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Did You Know...?

That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.

Savings Beyond Price -Weekly eNewsletter - October 4, 2011

 

A Note from Robert T. Yokl,
President and Chief Value Strategist

I was just reading that more and more small hospitals will be searching for a partner (i.e. large system, for-profit system, or an insurance provider), since most have been financially underperforming for a number of years. This could be the only answer for a small community hospital’s survival unless they are the sole community provider or have their community’s financial support in the form of subsidies or a tax base.

This actually could be a good thing, since the resources and technology available to a small hospital from a large system are boundless compared to their resources today. If you are a supply chain manager for a small hospital, I would plan to upgrade your skill sets to be ready for the change in your environment, since it seems to me that this could be a reality for you somewhere down the road.

P.S. We are getting more and more calls asking “what is this hot topic called utilization management really all about?”  If you want to know too, why not schedule your Utilizer® Dashboard “test drive” today! This will give you all of the answers to your questions on this mission critical topic.
 

 

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Competitive Value Analysis: Slow Down to Speed Up

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Value analysis teams are being pressured to save more in less time, but is this really a productive way to do business? There have been a number of industry studies recently that have documented that simply increasing the pace of your work or productivity often leads to decreased value over time. These same studies report that organizations that embrace strategic vs. frenetic speed have 52% higher operating profits over time. What’s more, these organizations don’t suffer burnout!  

How does this happen?  Strategic FAST organizations have these characteristic that set them apart from their competition: 

●      Senior management is committed to initiatives’ success vs. the lack of senior leaders support. 

●      Teams review how their work is going vs. not taking time to reflect on their work. 

●      Teams capture their best practices vs. not debriefing after an assignment to document lessons learned. 

●      Teams uncover breakthrough savings vs. fine-tuning their existing spend management. 

●      Senior management makes sure there are no conflicts vs. working at cross-purposes by giving teams competing objectives. 

●      Even experienced employees receive extensive training when assigned to teams vs. rarely, if ever, receiving training or education.  

   “Ultimately, strategic speed is a function of leadership.  Teams
   that become comfortable taking time to get things right, rather
   than plow(ing) ahead full bore, are more successful in meeting
   their business objectives. That kind of assurance must come from
   the top”, says Jocelyn R Davis and Tom Arkinson, principals at The
   Forum Corporation.  

Are these the characteristics your value analysis team(s) is exhibiting and the kind of senior management support you are experiencing? If not, maybe it is time you slow down to speed up by closely aligning your value analysis team(s) performance with your senior leader’s expectations.

Warmest Regards,

Robert T. Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
Bobpres@strategicva.com
1-800-220-4274

Your Partner In Savings Beyond Price™,

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