Value is created for clients through the services an organization provides. Organizations need a process to identify, measure and manage value.
The process used to identify, measure and manage value includes the following:
Identification: Value is identified through the eyes of the consumer of the services an organization provides. In a healthcare environment, value has been defined as outcomes achieved per dollar spent.
Inputs – Outputs – Outcomes: are the components to identify, measure and manage value. They deal with efficiency (inputs and outputs) and effectiveness (outcomes).
Contribution Margin: is the analytic tool to evaluate, manage and monitor service delivery opportunities.
Key Performance Indicators: are metrics to measure and manage value.
Dashboard: is a reporting tool that summarizes key performance indicators in an easy to understand manner for a target audience.