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ISO 9004:2018 : Quality of an

organization - Guidance to achieve
sustained success
Icontec
Cartagena - 29 de Agosto 2018
260, Rue Sherbrooke Est, bureau 124
895, Avenue des Braves
Québec (Québec) Canada G1S 3C5 Montréal (Québec) Canada H2X 1E1
Tel : (418) 650-0675 1
email : plesperance@qualiso.com
 ISO 9004:2018 : Quality of an
organization - Guidance to achieve
sustained success

Presented by Pierre L’Espérance, P.Eng., MBA

Senior Partner, Le Groupe Qualiso
Former Canadian Delegate Expert ISO TC 176 SC2
WG24 and Co-Convener to ISO TC 176 SC2 WG25

LE GROUPE 895 Avenue des Braves 260, Rue Sherbrooke Est, bureau 124
Québec (Québec) Canada G1S 3C5 Montréal (Québec) Canada H2X 1E1
Tel : (418) 650-0675
email : plesperance@qualiso.com

ISO 9004:2018 : Quality of an organisation Icontec – Cartagena - 29 de Agosto 2018 2

 Evolution of ISO 9004
How has ISO 9004 evolved over time:

• ISO 9004-1:1994 – Guidelines

• ISO 9004:2000 – Consistent pair

• ISO 9004:2009 – Bridge to excellence models

• ISO 9004:2018 – Quality of an organization and

sustained success

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 Evolution of ISO 9004
How has ISO 9004 evolved over time:
• ISO 9004-1:1994 “Quality management and quality
system elements – Part 1: Guidelines”
• The intent of ISO 9004 was to provide quality
and management system guidelines
• ISO 9001 was intended to follow ISO 9004 for
certification purposes
• The market ended up using ISO 9001 only

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 Evolution of ISO 9004
How has ISO 9004 evolved over time:
• ISO 9004:2000 “Quality management systems -
Guidelines for performance improvements”
• Intended to be used with ISO 9001 as a
consistent pair, with ISO 9004 going beyond
with expanded requirements…a continuation
• ISO 9001 (effectiveness) was imbedded in ISO
9004 (efficiency)
• Self assessment was introduced

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 Evolution of ISO 9004
How has ISO 9004 evolved over time:
• ISO 9004:2009 – “Managing for the sustained
success of an organization - A quality management
approach”
• A stand alone standard for the improvement of
an organization
• Intended as a bridge between a requirements
standard to an excellence model
• Maturity introduced into the self assessment
concept
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 Evolution of ISO 9004
How has ISO 9004 evolved over time:
• ISO 9004:2018 - “Quality of an Organization –
Guidance to achieve sustained success”
• Provides guidance to support the achievement
of an organization’s sustained success
• Emphasis on the quality of the organization
• Relevance to all interested parties and their
influence on the organization
• Enhancement of self assessment

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 Application of ISO 9004:2018
ISO 9004:2018 works well for those organizations who
have met the requirements of ISO 9001:2015 and
want to achieve sustained success, however any
organization can use the standard for improvement
purposes whether certified or not

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 Quality of an organization
• Quality : to meet needs and expectations of the
customer
• Customers of an organization: all interested
parties
• Quality of an organization: to meet the needs and
expectations of all interested parties in a balanced
way.

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 Quality of an organization
“Quality of an organization.” “The ‘quality of an
organization’ is the degree to which the inherent
characteristics of the organization fulfill the needs and
expectations of its customers and other interested
parties, in order to achieve sustained success. It is up
to the organization to determine what is relevant to
achieve sustained success.

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 Interested parties
“Interested parties.” As defined in ISO 9000:2015, an
interested party is a “person or organization that can
affect, be affected by, or perceive itself to be affected
by a decision or activity” of the organization (a
stakeholder).

