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The Legal Profession

Guide to ISO 9001:2000

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THE LEGAL PROFESSION

GUIDE TO ISO 9001:2000

COPYRIGHT
Standards Australia International All rights are reserved. No part of this work may be reproduced or copied in any form or by any means, electronic or mechanical, including photocopying, without the written permission of the publisher. Published by Standards Australia International Ltd GPO Box 5420, Sydney, NSW 2001, Australia
ISBN 0 7337 3708 0

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PREFACE
This Handbook is a revision of AS/NZS 3905.6:1995, Quality systems guidelines, Part 6: Guide to AS/NZS ISO 9001:1994 for the legal profession, which is now withdrawn. The primary objective of this Handbook is to provide lawyers with guidance on the application and implementation of ISO 9001:2000, Quality management systemsRequirements. A second objective is to advise those lawyers who already have a quality management system based on ISO 9001:1994, what the differences are between that Standard and the current version, thus providing guidance on what changes they need to make to their system to align with the current Standard. This Handbook includes the clauses of ISO 9001:2000 followed by guidance to each clause using language and examples relevant to the profession.
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Copies of ISO 9000:2000, Quality Management systems Fundamentals and vocabulary, and ISO 9004:2000, Quality management systems Guidelines for performance improvements (referred to in this Handbook) can be obtained from Standards Australia and Standards New Zealand.

Acknowledgement
This Handbook was prepared by Ms S. Thaler Thomson Legal & Regulatory Group Asia Pacific Mr G. Bell NETGM.Com Pty Ltd Mr G. le Roux NETGM.Com Pty Ltd Mr M. Noyce Noyce Lawyers Mr A. Thorpe Minter Ellison The Handbook was submitted for review and comment prior to publication to the following: Law Institute of Victoria Law Society of South Australia Law Society of Tasmania The Law Council of Australia The Law Society of NSW The Law Society of the Northern Territory The Law Society of WA Queensland Law Society Incorporated Deacon Graham and James Gadens Lawyers Gishenan and Luton. The contribution of all these parties is gratefully acknowledged.

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CONTENTS
Page FOREWORD.............................................................................................................................. 5 WHAT IS NEW IN ISO 9001:2000? .......................................................................................... 8 INTRODUCTION .................................................................................................................... 10 0.1 General........................................................................................................................... 10 0.2 Process approach ............................................................................................................ 12 0.3 Relationship with ISO 9004 ........................................................................................... 15 0.4 Compatibility with other management systems .............................................................. 16
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1 SCOPE ................................................................................................................................ 17 1.1 General........................................................................................................................... 17 1.2 Application..................................................................................................................... 18 2 NORMATIVE REFERENCE .............................................................................................. 19 3 TERMS AND DEFINITIONS ............................................................................................. 20 4 QUALITY MANAGEMENT SYSTEM .............................................................................. 22 4.1 General requirements ..................................................................................................... 22 4.2 Documentation requirements.......................................................................................... 23 5 MANAGEMENT RESPONSIBILITY................................................................................. 29 5.1 Management commitment .............................................................................................. 29 5.2 Customer focus............................................................................................................... 30 5.3 Quality policy................................................................................................................. 31 5.4 Planning ......................................................................................................................... 32 5.5 Responsibility, authority and communication................................................................. 35 5.6 Management review ....................................................................................................... 38 6 RESOURCE MANAGEMENT ........................................................................................... 40 6.1 Provision of resources .................................................................................................... 40 6.2 Human resources ............................................................................................................ 40 6.3 Infrastructure.................................................................................................................. 43 6.4 Work environment.......................................................................................................... 43 7 PRODUCT REALIZATION................................................................................................ 44 7.1 Planning of product realization....................................................................................... 44 7.2 Customer-related processes ............................................................................................ 46 7.3 Design and development ................................................................................................ 49 7.4 Purchasing...................................................................................................................... 56 7.5 Production and service provision.................................................................................... 59 7.6 Control of monitoring and measuring devices ................................................................ 65 8 MEASUREMENT, ANALYSIS AND IMPROVEMENT ................................................... 66 8.1 General........................................................................................................................... 66 8.2 Monitoring and measurement ......................................................................................... 66 8.3 Control of nonconforming product ................................................................................. 71 8.4 Analysis of data.............................................................................................................. 72 8.5 Improvement .................................................................................................................. 73

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BIBLIOGRAPHY..................................................................................................................... 77 ANNEX A QUALITY ASSURANCE IMPLEMENTATION PROGRAM LARGE LAW FIRM .......................................................................................... 78

