bpe checklist for iqnet partners f 208 · bpe checklist for iqnet partners f 208 directory, file:...

BPE checklist for IQNet partners F 208

Directory, File: Date: MHB/Register: Page: 208F-BPE checklist for IQNet partners.doc 2005-08-01 7 1 of 40

© Copyright 2005, IQNet, CH-3011 Bern

Part A - Element 1: Quality of business planning and control

Aspects to be evaluated - strategic planning - budgeting - controlling / MIS (capacity, sales & turnover, costs, process performance, periodic financial reports)

- forecast - management meetings - project management - risk management

May be considered as good or best practice (R = Result / P = Proceeding) ▼

1. Ambitious mission is in place and includes the aspects for value generation for clients and stakeholders. 2. Business planning process is defined, implemented and respected. 3. Process performance is measured and evaluated. 4. Business plan is in place and regularly / yearly updated. 5. Business plan is in line with the mission. 6. Business plan bases on SWOT’S (e.g. regarding competitors, own organisation, products & services,

partnership). 7. Business plan identifies and includes the main investments. 8. Business plan includes the 3 years view and provides clear positions with regard to - the customer & market perspective - the technical competence perspective - the human resource perspective - the financial perspective 9. Business plan progress is regularly reviewed. 10. All management staff is adequately involved in the business planning. 11. Risk identification as part of the business planning is conducted (5-10 main business risks known). 12. Risk measures and monitoring is systematically conducted 13. A yearly budget is systematically established. 14. Budget basics are adequately defined (account structure and specifications). 15. Budget contains the baseline conditions (objectives). 16. Budget reflects the main fields of income and expenditures in an adequate way. 17. Budget calculations and assisting databases are suitable (e.g. calculation of audit income). 18. Recommendations from financial auditors are respected. 19. Objectives and targets in line with the business planning are in place. 20. Results of business planning, respective objectives and targets are adequately communicated 21. Structured Management Information System (MIS) is implemented and used. 22. MIS provides a regular reporting on relevant financial and non financial issues 23. MIS provides the key operational indicators (e.g. customer retention, acquisition, product sales, auditor capacity,

productivity, main process performances). 24. MIS provides forecast on planned audit work (or other sold services). 25. MIS provides monthly and quarterly financial reports (e.g. turnover, costs, expected results). 26. MIS provides status on project progress. 27. MIS identifies deviations and leads to corrective and preventive action. 28. MIS is further developed (learning organisation). 29. Ongoing operational and financial results are regularly communicated. 30. Project management process is defined, implemented and respected. 31. Projects to achieve business plan targets and objectives are in place and project overview exists. 32. Projects are systematically managed & project management principles implemented. 33. Project results are available & positive impact on the fulfilment of the mission and business plan can be

demonstrated. 34. Management meetings are held in a systematic and structured way in all areas and on the various levels 35. A yearly meeting calendar is established and respected by people involved. 36. Meeting decisions are in line with the objectives. 37. Meeting results are transparent and adequately communicated. 38. The improvement culture can be demonstrated through the meeting results. 39. Existing management resources and skills are providing for continuous leadership and business success. 40. Business results are achieved as planned and budgeted. 41. Business success is growing.

P P PR P P P P P PR P P PR P P P P P PR P P P PR PR P PR PR PR PR PRP P P R P P P P P PR R R




Part B - Element 1: Quality of business planning and control

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Evaluate the process transparency in the management handbook. 2. Verify the structure and management responsibilities from the management handbook. 3. Consult the answered informational questions (audit CL) to see the position and situation of the organisation. 4. Decide where in the audit & assessment plan interviews should take place. 5. The following issues should be part of the interviews and evidence should be collected

a. Mission b. Business plan & budget c. MIS & reporting d. Projects e. Management meetings f. Financial results

6. Don’t ask to hand out the business plan, etc. to be part of the preparing documentation (confidential); but you could leave some inputs in the audit plan specifying for the auditee the items he should prepare.

A A PA A PA PA

Preparing evaluation (R = Result / P = Proceeding) ▼

Pre-evaluation of main aspects found during preparation 1 -- --

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Scale for the evaluation: -- -- or 1 = very poor -- or 2 = unsatisfactory 0 or 3 = satisfactory + or 4 = good + + or 5 = very good

The result of the pre-evaluation can be used when conducting the assessment interviews. It may help to clarify the final evaluation result and to support the assessment efficiency.

