Where do You Stand — Are You at Level 1 or 4?
The fact that all value analysis processes aren’t created equal is becoming more clear to me every year that I’ve been in the healthcare industry. In fact, different levels of VA processes create different results. Here’s why this happens based on four levels of VA proficiencies that I have developed:
Level I: No Standard Process. These healthcare organizations are random in their approach to VA, with everyone doing their own thing in their own way. Even though some savings are achieved, they are always unpredictable in terms of performance.
Level II: An Informal Process. In these healthcare organizations VA practitioners are exposed to an informal VA process, but the process isn’t regimented, monitored nor measured to enable them to achieve the optimal saving results. By my estimate, more that 82% of hospitals, systems and IDNs fall into this category.
Level III: A Formalized Process. These healthcare organizations have a defined, repeatable, measurable and teachable process that is strictly enforced. But they don’t control their outcomes, so they never know if their “so-called” savings ever happened. Such organizations are at risk for having big swings in their supply budgets since no one sees the big picture.
Level IV: An Optimal Process. These healthcare organizations have a formal process, but they are consistently and aggressively monitoring and controlling their outcomes. They proactively react to even minor changes in the supply chain conditions to achieve optimal savings results. Such organizations are extremely rare and often become savings machines in just a short period of time.
In the final analysis, if you want to raise your “VA proficiency” from a level I, II or III to an IV level you will need to recognize that you will need to develop a formalized VA process that incorporates the monitoring and control you absolutely need to become the best in class supply value analysis program in our industry.
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
800-220-4274
P.S. You might want to checkout our LEAN Value Analysis Program to see what attributes are required to have a “Level IV” supply value analysis program.
P.P.S. Don’t forget to check out my new blog article “ 5 Quick Tactics for Results-Oriented Savings”. This blog is all about some old and new ideas to get your savings machine moving again.
