VALUE ANALYSIS 101

Value Analysis Balanced Scorecard Can Up Your VA Performance

Robert T. Yokl, President/CEO, SVAH Solutions

The Only Way to Get Better is Through Measurement

A Value Analysis Balanced Scorecard is a tool used to measure financial, customer, processes, and learning and growth data by value analysis leaders to improve their value analysis teams’ results. It was developed by Robert S. Kaplin and Dave P. Norton to give a balanced view of what should be important to managers financially and operationally. “The Balanced Scorecard allows managers to look at (their operations) from four important perspectives (see the exhibit).” Just as important, the Balanced Scorecard links performance to measurement. Lastly, “The Balanced Scorecard forces managers to focus on the handful of measures that are most critical,” organized in a single concise report. Just as important, it provides answers to the most important value analysis questions that need to be answered.

Provides Answers To Most Important Questions

If the Balanced Scorecard is designed properly, it will give you answers to the questions you require to succeed in your profession such as:

Value Analysis 101

Robert T. Yokl

Categories Objectives Measures Targets Initiatives

Financial Increase Savings

Customer Reduce The Time Of New Request Approvals Processes Increase Time For VA Study Completion

Learning & Growth Increase Value Analysis Team Certification New Approved Purchases/ Annual Savings

Number Of Days To Approve

Number Of Days To Complete Number of VA Certified Team Members 7% Increase In Net Savings

Reduce Number Of New Purchase Requests Or Increase Savings 45 Days Automate New Product Request Process

90 Days Automate VA Study Workflow 80% Certified Hire Trainers For VA Certification

How do our customers see us? Do they see value analysis professionals as partners in saving money; an impediment in getting their new products, services, or technologies approved; or, a resource to help them source the most appropriate products, services, and technologies for their intended use?

What must we excel at? Quicker turnaround of new product, service, and technology requests; saving twice as much as new product, service, and technology approvals annually; or being a go-to resource for your supply chain and clinical staff?

How do we look to finance? Are we implementing bottom-line improvements? Are our savings growing every year? Are we controlling the growth of new product, service, or technology requests?

How can we continue to learn and grow more? Do our value analysis teams have the skills and training to be proficient in value analysis? Do they have project manager training? Are they ready to lead value analysis teams?

Value Analysis 101

Robert T. Yokl

Naturally, you can add your own questions and answers to this list as it relates to your own healthcare organization’ s situation. The key is that you think through this development process so that you can continue to improve and create value for your hospital, system, or IDN.

Focusing On The Right Performance Measures

Traditionally, performance measures were skewed towards a healthcare organization’s financial performance (e.g., revenues, ROI, liquidity, etc.), not its operations, thereby leaving a big performance measurement gap in other areas of your healthcare organization. As you can see, this challenge can be solved with a Balanced Scorecard that considers not only your financial performance, but also operational issues that you should be focusing on to succeed. This ensures that you are focusing on the right performance measures for your value analysis program. That’s how a Balanced Scorecard can up your value analysis performance.