Comments:




Part C - Element 1: Quality of business planning and control

Assessment questions (R = Result / P = Proceeding) ▼

1. How does the strategic business planning take place? 2. What are the main strategic imperatives? 3. Do they include clear positions with regard to:

- the customer & market perspective - the technical competence perspective - the human resource perspective

- the financial perspective 4. What are the measures to achieve them? 5. How does the top management communicate strategy, policies and values throughout the organization? 6. How is progress reviewed and the outcome handled? 7. What are the set and communicated objectives and targets? 8. How will the progress be adequately monitored and evaluated? 9. How are people and management levels involved? 10. What are the achieved results? 11. What are the achieved improvements? 12. How are business risks identified and managed and appropriate measures implemented? 13. How are the yearly planning and control done and the adequacy of budget tools upheld? 14. How will an effective monitoring and management of deviations be provided? 15. How are people and management levels involved? 16. How are product and/or programme managers involved? 17. How is the project management used to progress with strategic issues? 18. How is project progress monitored and led? 19. What are the project results? 20. What are the achieved improvements? 21. What are the past and current business results? 22. How did the results develop?

P P P P P P P PR P R R P P P P P P PR R R R R




Part D - Element 1: Quality of business planning and control

Proceeding (strengths) ⊕ ⊕ ⊕ ⊕ ⊕

Proceeding (improvement) � � � � � �

Results (strengths) ⊕ ⊕ ⊕ ⊕

Results (improvement) � � �

Rating result of this element: …………………




Part A - Element 2: Focus on customers and interested parties

Aspects to be evaluated - knowledge of customer expectations - input (involvement) in strategic planning

- service mentality of all employees (culture)


1. Information, knowledge exchange and communication with customers and interested parties take place on a

regular basis 2. International and national developments of stakeholder groups regarding conformity assessment and

certification are actively followed (e.g. industry sectors, legislator, consumer, standardization, accreditation) and outcomes are used to serve clients timely and adequately.

3. Management is actively involved and committed to act accordingly. 4. Customer expectations are identified and defined for each product. 5. Main stakeholders and their views (expectations) are identified and defined for the main products. 6. Improvement potential is known and improvement measures are undertaken. 7. The concepts of sustainability and social responsibility are part of the organization’s continuous

improvement. 8. Awareness building of auditors takes place according to the identified needs. 9. Auditors act accordingly and high service mentality is part of all business activities. 10. Services are modified and / or further developed upon changing customer needs and stakeholder views. 11. Information is available to demonstrate the high credibility of the certification services and all involved products

(e.g. customer satisfaction, stakeholder views, surveys). 12. Ethical and social aspects are part of the corporate culture (e.g. existence of code of ethics or conduct)

P P P P P P PR P PR PR R R




Part B - Element 2: Focus on customers and interested parties

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Have a look at the partner’s website and its communication. 2. Consult the partner’s brochures and PR material. 3. Include an interview part into the audit & assessment plan.

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Comments:




Part C - Element 2: Focus on customers and interested parties


1. How does a regular communication with stakeholders and customers take place (see also BPE 10)? 2. How are views & expectations of customers and interested parties collected and handled? 3. Is any customer segmentation applied (e.g. to identify & satisfy SME or other specific needs)? 4. Is there any transparency regarding the main stakeholders? (see also BPE 10) 5. How is the monitoring of national and international developments in the field of assessment and certification

assured? 6. How can a strong relationship building towards customers and stakeholders be demonstrated? 7. How actively is the management itself involved? 8. How is the information used for awareness building of auditors and other personnel? 9. How is the information used for further product and service improvement & development? 10. How are ethics integrated into the organizational culture?

