Strategic Value Analysis In Healthcare

Advancing Healthcare Organizations to the Next Level of Supply Chain SavingsTM 

STRATEGIC VALUE ANALYSIS NEWSLETTER

Home

Weekly Strategic Value Analysis Newsletter

View Older Strategic Value Analysis Newsletters

Fast Target Savings

StrategisTM Value Management

ValueNet CentralTM Value Analysis Software

Training

About HCP

Client List

Articles and White Papers

Contact HCP

 

 

 

Free Weekly Strategic Value Analysis Newsletter

 

 

SPANNING THREE DECADES OF VALUE MANAGEMENT LEADERSHIP

June 5, 2003

 

How To Catapult Your Savings Performance When Your Time, Money And Resources Are Scarce

 

Robert T. Yokl - President - The HCP Group, Ltd.

 

“Leadership Means Overcoming Adversity Through Creativity

Even When The Naysayers Say It Can’t be Done”.

 

Helen Keller, the deaf and blind trailblazer of the 20th century, once said that “no pessimist ever discovered the secrets of the stars or sailed to an uncharted land or opened a new heaven to the human spirit” by accepting the conventional wisdom that something can’t be done.   This isn’t the same state of mind that we are hearing today from many of our healthcare colleagues who have seen their departments downsized, budgets cut to the bone and their already limited resources diminished beyond repair.  What we are hearing from the masses is that it is impossible for them to continue their savings initiatives under the TIME, MONEY AND RESOURCES constraints that their healthcare organization has placed on them.

 

Creativity: The Great Equalizer

What needs to be clearly understood in healthcare today is that time, money and resources will continue to be in limited supply now and in the future because of the tangled, bureaucratic and politically charged atmosphere of how healthcare organizations are paid for their services.  No one wants to face the real problems of how our healthcare system should be adequately financed, so our resources could get worse over the next decade or so before they get any better.   This conundrum is no excuse for any healthcare executive not to continue to improve their savings performance in order to advance their hospital or system’s profitability even with his or her limited resources.

The good news is that there is a GREAT EQUALIZER to this financing dilemma if we employ the power of creativity to meet this challenge of living and thriving with scarce resources head on.   To illustrate my point, Bill Bratton, the former New York Police Department’s Commissioner (now the Police Commissioner of Los Angeles), reinvented how police departments work in the U.S. and around the world, although he didn’t have the time, money or resources when he was hired by Mayor Rudy Guiliani to turn-around the largest police department in the country, and he did it in record time. During Bratton’s tenure as NY’s Police Commissioner from 1994 to 1996, overall crime fell by 17%.  Felony crime fell by 39%.  Theft fell by 35% and the NYPD had a 73% positive public rating, up from 37% four years earlier also on Bratton’s watch.  And he did all this while the NYPD’s budget was being cut by 35%.  Now how did he accomplish this feat?

On a MICRO level he first put his managers face-to-face with problems and customers they couldn’t ignore.  He did this through community meetings and by focusing on the hot spots in the city.  He held his management accountable for crime in their districts and for meeting some basic goals that he established.  Lastly he partnered with Mayor Guiliani (his champion) to identify and silence internal opponents and isolate external ones. 

On a MACRO level Bratton personally gave tours of crime ridden areas to NY public officials to show them how bad life on the streets of NY was in order to obtain their support.  He traded excess police vehicles for needed office space with the NY’s Division of Parole.  He used video messages in lieu of memos, staff bulletins and other documents, which no one every read anyway, to communicate with his front line police officers.  Also Bratton developed the famous “Compstat” crime database that captured weekly crime and arrest activities, which was used to identify hot spots for intense police intervention.

These and other milestones were accomplished in two years by Bratton without the need for extra time, money or resources to make them happen.

Leaders Don’t Need Extra Resources!

Leaders like Bill Bratton don’t need extra resources to get the hard work done, because they concentrate their limited time, money and the resources they have now where the need and payoffs are the greatest.  This too should be your creative strategy.

 _______________

If your aging MMIS system won’t generate the data you need to manage your supply/value chain, then use your vendor’s databases to capture and report on the data you require.  If your hospital’s pay scale is too low to hire qualified buyers, then hire the best trainable candidates possible and formally train them on the job.  If you don’t have time yourself to conduct value studies, then tap your major manufacturers to conduct them for you.  

_________________ 

The message herein is that true leaders go over, under or through obstacles of any kind (time, money and resources being the major obstacles) that stand in the way of their goals by creatively meeting those challenges with unconventional wisdom and an optimistic viewpoint.

 

 

 

 

 

_____________________________________________________________

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”.

_____________________________________________________________

 

COPYRIGHT 2003 - THE HCP GROUP, LTD. - ALL RIGHTS RESERVED

 
Advancing Healthcare Organizations to the Next Level of Supply Chain SavingsTM