CREDIBILITY – Does Your Supply Chain Have It?

CREDIBILITY – Does Your Supply Chain Have It? SEPAC of AHRMM Tuesday, September 21st 2010

PRESENTER • William Stitt, CHL CRCST CMRP FAHRMM Vice President, Materials Management Robert Wood Johnson University Hospital New Brunswick, NJ Phone: 732-937-8572 Email: william.stitt@rwjuh.edu

AGENDA • 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

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CREDIBILITY The quality, capability, or power to elicit belief. The 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.

SUPPLY CHAIN IMPACT • Maintaining credibility is paramount to a sustainable and successful supply chain when interacting with: • Administration • Customers • Staff • Physicians • Vendors

WHY IS THIS IMPORTANT? The ethicaldebate Creating and fostering an environment of trust Ongoing support and “buy in” Career advancement

CREDIBILITY IN ACTION • 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

CREDIBILITY WITH ADMINISTRATION 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

CREDIBILITY WITH ADMINISTRATION 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?

CREDIBILITY WITH CUSTOMERS 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

CREDIBILITY WITH CUSTOMERS 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?

CREDIBILITY WITH STAFF Set clear expectations Be consistent Focus on the facts Explain the methodology and the reason Visibility Empowerment Collaborative problem solving

CREDIBILITY WITH STAFF 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?

CREDIBILITY WITH PHYSICIANS/CLINICIANS • Patient/Outcome focused • Balancing clinical and financial factors • Practice product decision “neutrality” • Embrace the value proposition • Data driven discussions • Alternatives • Reimbursement • Be well informed

CREDIBILITY WITH PHYSICIANS/CLINICANS 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?

CREDIBILITY WITH VENDORS 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

CREDIBILITY WITH VENDORS 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?

RELATIONSHIPS 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!

DATA INTEGRITY 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)

KEY POINTS 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

QUESTIONS AND DISCUSSION 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!

CREDIBILITY – Does Your Supply Chain Have It?