P P P P P P P PR PR P




Part D - Element 2: Focus on customers and interested parties









Part A - Element 3: Management of product portfolio

Aspects to be evaluated - product planning SWOT - product range & product leadership - development of technical competence - process

- product targets and fulfilment - budget for product leaders - growth rate of product - product specific quality performance indicators


1. Process for new product development is defined and implemented. 2. Product portfolio is defined and competitive advantages can be demonstrated. 3. Product portfolio creates and uses business opportunities for the various customer segments. 4. Product portfolio management makes use of partnership opportunities. 5. Customer view is adequately involved in new product development (e.g. pilot projects). 6. Product design and development involve risk analysis 7. Product portfolio management includes the withdrawal of unprofitable / unsuccessful product(s). 8. SWOT for all products are regularly conducted and updated. 9. Product managers and resources are put in place. 10. Product objectives and targets are defined. 11. Budget for product management is defined and adequate. 12. Product marketing action plans are put in place & follow up is done. 13. Marketing & communication for products and new products use the various channels (concept / see BPE 10). 14. Product technical competence action plans are put in place & follow up is done. 15. Accreditation objectives are set and achieved. 16. Auditor qualification requirements are planned, defined and training is conducted. 17. Auditor competence is achieved. 18. Product specific audit method is defined and adequate auditor tools are implemented. 19. Combined auditing with other products is used where possible and is managed in a proper way. 20. Performance indicators are implemented and used for management and improvement. 21. Product development progress is monitored and part of the management review. 22. Product specific objectives and targets are fulfilled. 23. Growth with new products can be demonstrated (turnover, market share, etc.). 24. Positive feedback from customers and stakeholders regarding new products can be demonstrated. 25. Competitive advantage with new and existing products can be demonstrated (better than direct competitors). Note: The promotion part is covered under element 10.

P PR P P P P P P P P PR PR P P PR P R P PR PR PR R R R R




Part B - Element 3: Management of product portfolio

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Have a look at the partner’s website and its product communication. 2. Consult the management system handbook. 3. Verify the statements made in the informational questions of the audit CL 4. Consult the partner’s brochures and PR material. 5. Plan an interview with the product- and marketing management.

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Comments:




Part C - Element 3: Management of product portfolio


1. How are new product developments planned, decided and performed? 2. How is the product planning part integrated into the strategic planning? 3. How is the competitive position for an existing or new product evaluated (SWOT)? 4. How can competitive advantage (planned and/or realized) be demonstrated? 5. How are business opportunities identified, created and used? 6. How does the management strategically treat growing and decreasing products (adequacy of the product

portfolio)? 7. How are the risks connected with products and services identified and dealt with? 8. How transparent is the cost & benefit situation for each product (return on investment / profitability)? 9. How are systematic objectives and action plans implemented? 10. How are human and financial resources allocated to the various products & projects? 11. How much resources are spent (marketing, technical competence, product leadership)? 12. How is the implementation of action plans monitored? 13. How are corrective measures taking place? 14. What are the main performance indicators? 15. What are past and current performances?

P P P PR P P P P P P PR P P P R




Part D - Element 3: Management of product portfolio









Part A - Element 4: Qualification of Auditors (various fields of activities)

Aspects to be evaluated - total number of training days (yearly) - training days per employee (yearly) - training days per employee and product (yearly) - compliance with standards

- training targets and fulfillment and training budget - sector specific training - business administration training - process


1. A comprehensive yearly training program is put in place. 2. General training needs are identified and training objectives established (strategic planning). 3. Product specific training needs are identified and objectives established (strategic planning / SWOT). 4. Budget for training is adopted and adequately compared with the identified needs. 5. Competence requirements for each product (certification schemes) defined and implemented. 6. Competence is monitored and results are available. 7. Standards, guidance documents and own policy on competence are respected (e.g. ISO 19011, IAF/EA, etc.). 8. Customer feedback & accreditation feedback regarding auditor competence is taken into account. 9. Product specific training is planned and regularly performed. 10. Key issues for the product specific training are identified and provided. 11. Continuous professional development of auditors for all offered products can be demonstrated (new issues,

methods, technical development, customer expectations, etc.). 12. General key issues for adding value in certification are part of the training provisions

- process approach & process management - assessment techniques, quality methods - selected business administration issues (BSC, controlling techniques, project management, etc.) - CRM, Information security basics, etc.

