New Pay for New Work!
Robert T. Yokl
President & Chief Value Strategist
Greetings!
New Pay for New Work!
We just held our summer session of our Certified Value Analysis 3-day Training Program which brought into the daylight that only a small number of healthcare organizations are rewarding and recognizing their value team members for the hard work that they do.
This hasn’t ever made sense to me, since hospitals, systems and IDNs should be authorizing new pay for new work that these value teams are doing. By incentivizing your value teams you can keep them on track, on budget and keyed up to save even more money for your healthcare organization.
I’m so convinced that this is the right thing to do that we mandate that every healthcare organization that installs our LEAN Value Analysis Program also establish a rewards and recognition program to encourage their value teams to be peak performers. Or, why else would their staff squeeze into their already busy days, weeks and months all this new work. Rewarding people for extra work is not only logical but it’s a key facet of human nature!
Every client of ours who has adopted this philosophy of “new pay for new work” has been repaid for their investment by at least 100 fold. Likewise, their value team members’ productivity, creativity and doggedness has risen to a new level of superior performance.
Reward and recognition programs aren’t just the right thing to do for your value teams, but are a prerequisite for everlasting savings and quality improvements. Without this your value teams aren’t firing on ALL eight cylinders, just meandering along on three or four cylinders!
Isn’t it time you get your value teams into high gear?
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
800-220-4274
P.S. We have been told by our Value Analysis Resource Web members that our Value Analysis Leader Resource Web is the right product, at the right time and at the right price to fuel their value analysis teams performance. If you haven’t seen this unique knowledge management resource yet, may I suggest that you check it out now at www.strategicva.com/vaweb.htm
P.P.S. Don’t forget to check out my new blog article “Fail Often to Quickly Succeed”. This blog is all about how failure isn’t a stigma, but an opportunity for massive innovation.
How Are You Selecting Your Value Analysis Projects?
First of all, don’t confuse new or renewal GPO contracts as being value analysis projects, because they are not. This is contract management in its purest sense, which is a whole other discipline that has its own rules and models.
What I’m talking about here is the way in which you selecting your VA projects, which can unearth millions of dollars of savings in your value streams. For the best results, you should establish criteria for the selection of your VA projects. Here are five criteria I would suggest you start with:
1. Dollar Threshold: No VA project should be undertaken on a product, service or technology that has less than a $25,000 annual spend. The reason: Your ROI would be very small, if at all!
2. Projected Timeline: If your VA project will take more than 90-days to complete it might be better to break the project into smaller projects. Projects that have long timelines tend to go off track. Keep your projects in bit size pieces!
3. Probability of Success: If you only have a 50% probability of success in implementing a project (e.g. orthopedic implant study) then delay the project until you have an 80% success factor.
4. Project Alignment: If your VA project is not supported by your management then I would delay it for another day. Why fight city hall – you rarely win!
5. Solution Clarity: If you already know the solution to a problem (e.g. defective material) then don’t initiate a VA project — just fix the problem. It will save you a lot of time and effort by doing so.
These are just a few ideas to get you on the road to selecting the best VA Projects using criteria vs. gut feel with the greatest possible ROIs.
Your Partner In Innovative Savings,
Bob Yokl
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
P.S. My staff thinks I’m crazy to offer our e-newsletter subscribers a 30-day “test drive” on our Utilizer™ Dashboard and you only pay if it works! But I’m so convinced that once you try it you won’t want to live without it that I have turned a deaf ear to my staff’s objections to bring you this outrageous “pay if it works” guarantee. Email me to learn more about this special offer - bobpres@strategicva.com
P.P.S. Don’t forget to check out my new blog article “A Lean Way of Thinking! This will give you a new way of thinking about your workload.
New Podcast: 80/20 Rule for Healthcare Supply Chain Savings
This podcast is geared towards helping you align your efforts and focus towards the supply chain savings opportunities that will give you the best bang for your buck as far as effort to return on investment. We will highlight the major functions of supply chain savings and detail out all the major supply chain savings areas and why and where you need to focus your efforts for the highest supply chain savings return possible.
