Transcript Welcome [www.iema.net]

The concepts of an effective
management system
Dr. Chris Bamber, PhD, MSc, MIQA
Warning:This presentation has little to do with integration and
everything to do with running an organisation
OLC (Europe) Ltd
What is a management system?
To answer this, we probably
need to understand what;
• a system is and then what
• a process is and what
• management means
OLC (Europe) Ltd
What is a system?
• A system is described as “a model of a whole
entity” 1
1 Checkland, P.B., (1988), “Systems Thinking, Systems Practice”, John Wiley & Sons,
Chichester.
OLC (Europe) Ltd
What is a system?
• “A system is a set of processes and resources that
are designed and performed in order to achieve a
desired objective, such as a ….” 2
OLC (Europe) Ltd
1 Kaarapetrovic, S and Willburn, W (1998) “Concepts of integration of quality and
environmental management systems” The TQM Magazine, Vol. 10, No. 3.
What is a system?
Do systems stand alone? NO
Systems are affected by and affect their
environment
OLC (Europe) Ltd
What is a system?
• Systems change over time
– Purpose, environment,
configuration, decay,
development, mature
• Systems therefore potentially
have many futures
Can the future of an
organisation be determined
or influenced in any way?
Can we direct an organisational
system?
OLC (Europe) Ltd
YES
What is a system?
Because we know systems have
many potential futures,
organisational systems must be
managed - but how?
“The boundary of a system can only
be defined when the purpose of
the system is known ….. The
boundary will enclose the
organisational processes and
resources that make the system
act in the way it does”
OLC (Europe) Ltd
What is an organisational system?
“We have to develop a sense of connectedness, a sense of working
together as part of a system, where each part of the system is
affecting, being affected by the others, and where the whole is
greater than the sum of the parts.” 3
Otherwise we sub-optimise the system
from Deming or Juran - American quality gurus
Think about the human system or a humans sub-system (dietary
system/respiratory system etc.). It would be totally stupid to
have a super giant high performing liver, or left leg or ……..
Increasing functional performance with disregard to the system
can be suicidal – this is analogous to organisations!
OLC (Europe) Ltd
3 Senge, P.M., (1997), The Fifth Discipline: The Art & Practice of The Learning
Organisation, Century Business, London.
CEO
Functional
Hierarchy
Control
flows
down through
departments
Dept.1
Functional
Hierarchy vs.
Product/Service
Flow
Inputs
Dept.2
Dept.3
Dept.4
1
2
3
4
Outputs
6
5
Work processes flow across departments
OLC (Europe) Ltd
Dept.5
Management system &
continuous improvement
Process based business systems follow:-
Act
Do
Check
OLC (Europe) Ltd
The
future
Plan 1
Plan
Act 1
Do1
Check 1
Continuous business improvement
What is an organisational
system? continued
• Processes deliver what the system exists for
– Directed/purposeful change means the processes need
to improve
– To direct a process means change
• It is the people that have the most influence on
processes and change of processes
– This means training is required in understanding what
a process is, how we can manage processes and how we
can improve the system.
OLC (Europe) Ltd
KPI’s
(Key Performance Indicators)
OLC (Europe) Ltd
‘Key Performance Indicators’
Stakeholder needs
Customer needs
Monitor performance
& improve
Business objectives
(quality, environmental,
health and safety etc.)
Processes
(including projects)
OLC (Europe) Ltd
Key performance
indicators
What is a KPI?
•Metric not a target, often percentage
•Efficiency (in the process) - process
•Effectiveness (of the process) - product
•Financial
•Different levels of KPIs, business, process
•Management by fact
•Managing processes not procedures
•Meaningful to those involved
OLC (Europe) Ltd
One view of an Integrated
Management System
AHAS18000:Draft
Occupational Health &
Safety
Management
System
QMS
Policy
&
Strategy
Policy
&
Strategy
Core
Management
Principles
(Shared
Vision)
ISO 14001
Environmental
Management
System
EMS
Policy
&
Strategy
ISO 9000
Quality
Management
System
OHSM&S
OLC (Europe) Ltd
Shared Vision
Change-plan 1
Strategies
Change-plan n-1
Change-plan n
Process 1
Policies
Process 2
Process 3
Processes
Process 4
Process n-2
Process n-1
Process n
Strong Correlation
OLC (Europe) Ltd
Medium Correlation
Weak Correlation
Other
AHAS
18000
IS0
14001
Corporate Mission
Document
ISO
9000
Accreditation standards
A Typical System?
Understanding
the
Market
Bringing about
change
Business
Planning
Monitor &
measure
Performance
Design
/ enhance
Services
Deliver
Services
Managing
People
Communicate
Services
Managing
Assets
Managing
Finance
‘What are your processes?’
OLC (Europe) Ltd
SP@CE Processes
Money
Management
People
Management
Market
Knowledge
Bringing about
change
Business
Planning
Meeting
Customer
Choice
Asset
Management
Performance
monitoring
Managing ICT
infrastructure
OLC (Europe) Ltd
Lifestyle
Services
Marketing new &
existing products
& services
Growing the
business
Lets look a system and process
model
Was this an IMS?
What can we do with this approach
to integrate quality, health and safety
and environmental
OLC (Europe) Ltd
Integrating through the use of risk
management principles
• We could assess each process using a
risk management approach
– The framework could be Q, S and H, E
or anything else you may want to think
about
– Each process would have key risk
indicators (KRIs)
– KRIs would lead to management
decisions
OLC (Europe) Ltd
‘Key Risk Indicators’
Stakeholder needs
Customer needs
Monitor performance
& improve
Business objectives
(quality, environmental,
health and safety etc.)
Processes
(including projects)
OLC (Europe) Ltd
Key Risk
Indicators
Think differently
Business System first and then
integration will be built in not
forced in
OLC (Europe) Ltd