13. Adequate records regarding auditor competence and ongoing professional development are provided. 14. Several training days per full-time auditor (or main auditor staff) per year is provided (>5-10 upon individual

competence level and number of schemes an auditor is qualified for). 15. Auditor potential for multiple qualification (several schemes) and combined auditing is actively used. 16. Regular training is offered to freelance auditors to calibrate and develop their competences. 17. Effectiveness of training is measured & evaluated. 18. Key competences for all offered products according to own requirements & accreditation rules are assured. 19. Competence targets are part of the individual yearly auditor’s targets and performance review meeting. 20. An effective communication process with auditors is in place (e.g. intranet, bulletin boards, e-mail, newsletter

etc.) 21. Auditor competence is adequately managed also taking into account subsidiaries, agencies, partnerships

etc. 22. The fulfillment of competence requirements when using technical experts is monitored and assured. Note: Competence issues regarding other than auditors have to be addressed similarly.

P P P P P PR P PR P P P P P P PR P R R PR P P P




Part B - Element 4: Qualification of Auditors (various fields of activities)

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Consult the management system handbook and related qualification rules. 2. Verify the informational questions of the audit CL regarding structure of products and auditors. 3. Plan an interview with the management regarding overall competence & training policy. 4. Plan interviews with product managers regarding competence provisions. 5. Plan an interview with the person responsible for continuous improvement regarding auditor performance

measurement. 6. Plan an interview with an auditor on his view regarding performed training, multiple qualifications and combined

auditing.

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Comments:




Part C - Element 4: Qualification of Auditors (various fields of activities)


1. How are general and product specific training needs regularly identified? 2. How is the technical development and new customer expectations taken into account in the planning? 3. How are international standards and guidelines considered in the planning? 4. How are training objectives set and how is a training budget adopted? 5. How does the overall yearly training program for auditors look like? 6. Which key issues will be further developed – allowing higher competence / enhanced service quality? 7. How are auditor potentials for multiple qualifications developed? 8. How many training days must an auditor undergo per year? 9. How is the auditor performance monitored & measured including technical competence? 10. Which performance targets for individual auditors do exist and how are competence reviews conducted? 11. Is the evaluation of the training effectiveness part of the management review? 12. Does the management know the rate of customer complaints dealing with competence & does it remove the

causes? 13. How is competence & training recorded? 14. Are any results available demonstrating auditor performance improvements (technical competence)? 15. How are the product specific competence requirements defined? 16. How is the level of fulfilment? 17. How is team work (for improvement) promoted? 18. How are personnel initiatives considered?

P P P P P P P PR P P PR PR P R P R P P




Part D - Element 4: Qualification of Auditors (various fields of activities)









Part A - Element 5: Management of business processes

Aspects to be evaluated - defined business processes & process responsibilities - measurable targets (processes, managers, auditors) - integration & further disciplines (EMS, ISMS, OHSAS)

- performance indicators - performance measurement and improvement - process mentality of all employees (culture)


1. Processes for all main business activities are defined and implemented. 2. Management handbook reflects the process approach (road map, processes, process management, etc.). 3. Business process approach and respective guidelines (e.g. TC 176, others) are known and applied. 4. Guidance from ISO 9004 on process approach is known and applied. 5. Accreditation standards and guidelines are known and used for process design. 6. Main process leadership responsibilities are assigned to members of the executive team. 7. Task and responsibilities for process owners are defined and implemented. 8. Process approach is integrated and includes aspects from further management disciplines such as risk,

safety, environmental and information security management sustainability and social responsibility concept. 9. Process approach is integrated into the normal management rhythm of the organization. 10. Processes are adequately monitored according to quality- and performance criteria. 11. Deviations are identified and respective corrective and preventive action is taking place. 12. Performance criteria & indicators are implemented and tuned with internal / external customer expectations. 13. Measurable targets are put in place and fulfillment is monitored. 14. Set targets are tuned with the strategic objectives. / Process targets are consistent with the business

objectives in place at the various levels and for the different functions of the CB. 15. Process performance & process adequacy is regularly evaluated – improvement opportunities are realized. 16. Service mentality is the daily behaviour (strong focus on internal/external customer expectations and professionalism). 17. Process focus is reflected through all activities (awareness, competence, and way of acting in line with

processes). 18. Process performance & performance improvement can be demonstrated. 19. The process management provides for an adequate knowledge management (learning organization and

preserving knowledge). 20. The management of business processes fully takes into account subsidiaries, agencies partnerships etc.

