Savings Beyond Price™
Innovative Supply Savings and Quality Solutions That Work
Strategic Value Analysis® in Healthcare
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.
Inside This Issue
How Do You Deal with the Untouchables, the Incompliants and Sacred Cows?
Savings Beyond Price -Weekly eNewsletter- August 22, 2007
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Pop Quiz!
Have you ever asked your suppliers to rate you as a customer, request that they give their opinions on your strengths and weaknesses, or, give you feedback on where you could make cost and quality improvements in your supply chain?
This is what I call a “reverse supply scorecard” that might make you anxious when you first think about it, but it is one of the best ways for your suppliers to bring their value-added services and innovation to your healthcare organization.
Suppliers see it all, the good, the bad and the ugly of your organization which shouldn’t be ignored. They see the emergency orders that could have been planned ahead, the products, services and technologies that you are buying and for which they can suggest lower cost alternatives! They could easily show you where your staff needs more training in receiving, stocking and distribution and how they could be trained to be more efficient and effective.
What do you need to do to get this kind of advice? Just ask them! You will be surprised by the results and how it will build an even stronger relationship with your suppliers than you are now experiencing.
Your Partner In Innovative Savings Solutions,
Robert T. Yokl
President & Chief Value Strategist
P.S. This reverse supply scorecard mentioned above is part of our Supply Six Sigma toolbox, to learn more about our Supply Six Sigma program click here www.supplysixsigma.com .
How Do You Deal With The Untouchables, The Incompliants And Other Sacred Cows?
“We All Know Who These People Are, But How Do We Remove Them As Barriers To Your Supply Chain Savings Success?”
We all have them in our healthcare organizations, the clinicians, physicians and department heads and managers that have reached the high lofty status as untouchables, incompliants and scared cows that aren’t team players.
They vehemently refuse to look at any and all new products, service and technology lower cost offerings. Or, to even consider any change of any kind. They think they have all the answers and believe that you don’t know what you’re talking about when you approach them with a savings proposal. Worst of all, your executive management backs them up, supports their decisions and won’t even consider challenging them.
These people barriers can only be removed when you and your executive management establish these 5 new ground rules for teamwork at your healthcare organization:
1. No person, group or clinician shall have the last word
Every medical decision is a collaborative effort in a healthcare organization. No clinician, physician or department head or manager can make decisions about your patients by themselves. So no person, group or clinician should have the last word on your financial matters in order to prevent chaos in your organization.
Likewise, there needs to be oversight by your executive management on all of your product, service and technology decisions. This is done by delegating this task to your value analysis teams. Or you risk having poor decisions made on your purchases.
2. Consider at least three options before making any decision
If your department heads and managers aren’t giving your value analysis team(s) at least three options (or you provide them for them) before a buying decision is made, then you
didn’t make a decision at all. You just rubber stamped your requisitioner’s recommendation without the due diligence that is required for good decision making.
3. Argue over a person’s positions, but never over the facts
You can argue all day over a department head or manager’s positions, views and situation, but never over the facts of the matter at hand. Meaning, if the facts (statistics, cost analysis, market research, etc.) show that a new product request will cost you twice as much as the current product in use then the action of your value analysis team(s) must be to deny this request -- no matter who the request is coming from.
4. Opposing views must be seriously debated before any decision is made
No one can shut off debate in your value analysis team meetings before the opposing views on the topic have been clearly stated, reviewed, debated and heard. To do less is to give up your rights your team members, which will reduce the quality of the decisions that you are making.
5. When a decision s reached, all must agree to support it and defend it
Once a decision is made – it is final! It must be supported by all parties to the decision; no second guessing, or Monday morning quarterbacking permitted.
It all comes down to “Healthy cultures tend to produce collaborative teams, while divisive, political cultures become more so”, we are told by Jeff Polzer, a Harvard Business School professor. Therefore, it should be our job as supply chain professionals to insist on ground rules to remove the people barriers that are holding back your supply chain savings success. Conversely, if your executive management won’t set ground rules to prevent these unhealthy behaviors then they aren’t serious about saving money -- just talking a good game.
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