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 Interested parties

Extract Quality Progress August 2018

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 Sustained success
“Sustained success.” In ISO 9000:2015, success is
defined as achievement of an objective. Sustained
success is defined as the result of the ability of an
organization to achieve and maintain its objectives
long term. The main concept on which ISO 9004 is
based is that “to achieve sustained success, the
organization should go beyond the quality of its
products and services and focus on anticipating and
meeting the needs and expectations of its interested
parties, and not just those of its customers alone,
with the intent of enhancing their satisfaction and
overall experience.”
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 Introduction to ISO 9004:2018
• Provides guidance to support the achievement of
an organization’s sustained success
• The top management should lead in the
implementation, establishment and improvement
of an effective and efficient management system

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 Introduction to ISO 9004:2018
• While ISO 9001:2015 focuses on providing
confidence in the organization’s products and
services, this standard focuses on providing
confidence in the organization’s ability to achieve
sustained success
• To achieve sustained success the organization
should go beyond the quality of its products and
services and focus on meeting the needs and
expectations of its interested parties and not just
those of its customers alone, with the intent of
enhancing their satisfaction and overall experience
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 Introduction to ISO 9004:2018
• It addresses the needs and expectations of
relevant interested parties and provides guidance
for the systematic and continual improvement of
the organization’s overall performance
• Note: ISO 9001 is designed as a certification
standard, while ISO 9004 is intended as guidance
and improvement

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 Structure of ISO 9004:2018

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Extract Quality Progress August 2018
ISO 9004:2018 : Quality of an organisation Icontec – Cartagena - 29 de Agosto 2018 17
 Clause 5—Context of the organization
Understanding the context in which the organization
operates is the basis for what the organization must
do to achieve sustained success. As stated in the
standard: “Understanding the context of the
organization is a process that determines factors
which influence the organization’s ability to achieve
sustained success.
External and internal issues can affect the
organization’s ability to achieve sustained success.

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 Examples of external and internal issues

Extract Quality Progress August 2018

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 Case Example : Bombardier Aerospace:
Brighter skies ahead?
• Bombardier sold 125 Cseries to
Delta Airlines. Finally the big
contract they were dreaming …
even if they likely won’t make profit
with this contract!
• The cost of program is exceeding
US$ 6 billion. The Québec provincial
government has invested US$ 1.5
billion tax payer money! We have
now become Interested parties!
• Airbus took over the program and
has renamed the aircraft.

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 Case Example : Battle of giants – How
could they have missed the target?
• The Target Experience: A 2 year horror story
ending up in closing all stores in Canada. How
could you miss such a target?
• Walmart continues to grow …

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 Case Example : The “Uberization” factor
• Is the Taxi industry sleeping? How come they
never saw Uber coming although existing since
already a few years!
• Incredible software development by Uber.
Allows perfect planning, driver satisfaction
evaluation for each ride, cost competitive,
flexibility, clean and new vehicles, what more to
ask!
• Social economy? … so they say… Uber is entering
markets and cities without paying taxes, meeting
insurance regulations, respecting legislations for
taxi permits, training and driving class permits ...
• Other “Uber” expanding businesses such as
Airbnb, and now …. Facebook entering the game!
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 Clause 6 - Identity of an organization
Defining and maintaining the identity of the
organization is the first step in building a management
system that will support its sustained success and is
one of the main responsibilities of top management.
The standard states: “An organization is defined by its
identity and context. The identity of an organization is
determined by its characteristics, based on its
mission, vision, values and culture.

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 Organization Identity
• Purpose : Why do we exist and why we are here?
• Brand: How are we know to the world?
• Culture: How do we live and and do we do?

