One of the seven principles of quality management laid down in the ISO 9001:2015 standard is Relationship Management. The essence of this principle is that an organization can achieve sustainable success only if it effectively manages its relationships with stakeholders.
The previous version of the standard (ISO 9001:2008) included the principle of "Mutually beneficial relationships with suppliers." This principle has been expanded in the current version to "Relationship Management," encompassing a broader scope. It now includes relationships with suppliers and other stakeholders: partners, customers, investors, employees, and society.
Why is the Principle of Relationship Management Important?
Stakeholders significantly influence an organization's activities. The success of an organization depends on how well it manages its relationships with these stakeholders. Effective relationship management with suppliers and partners is particularly important.
Managing relationships involves more than just a series of "buy-sell" operations. It requires a set of activities aimed at developing long-term partnerships.
Benefits to the Organization
- Enhanced Organizational Effectiveness: By responding timely to the opportunities and constraints associated with each stakeholder, organizational effectiveness is improved.
- Common Goals and Values: Stakeholders realize they share common goals and values.
- Empowerment: Each stakeholder is empowered to achieve results through shared resources, competencies, and risk management.
- Well-Managed Supply Chain: Ensures a steady flow of goods and services.
How to Implement the Relationship Management Principle?
Each organization may have a unique approach to implementing this principle. Here are some possible actions to help apply it:
- Identify Stakeholders: Determine who your stakeholders are and what their relationship is to the organization.
- Prioritize Relationship Dimensions: Identify and prioritize which stakeholder relationship dimensions need immediate attention. For example, prioritize according to the risk of non-compliance with customer requirements.
- Balance Short-Term and Long-Term Goals: Establish stakeholder relationships that balance short-term benefits with long-term goals.
- Network and Share Resources: Network and share information, expertise, and resources with stakeholders.
- Measure and Provide Feedback: Measure process performance and provide feedback to stakeholders to encourage initiatives for improvements (business process improvements, product functionality improvements, service quality improvements, etc.). Evaluation methods and criteria should be defined and agreed upon in advance.
- Collaborate for Development and Improvement: Establish cooperation with suppliers, partners, and other stakeholders aimed at development and improvement. Avoid mutual accusations and work together to find optimal solutions to problems, eliminate, and prevent discrepancies. Communication should be open and two-way.
- Encourage and Recognize Achievements: Encourage and recognize the improvements and achievements of your suppliers and partners. Motivation is a critical factor in successful relationships.
For more insights, read the article The 7 Quality Management Principles as per ISO 9001.
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