 Hello friends we are going to talk about context of the organization as a part of the video tutorial from my EZISO. This new clause in quality management system standard as per NXSL has been resulting into lot of discussions and misunderstanding. End of this tutorial you would understand the clause and the requirements very effectively and you will be ready for its implementation. We are going to talk about two very critical compliance requirements as per new QMS, understanding context and understanding requirements and expectations of interested parties. Let's talk about context of the organization. What does this phrase means? To make it simple for you, I want you to forget about ISO 9001, forget about implementing a quality management system standard. Just think about your business, your organization. Identify what kind of business you are into, who are your competitors, what are the challenges your business is facing, what kind of work environment, operating environment you carry out your business, what is the organizational ecosystem, competitive landscape. Talk all these questions to yourself. Try to understand who you are, what you do and what are the issues that you face. When you ask these questions, you would get answer to two very significant issues that we need to address now. You will get answers about what are the internal challenges you face. This is specifically what this clause requires. It wants an organization to identify all the internal challenges they face, all the external challenges or external issues they have. The issues, internal or external, what are those? The issues which would be relevant to your purpose and strategic direction, the issues that would affect your organization's ability to achieve intended result of quality management system. Let's be specific. What is the intended result of QMS? For some organizations, it can be higher profitability. For some organizations, it would be design innovation. For some organizations, it can be space management. It would be design innovation. For some organization, it can be speed of delivery of services, projects or products. For some organizations, it can be lower cost of production. It varies from organization to organization. It can be one or combination of the few what I just described. What we are trying to do is identify the issues which are relevant to your strategic direction, identify the issues which are going to impact your capability to achieve this intended output. Internal challenges, external challenges. Just ask a question to yourself. What are the challenges I am facing in my business? Make a note of all this. Involve your people, your colleagues, your employees, your management. Have a brainstorming session. It will help you identify all these issues that you are facing in the organization. There can be plenty of issues, internal issues and external issues as you can see on the slide. We are going to discuss more about in a while. Legal, technological, competitive, market, cultural, social, economical, these all can be external issues. Values, culture, knowledge, performance, profitability, competence can be internal issues. Now once you identify all these issues, you need to identify how these issues would impact your business. How would these issues impact your business in its achieving strategic, realizing strategic goals? How do you address those? How do you minimize the impact? Does it have any kind of risk? Once you do all this, you meet the requirement of context of the organization. Please remember, after you identify these issues, identify its impact, identify how you are going to address them. If required, consider them for your risk-based thinking, make them part of your risk assessment if you are doing so and review and monitor them at regular intervals because these issues are dynamic in nature. There is a significant issue today, may not be a critical issue tomorrow. Similarly, something that is not critical today may become super critical tomorrow. So you need to regularly review those. Some examples of internal issues and their impact on the business. Stability of the workforce and staff retention. If you are union in the business, what is the competency level of your employees? Do you have favorable payment terms from your customers? Do you have some kind of automation? Is the software system adequate to your processes? Amount of receivable, reducing market share? Do you have enough funding available in-house? What is the relationship of board of directors or organization with the investors? Your service level agreements, your culture within the organization, age of your machines and equipments, there can be plenty of internal issues. These are some of the examples. Using these as a benchmark, you can identify all the internal issues and internal challenges that you have in the organization. Identify the impact it would have on your business. What kind of risk does it carry? Are there some opportunities also? Give a plan of action, review it, regularly monitor it. Similarly external issues, political environment, geopolitical situation, competitive landscape, new competition entering the market, consolidation in the market, mergers and acquisitions, changing expectations of the customer, price volatility of the raw materials. Oil price is going down, exchange rate fluctuations, changing technological framework, legal statutory regulatory requirements, lobbying from pressure unions, expectations of customers constantly being changing. These all can be external issues, external challenges which would have significant impact on your business. Identify all these external issues. How do they impact your business? What kind of risk does it carry? Regularly review it, monitor it and you would be through with identification and management of external issues. Some organizations use tools like SWOT analysis, strength, weakness, opportunity and threat. Not mandatory but if your business requires you can use it. This would be a fantastic tool if you want to identify all the internal issues that you may have. Similarly there is something called as Pastral Analysis using which you can identify all the political, economical, social, technological environment and legal parameters which impact your business. You are free to adopt any tool. It can be as simple as straightforward as an access spreadsheet wherein you identify all the issues, discuss with your people, share with the management, get everyone on board, discuss about their impact, identify risk or opportunity and regularly review and monitor. This will let you manage and meet the requirement of context of the organization with respect to internal issues and external issues. Let's talk about another very interesting compliance requirements. Interested Parties In lemass language, interested parties means your stakeholder. Any individual, group or an organization having a direct impact from a business which is getting affected by our business, which has got a potential to get affected or they consider themselves to be affected. Now all these interested parties, they are very significant to your quality management system and your ability to consistently provide products and services that would meet customers' requirement and all applicable legal statutory requirements. You need to have good working relationship with all the interested parties. This is also one of the seven quality management system principles. Now when you have variety of interested parties, it is very significant. You identify who all are your interested parties or stakeholders. Identify their needs and expectations from your business. This is where people make mistake. It is not what you expect from your interested party but what does your interested party expect from a business? What are their needs and expectations from your organization? Now comes the critical issue. Once you identify interested parties, you identify their needs and expectations. What is the impact on your business if you do not fulfill these needs and expectations? What impact it would have on your company? What risk it will create? This is what is precisely requirement of interested parties related clause. Pretty straightforward. Identify all the stakeholders, their needs and expectations, impact on a business, list them all, find out plan of action, regularly monitor them, review them and you are through with the requirement. If you do this, you will meet requirement of the new ISO 9000-2015 standard context of the organization which is very significant because it would define and align your business, its strategic direction and the intended expected outcome of a good quality management system. It would create a synergy and until you link your quality management system with strategy of the business, there is no way you can really benefit from a quality management system implementation and certification. So it is very significant that you link QMS with strategy and this clause precisely does that making sure that QMS is not a standalone project. It is very well integrated with strategy of the business and when you do that, it is not just a quality management system, it becomes a culture in the organization and everyone benefits that. So this is a simple interpretation of the standard and its requirement. If you follow this, you would meet the requirement of the standard, you would meet expectations of the certification bodies and you would be able to address the compliance requirements without any hassles. We have fantastic software MyAZ ISO which can be used to address these requirements and further follow up with respect to risk based thinking, identification of risk and opportunity for all the interested parties and for the internal challenges and external challenges that you identify. Thank you very much and we will be back soon with another video on interpretation of ISO 900 standard. Thank you very much.