• Identity = Purpose x Brand x Culture

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 Case Example : Chocolats Favoris
Taste it … addicted!
• Chocolats Favoris has an
overwhelming success and
invested $5 million to reunite
all its production activities in
one central location. The
facility was designed to prepare
for all food safety certification
and will be ready for export
and conquest of other markets.
• Just recently, The organization
was awarded a business
excellence prize

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 Case Example : PUR Vodka
A Tale of pure perseverance
• Nicolas Duvernois, Unconventional
look, bad business experience, great
idea !
• Obstacles, frustrations … but
perseverance and focused on a good
quality product and objectives!
• Building on continued success
• Fighting with the Big Players

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 Clause 7 - Leadership
This clause is focused on the involvement,
commitment and responsibility of the organization’s
top management. After defining and maintaining the
identity of the organization, based on its context, top
management should define, maintain and deploy the
organization’s policy, strategy and objectives. Doing so
allows top management to establish the three
fundamentals of leadership:

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 Clause 7 - Leadership
1. Creating a unity of purpose by promoting the
adoption of the mission, vision, values and culture.
2. Defining the organization’s intentions and
direction in the form of the organization’s policy,
strategy and objectives.
3. Conveying a consistent message to the
organization.

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 Case Example : Cirque du Soleil
The art of perfection

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 Case Example : Simons:
Setting the stage for the next generation
• Simons, Canadian fashion destination
since 1840! Peter Simons, fifth
generation of the Simons family to
run the store.
• Under Peter and Richard Simons, La
Maison Simons expanded outside of
Quebec City for the first time, opening
stores in the province and Canada
• 2018, A 215M$ investment in
electronic order processing … and the
latest and state of the art technology!
• Changing habits of consumers
• Internet evolution and technological
tools
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 Annex - Self-assessment
The self-assessment tool uses five maturity levels. It
was formatted in such a way that there is a separate
table for each subclause of the standard, and there is
a special column for results and comments of the self-
assessment performed

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 Case Example : Aluminerie Alouette –
plan retirement
• 15 years ago, The plant
doubled it’s capacity
and infrastructure.
• Impacts on phase 1
activities: best
employees assigned to
phase 2, employees in
phase 1 with new
responsibilities, new
employees.
• Impacts on phase 2 activities: new installations and
equipment, same technology (mirror image of phase 1). Same
results on production and product characteristics?
• Today, many workers retiring soon at same time
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 Case Example : Crocs – Love them, hate
them
• June 2004, Crocs
makes the acquisition
of Création Foam
based in Québec City
and all manufacturing
facilities to guarantee
exclusive proprietary
rights of a special
mousse resin called
Croslite.

• April 2008, Crocs closes the only Canadian facility, home where
they were created. 600 jobs lost in Québec City.
• Global competition, Counterfeits, excess inventory, forecasting
data erroneous …
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 Case Example : The “I Don’t Care, not my
problem” factor
• Valentine’s day, restaurant
owner has full capacity
reservations!!! Happy!!!
• Plans meals, extra food order,
extra personnel for tables ….
• ¼ reservations don’t show up …
• Some restaurants in New York
take credit card and charge no
shows! Would you like it? Uber
does it!!!
• Risk consideration is not all about
FMEA’s, beware of social media
messages

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 Case Example : Biscuits Leclerc :
Welcome internal social media

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 Benefits of ISO 9004:2018
Benefits of using ISO 9004 in an organization are:
• Expanded to all interested parties
• balancing conflicting objectives
• managing conflicting responsibilities and
relationships
• harmonizing and optimizing practices
• improving communication
• facilitating training and development
• managing risks to brand and reputation
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Case Example : La Ville de Québec – measuring
our promises to the population
• Québec City is known worldwide
for its beauty and as a preferred
tourist destination
• It’s also a great place to live!
• Our Mayor gave a mandate to
communicate feed back to the
population on multiple
performance indicators.
• 21 August 2018, the World Council City Data (WCCD) awarded
a platinum certification to ISO 37120:2018 - Sustainable cities
and communities -- Indicators for city services and quality of
life
• Over 90 metrics are submitted on 17 different thematics
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 ISO 9004:2018 : Quality of an
organization - Guidance to achieve
sustained success

Muchas Gracias

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