Sunday, June 10, 2012

Week 4 by Justin


Interview with Jim Keller, ECRI Institute’s Vice President for Health Technology Evaluation and Safety

(1) Could you please introduce yourself and provide a little background about what ECRI Institute is and what your role in it is?

I’m Jim Keller and am ECRI Institute’s Vice President for Health Technology Evaluation and Safety.  ECRI Institute is a nonprofit health services research organization.  We’re probably best known for our Consumer Reports-like comparative evaluations of medical devices.  I am responsible for our evaluation program along with several other services including Health Devices Alerts which distributes notices on medical product recalls and other safety-related concerns.


(2) How would you describe ECRI Institute’s organizational structure?  Would you say it’s more of a Functional Structure (staff grouped by function) or a Divisional Structure (grouped by products and services), or a hybrid of the two? 

I would say that we mostly use a divisional structure but do have quite a bit of cross-group collaboration between groups/service lines.

(3) Why do you think ECRI’s structure works?

I think that it allows groups to focus on their strengths to produce our various products.  The cross-collaboration between groups allows us to be efficient in that we can call on support from other groups during busy periods or when unexpected projects come up.  Otherwise each of our product line groups would need more staff to support work “overages” and we would likely end up with overall higher costs.

(4) ECRI, as a nonprofit and independent organization, has alliances with FDA but is independent of them as well.  How does this alliance and collaboration work when it comes to research and ECRI’s impartiality?  In what other ways are the two partnered? 

We mostly call on FDA for subject matter expertise review of projects we are working on that address regulatory matters.  We also ask FDA to review reports that we have written that discuss and/or comment on FDA.  On the other side of the coin, FDA calls on us for subject matter expert review of its reports and has occasionally contracted with ECRI Institute for certain projects.  The most recent contract involved review of issues related to unique medical device identification.  Our collaborations with FDA have helped us with our independence and impartiality by providing perspectives to balance out input we receive from other sources (e.g., from medical device manufacturers who are asked to review reports we write about them).


(5) Can you provide another example of an alliance with ECRI and an organization that isn’t FDA, and how and why that alliance was formed, and what the benefits were?

We’ve had an alliance with the Association for the Advancement of Medical Instrumentation which is also known as AAMI.  AAMI puts on an annual conference.  Our alliance started through our staff’s support of the conference.  We’ve provided many different presentations at the conference and have participated on conference planning committees.  The alliance has benefited both organizations.  AAMI has been able to take advantage of our subject matter experts and improved the value of its conferences.  We’ve benefited from the exposure offered by a national conference.

(6) If you would describe ECRI as a hybrid organization based on the above definitions, how does the structure of the organization affect its work with other organizations?  Is it designed so that engineers are able to collaborate with FDA colleagues with ease and not having to go through lots of channels and bureaucracy?

The hybrid approach allows multiple groups within ECRI Institute to participate in FDA projects.  We don’t have much, if any bureaucracy on our end.  Because FDA is such a large government agency, it can sometimes take quite a while to get an FDA proposed contract underway.  We’ve also been blocked out of certain contracts that we thought we were most qualified for because of FDA rules.  One, for example, required the contractor to be a minority owned small business.  We didn’t meet the requirement and the project went to an organization with much less experience than we had on the topic.  The project had to do with management of a medical device problem reporting system, which we’ve been doing for over forty years.


If I had the time to go back and follow up with Keller, I would want to delve deeper into ECRI’s alliance with FDA.  According to Kanter (1994, p. 100), there are three aspects of business alliances: It must be beneficial for partners, organizations work together, and interconnectedness enhances learning. And that is the relationship that Keller describes.  

ECRI's creed is "The discipline of science, the integrity of independence.  I find the dynamic of the non-profit partnership interesting in that we are competitors (is there really such thing as a non-profit?), yet aren’t.


From working there, I can say that this partnership does work for ECRI and FDA.  The collaboration isn’t competitive, although, outside of these defined alliances, we are competitors, only coming together for research and consultation here and there.  And I suspect this happens because we are both non-profits and are what Barney and Hansen (1994, p. 182) define as having “semi-strong” trust. 

ECRI and FDA fit the idea that “When two or more strong form trustworthy individuals or firms engage in exchange, they can all be assured that any vulnerabilities that might exist in this exchange will not be exploited by their partners” (Barney & Hansen, 1994, 184).  There is no reason for either organization to take advantage from the other, so much so that it would probably be detrimental to each organization. 

References:

Barney, J.B. & Hansen, M.H., (1994). "Trustworthiness as a Source of Competitive Advantage." Strategic Management Journal, Vol. 15, pp. 175-190.

Kanter, R. (2010). "Collaborative Advantage: The Art of Alliances." Harvard Business Review. pp. 1-16. (Full Article)


4 comments:

  1. Interesting interview, Justin. You say that ECRI and FDA have semi-strong trust, but then you define strong trust right below it. Which do you think they exemplify? Do you find the FDA to be a trustworthy organization? Are governance mechanisms needed for the alliance between these two organizations? What vulnerabilities are there in this alliance?

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  2. Hi, Justin. You describe ECRI's alliances with FDA and AAMI, but does ECRI have any partnerships with organizations that could be competitors? Also, how does ECRI manage business relationships with companies whose products it has to review? Are there ethical guidelines to establish trust? I'm interested to hear how the organization walks the line between partnership and impartiality.

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  3. Hi Dr. Pade,

    I think the partnership with ECRI and FDA fit into all categories of Barney and Hansen's writings detailing semi-strong trust. They both operate with an assurance that "any vulnerabilities that might exist in this exchange will not be exploited" (184) because there is no reason for either to act in an opportunistic manner, as it would be detrimental to both organization's reputations. I think the strongest case to make from Barney and Hansen's writings is both are open to outside auditing (187) and in fact have to be. The FDA has oversight over what ECRI does, and ECRI provides a third-party checks-and-balance system over the FDA.

    I find FDA to be trustworthy because of an organization like ECRI that will disagree with it and its position and prove why, FDA just has more power when it comes to oversight and regulation (but much less than people realize).

    I would say the obvious vulnerabilities are what happens when there is disagreement, but this happens and both organizations end up sticking to their own opinions allowing clients and consumers to decide for themselves.

    Thinking about this now though, because neither are out to really turn a profit but only grow and support themselves, can a true trustworthiness exist between two for-profit organizations? Isn't it human nature to be opportunistic and benefit you and your organization?

    Hi Andrew,

    There are competitors but not ones that are actually competitive. ECRI has been around for too long and cultivated too good of a reputation. While it's slow to change, that slowness is deliberate so that there are no mistakes or loss in quality or reputation.

    The question of managing relationships is an interesting one. It's a fine line. At the end of the day though, most organizations, say one we're releasing research on their devices, and the news isn't good -- they want to work with us because it's much more damaging to them than us. They'll fight tooth and nail with teams of lawyers, but if we can prove what we are saying is accurate and lives are in jeopardy, odds are the report is coming out.

    It's a pretty cut and dry line when it comes to anything involving ethics and impartiality. There is no gray area, only right and wrong. And if you're wrong you'll probably job hunt.

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  4. Hi Justin, I'm more familiar with the FDA, but who mainly funds ECRI? Do they get a bulk of Federal funding? I couldn't help but feel a tension in his responses when it came down to contract eligibility and how ECRI doesn't meet certain requirements for FDA contracts. Could this be the reason that leads to a "semi-strong" trust?

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