Process Improvement Versus Process Certification Focus

Companies can be differentiated on the basis of the predominant behavior they demonstrate in their operations as far as focus on process is concerned. Viewed in this manner, there are broadly speaking two types of companies:

• Those that focus on process improvement (Cost Reduction, Cycle Time Reduction, etc.)
• And those that focus on process certification (ISO 9001, etc.)

It is always the case that companies focus on both the above dimensions. If one were to rank the focus level in terms of  process improvement versus process certification the picture would be as depicted below:

Startup Product Companies:
The key driver is to stay afloat till the first shipment of the product. If that goes on well lot of cash inflow will happen. Systems and processes are not stressed upon since the sole aim to to get the product out once, the first time and there is no point thinking about second and subsequent time.

Stable Product Companies
The key driver is to milk the cash cows consistently and cost-effectively. There might be new products in the pipeline but some failures will not necessarily mean business closing down. Systems and processes are needed to ensure consistent delivery and after-sales service. Process certifications however may have limited or minimal business value.

Startup Service Companies
The key driver is to stay afloat till the first customer project. If that goes on well lot of cash inflow will happen. Improvement is not stressed upon initially since the sole aim to to get the first customer. Need of process certifications is very high though right from the start to give confidence to the customers on the company's capability to execute the awarded contract.

Stable Service Companies
The key driver is to service customers cost-effectively. This makes process improvement important to gain efficiency in operations. Process certifications remain important and at the same time process improvement also becomes quite important.