OECD Report

What role for International Management Standards?

Maurice BuckleyCEO - National Standards Authority of IrelandSept 2008

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What are the current public service issues?• OECD Report highlights performance and

transparency gaps• Clear focus on, and measurement of,

outputs and outcomes rather than inputs• Close co-ordination of agencies and

departments essential to deliver integrated services

• Pressure on government finances makes prioritisation and planning essential

• Need for efficiencies and value for money

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About ISO 9001 – The International Standard for Quality Management

• It is the most successful international business management standard ever developed

• Used by thousand of enterprises in the Private and Public sectors

• 175 Counties• 880,000 registrations worldwide

• Has stood the test of time

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Some of the World Class companies registered to IS0 9001 by NSAI• Intel• Dell• Apple Computer• Analog Devices• Coca Cola• Unisys Corporation• Hollister Inc.• Element 6 (De Beers)• Diagio (Guinness)• Glanbia

• Howmedica• Smithkline• Smurfit Kappa• Beckman Coulter• EnerSys• Logitech• CRH (Cement

Roadstone)• HP• Abbott Labs

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Why major corporations use ISO 9001?

Provides management control of diverse operations – they can measure frontline delivery of service – this is vital

• Allows corporate objectives to be rolled out to operational levels

• Provides better information flow and visibility for management

• Integrates processes to achieve better service delivery and customer satisfaction

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ISO 9001 can help Government for the same reason it helps large corporations

Provides management control of diverse operations – can measure frontline delivery of service

• Allows objectives to be rolled out to front line units with clear and transparent measures

• Provides better information flow and visibility for management

• Integrates processes to achieve better service delivery and customer satisfaction

The potential value of ISO 9001 for the Irish Public Service is identified in the OECD report.

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8 Management Principles are central to ISO 9001• Customer focus• Leadership• Involvement of people• Process approach• System approach to management• Continual improvement• Factual approach to decision making• Mutually beneficial supplier relationships

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The standard uses the Process Approach Model

Customers Customers

Value-adding activitiesValue-adding activities Information flow

SatisfactionSatisfactionResource

Management

Measurement

Analysis and

Improvement

Requirements

Management

Responsibility

Service

RealizationInputs OutputsOutputs

Continual improvement of the management system

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Specific beneficial outputs ISO 9001 can deliver in the Public Service• Greater emphasis on leadership, communications

and change management• Improved efficiency and service quality• Continual improvement and customer focus• Promotion and standardisation of good working

practices with control of key processes• Aid to staff mobility through defined and

documented operating procedures• A planning and review process which ensures the

system remains effective and capable of identifying improvement opportunities

• Effective management of risk and reduction of crisis management

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Examples of Public Sector Organisations already using ISO 9001

An Garda Siochana CSE Unit

An Post – National lottery

Bord Gais Networks

Bord Na Mona Fuels Ltd

Communicable Disease Function HSE

DoD Training and Development Unit

Department of Transport, Finance section

Dept of Agriculture Livestock Breeding Unit

Dept of Agriculture Payments Section

Dublin Bus – Timetable Section

Dublin City Council – Pollutant Monitoring

Dublin Fire Brigade

Dundalk Institute of Technology – Registrars Office

eircom

Electricity Supply Board

Environmental Health Services

Food Safety Authority of Ireland

Health Service Execurive South

Limerick County Council

Louth County Enterprise Board

Met Eireann Aviation Services Division

Mid West National Road Design Office

National Building Agency Ltd

National Cancer Screening Service

Nenagh Regional Water Supply Plant

Office of Public Works

St. Mary's Hospital

University Hospital Galway - Obs & Gyne

University of Limerick – IT Support

VHI Healthcare Claims Division

Wexford County Council

Wheatfield Prison – Catering Function

University of Limerick – Staff Training Unit

Generally ISO 9001 was applied to

specific sections within these

bodies. Maximum benefit is derived

when it is deployed throughout the

entire organisation

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Feedback from some Irish Public Service organisations using ISO 9001• Food Safety Authority

“Proven to be highly valuable in improving operational performance. Reports and returns to our parent Department are facilitated by having an effective ISO 9001 measurement systems” – Quality Manager FSAI

• National Building Agency • “We’re very satisfied at what it brought. It forced us think about our

disciplines, activities, & connectivity between activities. It brought commonality to what we are doing and improved our performance” -CEO NBA

• DoA Accounts Division“We found it most worthwhile and are extending it to 2 other sections within

our Department” - ISO Project Manager• Dublin Fire Brigade

• “and was also extremely successful in allowing us to manage needed change and improvement” – ISO Project Leader

• National Cancer Screening Service“this [ISO 9001 certification] is the embodiment of transparency and openness

that the public are constantly seeking and it is so encouraging to see the public service rise to the challenge of a sophisticated and informed customer” - Minister Michael Aherne T.D.

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ISO 9000 is being used by Governments in many other Countries

• Interior, Town and Country Planning • National and Higher Education and Research• Transport, Tourism and the Sea• Justice• Agriculture and Fishing• Youth, Sport and Community Life• Defence

France has widely deployed ISO 9001 in the public service including in the following ministries:

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Other examples of ISO 9000 applied to Government functions internationally

• USA – NSAI has certified the City of Boston• Canada/Australia/NZ - ISO 9001 widely used in public

service• Italy - 709 public administrations, 1931 public services

Developing countries see ISI 9001 as a way of rapidly improving Public Service performance

• Malaysia - has decided to implement ISO 9000 across the board in its entire public administration.

• Mexico - 97% public institutions registered• Argentina - Municipalities, Judiciary, Social Security• India – Egypt – Indonesia, UAE and others encouraging

uptake of ISO 9001 by Public bodies

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The French Experience – Performance Improvements• “the rate of return on internal ISO 9001 investment is

over 50% and our objective is to improve it” - Industry, Research and Environment

• “200% increase in licenses issued in 3 years” – Automobile Taxation Office

• “13% increase in satisfaction in 2 years” - Delegation for Continuing Education

• “client satisfaction has risen to 98%” – Courts of Commerce

• “reduced manpower by 30% in 5 years and maintained service” - Delegation for the Armament

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NSAI proposed approach to implementation

• Highlight the benefits of applying ISO 9001 in state bodies and agencies in line with the direction of the OECD review.

• Analyse and benchmark best international practice in the application of ISO 9001 to public sector bodies.

• Provide tailored advisory programmes and training for the public sector.

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The lessons from our experience in Ireland and Internationally suggest:

• ISO 9001 works best for bodies with customer facing activities.

• Full benefits achieved when implemented across full business units.

• Full backing of senior management crucial. • Existing performance improvement initiatives

such as PMDS, SMI, can be integrated.• ISO 9001 is an excellent platform for other

programs such as EFQM, CAF, etc.

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Summary and Conclusions

• ISO 9001 is a proven business performance management tool

• It can help address current Public Service issues

• It is aligned with OECD report findings• NSAI is organised and committed to

support implementation• Benefits of adoption by the Public

Service demonstrated Internationally