The Theory of Affordability goes beyond price and the ability to purchase.  Affordability is about the integration of Value, Customer and Cost for Continuous Improvement.  It is the Aim that results in products and services that provide more value, meet and exceed customers’ requirements, at a reasonable price, at a profitable expense.  The focus on Value aligns Purpose, People, Process and Performance.  The focus on Customer aligns what the customer wants, needs and wishes with what the organization is providing.  The focus on Cost aligns the expense of providing Value, with the expense or price the Customer pays.  The three together can be considered a ‘Triple Aim’.  This is the Model of Affordability.

Within my work over the past 20 years, this model has emerged as a frame of reference for the strategic alignment of resources with the intent of continuous improvement.  In fact, this model serves as the strategic core for the improvement of Healthcare as described by the Institute for Healthcare Improvement. (see IHI.org).  The Value aim is Healthy Communities.  The Customer aim is Patient Outcomes.  The Cost aim is the Cost of providing Healthcare.  With all three together, the integrated triple aim provides a platform for Healthcare Improvement.

When constructing such a model, one must develop an architecture to illustrate what the primary elements are, where they all fit together, and how any organization can achieve Affordability.  Below is the architecture of the “House of Affordability”.  The ‘roof’ of the house provides the strategic elements for accomplishing direction, alignment, motivation, ‘the message’, and the means for execution.  The three “pillars” provide the triple aim or triple focus.  The foundation describes the framework elements necessary for supporting the aim and strategy. The foundation contains the operational and tactical fundamental components for executing the vision, mission and strategy of the organization, as well as achieving the goals established for Value, Customer and Cost.

This month, I’ll be digging in and detailing the basic aspects of Affordability, and describing its potential from an application perspective.  Prior to the upcoming publication of the book; “Affordability – Integrating Value, Customer and Cost for Continuous Improvement”, this BLOG will be providing a so-called ‘peek under the covers’ of Affordability.

Thanks for following,

Paul