ANNEX B BRIEF OUTLINE OF CERTIFICATION/REGISTRATION ............................... 90

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FOREWORD
General In 1995, in both Australia and New Zealand, lawyers were looking for new ways to improve the quality of their service to clients. In any approach to quality, a legal practice then had, and still has available a wide range of quality options to consider. These included the approaches of total quality management (TQM), quality system management (ISO 9001), quality assurance and quality control. Of course, the decision as to which was the most appropriate approach was one that each legal practice had to make for itself. To assist the profession, the Guide to ISO 9001:1994 for the legal profession1 was published to provide guidance for lawyers needing to understand the quality system approach and what the then three quality system Standards required to be done.
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As business has evolved, it has become necessary to revise the Standard to keep pace with the changes in business practices and the next version, ISO 9001:2000 has just been published. The 2000 version of the Standard is now based on a process approach to quality management systems, and includes a greater focus on client needs and expectations, greater involvement of the executive management, a requirement for continual improvement of the quality management system and an emphasis on staff competence. There are other changes and these are discussed in the Section What is new in ISO 9001:2000? on page 8. This Handbook provides guidance to the legal profession in relation to ISO 9001:2000. Where the advice previously offered in relation to ISO 9001:1994 is still relevant, it has been carried over into this Handbook. However, the Handbook also identifies what has changed or been added between ISO 9001:1994 and ISO 9001:2000, indicating what changes a legal practice would need to make to bring its quality management system in line with the latest requirements. As noted above, the 2000 version now contains a requirement for a commitment for continual improvement. Lawyers looking to go beyond this requirement can also consider ISO 9004:2000 Quality management systemsGuidelines for performance improvements. Of course, there are other options, such as the business improvement or business excellence models. If you consider it to be a viable business option, you can also obtain certification that your firm meets the requirements of the Standard. Some government and institutional clients may require their lawyers to be certified as quality service providers as a condition of doing their work in future. Unlike the 1994 editions of the ISO 9000 series, the 2000 edition contains only one requirement Standard. It does contain provisions to enable certain parts to be excluded (permissible exclusions) and these are identified and discussed in this Handbook.

Published in Australia and New Zealand as AS/NZS 3905.6:1995

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Design In preparing these Guidelines, it was recognized that the legal profession would require guidance on how to apply the concepts of design and development. They have been presented as applying when a Practice takes on a significantly new area of activity. The issue is that the activity is new in relation to the normal activities of the practice, not to the profession. These concepts are discussed further in Clause 7.3. Confidentiality Confidentiality and privilege are among the very keystones of professional practice. The issue of confidentiality arises if you decide to seek certification of your quality management system. The certifying body, during both the initial and ongoing audits for certification, may need to have some form of check on your client files to satisfy itself that the procedures and processes of your quality management system are being adhered to. You should enter into some arrangement with the certification body with respect to confidentiality, similar to that which exists with your financial auditor. The issue of legal privilege may also dictate the extent to which the certification body can have access to files. You should also recognize that the external audit is carried out on a sample procedure basis. In practical terms, particularly in larger firms, it is not always possible to speak to each lawyer or to inspect every client file. Inspection will only be on a sample basis. To ensure that you maintain a duty of confidentiality to clients, you could take either of the following approaches to deal with the requirements of the certifying body: Files and their contents are disclosed to certifying bodys auditors with the consent of the client and you should ensure that approval to do this is included in the terms of engagement. (It should be made clear that the client can withdraw consent at any time and that refusal to allow external auditors to view files does not affect the quality of your work.) Where the client does withhold consent for the certifying bodys auditors to view files or you are aware that the files contain sensitive material you could arrange that the certifying bodys auditors do not view client files but are accompanied by your internal auditor who will review files for compliance with specified criteria and inform the external auditors of the extent of compliance or non-compliance. Application ISO 9001:2000 has an Introduction and eight main Clauses: Clause 1 Clause 2 Clause 3 Clause 4 Clause 5 Clause 6 Clause 7 Clause 8 Scope Normative reference Terms and definitions Quality management system Management responsibility Resource management Product realization Measurement, analysis and improvement

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The Standard states what is to be done but not how. Therefore, quality management systems may vary from firm to firm reflecting such factors as the nature of the practice, management policy and objectives, personnel and the complexity of operations.

