The Costs of Certification – A Reality Check

The Costs of Certification – A Reality Check

The answer to “To Certify or Not to Certify?” really depends on a few key considerations. We discussed the scenarios in a different article, presenting a decision tree to help your company evaluate your situation.

For companies where management systems and certifications are a “like-to-have” (versus must-have), before beginning the process it is important to do the numbers and get a reality check. Often, businesses on the cusp of this decision have unrealistic expectations, or haven’t considered what it costs to achieve and maintain certifications (yes, all systems have to be maintained annually!).

And costs can often build up if not properly managed! So… first it is important to understand that there are 3 cost centres:

• Internal Resources – In-house staff hours
• Management Consultants – System development
• External Third Party Assessors – Certification bodies

The above cost centres incur costs in 2 distinct phases:

1. Setup – the management consultant will study and understand the business and work with the management team to tailor design a systems solution

2. Maintenance – this includes internal audit and system upkeep

As every business is unique, the development of the management systems will also be unique. Costs are dependent on company size, complexity of operation and level of input from internal resources, among other factors. As such, the following table is meant to provide a general idea of what the design, implementation and certification process could cost for a typical small-medium size business. For a more specific estimate, please contact PQMC directly.

Businesses should ask themselves: at this cost, does having a certified management system still make sense for your business? Here are a few case studies to illustrate the point.

THE UNSPOKEN (Non-Financial) COSTS

Fundamentally, it is important to understand that a management system is not for show. A genuine implementation will affect the heart and soul of the business.

A management system can improve the business and set it up for growth but it requires discipline and a commitment to the system. Free-spirited business managers who prefer operational improvisation on a daily basis may feel constrained by a management system.

If your business is a deeply personal venture and aggressive growth is not your ultimate concern, then even though your balance sheet can well afford certification, the emotional costs may be too great.

At the end of the day, consider the costs – financial and personal.