Quality Policy and Quality Objectives

For organizations to achieve sustained success, quality management centered on customer satisfaction is indispensable. At the foundation of this approach are the “quality policy” and “quality objectives.” This article explains these concepts in a manner accessible to beginners while addressing their professional significance and practical implementation methods.

What is a Quality Policy?

A quality policy is the overall intention and direction of an organization with respect to quality, formally expressed by top management. It aligns with the organization’s business philosophy and strategy, providing the framework for the quality management system (QMS).

According to ISO 9001:2015 clause 5.2.1, the quality policy must satisfy the following requirements:

• Be appropriate to the purpose and context of the organization
• Support the organization’s strategic direction
• Include a commitment to satisfy applicable requirements (customer requirements, statutory and regulatory requirements)
• Include a commitment to continual improvement of the QMS
• Provide a framework for setting and reviewing quality objectives
• Be communicated within the organization, understood, and applied
• Be available to relevant interested parties, as appropriate
• Be maintained as documented information
• Be reviewed periodically to ensure continuing suitability

For example, a quality policy might state: “We are committed to providing products and services that exceed customer expectations while pursuing continual improvement in all our processes.”

It is important to note that under ISO 9001:2015, the quality policy must be “appropriate to the context of the organization,” not just its purpose. This means the policy should reflect both internal factors (such as organizational culture, values, and governance) and external factors (such as market conditions, regulatory environment, and stakeholder expectations). Any change in the organization’s context or strategic direction necessitates a review and possible revision of the quality policy.

A critical addition in ISO 9001:2015 is the explicit requirement that the quality policy must be applied throughout the organization. This goes beyond mere communication – the policy must actively guide decision-making, process design, and daily operations. Organizations should demonstrate how the policy is linked to quality objectives, process controls, monitoring and measurement activities, and management review processes.

What are Quality Objectives?

Quality objectives are specific outcomes that an organization aims to achieve based on its quality policy. They must be measurable and established at relevant functions, levels, and processes.

According to ISO 9001:2015 clause 6.2.1, effective quality objectives possess the following characteristics:

• Consistent with the quality policy
• Relevant to conformity of products and services
• Relevant to enhancement of customer satisfaction
• Take into account applicable requirements
• Measurable
• Monitored
• Communicated
• Updated as needed
• Maintained as documented information

A widely recognized framework for setting quality objectives is the SMART principle:

• Specific: Clear and unambiguous
• Measurable: Quantifiable with defined metrics
• Achievable: Realistic given available resources
• Relevant: Aligned with business needs and strategic direction
• Time-bound: With defined deadlines

Examples include: “Reduce product defect rate from current 3% to below 1% within this fiscal year” or “Respond to customer complaints within 24 hours.”

A key enhancement in ISO 9001:2015 is the requirement in clause 6.2.2 to plan how quality objectives will be achieved. This planning must determine what will be done, what resources will be required, who will be responsible, when it will be completed, and how the results will be evaluated. Many organizations had historically set objectives without concrete action plans, resulting in perpetual objectives that were never achieved. The 2015 revision addresses this gap by requiring organizations to develop and implement realistic plans with clear accountability.

Another important addition is the requirement to set quality objectives for relevant processes, not just for functions and levels. This process-oriented approach ensures that objectives drive improvement in the actual workflows that deliver value to customers. Organizations must determine which processes are relevant to their QMS and establish appropriate objectives for each.

The Relationship Between Quality Policy and Quality Objectives

The quality policy and quality objectives are closely interconnected. While the quality policy provides the overarching direction for quality within the organization, quality objectives translate that policy into specific actions and measurable outcomes.

This relationship can be visualized as follows:

Forward Flow: Quality Policy (Overall Direction) → Quality Objectives (Specific Goals) → Action Plans (Concrete Activities) → Implementation → Measurement and Evaluation of Results → Verification of Quality Objective Achievement → Confirmation of Quality Policy Effectiveness

Feedback Loop: Through this cycle, the organization can continuously improve quality. The results of quality objective achievement inform the review of the quality policy’s continuing suitability, which may lead to refinements in the policy or objectives to better align with the organization’s evolving context and strategic direction.

A fundamental concept introduced in ISO 9001:2015 is the alignment of the QMS with the organization’s strategic direction. This appears in multiple clauses of the standard, emphasizing that quality management is not an isolated system but an integral part of achieving business success. The quality policy must support the strategic direction (clause 5.2.1), quality objectives must be aligned with the strategic direction (clause 6.2.1), and management review must verify that the QMS remains aligned with the strategic direction (clause 9.3.1).

For example, if an organization’s strategic direction is to become the leading provider of calibration services for the widget manufacturing industry, the quality policy should reflect this vision. A supporting quality objective might be to “reduce calibration errors by 50% within 18 months.” The action plan to achieve this objective would directly contribute to the strategic direction while improving quality performance.

Effective Development and Operation of Quality Policy and Quality Objectives

Key Points for Development

Top Management Involvement

It is essential that top management leads the development of the quality policy and demonstrates commitment. Under ISO 9001:2015, top management has explicit responsibility for establishing, implementing, and maintaining the quality policy. This responsibility cannot be delegated, as the policy must reflect top management’s vision and commitment to quality.