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A large firm may have completely different procedures and processes than, say, a three-partner firm. Nevertheless, they can both comply with the Standard. The key issue is that the operating procedures should reflect the way the practice conducts its business. Neither ISO 9001 nor this Handbook should be taken as prescriptive, but rather used as a basis to establish a workable quality management system. Certification If you are considering having your quality management system certified, or if your firm is already certified to the 1994 version of ISO 9001 (or ISO 9002), this Handbook lists the details that the certification body will expect to see addressed in relation to the 2000 version. You will need to consider the issue of exclusions as discussed in Clause 1.2, deciding what does and does not apply to your firms activities. You should note that the exclusions can apply only to the requirements listed in Clause 7, and only if they really do not apply to your firm.
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WHAT IS NEW IN ISO 9001:2000?

There are a number of fundamental changes that have taken place during the revision. The major changes are
.

Process approach A process model approach has been used to develop the 2000 version of ISO 9001. As a result the old 20 clause structure of the 1994 version has gone and the standard structure is now more closely aligned to business working practices. While at first glance, it would appear that the 2000 version has been completely rewritten, what has actually happened is that the most of the content of the 1994 version has been redistributed into the new process model structure. In doing so, the text may have been changed but in many cases the intent of the clause has not. Consequently much of the guidance provided for the 1994 version is still relevant but has been relocated in this Handbook to the appropriate location. However, it is true that new requirements have been added and the major ones are discussed briefly here and in more detail in the guidance to the relevant clauses. One beneficial outcome of the process approach is that the weighting given to the content via a main clause and subclause structure is more appropriate to business needs. In the old 20 clause approach the clause numbering gave undue weight to some aspects of relatively minor importance. One standard for certification ISO 9001:2000 is now the only standard on which certification can be based. ISO 9002 and ISO 9003 have been withdrawn. Provision has been made for those who had or were contemplating certification to ISO 9002 or ISO 9003. This has been done through an exclusions approach discussed in detail on page 18. If your firm already has certification to ISO 9001:1994 or ISO 9002:1994, there is a three year changeover period to the 2000 version. However, you should discuss the changeover process with your certification body. Terminology The standard now identifies the supplier organization customer which is in line with business practice. (This replaces the subcontractor supplier customer terminology of the 1994 version.) The term subcontractor has now disappeared. In this Handbook, the term firm is used in place of organization. Continual improvement Your firm is now required to have a process of continual improvement built into your quality management system.
NOTE: It is important to understand that continual improvement does not mean that it occurs without a break or without ceasing. Instead, improvement should be interpreted as a repeated activity to be implemented as each opportunity is identified and there is justification for proceeding.

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Customer focus The 2000 version now requires your firm to have a customer focus and to monitor customer satisfaction which is one of the means to be used in evaluating the performance of your quality management system.

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Internal communication There is a clause which requires a firm to have an internal communication process to provide information on the quality management system and its effectiveness. Competency In assessing human resources and in training, the issue of competency has been introduced and will need to be addressed within your firm. Less documented procedures demanded The standard has shifted the onus for documentation from the standard to the organization. The standard now requires only 6 procedures. You have to decide what other documentation is needed to control your operations and processes. Interaction between processes
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There is a requirement for you to describe your firms processes and how they interact. Data analysis There is a requirement for your firm to analyse the data it acquires during its operations. Outsourcing Where you outsource any activity to another firm or organization, you now need to control the outsourced activity to ensure that you are obtaining what you need.

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STANDARD

Introduction
0.1 General
The adoption of a quality management system should be a strategic decision of an organization. The design and implementation of an organization's quality management system is influenced by varying needs, particular objectives, the products provided, the processes employed and the size and structure of the organization. It is not the intent of this International Standard to imply uniformity in the structure of quality management systems or uniformity of documentation. The quality management system requirements specified in this International Standard are complementary to technical requirements for products. Information marked "NOTE" is for guidance in understanding or clarifying the associated requirement.

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This International Standard can be used by internal and external parties, including certification bodies, to assess the organizations ability to meet customer, regulatory and the organization's own requirements. The quality management principles stated in ISO 9000 and ISO 9004 have been taken into consideration during the development of this International Standard.

GUIDANCE

The standard is a specification for an internationally recognized way of running a business where client satisfaction is a prime goal. It specifies the minimum requirements and in any implementation, you need to bear this in mind. The resultant quality management system may be assessed and may result in certification by a recognized body. However, the standard itself does not require certification. The standard aims to give confidence to your clients that your firm is well run. It requires you to prove your ability to meet client requirements and any associated legal and regulatory requirements, by having records that show how well you have performed in the past. This should provide a high degree of confidence to prospective clients and thereby reassure them. A quality management system complements the legal and technical aspects of your services, encouraging you to build a commercially viable system. This standard provides the framework for good management practices that you can apply. The Standard specifies a set of activities that need to be included but does not say how you do them thus giving you considerable freedom in how you meet the requirements of the standard. You need to build your management around your existing system, i.e. what you currently do. Only in the parts where you do not meet the requirements do you need to improve your methods.
NOTE: If you had a system that met the 1994 edition of ISO 9001 or ISO 9002, then it should be relatively simple to upgrade it to meet this new version. Do not believe anyone who tries to tell you that the whole thing needs rewriting because the standard has changed. While some parts may need to be rewritten to address new features, most of what you already have should still be applicable. If you do feel it necessary to rewrite, it might be a ideal opportunity to review your system and include those improvements that you felt appropriate, but never had the time to include.

