become loyal and potential ambassadors.
• Positive word-of-mouth can enhance the company’s reputation.

Fewer complaints and grievances:

• Understanding customer expectations reduces complaints.
• Quicker time to market:
• Effective communication enables rapid product development.

Increased competitiveness:

• Aligning with customer needs strengthens the company’s position in the market.
• Consistent customer focus creates a win-win situation where both the company and customers benefit from increased satisfaction and mutual understanding.

Principle 2: Leadership

The alignment of a company’s purpose, direction, and internal environment is a matter of leadership. Therefore, the second of the seven principles of quality management focuses on leadership. Leaders ensure that purpose and direction are consistent within the organization. Decisions regarding resources are made at the highest management level and can be delegated where needed. In most companies and organizations, these qualities are associated with corporate leadership roles and corresponding authorities to act. The primary task of top management, however, is to create a work environment where each employee can develop their skills and use them for the benefit of the company. This approach is essential for adjusting strategies, policies, processes, and resources at any time to ensure the intended goals are achieved. This also applies to quality management, which only works when understood by those responsible and engaged individuals within the organization and integrated into daily processes.

In addition to active and personal leadership, the following leadership tools are appropriate:

• Strategic planning – values, goals, leading with objectives.
• Clear definition of responsibilities and authorities for relevant individuals.
• Goal-oriented management of risks and opportunities.
• Effective rules for internal and external communication.
• Regular evaluation and trend analysis.

What can be achieved with concrete leadership?

• Clear visions and goal-oriented actions.
• Improved efficiency in decision-making.
• Optimized and efficient processes and resource utilization.
• Increased satisfaction among employees.

Principle 3: Engagement of People

Every company is only as good as its employees, including its leaders. Engaged individuals shape the character and performance of your organization at all levels. Therefore, it is crucial that everyone acting within the organization is competent, has the right authorities, and is engaged in realizing the organization’s goals and values. This enhances the ability of the organization to create value. Leadership that focuses on efficiency and purpose involves involving employees in decision-making, recognizing their individual achievements, and promoting their skills and knowledge. To achieve this, it is necessary to actively encourage engagement and participation from employees at all levels.

Particular areas to consider include:

• Planning of human resources.
• Recruitment procedures and onboarding of new employees.
• Competence and systematic training and development.
• Active participation, such as through idea exchanges.

What can be achieved?

• Increased responsibility among employees and improved teamwork.
• Higher satisfaction and retention of employees.
• Direct and indirect positive effects on customer relations and loyalty from your customers.

Principle 4: Process Approach

The fourth of the seven principles of quality management focuses on the process-oriented approach. Therefore, a well-functioning management system is strengthened by documented process management for all relevant processes within your company or organization. This is crucial because a good understanding of relevant processes and their control and interaction enables a company to optimize its performance and achieve its goals. To achieve this, each step of the process must be defined, input and output determined, and interfaces with other company functions identified. Additionally, potential sources of errors should be identified, and responsibilities established to ensure smooth process operations. Another important requirement is the identification of “performance indicators” for process control, including relevant key performance indicators, to efficiently and effectively achieve desired results.

Note: A process is a chain of interrelated and mutually influencing activities that transform input into output.

What does the process-oriented approach to quality management involve?

• For companies and organizations, this means that processes, their sequence, and interactions, including associated conditions such as resources, must be clearly defined. This can include:
• Customers and external suppliers.
• Input sources, such as from processes in earlier stages.
• Input and output (i.e., the delivery of a process).
• Process flow and necessary resources.
• Process owners.
• Planned results and recipients.
• Risks and opportunities.
• Measurements and performance indicators.

Principle 5: Improvement

The challenge is to continuously maintain and improve performance. To achieve this, it is crucial to be aware of internal and external changes and act on them to create new opportunities. This applies to both the company and its employees. Therefore, a key to sustainable business success is to focus on continuous improvement. This way, a company stabilizes its results, can respond appropriately to changes in both internal and external conditions, and creates the best conditions to identify new opportunities.

Actively leverage these opportunities to identify risks and opportunities and initiate continuous improvements of the quality management system:

• Collect sources of improvement, including customer feedback, reviews, and process evaluations.
• Use employee feedback, including workplace improvement ideas.
• Monitor the market, especially other industries and technological changes.
• Implement targeted improvement and innovation programs.
• Maintain and further develop the organization’s knowledge base.
• Establish a robust method for actively addressing deviations and deficiencies.

What can be achieved with the “Improvement” quality management principle?

• Improved profitability.
• Sustainable increase in performance and innovation.
• Creation of sustainable competitive advantages.

Principle 6: Fact-Based Decision Making

Effective decisions are based on the analysis and evaluation of data and information. Only by constantly collecting and reviewing this data and information can fact-based decisions be made. In this context, it is crucial to understand and interpret the relationships between cause and effect and be aware of any unintended consequences.

To support fact-based decision-making, use:

• Measurement of both quantitative and qualitative data and information.
• Regular evaluation of intended goals, metrics, and other performance indicators, including trends and benchmarking.
• Active and thoughtful meeting structure.
• What can be achieved with fact-based decision-making? By using valid figures, data, and facts, you can ideally achieve:
• A higher degree of objectivity.
• Increased confidence in the decisions made.
• Optimized goal formulation and goal control.
• Avoidance of erroneous decisions.
• Better use of resources.

Principle 7: Relationship Management

Companies that achieve long-term success maintain strong relationships with their stakeholders, such as investors or external suppliers, as they impact a company’s results. To optimize the effect of this influence, it is crucial to establish relationship management as a tool to govern these relationships. Open communication, agreement on common goals focusing on customer interests, and collaboration with relevant stakeholders in product development and continuous improvement are key elements.

To benefit from your relationships and promote them, you can:

• Plan regular exchanges.
• Build (partner) networks to maintain mutual relationships.
• Establish regular feedback mechanisms.
• Participate in (internal) trade fairs, customer, and employee days.
• Collaborate on joint projects and development initiatives.

What can be achieved? By effectively managing your relationships, you can achieve several benefits, including:

• Updated knowledge of the needs and requirements of relevant parties.
• Early detection of future trends.
• Creation of synergy effects and new joint opportunities.
• Improved communication, even at process boundaries.
• Increased opportunities for mutual recommendations.