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Elements of Value

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.