What is a Business Management System? – Think Business Goals

What is a business management system? As cumbersome as it sounds, it is only a framework used to organize and manage the policies, processes and procedures used to create and implement goal achieving strategies.

Each system is usually adapted to the specific needs and goals of a business. Furthermore, they follow the PDCA (Plan-Do-Check-Act) cycle of planning, “doing the work”, checking and analyzing and finally acting on improvements.

A management system can be used in any area of the business no matter the size, type, or industry because it helps to achieve business goals by using defined business roles for accountabilities, rules/ regulations, and controls to run streamlined and optimized processes accompanied by continuous improvement activities.

Management Systems and ISO are only for Big Businesses – A Myth

Many smaller and mid-sized businesses feel that management systems are solely for ISO certification and applicable to larger enterprise businesses. The truth is that all businesses will benefit from a structured system – including smaller businesses, and while they do not have to be developed for certification to ISO standards, a simple system is better than a free for all one which can quickly create disorder.

Without this framework, any business (especially smaller ones) can revolve around one or two authority figures- which usually includes the business owner – for approvals, progress reviews, sign off on warehouse deliveries, invoices, purchase decisions etc., eventually creating an avoidable backlog.

Management systems are customer-centric with a focus on the requirements of customers in conjunction with regulations /standards, internal corporate requirements, and vendor inputs.

Four Challenges in a Business

Every business experiences these four challenges:

What is a Business Management System
Systems and Processes – Gears illustration
  • Consistently meeting customer requirements
  • Ensuring that set corporate requirements for best practices are followed
  • Ensuring compliance with required standards, codes, and regulations
  • Ensuring customer satisfaction to expand customer base and increase revenue

Meeting all these requirements without “dropping the ball” at any stage can only be efficiently and effectively conducted with a business management framework

ISO Standards

Certification to ISO Standards is not a regulatory requirement although research demonstrates that of the business that implement certification,

  • 75% experienced improved customer services,
  • 74% retained current customers and gained new ones,
  • 77% boosted their performance (BSI Australia)

The most well-known ISO Management Systems standards are ISO 9001 – Quality , ISO 14001 – Environmental, and ISO 45001 – Occupational Health and Safety .

What is a Business Management System? – Benefits

There are several benefits :

  • Clearly defined framework with clear roles and responsibilities
  • Documented, streamlined, and optimized business processes
  • Collaboration between cross functional teams
  • Improved employee morale and engagement
  • Documents are easily accessible
  • Errors and rework are avoided and result in reduced costs
  • Improved customer experience
  • Growth as corporate goals are achieved
  • Risk is minimized
  • Enhanced business reputation
  • Continuous improvements drive the system
  • Regular training of employees

What is a Business Management System? – A Major Drawback

The management system should be as simple and easy to understand as possible with clearly defined responsibilities. If it is too complex, it will cause reduced efficiencies and unnecessary waste of time navigating the system. Need Assistance?

Conclusion

What is a business management system? It is a framework within which a business can operate in any area of the business. It helps to bring organization to the policies, processes and procedures and the resources that use them to achieve business goals. A successful system is largely dependent on management and training

References

BSI Australia – What is a Management System? https://www.bsigroup.com/en-AU/About-BSI/FAQs/What-is-a-Management-System/

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