OECD Report What role for International Management Standards

OECD Report What role for International Management Standards? Maurice Buckley CEO - National Standards Authority of Ireland Sept 2008 © NSAI

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 © NSAI 2

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 © NSAI 3

Some of the World Class companies registered to IS 0 9001 by NSAI • • • Intel Dell Apple Computer Analog Devices Coca Cola Unisys Corporation Hollister Inc. Element 6 (De Beers) Diagio (Guinness) Glanbia © NSAI Howmedica Smithkline Smurfit Kappa Beckman Coulter Ener. Sys Logitech CRH (Cement Roadstone) • HP • Abbott Labs • • 4

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 © NSAI 5

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. © NSAI 6

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 © NSAI 7

The standard uses the Process Approach Model Continual improvement of the management system Management Responsibility Customers Requirements Measurement Analysis and Improvement Resource Management Inputs Customers Service Realization Satisfaction Outputs 8 © NSAI Value-adding activities Information flow

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 © NSAI 9

Examples of Public Sector Organisations already using ISO 9001 An Garda Siochana CSE Unit Food Safety Authority of Ireland An Post – National lottery Health Service Execurive South Bord Gais Networks Limerick County Council Bord Na Mona Fuels Ltd Louth County Enterprise Board Communicable Disease Function HSE Met Eireann Aviation Services Division Do. D Training and Development Unit Mid West National Road Design Office Department of Transport, Finance section National Building Agency Ltd Dept of Agriculture Livestock Breeding Unit National Cancer Screening Service Dept of Agriculture Payments Section Nenagh Regional Water Supply Plant Dublin Bus – Timetable Section Office of Public Works Dublin City Council – Pollutant Monitoring St. Mary's Hospital Dublin Fire Brigade Dundalk Institute of Technology – Registrars Office University Hospital Galway - Obs & Gyne University of Limerick – IT Support eircom VHI Healthcare Claims Division Electricity Supply Board Wexford County Council Environmental Health Services Generally ISO 9001 was applied to specific sections within these bodies. Maximum benefit is derived when it is deployed throughout the entire organisation Wheatfield Prison – Catering Function University of Limerick – Staff Training Unit © NSAI 10

Feedback from some Irish Public Service organisations using ISO 9001 • Food Safety Authority • National Building Agency • Do. A Accounts Division • Dublin Fire Brigade • National Cancer Screening Service “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 • “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 “We found it most worthwhile and are extending it to 2 other sections within our Department” - ISO Project Manager © NSAI • “and was also extremely successful in allowing us to manage needed change and improvement” – ISO Project Leader “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. 11

ISO 9000 is being used by Governments in many other Countries France has widely deployed ISO 9001 in the public service including in the following ministries: • • © NSAI 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 12

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 © NSAI 13

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 © NSAI 14

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. © NSAI 15

The lessons from our experience in Ireland 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. © NSAI 16

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 © NSAI 17