Online Auditing European Affiliates Briefing

1. Online Auditing European Affiliates Briefing Friday 9th July 2004 Rob Peddle July 2004 The High Performance Organisation Group Ltd

2. 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 Objectives

3. In the past:- Auditing was focused on compliance to procedures Requirements of ISO9001:1994 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 ISO9001:2000 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 Business Change The future is not about ‘ticking boxes’ but about business performance

4. Customer focus Leadership Involvement of people Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships Quality (Business) Principles Compliance auditing means little in these areas – effectiveness is all Source – ISO9000:2000

5. 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 There are two key areas where clients need supportUL can help them in both of these These are areas where UL will differentiate their customer offering

7. 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?

8. Com. Com. Com. Com. Training Guide Photograph Compliance & Process Auditing

9. Assessing the Management of Processesthe problem of the ‘Super-Auditor’ Knowledge Risks etc. Inputs Resources Budget Outputs Competence TarActVar Com. Assets Com. Com. Com. Teamwork + Ownership Corporate Social Responsibility Change Learn Assessing effectiveness is about understanding all of these disciplines and how they interact with each other to deliver results

10. On-line Assessment Solution – the mechanics Carryout assessment Secure & Confidential User Registration Create assessment with you Set up assessment Produce effectiveness / compliance report Monitor Assessment Bring about ‘real’ change to improve effectiveness ..realising the opportunity to improve

11. Type: Example Process For: Team/Department Organisation:Organisation Name This assessment has been carried out using The HPO’s 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

12. 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 ISO9001:2000? 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. Potential Objections to this approach Your Resource Centre will hold answers to these and other questions

13. 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

14. Products & Services available – ‘Getting Started’

15. 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@the-hpo.com