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Vendor Selection Farrokh Alemi, Ph.D.

Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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Page 1: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

Vendor Selection

Farrokh Alemi, Ph.D.

Page 2: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

Alemi at Georgetown 2

Objectives

Model decision makers preferences

Facilitate communication and documentation

Page 3: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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What is a model of values?

Quantify preferencesHigher numbers more preferred options

AssumptionsDecision makers have optionsSelection is based on preferences Preferences are based on attributes

Page 4: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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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

Page 5: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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Misleading Numbers

Numbers approximate preferencesNominal scaleOrdinal scale Interval scale

Page 6: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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Steps in Vendor Selection

1. Select process

2. Select attributes

3. Select cases

4. Rate vendor performance

5. Set priorities

6. Recommend action

7. Document action

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Step1: Select Process

Who decides?

What must be done?

What judgments must be made?

How can the model of the judgment be used?

Administrator?

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Step1: Select Process

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

Page 9: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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Step1: Select Process

Who decides?

What must be done?

What judgments must be made?

How can the model of the judgment be used?

AdministratorSelect a vendor for long termPerformance of vendors on several attributes

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Step1: Select Process

Who decides?What must be done?What judgments must be made?How can the model of the judgment be used?

AdministratorSelect a vendor for long termPerformance of vendors on several attributesModel can document the decision

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

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Step 2: Select Attributes

a) Introduce yourself and your purposeBe judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the expert to introduce himselfc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examples of EHR that

worked well and those that worked poorlyd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

Page 16: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

Page 18: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

Always use the expert's terminology • Use prompts that feel most natural• Take notes and do not interrupt

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology Use prompts that feel most natural

• Take notes and do not interrupt

Page 20: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

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Step 2: Select Attributes

a) Introduce yourself and your purpose• Be judicious about pausing

b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) Arrange the attributes in a hierarchy

• Always use the expert's terminology • Use prompts that feel most natural

Take notes and do not interrupt

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Step 2. Select Attributes

Introduce yourself and your purpose Be judicious about pausing

Ask the experts to introduce themselvesStart with tangible examplesAsk directly for additional attributesArrange the attributes in a hierarchy Always use the expert's terminology Use prompts that feel most natural Take notes, and do not interrupt

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Step 2: Select Attributes

Do it againStart with listSolicit changes

Record commentsAvoid clicksSpeak back to the entire groupMaintain eye contact

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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

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Step 2: Select Attributes

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 2 minutes 3 minutes 5 minutes

Cost 11,000/bed 15,000/bed 9000/bed

Reputation Good Excellent Good

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Step 3: Prepare Test Scenarios

Make a case to enterCover extremes

Check for multiple entry

Ask for revision procedures

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Step 4: Vendor Performance

Test all on same casesCheck performance on each attributeRate performance on each attributeStandardize ratings

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Step 4: Vendor Performance

Average time to enter patient data2 minutes Between 3 minutes5 minutes

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Step 4: Vendor Performance

Vendor A Vendor B Vendor C

Attribute Level Level Level

Ease of use 2 minutes 3 minutes 5 minutes

Cost 11,000/bed 15,000/bed 9000/bed

Reputation Good Excellent Good

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Step 5. Rate Vendors on Single Attributes

Double anchored assessment method100 to best0 to worstRate the remaining levels

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Step 5. Rate Vendors on Single Attributes

2 minutes, 100 3 minutes, ?5 minutes, 0

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Step 5. Rate Vendors on Single Attributes

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 2 minutes 100 3 minutes 80 5 minutes 0

Cost 11,000/bed 70 15,000/bed 0 9000/bed 100

Reputation Good 0 Excellent 100 Good 0

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Step 6: Set Priorities

Assess ratio of importanceAttributes are rank orderedLeast important is assigned 10 pointsRate how many times more important …Standardized weights

Divide by sum

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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?

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Step 6: Set PrioritiesExample Weights

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Step 6: Set Priorities

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0

Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100

Reputation 0.2 Good 0 Excellent 100 Good 0

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Step 7: Recommend Action

Calculate weighted sum

Recommend best score

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Step 7: Recommend Action

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0

Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100

Reputation 0.2 Good 0 Excellent 100 Good 0

Total 1.0 =100*.3+70*.4 =80*.3+100*.2 =100*.4

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Step 6: Recommend Action

Vendor A Vendor B Vendor C

Attribute Weight Level Rating Level Rating Level Rating

Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0

Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100

Reputation 0.2 Good 0 Excellent 100 Good 0

Total 1.0 =100*.3+70*.4 =80*.3+100*.2 =100*.4

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Step 7: Document

What was selected?

What was the process?

Why was it selected?

What contingencies were thought through?

Page 40: Vendor Selection Farrokh Alemi, Ph.D.. Alemi at Georgetown 2 Objectives Model decision makers preferences Facilitate communication and documentation

Take Home Lesson

Process Matters