ISO survey 2005
ISO’s annual survey does not claim to be flawless but it does aim to give a clearer picture of the international certification business. While in 2005 an increasing number of organizations in the developing world are gaining ISO 9001 and 14001, more mature markets are showing initial signs of decline. Pandita Louram investigates whether this is the beginning of the end for certification or simply a sign that further promotion and innovation is needed?
The ISO survey aims to shed some light on ISO’s standards for quality management systems (QMSs) and environmental management systems (EMSs) as well as, for the second year running, QMSs designed specifically for the medical devices and automotive industries.
The survey of 2005 mostly paints a positive picture for certification figures. On a global level, ISO 9001 emerges as a firmly established standard for providing assurance about the quality of goods and services in supplier-customer relations. Up to the end of December 2005, at least 776,608 ISO 9001 certificates had been issued in 161 countries and economies, an increase of 18 per cent over 2004, when the total was 660,132 in 154 countries and economies.
This trend is not limited to the developed world. Over the course of 2005, 13 countries in Africa (Guinea, Liberia and Togo) and the Pacific, and two transition economies in Europe and West Asia, adopted either ISO 9001 or ISO 14001 certification. China saw the highest growth with 143,823 certificates issued in total.
The increasing concern with environmental impact and long-term sustainability among businesses is perhaps reflected in the steadily growing global interest in ISO 14001 certification. By the end of December 2005, at least 111,162 certificates had been issued in 138 countries and economies, an increase of 24 per cent over 2004, when the total was 89,937 in 127 countries and economies. Japan saw the highest number of ISO 14001 certificates issued with 3,882 over the course of 2005.
The survey also revealed that there has been a notable shift in the types of organizations that are seeking ISO certification. 2005 saw service sector growth. Nearly 33 per cent of ISO 9001 certificates and 31 per cent of ISO 14001 certificates went to organizations in the service sector.
Despite the fact that overall on an international level, ISO certification is increasing, a country-by-country analysis exposes some radical differences to previous surveys. While the stronger emerging economies, like China and India, are experiencing significant growth, other more developed markets have in fact witnessed their first decline since the standards were introduced. While the survey for 2005 showed a global growth in certificates overall, this was not the case across all countries. Some of the more mature markets, such as the UK, Australia and New Zealand, saw a drop in the number of certificates.
Although ISO 9001 was valid from the day it was re-published – in September 2000 - worldwide, countries adopted them at very different rates. One of the first countries to adopt ISO certification was the UK. Incidentally, the UK saw its first drop in ISO 9001 certificates from 50,884 to 45,612 certificates over 2005. Australia and New Zealand have been experiencing a similar decline in ISO certificates since the end of 2003. In 2005 Australia’s total ISO 9001 certificates fell 2.6 per cent from 17,365 to 16,922. New Zealand experienced a drop of 17.6 per cent over the course of 2005 from 2,632 to 2,170. A similar but less prominent trend was also observed for ISO 14001.
The fact that some of the markets that were early adopters of ISO standards are showing a decline in certificates may be disquieting news for ISO and the United Kingdom Accreditation Service (UKAS). After all, this may signal that certificates, like any other product, have a limited and exhaustible life cycle. It may, too, reflect the current debate about the ‘commoditisation’ of certification and concerns over the devaluation of the services offered by certification bodies themselves.
The decline observed in the more mature markets may not be an anomaly but, in fact, prefigure the fate of certification on a global level as time progresses. Although UKAS says it is ‘not aware of any underlying reason for this apparent downturn’ and even ‘feels that it would be premature to treat this as a trend’, Alan Bryden, ISO secretary general, puts this decrease in ISO 9001 certifications down to a number of possible causes:
- an increase in the number of multi-site certificates
- the rise of certification to sector-specific derivatives of ISO 9001
- the effects of mergers and acquisitions
- the transfer of manufacturing or other business activities to other countries
- a possible increase in business share by certification bodies that are either not accredited, or accredited by bodies other than those that are members of the International Accreditation Forum (IAF) – the ISO survey does not include such data
While it cannot be disputed that the demographics of certification are evolving, the most important question to ask is whether or not there is a limited shelf-life for ISO certification. In response to these findings, UKAS’ view is that: ‘The standards necessary to meet the requirements of certification are rigorous’ and so ‘it is quite possible that there will come a time when the number of organisations that are capable of reaching the required standard, but have yet to do so, is reduced’. If this is the case, then ISO will have to continue to innovate and offer organizations something to aspire to.
However, both UKAS and ISO themselves acknowledge that, in essence, the ISO survey is trying to hit a moving target. As UKAS explains, they have ‘been asked to provide contact details of all UKAS-accredited certification bodies to help ISO gain a more accurate picture.’ Nonetheless, at present the quality and quantity of data received is reliant on the cooperation and veracity of ISO national member institutes and accreditation and certification bodies. Not all submit quality data or, in some instances, any data at all. While it may not claim to be an exact science, the ISO survey is, however, the best indication of the progress occurring in the world of certification.
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