Do Awards and Certifications Justify The Cost And Effort to Obtain and Retain?

      Industries have awards that many organizations seek to obtain.  The awards range from the Malcom Baldridge National Quality Award and the Deming Prize, to smaller regional and industry specific awards.  Certifications include the range of those from ISO to industry specific such as the Capability Maturity Model Integration (CMMI) for information technology related organizations.

      I have been involved with some of these awards and certifications in the past.  If you have, you know the criticisms/concerns put forth.  They are intended to judge the organization’s everyday activities.  Proper procedures and processes are to be documented and followed.  Appropriate evidence to show adherence is required.  But is this how firms perform their duties every day?  My experience has been somewhat but not as consistent as they should.

      When it is time to enter for an award or certification/recertification, it’s a mad scramble.  Project or product evidence’ must be gathered.  In the case of a manufactured product, ‘extra special care’ is taken to make sure the product is top quality.  If it is a service, the deck is frequently stacked toward a positive spin.

      And then there are the costs.  In addition to those noted above, there are the costs to the certifying organizations which can be substantial.  Many organizations call in expert consultants to help them prepare.  The costs can add up to very big bucks quickly.

      When it’s done and the award or certification is issued, does the organization gain additional customers or revenue from the award or certification?  My experience has been very little if any.  The flip side though is some contracts specify some type of certification is necessary so this becomes a necessary expense.  So if you want to, by all means go for the award or certification but don’t expect it to be financially rewarding.