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Whilst the standard puts emphasis on the client, it also brings out the importance of other interested parties, the shareholders (partners) and the employees all of whom expect to gain from an enterprise. Emphasis on your client is seen as important because your aim should be to satisfy your clients expectations, or if this is not necessarily feasible to explain to your client the likely outcomes of any service provided. The standard now includes the concept of continual improvement of the quality management system. This is seen as important because if you are not making improvements you will be losing ground to your competition. The standard takes a holistic approach starting with initial discussions with the potential client through to final delivery of the service and then monitoring client satisfaction. Support services, such as reception, accounts and secretarial support, are frequently seen as not part of the quality management system because they are not a direct part of the main money making process for the firm. However in a service environment such as the legal profession, these functions are frequently important to the quality of the service that the client receives and should be considered for inclusion.

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STANDARD

0.2 Process approach

This International Standard promotes the adoption of a process approach when developing, implementing and improving the effectiveness of a quality management system, to enhance customer satisfaction by meeting customer requirements. For an organization to function effectively, it has to identify and manage numerous linked activities. An activity using resources, and managed in order to enable the transformation of inputs into outputs can be considered as a process. Often the output from one process directly forms the input to the next. The application of a system of processes within an organization, together with the identification and interactions of these processes, and their management, can be referred to as the "process approach". An advantage of the process approach is the ongoing control that it provides over the linkage between the individual processes within the system of processes, as well as over their combination and interaction. When used within a quality management system, such an approach emphasizes the importance of a) b) c) d) understanding and meeting of requirements, the need to consider processes in terms of added value, obtaining results of process performance and effectiveness, and continual improvement of processes based on objective measurement.

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The model of a process-based quality management system shown in Figure 1 illustrates the process linkages presented in clauses 4 to 8. This illustration shows that customers play a significant role in defining requirements as inputs. Monitoring of customer satisfaction requires the evaluation of information relating to customer perception as to whether the organization has met the customer requirements. The model shown in Figure 1 covers all the requirements of this International Standard, but does not show processes at a detailed level. In addition, the methodology known as Plan-Do-Check-Act (PDCA) can be applied to all processes. PDCA can be briefly described as follows.
Plan: Do: establish the objectives and processes necessary to deliver results in accordance with customer requirements and the organization's policies. implement the processes.

Check: monitor and measure processes and product against policies, objectives and requirements for the product and report the results. Act: take actions to continually improve process performance.

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STANDARD

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Figure 1 Model of a process-based quality management system

GUIDANCE

This standard is based on the conceptual model, shown in Figure 1 (above). It highlights the main processes that are integral to this standard. These processes are also likely to already exist in your firm. The model indicates that everything to do with quality starts and ends with the client. In the diagram, the client (customer) is shown on both the left and right. Normally it will be the same client, but it could be a different one. The main process flow that delivers your product and/or service is shown across the lower part of the figure, product realization. The discussions and instructions from your client (what your client wants) becomes an input to your quality management system (shown in the diagram as the ellipse). This input feeds into the product realization box, which includes all the activities within your firm relating to planning and delivery of the delivery of the service. The output is the service you deliver to your client. The model highlights the importance of obtaining information on client satisfaction. This and other measurements and evaluations become vital feedback on your firms performance. (See the box titled measurement, analysis and improvement.) The rest of the model depicts activities that are considered fundamental to the smooth operation of your process of service realization. You need to ensure that you have adequate resources to assure the quality of your product and/or service. Resources include space, equipment, materials and people. You need to ensure that people are trained and are competent to do the tasks that you ask of them. You can act by adjusting resources in the light of the information, which then improves the performance of the service realization.

