Transcript CREDIBILITY – Does Your Supply Chain Have It?

SEPAC of AHRMM
Tuesday, September 21st 2010
 William
Stitt, CHL CRCST CMRP FAHRMM
Vice President, Materials Management
Robert Wood Johnson University Hospital
New Brunswick, NJ
Phone: 732-937-8572
Email: [email protected]
 Defining
credibility within the healthcare
supply chain:
• Why is it important?
• How do we use it?
 How
we build credibility
 Credibility in Action
 Relationships
 Questions and Answers/Discussion
“ Someone attending the session today will
win a fabulous prize!”
 The
 The
quality, capability, or power to elicit belief.
degree to which a communicator or
communication is believed by the recipient.
The credibility of such a message will be
increased if delivered by a communicator who
is expert, trustworthy, and appealing.
 Maintaining
credibility is paramount to a
sustainable and successful supply chain
when interacting with:
• Administration
• Customers
• Staff
• Physicians
• Vendors
 The
ethical debate
 Creating
and fostering an environment of
 Ongoing
support and “buy in”
trust
 Career
advancement
•
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Contracting/Negotiation/Sourcing
Strategic and operational planning
Management of day-to-day operations
Value analysis activities
Building a strong internal team
Engaging physicians/clinicians in cost reduction
efforts
Designing and implementing process change
Reporting and analytics
 Setting
reasonable goals and objectives
 Data driven decisions
 Provable results
 Communicating challenges and barriers
 Bring solutions along with the issues
 Take and create ownership
 Embrace an ROI/cost benefit methodology
 Meeting timelines and deadlines
 Scenario: You
have to report cost savings results to
your Administrative Team. To make it easy, you
compare total February expenses against March
expenses (which are less) and report the
difference as savings.
 Does
this activity help your credibility? Why or
Why Not?
 Attention
to their needs
 Explain why
 Communicate the “big picture”
 Be flexible
 Do not take the easy way out
 Communicate what you can do – and what
you cannot
 Do not shift responsibility
 Scenario: Your
organization decides to
implement a point of use system for supplies. To
gain buy in, you tell them if they use the system,
they will never run out of product for their
patients.
 Is
this a good way to use your credibility? Why
or Why Not?
 Set
clear expectations
 Be consistent
 Focus on the facts
 Explain the methodology and the reason
 Visibility
 Empowerment
 Collaborative problem solving
 Scenario: As
part of an organizational redesign,
you determine that the work flow and schedule in
Distribution needs changed. Since you know
what needs to happen, you make the changes
and post them in the department one week prior
to the “go live” date.
 Is
this an appropriate strategy when building
credibility with your staff?
 Patient/Outcome
focused
• Balancing clinical and financial factors
 Practice
product decision “neutrality”
• Embrace the value proposition
 Data
driven discussions
• Alternatives
• Reimbursement
 Be
well informed
 Scenario: Your
organization has standardized to a
particular type of Trocar. A physician requests an
alternate product from another vendor.You send
a memo stating your denial of this request due to
the internal standardization initiative.
 How
has this helped/or hurt your credibility
with the physician?
Clear communications
 State your intended outcome
 Start and end meetings on time
 Avoid “posturing”
 Demonstrate operational knowledge
 Know the marketplace
 Negotiate in good faith
 Honor your commitments
 Be conscious of PRECEDENT

 Scenario: Your
department has rolled out a
capitated matrix for orthopedic implant purchases.
Although you have adopted a one price for all
approach, a primary vendor with a strong
physician relationship refuses to participate. They
offer a price within 5 % of the matrix as their final
offer. All other vendors have met the price and will
participate.

What is the best way to handle this to preserve your
credibility? What are the ramifications?
Demonstrating credibility fosters long-term
relationships
 Relationships rooted in credibility have the
potential to challenge the norm and set new
standards
 Allow you to focus on the facts and the outcome,
rather than personalities or secondary issues
 Develop relationships that enhance your strategic
position outside of traditional supply chain
activities (revenue cycle, nursing, support services)
 Adopt a resource or consulting approach in
relationship building!

 Be
able to explain the results/outcome and
how they were achieved
 Teach the methodology
 Utilize consistent processes for data capture
and reporting
 Reference past performance as well as
current achievements (trending)
 Initial
credibility can be assumed, ongoing
credibility must be earned
 Be conscious of dynamics that can undermine
your credibility
 Decisions set precedence
 Credibility extends not only to actions, but to
documentation and reporting
What are some other ways we can create
credibility within the supply chain?
“ Someone attending the session today will
win a fabulous prize!.”
Thank You for Attending Tonight’s
Presentation
Travel Safe!