Educating staff, imbedding VA programs, makes sense

By consistently working through a series of steps – determine the function, identify the current practice, identify the alternatives, choose the best alternative and implement/validate – you can assure that the most cost-effective product or practice will actually be used. You will eliminate waste while improving quality.

Many organizations have started value analysis (VA) programs over the years. However, few have managed to imbed VA into their culture. All too often after an exciting and impressive start the VA program reverts to a product review committee, a committee that primarily reviews requests from departments and physicians for new products (and rarely, if ever, denies the request). Many times even these efforts wither and ultimately cease. But some organizations have successfully made VA part of their culture and are reaping the benefits.

One of the reasons why select organizations have vibrant VA programs while others have not been able to sustain them is this month’s best practice. They have a practice of continuing and frequent training in VA theories, techniques and results.

Value analysis is a fairly simple concept with an easily understood five step process. Putting these concepts and steps into practice, however, is not so easy. These programs usually start with a consulting project or a supply chain professional convincing the executive team of the benefits. There is often a presentation made to the management team about VA – its theory, its process, its organization and its hoped outcomes. Further, in-depth training is normally provided for those selected for team membership. This training explains the steps, the need to stay within the proven process, the focus on need, and how quality and low cost are both possible. Sometimes there are even communications to the whole staff about the process and benefits of VA. The process starts off fine, and the results are usually pretty impressive.

But the first communication is often the only communication that the staff gets. The VA results are only reported to the department managers from time to time. After an initial flurry of projects and savings VA results start to wane. Membership on the team changes. And soon we are back to product evaluation.

In order for VA to become part of the culture – a process that normally takes from six to eight years – everyone within the organization needs to understand and support it. For everyone to understand it, everyone has to be exposed to it. This means all new employees have to be trained, at least to some degree, in what VA is and how it is used within the organization. All employees need to be reminded on a regular basis that VA is the process used to continuously review all expenditures and why. Everyone needs to be constantly reminded that the process is in place. And everyone needs to be reminded of the savings that are being generated by the VA program.

This can be accomplished through a variety of actions. Some limited discussion of VA should be part of new employee orientation. A quick refresher on VA should be included in staff meetings from time to time. Some organizations included VA as part of their annual staff recertification program. Value analysis results should be shared with the staff regularly. If there is a materials management newsletter, it is a great place to share VA successes.

The other critical educational necessity is for VA team members. All too often the initial team members get great VA training. But when new members transition into the teams they rarely get any formal training. Everyone just assumes that they know what VA is all about. Before long only a small number of the team members have had any real training. If you expect the VA teams to act as VA teams you must assure that the team members are experts in the theory and practice. This can only be done with adequate initial training and routine facilitation during the meetings to keep everyone on track. No one should be added as a team member at any level within the VA program before they have had adequate training in VA.

Continuing and frequent VA training/education is the key to sustaining a VA program and incorporating it into the culture of the organization. If you truly want to attain the substantial benefits that can be had with a vibrant VA program, remember the educational component. Without it you will fail. With it you should be successful.

David S. Kaczmarek, FAHRMM, CMRP, is a Derry, NH-based director at Wellspring Partners, a Huron Consulting Group Practice, Chicago. Kaczmarek has more than 25 years experience in healthcare administration and materials management, including director positions at several hospitals and systems. He can be reached via e-mail at dkaczmarek@huronconsultinggroup.com.