The ISO 9001 Quality Management System (QMS) redefines quality by changing focus from merely adhering to product specifications and requirements to meeting customers’ expectations and satisfaction. This management revolution diverts from a product or service-centered approach to a customer-centric style. In the end, the quality of a product is all about whether or not it meets customer requirements.
Why Focus on Customers?
Below are few reasons why ISO 90001 QMS shifts organizations’ focus to meeting customer expectations:
- Business Continuance: One of the best determinants as to how long a business can survive is how satisfied its customer is in the end.
- The Upsurge in Revenue: Once customer satisfaction is met, they buy more often in larger quantities which eventually translates into bigger profits.
- Advertisement: Word of mouth is an effective way to promote a business. Completely satisfied customers will preach good things about your products and services.
Improving Customer Satisfaction Through Key Performance Indicators or KPIs
To achieve a customer-focused Quality Management System, implementing a philosophy of continual business improvement is necessary. Establishing Key Performance Indicators (KPI) help make this happen. It will keep businesses on track and will help them ensure the quality of products and services they provide are on par with what the customer requires. Also, KPIs serve as the company’s metrics and will be the basis to know if objectives are achieved within a specific timeframe.
How to Achieve Continual Improvement Through KPI?
Here are few basic principles that business managers can adopt to achieve a successful business through a well-established KPI:
- Establish a clear, measurable, attainable and sustainable objectives.
- Execute actions leading towards the realization of the established objectives.
- Measure actual results against what is expected in real-time.
- Revise and adjust actions to meet goals if the actual results deviate from what is expected.
Among the above key principles of a continuously improving business, the third and the fourth are often neglected. Monitoring and reviewing can be a tedious task at the beginning, since you have not yet established what to measure and how to measure. It also takes a lot of time and commitment to follow religiously through the measuring and monitoring processes. Thus, a change in behavior and practices to some extent may be necessary.
Importance of Measurement and Monitoring KPIs
Measurement and monitoring of Key Performance Indicators are arguably the most time-consuming part of achieving a customer centered and continuously thriving business. There is no better way to ensure that your products and services meet customers’ preferences other than continuous measurement and monitoring of KPIs. Furthermore, you can easily eliminate bottlenecks, avoid delays and optimize productivity through a carefully measured and well-monitored metrics.
Regardless of technology, business strategy or management philosophy, a Quality Management System with customers as its focal point is the basic foundation for any business striving for excellence.
Want to learn more about how to take the next big leap to become a customer-centered organization? Check out this blog where we look at how the quality management revolution contributes to business excellence. We also invite you to reach out and let us share our decades of experience with you.