AS NZS ISO 10014:2022 – Quality management systems— Managingan organization for quality results — Guidance for realizing financial and economic benefits.
economic benefit
benefit attained through the effective implementation of management system processes and resources to generate value and improve the health and overall worth of the organization and its relevant interested parties
combination of numerical and graphical data displays used to present the performance and trends of key results
F.XAMPI.F Traffic light charts; Pareto charts: pie charts; trend charts.
best practice
method that has been proven to work well and produce the best results, and Is therefore recommended to be adopted as a model
Note 1 to entry: A method described as a best practice has usually been tested over time and validated through repeated trials before being accepted as worthy of broad adoption.
process approach
systematic approach to management in which an organization identifies, monitors and manages its internal processes and their interactions
process owner
person with assigned responsibility and authority for a process
Note 1 to entry: The responsibilities of a process owner can include defining, developing and deploying the process, communicating with interested parties, measuring and monitoring the results of the process and continually improving the performance of the process.
activity of measurement and analysis that an organization can use to search for and compare practices inside and outside the organization, with the aim of improving its performance
Note ito entry: Benchmarkingcan beapplied to policies. strategies and objectives. processes and their operation, products, services and the organization’s structures.
leading Indicator
metrIc (3.1) that gives an indication of expected performance
lagging indicator
metrIc (3.1) that gives an indication of past performance
ability to generate, create, enhance or deliver products, services and knowledge
4 Top-down structured approach to realize financial and economic benefits
4.1 OvervIew
This document provides a two-st.ige Lup-duwu structured approach to assist top maJi.grneiL iii identifying and realizing financial and economic benefits (see Figure 1). As presented in this document, this approach Is generic and applicable to any process or ongoing business condition (see Annex B).
In Stage 1. top management is responsible for identifying areas for improvement. The information is then passed onto Stage 2 In the form olassigned actions to the process owners.
In Stage 2, the process owners are responsible for developing and implementing effective improvement plans.
This same approach should be used to sustain improvements and achievements. The financial and economic benefits are achieved by:
a) monitoring and analysing key performance metrics over time:
— in the context of the organization;
— that represent the changing needs and expectations of interested parties;
b) implementing improvement actions, based on the analysis of the metrics, using the quality management principles together with the organization’s quality management system (see Annex D).
The quality management principles are supported by the process approach, the PDCA cycle and rIsk- based thinking.
An organization should conduct an Initial self-assessment, using the self-assessment tool provided in Annex C, to establish a baseline to assess how effectively it Is using the processes detailed in this document. For organizations that have not yet developed a set of metrics and tools to identify and recognize risks and opportunities, they can start with the self-assessment tool In Annex C to Identify gaps in their processes. As these processes improve, the organization will be in a better position to recognize opportunities for improvement through the evaluation of its business results.
Figure 1 summarizes the top-down structured approach for:
— analysing results important to the organization’s financial and economic performance;
— identifying opportunities and metrics at risk;
— improving the underlying business processes.