Management Systems - An Introduction for Those Who Are Not a Manager

Written By
Patrik Björklund
Patrik Björklund
Published
October 13, 2023
Topic
Management System

Managing a company is not an easy task. It's not just sitting in meetings or “flipping papers.”

Management is about making strategic decisions, creating workflows, ensuring quality, and much more. One tool that can help with this is a management system. But what is it really, and how does it fit into daily work? Let's take a closer look.

What does management actually do?

In short, management is the group of people who direct and lead the company. They plan and organize resources, make decisions about the direction of the company, and are responsible for ensuring that the company meets its objectives. They are responsible for everything from budgeting and financing, to product development, marketing and human resources issues.

What is a management system?

A management system should not be a folder filled with documents, it is a tool that helps management to direct the company's operations and, in the best of worlds, also a tool that all employees use in everyday life.

It's like a map showing the way to satisfied customers, with clear directions for every step of the way.

A management system contains processes, procedures, and guidelines that govern how things should be done. It includes such things as workflows, quality control, risk management, and anomaly management. The system is also designed to ensure that the company complies with all laws and regulations that apply to its operations.

How does a management system work in practice?

The management system allows everyone to understand how the company works, what its goals are and how I fit into the picture.

Think of a management system like a manual for a car. The manual shows how the car works, how to drive it, and how to maintain it. Similarly, the management system shows how the company operates, when cars should be replaced, and how and when servicing should be done.

A management system also helps identify and manage risks, which can prevent problems before they occur. By following the system, the company can ensure that it delivers high quality products and services, which in turn leads to satisfied customers.

Where is the line between what the management system covers and what the ex-CEO does or what the board does? Do the management systems handle it too?

Good question! A management system is designed to control the company's operations, which includes everything from product development and manufacturing to sales and service.

The system also ensures that we comply with the rules and guidelines that apply to the business, such as quality standards, environmental legislation, and occupational safety regulations.

The beauty of a management system is that it can be adapted to the unique needs and structure of the company. It can include guidelines for the day-to-day work of management, but it can also differentiate between the tasks performed by the CEO, the board of directors and other parts of the organization.

For example, in many companies it is the CEO who is responsible for implementing the management system and ensuring that it is followed. The CEO may also have overall responsibility for the company achieving its strategic goals, which may be part of the system.

The board, on the other hand, often has more overall responsibilities. They set the company's overall strategy, oversee the work of the CEO, and ensure that the company complies with its regulatory obligations. These tasks can also be part of the management system, but the board can also have its own procedures and processes outside the system.

So, to answer the question, the management system can cover some of what the CEO and board do, but it doesn't have to. Exactly where the line goes depends on the unique needs and structure of the company. What matters is that the system supports the objectives of the company and helps it meet its commitments to customers, employees and other stakeholders.

Are there things within the company that a management system doesn't cover?

Absolutely, there are areas that a management system doesn't necessarily cover. The management system is a tool for directing and streamlining operations, but it does not have to be an all-encompassing solution to all the company's challenges. Here are some examples:

Strategic planning: The management system can contribute to the execution of the company's strategy, but it is not always the tool to create this strategy. Strategic decisions, such as entering a new market or launching a new product line, often require in-depth analysis and creative thinking that can go beyond the framework of the system.

Personal leadership: The management system can support good leaders by offering structure and guidelines, but it cannot replace personal leadership. The ability to inspire and motivate employees, manage conflict, and build strong teams are critical management skills that cannot be coded into a system.

Corporate culture: The management system can contribute to creating a positive corporate culture by promoting good working practices and ethical standards. But building a strong corporate culture is also about more subjective factors, such as building trust, fostering open communication, and creating a sense of community, that can be difficult to achieve through a system alone.

Innovatie: The management system can support innovation by offering processes for idea generation and product development. But real innovation often requires a “think outside the box” perspective that can be limited by too strict systems and rules.

While a management system is a powerful tool for guiding a company's operations and meeting its commitments, there are aspects of business management that require more than just systems and processes. Personal leadership, strategic thinking, a strong corporate culture, and the ability to innovate are all critical factors for the company's success that cannot necessarily be covered by a management system.

Ok, so our management system is the IT system AmpliFlow where I find my checklists, process maps, anomaly reporting and all that. Or?

You're on the right track. AmpliFlow software is an example of an IT tool used to support and manage a company's management system. The tool helps organize, track and report information related to the company's processes and procedures - such as checklists, process maps, and anomaly reports.

But it is important to remember that a management system is not the IT tool that supports it.

