Process Approach in ISO Management Standards: What does it mean?

The need to apply a process-based approach to managing an organization was first outlined in the ISO 9001:2000 standard. Since 2015, this principle has been seamlessly integrated into other management system standards, which are gradually being aligned into a unified structure according to Annex SL.

Although the process approach was officially highlighted in 2000, its origins date back further. It was at this time that the process approach was recognized as one of the best practices in organizational management and was thus included in the requirements of international management system standards. Initially, this applied only to quality management but later expanded to include environmental management, occupational health management, energy management, and more.

However, not all organizations fully implement this approach, or they do not utilize it to its full potential, thereby missing out on the benefits it can provide.

What is the Difference Between a Process-Based and Hierarchical Approach to Management?

Many organizations have historically used a hierarchical, or functional, approach to management. This method focuses on organizational structure, where different jobs are performed by specialists, each responsible for their own "function." This approach dates back to the division of labor era.

In contrast, the process approach manages activities as processes aimed at achieving specific results. An organization is viewed as a system of interrelated and coordinated processes that work together to meet goals.

For example, in a manufacturing company using a hierarchical approach, the production department might focus solely on producing goods, while the quality control department focuses only on inspecting finished products. This can lead to inefficiencies and communication gaps.

However, with a process approach, these departments work together as part of a single production process. Production and quality control collaborate throughout the manufacturing process to ensure that quality standards are met at every stage, leading to fewer errors and higher efficiency.

Global and domestic business practices show that "horizontal" process management improves efficiency and makes an organization easier to manage. This doesn't mean the process approach should replace the hierarchical one. Instead, it can complement the classical functional approach, addressing its inherent weaknesses and enhancing overall performance.

What is a Process in a Management System as per ISO Standards?

A process is a set of actions that transform "inputs" into "outputs" (results of activities). Inputs and outputs can be tangible (e.g., raw materials, components) or intangible (e.g., data, knowledge).

The transformation of inputs into outputs is facilitated by available resources, such as human, infrastructural, and technological resources. Each process has an "owner" responsible for its effectiveness.

Processes are managed using the Deming Cycle (PDCA):

• Plan: Goals are set for each process, and an action plan is drawn up to achieve these goals.
• Do: The action plan is executed and monitored.
• Check: Processes and their performance are monitored and measured.
• Act: Based on the measurement results, actions are taken to improve processes.

According to ISO 9001:2015 and other updated ISO standards, risk-based thinking should be applied when designing processes and developing process control measures. This approach helps improve process effectiveness and prevent undesirable outcomes.

The Role of the Process Approach in Achieving Goals

The value of the process approach lies in its ability to establish effective interactions between interconnected processes. Outputs from one process serve as inputs for another. Without proper coordination, these processes can fail to work together effectively, leading to issues such as: 

• "I made it, but they didn't sell it." 
• "I bought the equipment, but they couldn't install it." 
• "I made a contract, and they couldn't fulfill it."

Each component may function perfectly on its own, but without proper integration and coordination, the entire system can fail.

By ensuring that processes are interconnected and aligned towards common goals, the process approach helps organizations achieve more efficient and effective outcomes.

In addition to optimizing interactions between departments, the process approach focuses on building effective interactions between processes within the management system. Each process contributes to achieving the organization's goals, such as:

• Customer satisfaction (ISO 9001)
• Prevention of accidents and occupational diseases, and creating safe working conditions (ISO 45001)
• Prevention of negative environmental impacts (ISO 14001)

For instance, in a Quality Management System (QMS), even departments that do not directly interact with external clients should understand how their work helps to meet customer requirements. By regularly measuring and analyzing the contribution of each process to these goals, and defining KPIs to evaluate processes rather than departments, all managers in the organization can ensure alignment. It's like a well-coordinated orchestra where each musician, even those playing different instruments, must work in harmony to create a beautiful symphony.

Process Analysis and Updating

Every process has its own internal or external consumers, and it's crucial to understand their needs. It’s important to ask why a particular activity is being performed and why a process exists. If the result of a process isn’t needed by anyone, it may be worth considering whether the activity should be discontinued. For example, creating a report that no one uses.

Consider this real-life example: At one manufacturing company, each production shop submitted a detailed monthly report covering product output, scrap rates, equipment downtime, incidents, training etc. These reports were sent to the production department, which simply recorded receipt of the reports and then did nothing further with them.

It turned out that these reports were originally introduced by a former technical director who reviewed them personally. After his departure, no one read the reports, but the process of collecting them continued. This created a situation where the reports served no purpose—a classic case of a "dead-end" activity that could have been eliminated but was overlooked.

Regular analysis of processes and their review help to timely identify such changes and eliminate “dead-ends”. When some changes are introduced to one department, it automatically triggers changes in other departments along the process.

How Many Core Processes Should an Organization Have?

There is no set number of core processes that an organization should have; this decision depends on the specific needs and structure of the company.

Often, the tendency to align processes with functional departments stems from traditional organizational structures. This approach in fact can be practical.

For example, at one company, a production process was defined with the production manager as the process owner. Quality control was initially included within this process, and the quality control manager was subordinated to the production manager. This arrangement was problematic and led to process failure because quality control should be independent to effectively oversee production.

In this case, separating the quality control process into its own distinct process improved the system’s functionality.

Still, aligning processes strictly with hierarchical departments isn't always ideal. A department head does not necessarily need to become a process owner. Processes should be designed based on practical realities and needs, avoiding unnecessary complexity in the management system.

Ultimately, the key is to define processes in a way that best supports the organization's goals and operations without overcomplicating the management system.

Applying the Process Approach

Despite its clear benefits, the implementation of a process approach can face obstacles in organizations. Two primary reasons for this include:

• Lack of Understanding: There may be a lack of awareness about the benefits of the process approach.
• Management Challenges: Managing processes can be difficult because a single process often spans multiple departments, and the process owner typically manages only one of these departments.

In practice, elements of the process approach can be found in almost any organization.

Fully applying this approach can lead to significant improvements, such as reduced production and management costs. This is achieved by minimizing disruptions in interactions between different departments and among employees within departments. Essentially, the process approach serves as a valuable tool to help organizations achieve their goals more efficiently and with fewer losses.

For more insights, read the article 7 Quality Management Principles According to ISO 9001.

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