P P P P P P P P P P P P P P P P P R P P




Part B - Element 5: Management of business processes

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Consult the management handbook. 2. Ask the certification body for an updated process road map. 3. Verify the policy, strategy, objectives, targets and projects of the certification body. 4. Plan an interview with the executive management. 5. Plan an interview with 1-2 process owners. 6. Plan an interview with the continuous improvement responsible. 7. Verify the process awareness when conducting the interviews with an auditor 8. Verify the process awareness when conducting interviews with other personnel.

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Comments:




Part C - Element 5: Management of business processes


1. When was the process model for the management of the certification body introduced? 2. How does the process road map look like & cover the main activities of the certification body? 3. How is the management involved in the process development & improvement? 4. How is the process owner function performed and adding value for improvements? 5. What is the awareness and know-how regarding the process related guidelines? 6. What is the awareness & know-how and use of accreditation standards and guidelines? 7. How is the personnel made aware regarding process focus and expected results? 8. How are the different management disciplines addressed by the processes? 9. How does the business process management cover aspects related to sustainability, safety and health,

environment, information security, risks, social responsibility, etc. 10. How is the process focus when conducting internal audits? 11. Which measurable targets & performance indicators are put in place? 12. Are the process targets linked to company level or strategic objectives where applicable? 13. How is the management informed regularly about process performance? 14. How is the management’s awareness regarding the reached process adequacy? 15. How will a regular process evaluation take place (review)? 16. How are results from customer feedback, complaints, audits, accreditation, employees survey, etc. used for

process improvements (see also BPE 6 use of improvement tools)? 17. Which process performance and improvement can be demonstrated? 18. Are necessary resources made available? 19. How is knowledge managed, know-how protected and information access assured and secured?

P P P P P P P P P P P P P PR PR PR R R P




Part D - Element 5: Management of business processes









Part A - Element 6: Use of improvement tools

Aspects to be evaluated - business targets fulfillment - internal audit & witness audit results - external audit results - auditor performance results

- employees satisfaction results - customer satisfaction results - use of assessment or rating results - improvement mentality (culture)


1. Yearly business targets are defined in a consistent and balanced way and communicated They should include: - customer & market related

- technical competence related - human resource related - financial related.

2. The accomplishment of business targets is verified and improvement measures are decided in case of non-fulfilment.

3. Internal system audits are regularly conducted. Actions for identified improvement potentials are put in place and the implementation is monitored.

4. A peer audit method is applied to measure auditor performance on site & to calibrate & to learn and improve. 5. Results from external audits are used in the same way as mentioned in point 3. 6. Auditor performance is measured and the results are used to implement improvement actions. 7. An employee’s satisfaction survey is conducted at regular interval in order to identify areas for improvements. 8. Improvement targets and measures regarding employee’s satisfaction are undertaken. 9. Auditor and service performance is regularly measured with a customer feedback method. 10. Results are monitored and reviewed and used for improvement measures. 11. The complaint system is systematically used to remove weaknesses. 12. Assessment techniques and excellence models are applied to identify and use improvement potential. 13. Improvement monitoring is an integrated part of the management meetings. 14. Adequate performance data and reporting is available to monitor fulfillment and progress. 15. The improvement mentality is reflected by daily business activities (involvement in identification of potentials

and in the improvements actions),. 16. The applied monitoring & measurement provides for high ability to identify improvement potentials. 17. The management practice provides for a high capability to remove weaknesses and to use potentials. 18. Improvements can be demonstrated.

P PR PR PR PR PR P P P PR P P P P P R R R




Part B - Element 6: Use of improvement tools

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Consult the management handbook. 2. Plan an interview with the management and the person responsible for improvement.

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Comments:




Part C - Element 6: Use of improvement tools


1. How are improvement potentials regularly identified?

- customer satisfaction - service quality - products offered / product range - technical competence - auditor performance - added value - internal process performance - etc.

