The decision to persue accredited ISO certification

The venture-capital market is extremely tough and it is important for a newcomer to have distinctive features and emphasise how serious it is. Keith Howard was interested in the added discipline, credibility and effectiveness that achieving certification could bring to the firm’s business. I knew from my merger and acquisition experience in investment banking that teams of finance professionals covering multiple clients can work much more effectively if there is a process in place that gives them rigour and helps them to share information, he says. Furthermore, an investor can be more competitive and offer greater value to clients if it is also able to assist operationally in the areas covered by these standards.

Bayonet offers its investee partners a blend of high-finance and high-tech solutions, providing them with numerous key financial and operational services. In the course of business, each member of the Bayonet Ventures team is in constant contact with a variety of companies. The man behind Bayonet is Keith Howard, an American who both owns and runs the company. He was confident that the extra rigour injected by certification would strengthen the way the company evaluates, executes and builds on investments. Overall, we believed the award of these certificates by DNV would represent a substantial enhancement of Bayonet Ventures’ capability and industry credibility, and provide a strong launch-pad for the generation of new business, states Howard.

The close-knit Bayonet team debated which management system standards the firm should pursue and when. After careful deliberation they highlighted the potential pay-offs and pitfalls, differing perspectives converged. Ultimately, since Bayonet is constantly scouting for opportunities beyond its core financial-services and high-technology sectors, the team realised that it was impossible to predict when each standard might become highly relevant to the firm’s business. However, since the team was confident that each standard would add value at some point, Bayonet made the ambitious decision to undertake all four certifications at once. According to Howard, We knew that once we gained all of these standards we would have the flexibility to pursue a wide variety of investments in an opportunistic fashion, in the knowledge that whoever the counterparty might be, we would likely be able to help them significantly.

Preparation for ISO certification

Bayonet Ventures has established a software venture, whose software developers built from scratch an integrated, highly scalable, web-enabled operations management system for Bayonet to utilise. The process of certification by DNV then became an independent evaluation of the strength and rigour of the management system itself. Whilst the software developers were putting the finishing touches to this system, Bayonet Ventures staff worked hard for months to align internal processes with the standards.

Once the standard documentation and software were complete, the two groups reconvened to integrate the two. Overall, it was an arduous period with numerous late nights, during which we spent much of our time focused on fine-tuning in order to meet the certification requirements, says Howard. Speaking candidly, there were several moments during the process when we questioned the soundness of the decision to pursue all the standards at the same time. However, with the economy in a lull, it was a sensible time for us to make this investment.

The DNV certification process

Bayonet selected DNV on the basis of its reputation, responsiveness and flexibility. DNV and Bayonet Ventures then together prepared a plan that allocated an integrated team of auditors to cover the four standards as well as a DNV client manager to coordinate the overall relationship. The idea was to make the necessary multiple audits as cost-efficient and effective as possible, and to enable a small dedicated team of auditors to become acquainted with the Bayonet business model and operating platform. DNV was also supportive of Bayonet’s decision to create a centralised management system to maintain all of the certifications from which other elements of the business process could evolve.

DNV’s document review and initial assessment were thorough and the cause of some anxiety within Bayonet. Initially, the idea of an audit of the entire firm was rather unnerving, notes Howard. But in fact the assessors were very encouraging, and we were impressed with the breadth of their hands-on experience and their desire to grasp our multi-faceted business model. During the sequence of audits, Bayonet and DNV staff developed a strong rapport and working relationship, and the frank exchange of views helped smooth and expedite the certification process. Comments and observations from the auditors stimulated the further refinement and streamlining of the management operations system, said Howard. As well-prepared as we thought we were, we still received minor non-conformances in a number of areas. We have done a lot already to address these, and this has improved our business.

Bayonet has simultaneously achieved the following standards:

• ISO 9001 (& TickIT) - relating to quality management
• BS 7799 - information security
• ISO 14001 - environmental management
• OHSAS 18001, - occupational health and safety

A first for DNV Internationally

We have not yet had the certificates for all that long, Howard remarks, and the range of feedback we've received from the market is actually quite interesting. A few counterparties are completely unaware of the value of these certificates. The majority are aware of some but not all of the standards, and are impressed that we have attained certification in the area they know. Those who are conversant with all four standards and understand what it takes to achieve them are generally amazed at our decision to pursue them simultaneously! In addition to giving Bayonet Ventures a competitive advantage, the management system is going to be installed in the offices of Bayonet’s investee partners and other third parties, helping them to reap similar benefits and achieve certification.

As if this were not enough, the company is now in the process of being approved by the Financial Services Authority (FSA) and its software venture is currently applying for Microsoft Gold certification. In the certification world finding the right partner is essential. If you would like to discuss how your organisation can benefit from a similar approach please contact DNV on tel: 020 7716 6543, or fax enquiries to: 020 7716 6739