HRG Process Management Auditing - 22 Sept 2003

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Online Auditing European Affiliates Briefing
Friday 9th July 2004
Rob Peddle
July 2004 ?The High Performance Organisation
Group Ltd
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Objectives

• To provide an understanding of
• The problems organisations are now facing with
  auditing
• Solutions that will help them to address these
  problems
• The potential benefits to both UL and your
  customers by adopting these solutions
• Products and Services that can be sold

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The Business Change

• In the past-
• Auditing was focused on compliance to procedures
• Requirements of ISO90011994
• Now and in the future-
• A new focus on effectiveness
• Complying to procedures does not automatically
  create performance it just means we have done
  something in the way it has been written.
  Businesses need to know it has also been
  effective i.e. delivered required results.
• Requirements of ISO90012000 and associated
  standards
• Business is demanding more value from its use of
  standards
• Business is demanding more value from both
  internal and external auditing

The future is not about ticking boxes but about
business performance
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Quality (Business) Principles

• Customer focus
• Leadership
• Involvement of people
• Process approach
• System approach to management
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationships

Compliance auditing means little in these areas
effectiveness is all
Source ISO90002000
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There are two key areas where clients need
supportUL can help them in both of these

• Process Based Management System Design
• Business, not Standards, focused
• Based on best practice
• Foundation for future development
• Measurement of effectiveness
• Customer Satisfaction/Perception
• Internal Auditing
• Supplier Audits
• Employee Audits
• Third Party Audits

These are areas where UL will differentiate their
customer offering
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(No Transcript)
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Processes v Silos - Whole Business
Dept 1
Dept 2
Dept 3
Dept 4
STAKEHOLDERS
Deliver the service?
CUSTOMERS
Service Design Development?
Business Planning?
Communicating winning business?
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Compliance Process Auditing
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Assessing the Management of Processesthe problem
of the Super-Auditor
Knowledge
Risks
etc.
Inputs
Outputs
Resources
Budget
Competence
Tar Act Var
Com.
Com.
Com.
Com.
Assets
Teamwork Ownership
Corporate Social Responsibility
Learn
Change
Assessing effectiveness is about understanding
all of these disciplines and how they interact
with each other to deliver results
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On-line Assessment Solution the mechanics
Carryout assessment
Secure Confidential User Registration
Set up assessment
Create assessment with you
Produce effectiveness / compliance report
Monitor Assessment
Bring about real change to improve effectiveness
..realising the opportunity to improve
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This assessment has been carried out using The
HPOs unique on-line assessment services. It
provides you with an independent and consistent
review of your performance against this
framework, within the scope defined below. It
identifies areas of both strength and weakness,
together with areas of non-conformance and
provides you with a review of your performance
against a set of high-performance indicators that
will help you to prioritise your improvement
activity.
Contents of Assessment Report Overview
Report Response Conformance High Performance
Indicator Further Actions Appendix High
Performance Indicators
Description of Assessment This Internal Audit
is designed to collect relevant information about
the effectiveness of the Example Process used
within organisation. In order to have the maximum
relevance and to provide the greatest opportunity
to identify improvements, it is essential that as
many people who are involved in this process as
possible are encouraged to respond.
Scope of assessment All people working within
the Your Organisation Team/Department
Assessment Administration Date Set-Up
start date Date Completed completion
date Administrator Administrator Name
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Potential Objections to this approach

• A number of barriers to acceptance of this
  approach are likely to be encountered
• How does the system assess compliance?
• Will UL 3rd party auditors accept these as
  suitable for ISO90012000?
• We need people to look at what is happening for
  auditing
• Where does this leave existing auditors?
• This is a totally different approach too much
  change?
• It is too difficult to start it off
• Does UL use this approach itself?
• How does it gather objective evidence when no
  auditor is involved?
• etc.

Your Resource Centre will hold answers to these
and other questions
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Benefits to Customers and UL
For Customers- Increased value at reduced
cost Consistency of audit and interpretation of
results Business focused reports
information Larger sample sizes to increase
credibility involvement Better use of existing
revenue spend on systems, auditing
assessment For UL- Increased margin New Revenue
streams Increased perceived value by
customers Movement up the strategic value chain
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Products Services available Getting Started
Getting Initial Momentum Senior Management Briefing foundation for Best Practice, Performance Achievement and the Future
Gap Analysis to Identify needs Online Assessment against Best Practice the 8 Business Principles
Interventions as required (based on Gap Analysis results) Process Identification Workshop Online Management System creation/hosting Project Support to help focus client in their development Process Management Assessment Workshop
Routine / Regular Internal Auditing Individual Business Process Audits Customer Satisfaction Supplier / Supply Management Audits Staff Satisfaction Assessments 360 degree performance / competence appraisals Bespoke or Framework based assessments (e.g. EFQM, Industry (e,g FDA, Automotive) Requirements, etc.
3rd Party Certification (mix of online onsite) ISO90012000 ISO150002003
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Guidance, advice support
Working in partnership with UL The High
Performance Organisation Group Ltd tel- 44
(0)1536 790124 fax- 44 (0)1536
790821 enquiries_at_the-hpo.com