What Does ISO Certified Mean and Why Is It Important?

What does “ISO certified” mean for your business? What business benefits does this credential bring? And what does it take to achieve ISO certification in the first place?

These are all questions that many business owners have. The truth is that most companies aren’t taking full advantage of ISO certification opportunities often because they don’t fully understand its potential. This article will discuss what ISO certification entails and how you can leverage it to achieve measurable business results.

What Is ISO?

The International Organization for Standardization (ISO) is a non-governmental organization designed to elevate safety, agility and quality in global industries. Since its formation in 1947, the group has developed and published over 25,600 standards that address challenges across industries, such as:

• Construction
• Health
• Energy
• Engineering
• Environmental sustainability
• Food and agriculture
• Information technology (IT)
• Management and services
• Materials
• Safety, security and risks
• Transportation

ISO has standardization professionals from 172 countries. These representatives form 841 technical committees and subcommittees, each focused on a specific area of expertise.

Wondering why ISO doesn’t use the acronym “IOS”? It’s not a mistake; it’s a standardized term. Since the organization is known by different names around the world, its founders chose the universal short form “ISO” in reference to the Greek word “isos,” which means equal.

What Does ISO Certified Mean?

ISO certification is an internationally recognized credential that proves your business meets rigorous quality management requirements. All ISO-certified companies have been assessed by a trusted third-party organization and confirmed to be in line with a published ISO standard.

As we’ve mentioned before, there are thousands of standards created by the international group. That means there isn’t just one, universal “ISO certified” meaning at the end of the day. For example:

• ISO 14001 certification affirms your organization’s commitment to reducing its environmental impact and improving sustainability.
• ISO 27001 certification means your company complies with guidelines designed to keep data safe.
• ISO 9000 certification (one of the most common) indicates that your company has an excellent quality management system.

Regardless of the specific certification you get, an ISO-certified label shows that your product, service or process is fully optimized to achieve a particular outcome.

Benefits of ISO Certification

So, why would a company want to be ISO certified? If you’re like most business owners, you’re always looking for ways to improve your company’s efficiency, bottom line and reputation. One way to achieve all these results is to pursue ISO certification. Here are just a few of the benefits of this distinction.

Improved Business Process Efficiency

ISO accreditation is an excellent way for companies to improve their business objectives, processes and procedures. When your processes and procedures meet ISO certification requirements, it becomes easier for your employees to work together effectively and efficiently, while communicating with less ambiguity. Each standard was developed to be the best way to work, after all.

The ISO certification process alone is beneficial for your team. It includes an audit of your company’s business operations and procedures, which will help you identify areas where your company can improve efficiency.

Sustainability

Many standards, like ISO 14001, help businesses show that they care about their environmental impact by proving their commitment to dealing with environmental challenges. They help you assess your resource utilization, energy spent or overall impact on our planet. As a result, you can set yourself up to achieve environmental goals like high-efficiency product lifecycles and the use of sustainable natural resources. This can provide reputational and financial gains.

Reduced Expenses

What does being ISO certified mean for your bottom line? It can be the difference between maximizing profitability and lagging behind. ISO standards are designed to streamline your operations, one area of business at a time.

Naturally, ISO compliance is a great way to reduce expenses, which will help you improve your return on investment (ROI). Its impact is documented. According to ISO-related case studies, a company can increase profits by 5% simply by implementing better quality management system standards into its production process.

Risk Reduction

Struggling with risk management in our highly disruptive world? Meeting ISO certification requirements is a smart way to prepare your organization for challenges and turn them into opportunities. When problems arise, your business will be better equipped because these standards encourage success in managing or mitigating those situations to prevent disasters.

The top benefit that organizations see from implementing ISO standards is being able to withstand and thrive when things go wrong. The standards provide guidance on the best line of action when corrective measures are needed—and they equip your team members with the standardized processes required for fast, agile decision-making that’s necessary as the pace of change accelerates.

Increased Confidence From Customers

Another benefit of ISO certification is proving to your customers that you are a reliable and reputable company. Customers look for companies they can trust, and brands that hold this credential are validated in a way that demonstrates their commitment to product and process quality. It demonstrates your company’s credibility to customers, employees and other stakeholders, building positive sentiment and engagement with your brand.

Being ISO certified is marketable. Whether you indicate your certification on your website, product packaging, social media channels or elsewhere, you can easily differentiate your products or services from competitors and stand out as an industry leader.

How To Get ISO Certification

You might think that the ISO certification process is expensive and complicated, but it can be affordable and straightforward. Gaining the credential is accessible to all sorts of businesses—not just large corporations—because its cost can fluctuate based on:

• Your organization’s size and structure
• Your industry
• The certification body you choose

If you don’t have experience with ISO certification requirements, there are plenty of consultants and certification bodies that offer support in your process. The following steps can also help you meet essential qualifications for your standard of choice.

1. Build a Dedicated ISO Certification Team

A specialized task force can help you stay on track to meet your ISO certification goals. This team will be responsible for aligning current business processes with your target ISO standards and then initiating the official review process when your organization is prepared. Members can also act as points of contact for any third parties you choose to involve.

Your committee will be most effective if it includes members of your leadership team. ISO certification can require some degree of organizational transformation and resource allocation, so strong decision-making power is always beneficial.

2. Conduct an Internal Audit

A thorough internal audit is critical for understanding what needs to be done to achieve ISO standards. Your assessment, which may include internal control testing, can help you uncover critical gaps in your ISO compliance and develop a robust plan for success. This plan should include:

• A realistic timeline for implementation and certification
• A comprehensive list of the resources required to achieve ISO compliance
• A change management strategy that includes employee training requirements

3. Select an Accredited Certification Body

Not all certification bodies are created equal. ISO only recommends accredited organizations that follow the ISO’s Committee on Conformity Assessment (CASCO) standards.

Beyond confirming that your certification body meets these requirements, you should also review its online presence, testimonials and experience to ensure its reliability and expertise. Be sure that the organization’s pricing structure aligns with your budget as well.

Once selected, this third party will conduct an audit of its own—assessing your management systems — to determine whether you meet the ISO certification requirements. The ideal certification body will provide feedback if standards are not met.

4. Reinforce ISO Standards

There’s a common misconception that ISO certification is a one-time process. Once ISO certification is attained, your company needs to maintain it on an ongoing basis for the credential to remain valid. To stay certified means that organizations must continually review and update their procedures and processes to ensure compliance with the latest ISO standards, which may evolve.

Closing Thoughts: What Does ISO Certified Mean and Why Is It Important?

ISO certification can be an asset for any business, big or small. It affirms that your company is in line with top-tier quality, efficiency and/or safety standards. Earning this credential can elevate your profitability and reputation, giving your stakeholders plenty of reassurance, all while reducing your business risks.

Not sure where to start? An ISO audit can identify areas where your processes could be improved. If you’re looking to manage your audit processes, risk assessments and compliance requirements as you pursue ISO certification, Onspring is a great place to start.