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Strategic Direction

Discussion in 'ISO 9001:2015 - Quality Management Systems' started by KyleG, Jan 15, 2019.

  1. John C. Abnet

    John C. Abnet Well-Known Member

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    Great discussion !...and good council for @KyleG

    ISO 9000 defines "strategy" as (simply) "plan to achieve a long-term or overall objective."

    For example, your organization may have a strategic plan to have 7% profitability and capture 12% of the market share by the end of 2025.
    The tactics for achieving that may include multiple continuous improvement projects, cost down activities with suppliers, and a marketing campaign.

    I would simply offer that @KyleG (anyone) not over think this. Similar to @Andy Nichols statement...
    "implementing a number of ISO 9001 based QMSs, nothing of strategic importance ever entered into the policy or the manual", ...

    ...this has never been a point of emphasis in any of the multiple systems and organizations I have been involved with. Keep in mind, the standard does not even require us to actually list the "strategic direction". It simply requires us to ensure the context of the organization (which is essentially asking ...WHO are we WHAT do we do WHO cares and WHAT do they care about.) is consistent with our strategic direction.

    When you state "how do I establish my strategic direction" I would offer the following...
    1- If your organization is established and "successful" , then surely a "strategic direction" is there, whether documented or not.
    2- Unless you are sole owner/operator of your organization, then I would hope I and my are not implying that the onus is on you to determine/establish the "strategic direction".

    Summary:
    Don't overthink it and feel as if you need to create and document a strategic direction. Simply understand what your organization's long term strategy is and ensure your COTO is relevant to it.

    Hope this helps.
    Be well.
     
  2. Quality Guy

    Quality Guy Member

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    Thanks John. Explained in a very easy to understand manner.
     
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  3. charles luthian bala

    charles luthian bala New Member

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    Sir John, your explanation was quite clear. I just want to ask for insights, recently we conducted our internal quality audit and during the audit at the top management, auditees mentioned that there is no documented strategic direction of our organization instead each of them mentioned different strategic directions. Considering that we are just new in implementing ISO 9001:2015 QMS and since the auditees were not consistent with what they say, I find it necessary to maintain a documented information for the strategic direction of the organization. Do you think it is necessary to require our top management to have a documented information of our strategic direction?

    Thank you in advance.
     
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  4. tony s

    tony s Well-Known Member

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    Although ISO 9001 does not categorically require documented information on organization's strategic direction, I would strongly recommend that your top management to have it in black and white. Even ISO, as an organization, has published its Strategy 2016-2020 which sets their six strategic directions (see this link).

    Typically, strategies are established to support the accomplishment of the organizations mission and the achievement of its vision. Although not defined in ISO 9000, you can refer to other ISO standards such as ISO 21001:2018 for reference where it defines:
    mission - reason for being, mandate and scope of an organization, translated into the context in which it operates;
    vision - aspirations of an organization in relation to its desired future condition and duly aligned with its mission;
    strategy - plan to accomplish the organization's mission and achieve the organization's vision.
     
  5. RoxaneB

    RoxaneB Moderator Staff Member

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    I'm currently taking a course on Global Business Strategy and it's no wonder people ask for clarification on terminology! In this course, strategy is NOT the same as a formal plan, thus does not need to be documented. Strategy, in this course, is defined as "..the choices that shape the company's long-term direction, rather than their formal plans." Now it does go on to say that plans should support that strategy, but for the purposes of this course, I am to consider them distinct and separate from each other.
     
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  6. John C. Abnet

    John C. Abnet Well-Known Member

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    Good day @charles luthian bala
    Welcome to the forum.
    As you heard from @tony s , there is no specific requirement to document the organization's strategy.

    My greatest concern is your comment "since the auditees (Top Management) were not consistent..."

    I would council that "not consistent" needs to be an area of focus. I would council that your entire organization (from top to "bottom" of the org chart) are able to list the organization's "strategic direction" (i.e. (as @RoxaneB pointed out-- long term direction), and the "top" two or three interim goals towards that strategic direction. It is very difficult (impossible?) for a team to win unless everyone on the team understands the goal and the plans to achieve.

    Hope this helps.
    Be well.
     
  7. Daniel Padilla T

    Daniel Padilla T Member

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    Could Internal Audits be an instrument to achieve the Strategic Direction?
     
  8. Miner

    Miner Moderator Staff Member

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    Internal audits might be useful for monitoring progress but will not, on their own, drive progress.
     
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  9. Daniel Padilla T

    Daniel Padilla T Member

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    I was thinking using them as a tool to monitor alignment of strategic direction across the organization.
     
  10. Andy Nichols

    Andy Nichols Moderator Staff Member

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    You’ve piqued my interest! How would this be accomplished? Who would do it?
     
  11. Daniel Padilla T

    Daniel Padilla T Member

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    @Andy Nichols I was thinking about doing a research on how to accomplish this. It's easier said than done.
     
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  12. Andy Nichols

    Andy Nichols Moderator Staff Member

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    Indeed it is! Feel free to include me in your research, of course. I recently wrote a white paper on the need for something like you are describing and have been a little dismayed at the cold reception it received…
     
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  13. Daniel Padilla T

    Daniel Padilla T Member

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    Thank you Andy. Where can I find your paper?
     
  14. Andy Nichols

    Andy Nichols Moderator Staff Member

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    I can email it to you.
     
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  15. Andy Nichols

    Andy Nichols Moderator Staff Member

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    You might also get some information from ISO 9004
     
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  16. Daniel Padilla T

    Daniel Padilla T Member

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    I sent you a message.
     
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  17. tony s

    tony s Well-Known Member

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    Do strategic directions contain information on the "planned results" that organizations want to achieve and the "planned activities" needed to be realized? If the answer is yes, then internal audits can be utilized. Clause 9.2.1b requires internal audit in order to provide information about the "effectiveness" of the QMS. Effectiveness is defined as "extent to which planned activities are realized and planned results are achieved".

    Auditors are information provider. Thus, when top management needs to review the system to ensure alignment with the strategic direction, part of the review inputs include (clause 9.3.2c) "information on the performance and effectiveness" of the system.
     
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