2. How systematically are audits carried out? 3. What are the accreditation feedbacks / how are they used? 4. What are feedbacks from other external verifications / how are they used? 5. How does the reporting and management system provide information for improvement? 6. How is the complaint system used? 7. How are the improvement suggestions by the staff used? 8. What is the improvement progress reached in the past – by which main measures?

P P P P P P P R




Part D – Element 6: Use of improvement tools









Part A - Element 7: Use of partnerships (e.g. IQNet)

Aspects to be evaluated - planning and targets for partner relations - creation & use of additional value

- communication of additional value - networking with important national & international org.


1. Partnership relations and Networking are seen as strategic issues and resources allocated accordingly. 2. Responsibilities, methods and targets for the partner relation management are defined and implemented. 3. Responsibilities, methods and targets for networking activities with national and / or international

organisations are defined and implemented. 4. Partnerships are actively used in order to add value regarding

- the promotion of certification services - the recognition of 3rd party audits & assessments - the recognition of certificates - the range of products and services offered to clients - the creation of new innovative services - etc.

5. Partnership relations are regularly evaluated for effectiveness. 6. Partnership relations are modified & improved where indicated. 7. Contribution to the IQNet development and network benefit can be demonstrated. 8. Positive results from IQNet and further partnership relations can be demonstrated (competitive advantages). 9. Reached competitive advantages are communicated externally. 10. Networking with national / international organisations is actively used (learning, educational advancement,

lobbying, product & service development, marketing).

P P P P PR P PR R P PR




Part B - Element 7: Use of partnerships (e.g. IQNet)

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Consult the management handbook. 2. Verify the answers given in the informational questions of the audit-CL. 3. Ask from the CB a list with its partnership relations and the participations in national / international

organisations. 4. Consult the CB’s website. 5. Plan an interview with the management.

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Comments:




Part C - Element 7: Use of partnerships (e.g. IQNet)


1. What is the status of existing partnerships? 2. What is the status of participations in national / international organisations? 3. How are partnerships regularly evaluated on their effectiveness & improved? 4. To whom are partnership and network activities assigned – how is the management involved? 5. Are there any targets in place? 6. How are results monitored & used internally and externally (see BPE 10 communication)? 7. Is there adequate transparency and communication within the organisation about such activities? 8. How is information exchanged with business partners (methods and technologies)? 9. What competitive advantages were reached / are planned by partnership & networking activities?

P P PR P P PR P P R




Part D - Element 7: Use of partnerships (e.g. IQNet)









Part A - Element 8: Financial results

Aspects to be evaluated - growth rate (% turnover) - earnings - EBIT (% turnover)

- equity rate - cash flow (% turnover) - current ratio


Proceeding 1. Strategic planning includes at least a 3 year’s view and provides clear perspectives with regard to

- Perspective of product and market with growth rate - Perspective of resources (human capacity and infrastructure capacity) - Perspective of financial needs

2. A risk analysis is done every year, the main risks are identified and measures are taken, risks who can endanger the company are insured

3. Budget is in line with the strategic planning 4. Budget is based on a calculation scheme 5. Budget contains

- Profit and loss account planning - Balance sheet planning - Liquidity planning - Cash flow planning - Planning on investments

6. The financial rating is known and not worse than BB+(Standard&Poor) or Ba1(Moody’s) The calculation for the rate of interest is known, the steps of improvement are known

7. The dept capacity is known 8. the budget is compared monthly with the real revenues and expenses 9. the liquidity is surveilled monthly 10. the debtors are controlled and reminded monthly 11. the MIS provides the key operational indicators monthly 12. Creditors are paid within the best terms of payment 13. Quarterly forecast for turnover, revenues and expenses is done and steps of improvement are decided 14. all financial indicators are compared to the budget figures quarterly 15. The year end closure and the annual report is done at least two months after the end of business year 16. The report of examination and the management letter is done at least three months after the end of the business

year 17. The intermediate accounting is in accordance with the legal system and the taxation orders 18. The board and the stakeholders should be informed truthfully and in a fair manner Result 1. Turnover of products younger than 3 years 2. Reserves for risks are done 3. Indicator for liquidity

