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Keeping and winning customers… in tough economic times There is now broad consensus that the world is in recession. While this is generally considered bad for business, there are ways of controlling costs and improving efficiency which can help see an organization through difficult times and even lay the long-term foundations for growth. ISO International Standards can prove fundamental to enabling a business to survive and grow in tough economic times. Studies conducted in a number of countries including Australia, Canada and Germany show that the application of standards contributes significantly to the national economy. In the United Kingdom (UK), the macro-economic benefit of standards to the economy has been quantified at an annual contribution to the gross domestic product (GDP) of 2.5 billion GBP per year. A closer look at the benefits of consensus-based International Standards highlights several key areas in which they can really make a difference in a period of reduced economic growth. Delivering quality, reducing costs and facilitating innovation At first glance it might seem impossible for businesses to improve the quality of their product or service and simultaneously cut costs, but this is at the heart of standardization. Working according to International Standards ensures that quality objectives are identified, delivered and maintained, giving the customer confidence in the products and services they buy, no matter where in the world they are produced. At the same time, standards can help an organization make savings. ISO management system standards, for example, deliver operational efficiencies by streamlining procedures. On the other hand, thousands of ISO technical standards reduce the costly research and development necessary to support new products or systems. The use of tried and tested standards also means that less time is wasted making mistakes – something no business can afford at a time like this. All ISO International Standards are written by experts from business and industry and are refined over their lifetime, ensuring consistent delivery and customer satisfaction again and again. Keeping and winning customers Business wisdom has it that it costs up to five times more to win a new customer than it does to maintain an existing one. With businesses and consumers cutting back during the economic downturn it is now more of a challenge to hold on to customers, but standards can help with this for little extra cost. The clear statement of robust quality and delivery which standards afford a business has been shown to maintain the confidence of existing customers whilst inspiring potential customers. Besides the quality assurance provided by specific technical standards, ISO now publishes a suite of customers satisfaction standards, which provide guidelines on procedures such as complaints handling and dispute resolution: ISO 10001, Quality management – Customer satisfaction – Guidelines for codes of conduct for organizations ISO 10002, Quality management – Customer satisfaction – Guidelines for complaints handling in organizations ISO 10003, Quality management – Customer satisfaction – Guidelines for dispute resolution external to organizations ISO 10004, Quality management – Customer satisfaction – Guidelines for monitoring and measuring (under development). Facilitating trade Now is not the time to shut the door on potential new business. While existing markets and customers are the foundations of a business, a buoyant economy depends upon the development of fresh trade and access to new markets. The use of standards, especially International Standards, such as ISO 9001:2008, Quality management systems – Requirements, enables easier access to new markets by offering an explanation to potential customers of how a business operates and the outputs that can be expected. Investing in sustainability When times are tough it is natural to look for easy savings, but the cost of using environmental and sustainability standards can be offset against the long term financial gains. There are now many national and international standards which provide the necessary tools to help businesses continually improve their sustainability performance. Building on the well-known ISO 14001, Environmental management systems, ISO is now developing ISO 50001, a standard on energy management which holds great cost and energy-cutting potential for businesses in developed and developing countries. Carbon management will remain a key pressure on business throughout the recession, and to assist with this ISO/TC 207, Environmental management, is currently working on carbon footprint quantification. Use standards - through thick and thin Across the board, standards provide the extra cost saving, the new customer, the new innovation – a range of benefits that can make all the difference between sink and swim. It is also possible to identify several specific areas of standardization which could prove particularly effective during a recession. These include: ISO 14001:2004 is more important than ever as it delivers tangible cost savings by calling for significant impacts to be identified and controlled – for example, a reduction in the use of natural resources and the quantity of waste to landfill are potential outcomes Use of ISO 9001:2008 will help a business maintain a consistent standard in its products and services while stripping away unnecessary costs and streamlining operations Above all else, during a recession businesses need to keep afloat and carry on. ISO is developing standards in the field of business continuity management and risk which can be used now, as ever, to determine and invest in critical areas of the business, protect reputation and enhance stakeholder confidence. Government support Governments around the world are doing what they can to fend off the worst effects of the recession and revitalize economies. One way they can do this is to ensure that the benefits of standardization are widely realized. On a practical level, central and local governments are the biggest procurers of products and services; through policy implementation and the use of products and services which are certified to national and international standards, governments can achieve efficiency for all parties. Clear specifications reduce the risk of ambiguity in what is being supplied. Government can also support international standardization on a strategic level, firstly through backing innovation and secondly through recognizing standards as an alternative to regulation and legislation. Innovative solutions in products, processes and services are key to economic growth and are supported by, for example, standards on terminology that explain new areas being developed, or standards that help build confidence among key stakeholders in new concepts. Overzealous regulation and legislation can thwart business development and wrap business in unnecessary administrative burden. Having been developed with consensus and best practice, standards provide government with a voluntary, ready-made solution to the issues that regulation tries to resolve, ensuring more efficient and rapid solutions. As well as the many millions of companies that use and benefit from standards without certification, nearly one million organizations worldwide have realized the worth of International Standards to the extent of obtaining independent verification of their performance via third-party certification. The potential financial benefits of International Standards and certification will drive these organizations forward under trying economic conditions, ultimately enabling them to survive as stronger, more robust businesses. Certifying your organization’s management systems to gain international recognition!