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Free Weekly Strategic Value Analysis Newsletter

 

 

March 26, 2004         

 

Three Little Known Secrets For Non-Salary Expense Reduction Sustainability!

by Robert T. Yokl, President

“The New War That Your Healthcare Organization Faces In the 21st Century Requires Commitment, Discipline And On Going Maintenance To Win This War Without Taking Too Many Casualties” 

There is a new war being fought every day at our nation’s healthcare organizations to find and sustain new non-salary savings just to keep pace with inflation, new capital expenditure requests and increases in your organization’s salaries, benefits and malpractice insurance.

If you are serious about winning this war that you are fighting to continually reduce your non-salary expenses “beyond price™”, and in order to keep this momentum sustained year in and year out you need to known the “three little known secrets for non-salary expense reduction sustainability”.  It all starts with:

 

  1. A Committed Culture

The first critical success factor in winning this war is to have all levels of your organization’s management (executive suite and at your department head and manager’s levels) committed to attacking and rooting out all waste and inefficiency in your non-salary expense value chain. 

This commitment can only be achieved by never-ending education for your organization’s management and your department heads and managers on the merits of attacking your non-salary expenses continuously, and then engaging them in the development and maintenance of a “money saving” system to root out any and all unwanted and unneeded non-salary expenses.

 

  1. Discipline & Order

Without discipline and order (or making people follow the rules of engagement) no “money-saving” system can be sustained for very long. Simply stated, discipline and order means holding your senior management and your department heads and managers individually and mutually accountable for their team efforts in reducing your non-salary expenses.

And that’s not all discipline and order means in a committed culture!

Your senior management and department heads and managers will be required to attend frequent team meetings and between these meetings do the hard work of finding and rooting out all of your non-salary expense excesses. In doing so, they will be required to set aside the requisite time to search out these savings opportunities and to manage the resources necessary to implement these savings opportunities!

 

  1. On-Going Maintenance

Maintenance is the work that your team leaders need to do regularly to keep your “money saving” system in good condition and in good working order so that you can get 500,000 miles out of it without too much wear and tear.

As opposed to the frequent management practice of benign neglect, quickly leads to a system breaking down and removed to the junk yard of your “savings system” where all old systems find their final resting place.

Maintenance means honing in on your team members’ feelings, actions and their method of doing their work by having frequent contact with them to assess their fitness, by becoming aware of their feelings through regular feedback and by exerting leadership when faced with conflicts vs. running away from it. 

 

These “three little known secrets for non-salary  expense reduction sustainability” should be your starting point for building a “money savings” system that works year in and year out to generate the savings your healthcare organization requires to survive and thrive in the 21st century.

 

 

 

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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