- quick ratio > 150 % - current ratio > 180 %

4. Indicator for equity rate > 40 % 5. Indicator for debtors time < local average (days) 6. Indicator for cash flow (% turnover) > 8 % 7. Indicator earnings EBITA (% turnover) >8 - 12% (depending on local interest and tax costs) 8. Indicator growth rate (% turnover) > 3 % nominal (considering inflation factor) 9. Relation between the free Cash Flow

and the debts < 7 years 10. capital ratio > rate of interest for liabilities

P R




Part B - Element 8: Financial results

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Evaluate the legal form of the enterprise and the rules for intermediate accounting 2. Evaluate the financial process in the management handbook. 3. Evaluate the risk management process in the management handbook. 4. Evaluate the information process in the management handbook. 5. Verify the structure and management responsibilities from the management handbook. 6. Ask for public financial information (e.g. budget, MIS, report of examination etc.) 7. The following issues should be part of the interviews:

a) Valuation of the risks b) Basics for the budgeting process c) Controlling instruments d) Forecast and corrective measures e) Information to the board, the shareholders and the stakeholders f) Input for the strategic planning

8. The audit should take place in the accounting department

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Comments:




Part C - Element 8: Financial results


Proceeding 1. What are the basic inputs for the strategic planning? 2. Is the risk analyses done ever year? 3. Are the needed resources to control the risks planed in the budget? 4. Does the budget include

- Profit and loss account planning - Balance sheet planning - Liquidity planning - Cash flow planning - Planning on investments

5. What is the financial rating and the dept capacity? 6. How are people involved in the budget process? 7. What includes the controlling process? 8. What indicators include the monthly, the quarterly and the yearly MIS? 9. In case of deviation, who makes the corrective measures? 10. Are the creditors paid within the best terms of payment 11. How do you survey the liquidity? 12. How often do you control and remain the debtors? 13. How many days does it take for the year end closure? 14. How and when do you inform the board, the shareholders and the stakeholders? Result 15. How long time do you need for new products to the market? 16. What kind of reserves for risks have you done? 17. What is your liquidity (quick ratio, current ratio)? 18. What is your equity rate? 19. What is your debtors time? 20. What is your cash flow in % of turnover? 21. What is your EBITA in % of turnover? 22. What is your growth rate in % of turnover? 23. What is your pay back period in relation between the free Cash Flow and the depts? 24. What is your capital ratio?

P R




Part D - Element 8: Financial results









Part A - Element 9: Non financial results

Aspects to be evaluated - total market share (certificates & turnover) - market position - customer satisfaction - employees satisfaction - growth with traditional & new products

- reputation as a certification body - lost customers (total number and % certificate holders) - new customers incl. cross-selling (total number and % certificate holders) - infrastructure availability (e.g. IT) - infrastructure costs (% turnover for IT, others)


1. Market share in the home market is the leading one / stable or growing (depending on the local situation). 2. Market shares in main foreign markets with CB investments are important and growing. 3. Market position in the home market is number 1. 4. Market position in main foreign markets is significant. 5. Customer satisfaction is regularly measured and results show an excellent level. 6. Employee’s satisfaction is regularly measured and results show an excellent level. 7. Growth of business can be demonstrated by the certification body in the following fields

- sales of existing products (> 3 years old) - sales of new products (< 3 years old) - overall turnover per year approx. 3% more.

8. Accreditations are held without any significant conditions & limitations for the main products & international schemes.

9. CB is able to demonstrate its high reputation. 10. Lost customer rate is measured and below 1% of the total certificate holders – reasons are known / treated. 11. New applications (new customers & cross-selling) are measured and reach a level of 10-15% of total number

of existing certificates. 12. Information technology infrastructure is adequate and the availability performance / problem management is

transparent. 13. IT infrastructure costs are under control (investments, human resources, maintenance, etc.) - growth rate

compared with business growth (see BPE 8 financial results). 14. Time to market for new products is evaluated and adequate 15. The profitability of new products is monitored and evaluated.

R R R R R R R R R R R R R R P




Part B - Element 9: Non financial results

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Verify the answers given in the informational questions of the audit-CL. 2. Plan an interview with the management.

P P



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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.



