Find HUGE Savings in Your Supply Chain Today!

I’m now preparing my presentation for AHRMM’s Value Analysis webinar on August 28th on “How To Connect Your Executive Management Team with your Supply Value Analysis Program”. This intellectual exercise has required me to rethink how hospitals, systems and IDNs are being challenged by this rudimentary and age old dilemma.

This executive management connection is critical to your value analysis success, because if you can’t engage your executive management team physically, mentally and emotionally with your Supply Value Analysis Program you won’t be able to sustain your program over the long term.

This is an immutable fact that too many hospitals, systems and IDNs are now learning as their Supply Value Analysis Programs matures.

The good news is! This situation can be turned around quickly by: (i) finding a champion, (ii) showing them the money, (iii) giving them ownership over your program, and (iv) having them actively and energetically participate in your program.

If your healthcare organization Supply Value Analysis Program is experiencing these same growing pains you can call or e-mail me so I can give you the whole story on the executive management connection before it is too late to recover from this catch-22 predicament.

Your Partner in Supply Chain Savings,

P.S. We are half way through the year, is it time to reenergize your team/committee with in-house value analysis training and strategic planning? SVAH has trained over 5,316 healthcare professionals in the art and science of Value Analysis.

4 Powerful Steps For Sustainable Supply Value Analysis Performance

“Sustainability Is The True Test For Any Supply Value Analysis Program”

While many hospitals, systems and IDNs can achieve short bursts of value analysis savings successes, very few are able to sustain this success for a long period of time. Besides having a good process and a supportive management team, there are four powerful steps for sustainable supply value analysis performance:

1. Having The Right People On Your Value Team(s)

Most value team members are selected for their title or influence in your healthcare organization (director of nursing, director of surgery, infection control nurse, etc.) which is OK for short bursts of savings. But high powered value teams pick their team members for their unique competencies (team player, disciplined, motivated, system thinker, etc.), that gives these value teams the extra punch over the long term.

2. Make it Your Goal To Search for Never Ending Improvement

Value teams that improve incrementally every year with new goals and new projects in any and all areas of their supply spend (including their purchase services) never run out of steam.

The best way to maintain your value team’s momentum is to have an annual retreat with your supply value analysis steering committee members to set new goals and objectives for the coming year for your value team(s).

3. Utilizing Technology To Drive Your value analysis Process

Most value teams are low tech (i.e. use spreadsheets and forms to innovate), whereas the best value teams accelerate their innovation through the use of technology. Technology that enables them to plan, organizes, measure, analyze, document and implement their supply chain improvements.

4. Incentivize Your Value Team With New Pay, For New Work

If you want your team members to focus on the new work of your value team you need to give them new pay for their efforts. This new pay is in the form of incentives (cash and non-cash awards) when they meet specific performance goals and objectives. Without incentivizing your value team members, why would they be motivated, over the long term, to give 110% effort to your value team initiatives?

The secret to the sustainability of your supply value analysis performance is quite simple, yet difficult to achieve unless you continuously adapt, change and destroy whatever your value team(s) and your customers determines has become obsolete.