In this blog we are going to explore clause 4.2 of the ISO 9001 standard which has some crossover with the previous requirement for context (clause 4.1). External interested parties may be, but equally may not be, highlighted as part of the context analysis.
So, what are and who are interested parties?
At this stage it might be useful to define what an interested party might be. An interested party is:
- A person or organisation that can affect, be affected by, or perceive itself to be affected by a decision or activity.
The “interested parties” clause then suggests that:
- Interested parties relevant to the quality system need to be identified.
- The requirements of these interested parties need to be determined.
- The organisation needs to monitor and review information about the interested parties and their requirements.
But why are they important?
As ISO 9001 “only” gives us the “requirements”, to find out “why” they are important we need to take a peek at ISO 9004. 9004 is essentially a set of guidance notes that are interestingly titled “guidance to achieve sustained success”. Here the emphasis is on building a company with a long term, sustainable future that makes an ongoing and positive contribution to society. No company operates in splendid isolation, so here we begin to define why interested parties are important; ISO 9004 says:
The organisation should determine which interested parties:
- a) are a risk to its sustained success if their relevant needs and expectations are not met
- b) can provide opportunities to enhance its sustained success.
Once the relevant interested parties are determined, the organisation should:
- Identify their relevant needs and expectations, determining the ones that should be addressed;
- Establish the necessary processes to fulfil the needs and expectations of the interested parties.
The 9004 standard goes on to suggest that the organisation should consider how to establish and develop ongoing relationships with interested parties in order to develop a common understanding of objectives, targets and values which might then in turn drive improved performance.
The relative importance of different interested parties
The importance of different interested parties will be different for different companies and sectors. In some highly regulated sectors external interested parties, like the regulators, may well be more important than the owners and shareholders of the business. However, for the most part we are interested in owner managers so we would suggest that you guys (and gals) are the most important interested party. From there we would work through other interested parties in an order where the final interested party was the one we are least interested in.
So, let’s take a look at different interested parties and their needs and expectations – starting with the shareholders!
Owners, shareholders & directors | Needs & expectations |
Shareholders are interested in how well the company and the management system performs and how well it achieves the goals and targets set. Note: in some instances, directors may not necessarily be shareholders or owners. | The shareholders would expect to see within the company:
|
Staff | |
Staff will want to work in an environment that creates products and services that meet the needs of your customers. Additionally, staff are the only source of creativity and innovation. Unhappy workers will leave creating skills and experience shortages | Staff would expect:
|
| Customers | |
The company needs to understand the needs, expectations, and requirements of these customers. They help to drive the business and have an influence on the course the business takes. | The customer expects the company to:
|
| Suppliers | |
| N/A | Suppliers expect the company to do:
|
| Sub-contractors | |
Sub-contractors are a special type of supplier and would include contractors working at your premises end potentially providing services for you
| Provide the necessary information for them to execute their tasks and effective management:
|
| Competitors | |
Who are the company’s competitors?
Any recent changes in their activity, mergers, acquisitions, loss of their business, resulting in them moving to your company’s customers / clients. To be a worthy competitor and drive sector wide innovation | The competitors expect to take business away from the company. Consequently, you should understand this and have good business practices in place, so that that they are not adversely impacted by the competitors. |
| Banks, credit agencies and finance companies | |
| Relationships with banks credit agencies and finance companies could significantly impact your cash flow and your profits. | The bank / financial institutions expect the company to be able to honour any financial commitments that the company has in line with the applicable compliance requirements. |
| Insurers | |
This covers a wide range of insurance requirements, for example:
| The insurers expect the company to:
|
| Landlords | |
| Landlords have their own objectives and targets – they often employ managing agents. Additionally, they may change managing agent or indeed sell the building you are working from. These decisions may significantly impact your business. | Landlords expect to company to:
|
| National and local government | |
| National and local government provide the legislative framework within which the organisation has to operate. | The National and Local Government expects the company to:
|
| Regulators | |
The two main regulators in the UK, applicable to most companies two different levels, are the:
Additionally, there are also industry specific regulators that may have an impact on the company’s operations. | Ensure we work to the relevant legislation and employ staff competent to work to the requirements. |
| Trade associations | |
Trade associations provide their members with sectors specific guidance and information. Different sectors will have different trade associations some might have more than one. Each will have their own membership requirements that members would have to comply with. | Ensure we work to the relevant guidelines, standards and best practice and employ staff competent to work to specific standards and requirements Trade associates expect the company to comply with any particular membership requirements. |
The above is just a sample of interested parties. Others may include: utility companies, trade unions, emergency services, charities, young people, NGO’s, advisors, accountants, the public and, last but not least, certification bodies themselves!
Contractors | Needs & expectations |
These are not only contractors working at your premises, but also contractors working on behalf of the company:
| Contractors expect the company to:
|
Understanding the level of risk each interested party poses to an organisation, or indeed any opportunity they may be able to assist you with exploiting (in the nicest possible way) helps you in classify and address their needs.
Following on from this, some company’s use the identified interested parties as part of the quality / business risk to the company and determine the risks and opportunities that need to be addressed; for example; by undertaking some form of risk assessment, such as:
Interested party | Needs & expectations | Risk | Action | Priority |
Customer | The customer expects the company to deliver its products and / services on time and to the correct specification. | High | Ensure that systems / equipment is robust to maintain effective control of the company’s processes can satisfy the customers’ requirements. | High |
Regulators | The Regulators expect the company to conform to the applicable compliance requirements. | High | Ensure compliance obligations are maintained:
| High |
Conclusion
Clearly interested parties covers a wide range of people and organisations, any one of which can potentially affect your ability to consistently provide products and services that meet customer requirements and, indeed, any statutory and regulatory requirements.
Clause 4.2 of the ISO 9000 standard requires that any organisation review, in detail, the impacts that these interested parties to establish the risk of not complying or indeed any opportunity that can be developed in a way that promotes growth and development.
Related tools and ideas
- None