Comments:




Part C - Element 9: Non financial results


1. What are the overall and the product specific market shares and trends? 2. How is the measurement organised? 3. What is the overall market position? 4. What are the product (or product group) specific market position for main products? 5. What are the customer satisfaction results and trends? 6. What are the employee’s satisfaction results and trends? 7. What is the overall growth rate? 8. How does the CB grow with existing and new products? 9. How can the CB provide evidence on how its reputation is perceived in the market? 10. What are the results, trends and reasons regarding lost customers? 11. What are the results and trends regarding new applications and new customers? 12. How are the adequacy and availability of the infrastructure (mainly IT) evaluated/measured – results available? 13. How develop infrastructure costs (cost rate, trends for IT costs from investments, projects, maintenance &

support, and related human resources)?

R P R R R R R R R R R R R




Part D - Element 9: Non financial results









Part A - Element 10: Promotion and Communication

Aspects to be evaluated - general information of CB - product & sector specific documentation - regular and adequate internal communication

- regular communication with customers & stakeholders - regular marketing events & regular publications - use of various channels (print, events, web, etc.)


1. Marketing manager is appointed and targets and responsibilities are defined. 2. PR responsible is appointed – press relations and crisis management are considered. 3. CB’s brochure is clear, concise and professional. 4. Product specific PR-material complete, comprehensive and professional. 5. Sector specific brochures for main business fields are established. 6. Additional technical documentation is available on request. 7. Presentation material for events and seminars are available. 8. Clear and understandable description of the certification scheme(s) is available. 9. Multi channel opportunities are used (print, web, etc.). 10. Systematic Web content management in place. 11. Marketing plan general & product specific is implemented (presentations, events, newsletters, articles, etc.). 12. Regular newsletter is published.(link to IQNet Newsletter used). 13. Regular information to customers e.g. on changes of certification schemes conducted. 14. Stakeholders for the CB and the main products are defined. 15. Stakeholders are systematically involved in CBs activities / communications. 16. IQNet aspects & promotion in all marketing and PRactivities integrated. 17. Corporate design & identity rules are defined and manual is available. 18. After certification marketing set for customers is established (certificate, PR instructions and tools, etc.). 19. Internal communication - Regular meetings with management and staff is documented /minutes are available. 20. Internal communication – Use of mailings, intranet etc. for internal communication and easy availability &

access is provided (e.g. news, updates, technical instructions, management handbook, personnel, etc.). 21. Adequate communication with subsidiaries, partners etc. is in place 22. Access control for IT and security measures is in place (confidential information, information protection). Note: Marketing (elements to identify potentials) are also addressed in elements 1 (Quality of business planningn and control), 2 (Focus on customers and interested parties) and 3 (Mgmt of product portfolio)

P PR PR PR PR PR PR PR P PR P P PR P PR PR P PR PR PR PR P




Part B - Element 10: Promotion and Communication

Suggested preparing steps (P = Partner / A = Assessor) ▼ 1. Ask the CB for a set of brochures. 2. Consult the CB’s website. 3. Plan an interview with the management, the marketing manager and the person responsible for PR.

AP A A

A



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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.



Comments:




Part C - Element 10: Promotion and Communication


1. How are PR & marketing responsibilities and after-sales support organised and defined? 2. Which objectives are put in place? 3. Is there a complete set of brochures and certification rules available (if not handed out in advance)? 4. How are customer requests, whether general or sector specific, handled and what kind of technical

documentation can be offered? 5. How is the web content management organized / updated level reached? 6. Does the web provide dynamic contents (downloads, communication, tools, FAQ, applications, extranet, etc.) 7. How does the regular communication with customers and stakeholders take place? 8. How are news, opportunities, changes, technical updates, certification experiences, etc. regularly

communicated to customers and interested parties? 9. What are the provisions for systematic corporate design and identity? 10. What marketing material is provided to applicants / provided to certified organizations? 11. What marketing action plans have been implemented (general promotion / product specific promotion)? 12. What is the structure and content of the marketing budget? 13. What kind of customer services are provided (after-sales service, customer support, CRM, etc.)? 14. How is the internal communication towards auditors and other personnel organised? 15. What is the level of fulfillment of marketing and communication objectives and targets? 16. How can the CB demonstrate the customer satisfaction level regarding communication & general support?

P P PR PR PR PR PR PR PR PR P P PR P R R




Part D - Element 10: Promotion and Communication






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