The management system includes the actual processes, policies, and procedures that form the core of how your business operates. It includes the actual strategies and objectives that guide the direction of the company, the methods and techniques used to ensure quality and efficiency, and the culture and values that govern how people within the company behave and make decisions.

So, while you use AmpliFlow to access and manage your company's management system in a very efficient way, the system itself is bigger than just the tool. It is the totality of your company's structure and the principles that govern its functioning.

But I know of several companies that do not have a management system because they are, for example, hip and modern tech companies. Then how do they do it?

It's true that not all companies have formal, documented management systems, especially smaller start-ups or “modern” technology companies. But while they may not have a formal system in place, they still have some sort of structure to govern their operations.

These companies can rely more on flexibility, rapid iterations, and organic growth rather than formally documented processes and routines. They may also depend more on personal leadership and a strong corporate culture to guide their work. But even in these cases, there is some kind of “system” or structure in place - it's just maybe not documented or formalized in the same way as in more traditional companies. Which in itself can bring challenges.

So while it is true that not all companies have formal management systems, all companies have some sort of structure to govern their operations. And the bigger and more complex these companies are, the more likely it is that they will benefit from having a more formal and structured management system.

Does a management system have to go down to the smallest detail of how everything works in order to be ISO certified?

To become ISO certified, a company's management system must meet specific requirements established by the International Organization for Standardization (ISO). These requirements vary depending on the ISO standard applied, but they usually include both overarching principles and specific processes and procedures.

However, it is not necessary for the management system to go down to the smallest detail for every aspect of the business. Instead, the ISO standard focuses on the company having effective processes in place to guide operations, ensure quality, manage risk and constantly improve.

For example, according to ISO 9001, the standard for quality management systems, the company needs to demonstrate that it has a strong customer focus, strong leadership, manages risks, a process-oriented approach, a systematic approach to decision-making, and that they work on continuous improvement.

It is also important to note that ISO certification is not a one-time event, but requires regular audits to ensure that the company continues to meet the requirements of the standard and is constantly improving its management system.

So, while a company's management system needs to be detailed enough to ensure effective management and control, it doesn't necessarily have to go down to the smallest detail of every aspect of the business to become ISO certified.

Conclusion: Management systems - More than just documents and meetings

Leading a company is a complex task that involves more than just sitting in on meetings and “flipping papers.” It's about making strategic decisions, creating workflows, ensuring quality and much more. A management system is a powerful tool that can help with all these tasks, but it is more than just a collection of documents.

A management system structurally describes how the company is governed and helps it achieve its goals. It's like a map showing the path to success, with instructions for every step of the way. And although it is the responsibility of management to implement and comply with the system, everyone in the company plays an important role in its success.

But it is also important to remember that a management system is not an all-encompassing solution to all of the company's challenges. It cannot replace personal leadership, create a strong corporate culture, or guarantee the company's success. And while a formal, documented management system can be especially valuable for larger and more complex companies, all companies have some kind of structure to guide their operations.

So, whether your company already has a formal management system or you are just starting to explore the idea, remember that the most important thing is to have a clear vision, effective processes and engaged people. With these ingredients in place, you can create a successful business that delivers value to its customers, employees and other stakeholders.

FAQ - Frequently Asked Questions about Management Systems

1. Is a management system just a collection of documents?

No, a management system is much more than just a collection of documents. It is a structured process that helps companies manage and streamline their operations. It includes procedures, instructions and guidelines, but also the company's strategies, objectives and values. There is nothing that requires the management system to be documented with documents.

2. Does every business need a management system?

We dare to suggest that any company, regardless of size or industry, can benefit from a management system. The system helps ensure that the company operates efficiently and meets its goals, while complying with laws and regulations that apply to the business.

3. Is the management system the same as the company's IT system?

No, although IT systems are often used to support the management system, they are not the same thing. The management system is the totality of the operational structure of the company and the principles that govern its functioning, while the IT system is a tool that helps organize and manage this structure.

4th. Is it only management that uses the management system?

No, an effective management system involves everyone within the company. While management has overall responsibility for implementing and ensuring compliance with the system, everyone plays an important role in its success.

5. Can a management system replace personal leadership?

No, a management system can support good leaders by offering structure and guidelines, but it cannot replace personal leadership. The ability to inspire and motivate employees, manage conflict, and build strong teams are critical management skills that cannot be coded into a system.

6. Can a management system guarantee that we succeed as a company?

A management system can help a company run its business efficiently and meet its goals, but there are no guarantees of success. A company's success depends on a variety of factors, including the quality of its products or services, its ability to adapt to changes in the marketplace, and the overall economic environment.

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