Stakeholder Participation

Involving employees who actually perform the work in setting quality objectives is effective. By reflecting the realities of the workplace, objectives become more achievable and employees develop stronger ownership of the outcomes.

Analysis of Past Data

Analyze past quality data and customer feedback to identify areas requiring improvement. This evidence-based approach ensures that objectives address actual performance gaps and customer needs rather than arbitrary targets.

Consideration of External Environment

Consider industry standards, competitor situations, and regulatory trends. The organization operates within a broader context that influences both opportunities and constraints. Understanding this context is essential for developing relevant and realistic quality policies and objectives.

Key Points for Operation

Effective Communication

Ensure that the quality policy and objectives are understood by all employees through various means such as morning meetings, bulletin boards, and the company intranet. Repeat the communication regularly to reinforce understanding and commitment.

ISO 9001:2015 includes explicit requirements regarding employee awareness. People doing work under the organization’s control must be aware of the quality policy, the quality objectives relevant to them, their contribution to the effectiveness of the QMS, and the implications of not conforming to QMS requirements. This represents a significant strengthening of the communication and training requirements compared to previous versions of the standard.

The quality policy must also be made available to relevant interested parties as appropriate. Organizations should consider multiple channels for external communication, such as websites, social media, marketing materials, and annual reports. The manner and extent of external communication should be determined based on the needs and expectations of each interested party group.

Progress Management

Regularly measure and evaluate the achievement status of quality objectives, and take corrective action as necessary. The requirement to monitor quality objectives ensures that organizations track progress and respond to deviations promptly rather than discovering at year-end that objectives were not met.

Management Review

Conduct periodic reviews by top management to verify the appropriateness of the quality policy and objectives. Management review provides the forum for top management to evaluate whether the QMS, including the quality policy and objectives, remains suitable, adequate, and effective in light of the organization’s context, strategic direction, and performance.

Continual Improvement

Implement the Plan-Do-Check-Act (PDCA) cycle to realize the intent of the quality policy through the achievement of quality objectives. This systematic approach to improvement ensures that lessons learned from one cycle inform planning for the next, creating a upward spiral of performance enhancement.

Challenges in Implementation and Countermeasures

Common Challenges

Formalization Without Substance

Quality policies and objectives may become unrealistic or merely decorative documents posted on walls. This occurs when there is insufficient connection between the quality policy, quality objectives, and actual business operations.

Difficulty in Measurement

Particularly in service industries, measuring quality can be challenging. Unlike manufacturing, where defects are often tangible and countable, service quality may involve subjective elements that are harder to quantify.

Inconsistency Between Departments

Quality objectives of different departments may conflict with each other. For example, production may have objectives focused on output volume while quality assurance has objectives focused on defect reduction, potentially creating tension if not properly balanced.

Countermeasures

Preventing Formalization

Prevent formalization through regular reviews and promotion of employee participation, updating content to reflect actual conditions. Make quality objectives living documents that are actively referenced in decision-making, performance discussions, and process improvement initiatives.

Ensure that quality objectives are integrated into normal business processes such as budgeting, resource allocation, performance appraisals, and project planning. When quality objectives are treated as separate from “real” business activities, they inevitably become marginalized.

Establishing Appropriate Metrics

When direct measurement is difficult, establish proxy indicators. For example, for service quality, use customer satisfaction surveys, Net Promoter Scores, complaint rates, resolution times, or other indirect measures that correlate with the desired outcome.

Consider using both leading indicators (which predict future performance) and lagging indicators (which measure past results). For instance, if the objective is to reduce product defects, leading indicators might include training completion rates and process capability indices, while lagging indicators would include actual defect rates and customer returns.

Interdepartmental Coordination

Establish cross-departmental meetings to ensure consistency among objectives. Create mechanisms for departments to understand each other’s objectives and identify potential conflicts early. Senior management should ensure that the portfolio of quality objectives across the organization supports rather than undermines overall performance.

Use a balanced approach such as the Balanced Scorecard framework to ensure that objectives address multiple dimensions of performance (customer, internal processes, learning and growth, financial) rather than optimizing one dimension at the expense of others.

Conclusion

The quality policy and quality objectives form the foundation of an organization’s quality management system. When properly developed and operated, they deliver numerous benefits including enhanced customer satisfaction, improved operational efficiency, and development of organizational culture.

The critical factor is not treating these as mere documents or wall decorations, but integrating them into the organization’s daily activities and maintaining the cycle of continual improvement. This requires strong leadership from top management and participation from all employees.

Under ISO 9001:2015, the requirements for quality policy and quality objectives have been strengthened to ensure tighter integration with the organization’s strategic direction and business processes. The quality policy must be appropriate to the organization’s context and support its strategic direction. Quality objectives must be established for relevant processes and supported by concrete action plans that specify resources, responsibilities, and evaluation methods.

The emphasis on alignment with strategic direction represents a paradigm shift from viewing quality management as a compliance exercise to recognizing it as a strategic tool for business success. Organizations that effectively leverage their quality policy and quality objectives can achieve sustained growth and establish competitive advantage in their markets.

By viewing quality management not as an isolated system but as an integral part of business strategy and operations, organizations can ensure that their pursuit of quality contributes directly to achieving their vision and meeting stakeholder expectations. This integrated approach, reinforced by the 2015 revision of ISO 9001, positions quality management as a driver of business value rather than merely a source of documentation burden.