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Free Weekly Strategic Value Analysis Newsletter

 

 

August 22, 2003

 

Advanced Value Analysis Training Should Be A Strategic Goal For Your Organization, So That Your Value Teams Can Significantly Improve Their ROI!

by Robert T. Yokl, President

Value Analysis Training Is An Anomaly In All But A Few Healthcare Organizations Today!

 

Value Analysis is “doing” business, not a committee of 10, 12, 15 or even 20 plus members meeting as a group once a month to talk over new GPO contracts, requests for new purchases and the latest gossip recently overheard in the hall-ways.  Value Analysis requires strategies, goals, structure, measurement and a repeatable proven process just to keep your ship afloat in these turbulent and uncertain times.  Doing what you always have been doing will never improve your value teams’ performance or ROI.  Only with advanced value analysis training, focused on performance, can you ever expect to improve your value team outcomes.

 

Value Analysis Training Is An Anomaly In All But A Few

 Healthcare Organizations Today!

I recently spoke at a healthcare conference in Chicago with over 150 material managers in attendance.  When I asked for a show of hands for who among them had one hour of value analysis training only one attendee raised her hand, but had to admit her training wasn’t in healthcare; the training was acquired when she was employed in the industrial sector.  Does this informal survey tell you anything about the state of healthcare value analysis today?

Webster’s definition of training is “to make proficient with instruction and practice”.  Without focused training, value team members are left to their own devices to reduce costs and improve quality, thereby wasting your organization’s time, money and resources that could be employed more efficiently.  Yet the saga continues! Healthcare organizations continue to hand over to their value team(s),  value analysis or product evaluation committees the decision making on millions of dollars of purchases annually without giving them the training and practice needed to do so.  Let’s just think about this same philosophy if it was applied to other decisions that your hospital might make.

·           WOULD YOUR HOSPITAL trust your strategic planner to plan your hospital’s future without any formal training to do so?

·           WOULD YOUR HOSPITAL hire a controller or budget manager that had no training in accounting?

·           WOULD YOUR HOSPITAL send tests to a clinical laboratory where technicians were allowed to perform your tests any way which way felt like it?

·           WOULD YOUR HOSPITAL agree to have your biomedical technicians do diagnostic tests and repairs on your equipment without being certified to do so?

You might think that these examples are extreme, but this illogical thinking is just how healthcare organizations are making decisions on how they select and evaluate the thousands of products, services and technologies they purchase annually. They are entrusting, empowering and authorizing department heads and managers working on teams or committees, who haven’t had even ONE HOUR of formal value analysis education or practice to perform this critical activity for their healthcare organization.  Does this make any sense to you?

 

Achieving Higher ROIs For Your Value Teams Requires

Performance Focused Training

In today’s fragile healthcare environment, there is not only a need for advanced training for your value teams to perform at peak performance, but to remain relevant the training must also be “Performance Focused”.  By performance focused I mean that the value analysis training that is taught by a training professional must improve your value analysis process and give a high return on investment on the time, money and resources being utilized to achieve the savings and quality gains your organization requires to survive and thrive in the 21st century.

 

Quotes

*      “Value Practitioners Need “Techno” Skills Along With People Skills To Master Value Analysis”.

*      “Becoming Your Customer Is The Only Way To Understand Their True Functional Requirements”.

 

The Grape Vine

CEOs, COOs, And CFOs Are Demanding

More From Their MMs

 

I’m receiving more and more calls from MMs telling me that their CEOs, COOs and CFOs are demanding that they establish, energize, reinvent or transform their value analysis programs into savings machines to compensate for their hospital’s reduced profits.  Are you ready when your CEO, COO or CFO calls you to discuss this same challenge?

 

 

 

About the Author

Robert T. Yokl, President, The HCP Group, Ltd., has over 35 years of experience as a consultant and manager in the field of Supply Value Chain Management and is one of the country's leading healthcare experts in value analysis, value engineering, Non Salary Expense Reduction and materials management. He is the developer and program leader of the award winning Certified Value Analysis Practitioner Training Program™. Mr. Yokl is also the developer of the healthcare industry's leading ValueNetCentral™ Value Analysis Software. Over the past two decades he has trained thousands of healthcare managers in his patented Strategic Value Analysis™ and Team-Based Project Management™ processes and has assisted scores of organizations in developing their own value management programs. He has published six books, videos and audios on supply/value chain management. His latest book being, “ Strategic Value Analysis™: The #1 Smart Strategy for Taking Cost Out of a Healthcare Organizations’ Healthcare Supply Value Chain”.

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