Standards imperative for SA’s global competitiveness

Boosting the adoption of international and local standards is crucial for South Africa to enhance economic growth and competitiveness on the global stage. So says Oliver Naidoo, managing director of JC Auditors, a leading South African National Accreditation System (SANAS) accredited certification body.

Naidoo asserts that while implementing standards in individual businesses offers clear advantages, on a larger scale it can significantly alter the trajectory of a country’s development. “When comparing South Africa to countries we compete against in the global economy, it’s evident that our adoption of international standards remains limited. Although a subtle shift and an increase in numbers is noticeable, we still have considerable ground to cover,” he says.

Naidoo adds that companies that have embraced standards are seeing tangible results. “The objectives of standards are highly targeted,” he explains. “When implemented effectively, they increase profitability while safeguarding the business brand. Standards are crucial in managing and mitigating risks, resulting in enhanced safety and service delivery.”

Steering towards change

At its core, the purpose of international standards is to facilitate global trade by ensuring consistent quality and performance across all countries. It compels companies to be more accountable. Importantly, because standards necessitate audits, companies are required to measure and monitor their performance continuously. This allows them to identify and rectify abnormalities far more swiftly than would be possible without a standard in place.

“This, in turn, enables companies to maintain consistent quality and performance, fostering improved transparency while driving innovation. Adherence to standards signifies a dedication to good governance, which forms the cornerstone for any business aspiring to compete on the global stage,” Naidoo expands.

However, integrating standards into business operations requires more than mere compliance; it necessitates a strategic approach embedded within the fabric of the organisation. “You must have a structured approach,” advises Naidoo, highlighting the need for standards to be seamlessly integrated into core business strategies. 

Standards must be the foundation of a business strategy to yield their intended benefits. Achieving this requires implementation that considers each individual business’s unique context and ensures delivery consistency.

Cultivating excellence

Experts like Naidoo advise using the PDCA model (also known as the Deming Wheel) during the implementation of standards. This iterative method for continual improvement involves a loop of planning, doing, checking, and acting. This enables ongoing enhancements in processes, products, and service functions.

Selecting which standards to implement depends on the objectives to be achieved. Each standard addresses specific aspects of operations and provides distinct benefits. For instance, ISO 9001 focuses on managing risks to meet customer requirements and enhance quality, while ISO 45001 emphasises protecting people at work by managing risks effectively. On the other hand, ISO 14001 is geared towards environmental protection. Despite being international in scope, all standards must also adhere to the laws and regulations of individual countries.

According to Naidoo, when standards are implemented correctly, they yield immediate benefits. Companies experience better brand reputation, increased operational efficiency and cost-effectiveness, improved safety measures, and effective risk mitigation, all contributing to enhanced profitability.

“Standards play a crucial role in improving supply chains. They make a difference in the first mile, the last mile, and every mile in between,” he concludes.