Savings Beyond Price™
Innovative Supply Savings and Quality Solutions That Work
by 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.
Savings Beyond Price -Weekly eNewsletter - July 9, 2010
Robert T. Yokl
President & Chief Value Strategist
What’s Holding Back Your Savings?
Greetings,
I just read an interesting article in Harvard Business Review on what is holding back the implementation of strategies in corporate America. I found it fascinating that the same obstacles businesses encounter in making stuff happen are the same ones we too face in our supply chain world. I’ve listed these 9 multifaceted impediments below to see if you agree with me:
1. Management too focused on short-term results
2. People too busy; lack of time; resources and constraints
3. Lack of accountability; lack of measurement
4. Management/Department Heads conflicting priorities
5. Inability to respond quickly to opportunities
6. Lack of clear decisive leadership; leadership actions
7. Too many silos or units with competing agendas
8. Poor communications of mission, vision and strategies
9. Resistance to change; translation of strategy; alignment
With these impediments in mind, I just talked to a senior IT executive at a big pharmaceutical corporation who told me that his CFO has mandated that he keep his IT cost below the industry standard of 2% (he is now at 2.7%) of revenues. He then went on to explain to me that his impediments to making this change happen was that his 7,296 internal customers (I’m not kidding about this number) were too busy to discuss tactics to meet this goal, resisted change of any kind, and their departmental goals weren’t in alignment with his CFO’s goals. So he hadn’t a clue on how he was going to make this mandate become a reality. Does this scenario sound familiar to you?
As this IT manager found out the hard way the biggest obstacle that is holding back most change in businesses and healthcare organizations is that senior management’s goals are not aligned with their department heads goals. Without this alignment nothing happens!
If your senior management won’t champion changes you would like to make with your physicians practices – it won’t happen. If your VA team members are missing meetings because they are too busy and your senior management won’t hold them accountable – you won’t solve this problem.
These obstacles to your performance can only be bridged if your senior management clearly communicates their strategies (e.g., improved savings, quality, safety, etc.) to your department heads and managers and then holds them accountable for their results. Otherwise, you will be just like this IT manager I just talked about who is trying to make the impossible happen without the political, organizational and senior management support that he absolutely requires to fulfill his mandate to cut his IT cost by 0.7% this year.
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
1-800-220-4274
P.S. If you are looking for more answers to obstacles that are holding back the implementation of your supply chain initiatives, you might want to read “Too Many Competing Priorities?” from our library of 400+ e-newsletter articles.
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