By Julius DeSilva

For many organizations, the management system, whether for quality, safety, environment, or information security, is seen as a necessary evil. Something to put in place to meet a customer or compliance requirement. Something that helps you “get through” audits. A set of documents rarely referred to and record hurriedly put together. A compliance checkbox.

But your management system, when implemented and owned properly, is your most powerful tool for avoiding cost, preventing crisis, and improving performance.

So why do so many leaders wait to invest in it? The answer lies in both psychology and priorities.

Present Bias: Why We Delay What Matters

Humans are hardwired to favor short-term gains over long-term rewards, a phenomenon called present bias. We tend to avoid discomfort today, even if it means facing disaster tomorrow.

In business, that shows up as:

• Deferring investments in risk management
• Postponing training or audits
• Skipping reviews or corrective actions
• Putting off system upgrades until “after this quarter”

The pain of spending time, money, or effort now seems greater than the invisible threat of failure later. But as recent events show that threat isn’t theoretical, it’s real.

Real-World Failures from Weak Systems

Boeing’s Quality Crisis (2023–2024) When a door plug flew off a 737 MAX 9 in flight, the world learned just how deeply procedural and system failures had taken root at Boeing. Inadequate internal audits, missing documentation, and deferred corrective actions all pointed to one thing: the management system was not working as intended. And the cost? Grounded fleets, shaken public confidence, and billions lost.

Healthcare Ransomware Attacks (2022–2024) Hospitals like Change Healthcare and Prospect Medical Holdings were crippled by cyberattacks. Why? Lack of proactive risk management and failure to implement robust controls, many of which are standard under ISO 27001. The upfront cost of implementing a system was avoided; the ultimate cost in disruption and recovery was far greater.

GM’s Recall (2024) In early 2024, General Motors (GM) recalled nearly 600,000 vehicles across its Cadillac, Chevrolet, and GMC lines due to critical engine defects. The cause? Manufacturing flaws in engine components, specifically the connecting rod and crankshaft assemblies, supplied by a third-party vendor. These defects posed a serious risk of engine failure, stalling, or even crashes, prompting widespread regulatory scrutiny and consumer backlash. This wasn’t a case of a one-off defect. It was a systemic failure of supplier oversight and quality assurance.

These aren’t outliers. They’re reminders that your system is either working for you or exposing you.

The Real Value: Cost Avoidance Through Systems Thinking

Your management system isn’t just about meeting compliance requirements, marketing goals or passing audits, it’s about stopping leaks before they sink the ship.

Done right, your system can:

• Prevent repeat nonconformities
• Detect latent QHSSE risks
• Reduce unnecessary rework
• Improve customer satisfaction
• Minimize regulatory fines or legal exposure

Think of it as a prevention tool to prevent incurring the cost of the non-conformity. The cost of one audit, one training session, or one updated procedure is nothing compared to the costs of disruption, brand damage, or litigation.

Making the Case: How to Shift the Conversation

If you’re a system owner, quality manager, or operations lead, how do you help senior decision-makers see the management system as an asset, not overhead?

1. Reframe in Business Terms

Don’t just say, “We need to update our QMS.” Say: “We lost $90K this year in rework and customer complaints. A refreshed system and internal audit program could cut that in half.” Quantify the cost of not acting.

2. Bring Headlines into the Room

Ask: “If a ransomware attack hit us tomorrow, how fast could we recover?” or “If an emergency occurred, how confident are we in our documented processes and response plans?” Tie external events to internal risks.

3. Start with a Pilot

Suggest small, impactful steps as quick win build momentum:

• Conduct a focused internal audit on a high-risk area
• Train 1-2 staff on a lead auditor course (QMII’s training is a great start and these trained personnel can then help champion your system)
• Update your risk register and review it quarterly

4. Involve Leadership in the System

When the C-suite is present at system status briefings, objective setting, and management reviews, they begin to see the system not as bureaucracy, but as a tool for managing the business. Further connect the system objectives to the business objectives. Demonstrate how the system will not be an independent add on burden but integrated into all the business does.

External Expertise Isn’t a Threat. It’s a Strategic Advantage

Some organizations hesitate to bring in external support, especially when they have trained internal staff. That’s valid and commendable. Ownership of your system should stay internal. Always.

But even experienced teams benefit from a fresh, objective lens. Outside support helps:

• Avoid blind spots
• Move faster and with more confidence
• Benchmark against evolving best practices
• Pass audits the first time—without fire drills

Think of it like a ship calling in a harbor pilot: the crew knows how to sail, but the pilot knows the local waters and hidden risks. This isn’t outsourcing. It’s accelerating. It’s ensuring the system you build internally actually serves its purpose and holds up under pressure.

Bottom Line: Invest Early, Avoid Pain Later

Your management system is not just a marketing tool, it’s an opportunity. An opportunity to prevent failure, improve efficiency, and lead with confidence. So don’t wait for the next audit, the next crisis, or the next budget cycle.

Don’t let present bias trick you into thinking that inaction is safer. A well-implemented management system is your insurance policy, your early warning system, and your strategic engine. All in one. Start now. Start small. But start.

 

This article first appeared on Julius DeSilva’s LinkedIn page and is published here with permission.