Veterans health agency boosts employee productivity despite job cuts

By encouraging creativity and interaction with patients, a Veterans Health Administration facility in upstate New York increased employee productivity despite losing workers, according to a new research report.

The Albany, N.Y.-based Veterans Healthcare Network, which is part of VHA, is a good example for federal agencies hoping to cultivate more efficient and talented workers, said a report by the IBM Endowment for the Business of Government. The upstate New York facility is one of 22 service delivery networks within VHA. The report, released April 16, is based on interviews, site visits and data analysis conducted in 2001.

Between 1996 and 2001, the upstate New York healthcare network lost 18 percent of its employees. But over the same time period, the network managed to outperform most of the 21 other regional health care service delivery networks managed by the Veterans Health Administration, the report said. The network reduced costs, boosted productivity, enhanced the quality of care and increased patient satisfaction.

In the mid-1990s, the upstate New York network began focusing on patient care and service delivery outcomes, rather than the service process, the report said. With the change in focus, workers began feeling more invested in customer service and came up with innovative ideas to make new initiatives succeed quickly.

While not all employees at the upstate New York facility were happy about the change of focus and the loss of 1,100 colleagues in the workforce reduction, they managed to reduce the average cost per patient by more than 20 percent and accommodate a 53 percent increase in visits by patients.

Based on the New York network's success story, IBM Endowment researchers suggested five general tips for agencies trying to increase the productivity of their workers. The agencies should encourage employees to keep in touch with patients and other customers on a regular basis so that they feel committed to the people they serve. They should also give workers more autonomy, so they feel invested in project outcomes.

Agencies would also benefit from creating a "learning environment" where employees are allowed to test creative approaches to problem solving. Supervisors should not punish workers who take a chance and try out creative ideas that ultimately fail. Also, supervisors should foster a sense of camaraderie and encourage colleagues to discuss their work with one another.

To view a copy of the report, visit the IBM Endowment for the Business of Government Web site.