We have all had degrees of success with our value analysis programs, but the most highly successful value analysis programs we have observed have had a high level of executive management commitment. This fact seems obvious, yet most value analysis programs never recognize this key VA success factor in designing, revising, or reinventing the VA programs. With this said, here is the #1 secret for gaining a high level of executive management commitment for your value analysis program.
Develop and Implement a Value Analysis Strategic Plan (VASP)
There is more than one reason why you want to develop and then implement your value analysis strategic plan (and update it annually). Here are three good reasons to do so:
- Ensures you of a high level of executive management commitment: Working on your VASP together with key members of your executive management team produces ownership for your value analysis program. Unfortunately, if you decide to design, redesign, or reinvent your VA program without involvement from your executive management team then they will have no skin in the game. Consequently, they couldn’t care less about your success.
- Enables quick approval of your VA structure, policies, procedures, and systems: Since you should have all stakeholders at the table during your VASP sessions, there shouldn’t be any delays in making timely decisions. If you decide to go the traditional route to obtain your decisions, it could take months to get them.
- Helps you think ahead for possible problems and opportunities: The last thing you want to do is revisit problems that could have been avoided and miss opportunities because you hastily assembled your value analysis program. Therefore, take the time to perform a SWOT (strengths, weaknesses, opportunities, and threats) Analysis to identify problems and opportunities beforehand. It will help you avoid many bumps in the road!
Planning too often takes a backseat to action for many value analysis practitioners who are impatient to make savings and quality improvements happen, but action without planning can be disastrous. Don’t skip this important step to your value analysis success.
What Happens if I Already Have a Value Analysis Program?
It is never too late to establish, revisit, or update your VASP, since it is a living document that matures with your value analysis program. For instance, say your hospital merges with another hospital or you’re not realizing your savings goal. These would be perfect times to establish, revisit, or update your VASP to see if it needs to be revised to accommodate any changes in your VA structure or policies and procedures to meet your stated goals. Remember, don’t start or continue with your VA program without it!