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Business Benefits of a Well-Documented Management System

August 4, 2014 - Kestrel Management

A management system is the framework that enables companies to achieve their operational and business objectives through a process of continuous improvement. In its simplest form, a management system implements the Plan, Do, Check, Act/Adjust cycle. Several choices are available for management systems (ISO is commonly applied), whether they are certified by third-party registrars and auditors, self-certified, or used as internal guidance and for potential certification readiness.

From Compliance Only to Compliance within a Management System

The connection between management systems and compliance is vital in avoiding recurring compliance issues and in reducing variation in compliance performance. In fact, reliable and effective regulatory compliance is commonly an outcome of consistent and reliable implementation of a management system.

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10 Reasons to Implement at Management System

Beyond that, there are a number of business reasons for implementing a well-documented management system (environmental, safety, quality, food safety, other) and associated support methods and tools:

  1. Establishes a common documented framework to achieve more consistent implementation of compliance policies and processes—addressing the eight core functions of compliance:
  • Inventories
  • Permits and authorizations
  • Plans
  • Training
  • Practices in place
  • Monitoring and inspection
  • Records
  • Reporting
  1. Provides clear methods and processes to identify and prioritize risks, set and monitor goals, communicate those risks to employees and management, and allocate the resources to mitigate them.
  2. Shifts from a command-and-control, centrally driven function to one that depends heavily on teamwork and implementation of a common system, taking into consideration the necessary local differences and building better know-how at the facility level.
  3. Establishes a common language for periodic calls and meetings among managers, facility managers, and executives, which yields better goal-setting, priority ranking, and allocation of resources to the areas with greatest risk or the greatest opportunity to add business value.
  4. Empowers facilities to take responsibility for processes and compliance performance without waiting to be told “what” and “how”.
  5. Enables better collaboration and communication across a distributed company with many locations.
  6. Enables the selection and implementation of a robust information system capable of tracking and reporting on common activities and performance metrics across the company.
  7. Employs a design and implementation process that builds company know-how, captures/retains institutional knowledge, and enables ongoing improvement without having to continually reinvent the wheel.
  8. Creates consistent processes and procedures that support personnel changes (e.g., transfers, promotions, retirements) and training of new personnel without causing disruption or gaps.
  9. Allows for more consistent oversight and governance, yielding higher predictability and reliability.

 Submitted by: Tom Kunes

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