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The box, management responsibility, is there to emphazise the need for executive management to study the results of the feedback and other information. It also covers the need for executive managers to set policy, objectives and targets. Following from these there is a need for proper planning. Planning includes the study of your processes to ensure that they are achieving your objectives and targets. The output from the box, titled measurement, analysis and improvement, may suggest improvements to the quality management system, indicated as the arrow pointing to the box at the top, titled continual improvement of the quality management system. At the initiative of executive management, potential improvements should also be investigated and appropriately implemented. So there are two mechanisms for making improvements:
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As part of the quality management system (depicted by the arrows of the inner loop). This includes nonconformity rectification, corrective action and preventive action. Review processes, and in particular management review, which look critically at the whole quality management system and make improvements to it.

Hence the process model in Figure 1, ties together the concepts of quality assurance to continual improvement and total quality management. If you are interested in these concepts, you should read ISO 9004:2000, which is consistent with ISO 9001:2000; the main clause headings are the same.

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STANDARD

0.3 Relationship with ISO 9004

The present editions of ISO 9001 and ISO 9004 have been developed as a consistent pair of quality management system standards which have been designed to complement each other, but can also be used independently. Although the two International Standards have different scopes, they have similar structures in order to assist their application as a consistent pair. ISO 9001 specifies requirements for a quality management system that may be used for internal application by organizations, or for certification, or for contractual purposes. It focuses on the effectiveness of the quality management system in meeting customer requirements. ISO 9004 gives guidance on a wider range of objectives of a quality management system than does ISO 9001, particularly for the continual improvement of an organizations overall performance and efficiency, as well as its effectiveness. ISO 9004 is recommended as a guide for organizations whose top management wishes to move beyond the requirements of ISO 9001, in pursuit of continual improvement of performance. However, it is not intended for certification or for contractual purposes.

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GUIDANCE

The clause is self-explanatory and needs little additional guidance. The key point is that the 2000 versions of 9001 and 9004 now have a common clause structure which simplifies the use of the two standards in conjunction with each other.

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STANDARD

0.4 Compatibility with other management systems

This International Standard has been aligned with ISO 14001:1996 in order to enhance the compatibility of the two standards for the benefit of the user community. This International Standard does not include requirements specific to other management systems, such as those particular to environmental management, occupational health and safety management, financial management or risk management. However, this International Standard enables an organization to align or integrate its own quality management system with related management system requirements. It is possible for an organization to adapt its existing management system(s) in order to establish a quality management system that complies with the requirements of this International Standard.

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GUIDANCE

Much of the above is self-explanatory. If you are contemplating having a management system that includes other aspects, such as health, safety and environment, you will be pleased to know that this new version has been aligned with ISO 140012. This should make it easier for you to integrate your systems when you are ready to do so. If you have experience with ISO 9001:1994 or ISO 9002:1994, you may wish to take this extra step and revise your quality management system and integrate it with an occupational health and safety and/or an environmental management system. The effort in achieving this will pay off in a simpler more efficient system for running your business.3

Standards Australia and Standards New Zealand have published occupational health and safety guidance standards, AS 4801:1999 (NZS 4801:1999) and AS/NZS 4804:1997. These use ISO 14001 and ISO 14004 respectively as models, and use a concept model very similar to the model shown in Figure 1. For assistance with integration see AS/NZS 4581:1999, Management system integrationGuidance to business, government and community organizations, and HB 139(Int):1999 Step by Step Guidance on Integrating Management Systems Health and Safety, Environment, Quality.
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STANDARD

1 Scope
1.1 General
This International Standard specifies requirements for a quality management system where an organization a) b) needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements, and aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements.
In this International Standard, the term product applies to the product intended for, or required by, a customer .

NOTE.

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GUIDANCE

WHERE THE STANDARD APPLIES A major key to providing a standard of service that consistently meets the client's expectations lies in using a quality management system to control the processes that deliver that service. This allows you to demonstrate to existing and potential clients that your firm possesses a quality management system designed to deliver quality legal services. This system must comply with all relevant legislative or regulatory obligations. Where the requirements of this standard conflict with any legislation, that legislation takes precedence. The standard does not address directly the accuracy of legal advice, though a number of clauses do have the effect of controlling and preventing inaccurate advice. The standard deals with the quality of service delivery. Certification to ISO 9001 can in no way be taken to imply the quality of the legal advice. Many legal firms engage in other activities not directly related to the practice of law, e.g. running a nominee company or acting as an agent for an insurance company. Some practices have branch offices. If your firm does this and if you are seeking certification, you should take care to specify exactly what part of your business activities is to be assessed. You have the option of either including or excluding non-legal services. You can arrange for certification to apply on a branch-by-branch basis.

The relevant clause in ISO 9001:1994 is Clause 1.

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HB 90.6-2000, The Legal Profession - Guide to ISO 9001:2000 The Legal Profession - Guide to ISO 9001:2000

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