Evidence Based Decision Making in ISO 9001. How to implement the principle?

"Study the past, if you would divine the future" said Confucius. Decision-making is an attempt to look into the future, so the result always contains a certain amount of uncertainty. The question is how significant this uncertainty is.

Five Secrets to Making the Right Decisions

Without relying on facts, decisions can only be correct by sheer luck. By relying on accumulated and analyzed data, you can significantly increase the probability of achieving the desired result. It is no coincidence that one of the fundamental principles laid down in the ISO 9001:2015 standard is evidence-based decision-making.

Advantages of Implementing This Principle for an Organization:

• Improved decision-making processes
• Enhanced assessment of process performance and goal achievement
• Increased operational efficiency
• Better ability to analyze, challenge, and change opinions and decisions
• Improved ability to demonstrate the effectiveness of previous decisions

How to Implement the Principle in Practice

1. Identify, Measure, and Track Key Metrics to Demonstrate the Organization's Performance
   Each company decides independently what kind of data to collect based on its activities. For example, it is important for a logistics company to keep track of delivery dates, and for an educational institution, it is crucial to consider students’ final exam scores. Sources of information can include accounting systems, operational records, interviews with employees, and observations. Once you have identified the indicators, it is important to record them in a timely manner, and subsequent data analysis will provide useful information.
   
   
2. Make All Necessary Data Available to Relevant Individuals
   For instance, during the production of electrical equipment it is important for the quality department to involve technical personnel to obtain information about the costs of eliminating defects, as well as to cooperate with the warranty department to stay updated with statistics on warranty cases.
   
   
3. Ensure That Information is Sufficiently Accurate, Reliable, and Protected
   It is essential to ensure that initial data is accurate and obtained from reliable sources; otherwise, the conclusions drawn will not be reflecting the reality, potentially causing more harm than good. Information should be protected to safeguard the commercial interests of the company, but at the same time access should be granted to employees who require specific data for their work.
   
   Information requirements must be met adequately, considering the application's specifics. If accuracy requirements are too stringent, the cost of collecting and organizing data will be unnecessarily high. In fields like healthcare and pharmaceuticals, where the cost of error is extremely high, greater investment is required in data collection and analysis.
   
   
4. Analyse and Evaluate Information Using Appropriate Methods
   Small companies can start with a modest amount of raw data. Large enterprises, on the other hand, may find it challenging to operate without automated information collection systems.
   It is crucial to remember that data should be collected not just for collection’s sake, but to bring value. The benefits of data collection and analysis should surpass the costs. The measurement system and analytics should be seamlessly integrated into the workflow without diverting attention from the main activities.
   
   
5. Verify the Competence of Personnel Performing Data Analysis and Evaluation
   Imagine a situation where the pricing department gathers information about production costs, competitor prices for similar products, and market conditions but does not compare this data. The efforts to collect information would be in vain, and decisions based on it would be erroneous.
   
   
6. Make Decisions and Take Actions Based on Evidence, Experience, and Intuition
   A profound understanding of your industry enables you to identify the most crucial evidence from all available data. Experience aids in modelling potential developments, while intuition assists in making swift decisions when necessary.

For more information about other quality management principles, read our article 7 Principles of Quality Management According to ISO 9001:2015.

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