Recommended Reading | Why ISO 9004 Requires Organizations to Pay Special Attention to Two Quality Management Principles

　　We know that every year a large number of enterprises are established, while many also close down. The average lifespan of enterprises is shortening, and after the pandemic, the survival environment for enterprises has become more severe, especially for small and medium-sized enterprises which account for over 99% of all enterprises.

　　As a globally influential and authoritative standardization organization, the International Organization for Standardization (ISO) has long been committed to helping and guiding enterprises to effectively respond to risks and achieve sustainable success in a complex and rapidly changing external environment through the development of various standards. ISO 9004 is one of them.

　　ISO 9004 has undergone multiple changes over the past 30 years, evolving from initially serving as an implementation guide for ISO 9001 (1987, 1994, and 2000 editions) to ISO 9004:2009 "Managing for the sustained success of an organization — A quality management approach," which marked a significant change by focusing more on providing guidance and tools for applying quality management principles aimed at helping organizations achieve and maintain sustained success.

　　Starting from the 2009 edition, ISO 9004 broke free from being paired with ISO 9001 and became a standalone standard, also serving as a bridge connecting quality management requirements and driving organizations toward excellence.

　　In 2018, ISO 9004 released its fifth edition, renamed "Quality management — Quality of an organization — Guidance to achieve sustained success." Compared to the 2009 edition, this version introduced the concepts of "quality of an organization" and "organizational characteristics." Its introduction clearly states: "This standard is based on the quality management principles described in ISO 9000:2015," and in section 1. Scope, it clarifies: "This standard is consistent with the quality management principles described in ISO 9000:2015." Although ISO 9004 has surpassed ISO 9001, both follow the same quality management principles.

　　We know that the seven quality management principles described in ISO 9000:2015 are: customer focus, leadership, engagement of people, process approach, improvement, evidence-based decision making, and relationship management.

　　Clause 4.1 of ISO 9004:2018 states: Organizations should apply all quality management principles (see ISO 9000:2015) to achieve sustained success, with particular emphasis on the principles of "customer focus" and "relationship management" to meet the diverse needs and expectations of interested parties.

　　Why does ISO 9004, while requiring organizations to apply all quality management principles, especially emphasize the principles of "customer focus" and "relationship management"? To answer this, we need to explore the relationship between the "quality of an organization" and "sustained success" that ISO 9004 focuses on, and the two quality management principles "customer focus" and "relationship management" described in ISO 9000.

　　I. Definition of "Quality of an Organization" Directly related to these two quality management principles

　　Clause 4.1 of ISO 9004:2018 defines "quality of an organization" as the degree to which the inherent characteristics of an organization satisfy the needs and expectations of its customers and other interested parties to achieve sustained success. Among the seven quality management principles, those directly related to customers and other interested parties are "customer focus" and "relationship management."

　　ISO 9000:2015 states in the overview of "customer focus" that "the primary focus of quality management is to meet customer requirements and strive to exceed customer expectations," because "an organization can only achieve sustained success by gaining and maintaining the trust of customers and other interested parties." The "relationship management" section states that "to achieve sustained success, an organization needs to manage its relationships with relevant interested parties (such as suppliers)."

　　II. Sustained success of an organization is most likely to be achieved only when these two quality management principles are well applied

　　Firstly, customers are the most important interested parties of an organization, and their trust provides the foundation for the organization's survival and development. Ultimately, competition among enterprises is competition in creating value for customers. Only by focusing on customers and designing, developing, producing, and delivering products and services oriented to customer needs can enterprises win customers and increase their market share and revenue.

　　Secondly, the needs and expectations of interested parties are key factors constituting the organizational environment. Interested parties not only create opportunities for the organization's sustained success, but unmet needs and expectations of some interested parties can also pose risks to sustained success.

　　III. Meeting the needs and expectations of customers and interested parties is the starting point and foundation of other sustained success factors proposed by ISO 9004 and the basis

　　From the structural diagram of ISO 9004 shown in Figure 1, it can be seen that the needs and expectations of customers and other interested parties are inputs to the necessary elements for an organization to achieve sustained success given in chapters 6 to 11 of ISO 9004. They determine and guide the organization's actions in pursuing sustained success.

　　These include:

　　Determining mission, vision, values, and culture based on meeting the needs and expectations of customers and other interested parties, as well as reviewing the ongoing suitability of mission, vision, values, and culture based on these needs and expectations;

　　Under the leadership of top management, establishing a policy and commitment to meet interested parties' needs and expectations, and developing and implementing a strategy that aligns with these needs and expectations;

　　Designing, implementing, and managing processes based on the needs and expectations of interested parties;

　　Determining and managing resources aimed at meeting the needs and expectations of interested parties;

　　Setting, measuring, analyzing, and evaluating performance indicators centered on meeting the needs and expectations of interested parties;

　　Improving, learning, and innovating to enhance the ability to meet the needs and expectations of interested parties.

　　Conclusion

　　In summary, ISO 9004:2018 plans the direction and path for achieving sustained success of organizations. It serves as a guide for enterprises to implement the seven quality management principles and promote TQM (Total Quality Management). Its emphasis on the principles of "customer focus" and "relationship management" guides enterprises to consider the needs and expectations of all interested parties in a balanced and long-term manner from start to finish, ultimately achieving harmonious and win-win benefits for all parties, building excellent organizations, earning long-term trust from customers and interested parties, and pointing the way for greater enterprise development.

　　Source: "China Certification & Accreditation" Magazine, Issue 12, 2022

　　Author: Wang Suo