Vendor Selection

Vendor Selection Farrokh Alemi, Ph.D.

Objectives • Model decision makers preferences • Facilitate communication and documentation Alemi at Georgetown

What is a model of values? • Quantify preferences • Higher numbers more preferred options • Assumptions • Decision makers have options • Selection is based on preferences • Preferences are based on attributes Alemi at Georgetown

Additive Multi-Attribute Value Model Overall Value = V (A1) + V (A2) + ... + V (An) Value on Attribute 1 Value on Attribute 2 Value on Attribute n Alemi at Georgetown

Misleading Numbers • Numbers approximate preferences • Nominal scale • Ordinal scale • Interval scale Alemi at Georgetown

Steps in Vendor Selection • Select process • Select attributes • Select cases • Rate vendor performance • Set priorities • Recommend action • Document action Alemi at Georgetown

Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator? Step1: Select Process Alemi at Georgetown

Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator Select a vendor for long term Step1: Select Process Alemi at Georgetown

Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator Select a vendor for long term Performance of vendors on several attributes Step1: Select Process Alemi at Georgetown

Who decides? What must be done? What judgments must be made? How can the model of the judgment be used? Administrator Select a vendor for long term Performance of vendors on several attributes Model can document the decision Step1: Select Process Alemi at Georgetown

Step 2: Select Attributes • Introduce yourself and your purpose • Be judicious about pausing • Ask the experts to introduce themselves • Start with tangible examples • Ask directly for additional attributes • Arrange the attributes in a hierarchy • Always use the expert's terminology • Use prompts that feel most natural • Take notes and do not interrupt Alemi at Georgetown

Step 2: Select Attributes • Introduce yourself and your purpose • Be judicious about pausing • Ask the expert to introduce himself • Start with tangible examples • Ask directly for additional attributes • Arrange the attributes in a hierarchy • Always use the expert's terminology • Use prompts that feel most natural • Take notes and do not interrupt Alemi at Georgetown

Step 2: Select Attributes • Introduce yourself and your purpose • Be judicious about pausing • Ask the experts to introduce themselves • Start with tangible examples of EHR that worked well and those that worked poorly • Ask directly for additional attributes • Arrange the attributes in a hierarchy • Always use the expert's terminology • Use prompts that feel most natural • Take notes and do not interrupt Alemi at Georgetown

Step 2. Select Attributes • Introduce yourself and your purpose • Be judicious about pausing • Ask the experts to introduce themselves • Start with tangible examples • Ask directly for additional attributes • Arrange the attributes in a hierarchy • Always use the expert's terminology • Use prompts that feel most natural • Take notes, and do not interrupt Do this with each committee member prior to meeting Alemi at Georgetown

Step 2: Select Attributes • Do it again • Start with list • Solicit changes • Record comments • Avoid clicks • Speak back to the entire group • Maintain eye contact Alemi at Georgetown

Step 2: Select Attributes • Example attributes • Easy to use • Improve one or more business processes • Most value for cost • Fit with long term business strategy • Vendor responsive to practice information needs • Strong testimonies from prior users • In use by other practice sites • Compatible with existing systems Alemi at Georgetown

Step 2: Select Attributes Alemi at Georgetown

Step 3: Prepare Test Scenarios • Make a case to enter • Cover extremes • Check for multiple entry • Ask for revision procedures Alemi at Georgetown

Step 4: Vendor Performance • Test all on same cases • Check performance on each attribute • Rate performance on each attribute • Standardize ratings Alemi at Georgetown

Step 4: Vendor Performance • Average time to enter patient data • 2 minutes • Between 3 minutes • 5 minutes Alemi at Georgetown

Step 4: Vendor Performance Alemi at Georgetown

Step 5. Rate Vendors on Single Attributes • Double anchored assessment method • 100 to best • 0 to worst • Rate the remaining levels Alemi at Georgetown

Step 5. Rate Vendors on Single Attributes • 2 minutes, 100 • 3 minutes, ? • 5 minutes, 0 Alemi at Georgetown

Step 5. Rate Vendors on Single Attributes Alemi at Georgetown

Step 6: Set Priorities • Assess ratio of importance • Attributes are rank ordered • Least important is assigned 10 points • Rate how many times more important … • Standardized weights • Divide by sum Alemi at Georgetown

Step 6: Set Priorities • If reputation is 10, how many more times is ease of use more important? • How many more times is cost more important than ease of use? Alemi at Georgetown

Step 6: Set Priorities • Example Weights Alemi at Georgetown

Step 6: Set Priorities Alemi at Georgetown

Step 7: Recommend Action • Calculate weighted sum • Recommend best score Alemi at Georgetown

Step 7: Recommend Action Alemi at Georgetown

Step 6: Recommend Action Alemi at Georgetown

Step 7: Document • What was selected? • What was the process? • Why was it selected? • What contingencies were thought through? Alemi at Georgetown

Take Home Lesson Process Matters

Vendor Selection