Dental business mentor says measuring performance is key

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Dental business coach Andy McDougall from Spot On Business Planning takes a detailed look at KPIs[/caption]Measuring performance – what gets measured gets done! In this blog, dental business coach Andy McDougall from Spot On Business Planning takes a detailed look at key performance indicators. As the name suggests, this is an important area and as such, it requires some careful reading and consideration.This is the first instalment of a two-part blog. There’s lots here to consider and put into place, so we thought we’d give you a couple of weeks before providing part two.KPIs are unique to your dental businessKey performance indicators or KPIs are like corporate fingerprints; they are unique to your dental business. Also known as metrics, KPIs span the financial and non-financial aspects of your dental business.Each dental practice should have a manageable number of KPIs. As the name suggests, we are only monitoring the performance indicators that are key to our success therefore by definition, there should be a focused number.Some principles that underpin your measurement system:
- Measure what is important
- Ensure your information comes from a sound source
- Ensure your information is accurate
- Ensure your information is timely
- Ensure what you measure is derived with some consistency i.e. from the same basis each time
- What and why you are measuring should be understood
- Take appropriate and timely action based on the results
Dental business consultant Andy McDougall says: “KPIs should be financial and non financial but above all else, they should all relate back to the financial results. So for instance, if all non-financial performance indicators are up, e.g. new patient numbers, diary utilisation and uptake of treatments, then the financial performance should be up too. They cannot and should not be independent of one another.”
- When measuring KPIs you need something to compare them against so that you have some gauge of whether performance has improved, gone backwards or remains flat. Some typical comparisons would be:
- Against a pre-determined budget or target
- Compared to last month
- A comparison between performance in the month compared with the same month (period) last year
- A comparison between performance year to date (YTD) and the YTD for the previous year
Be wary of ratios and averages. At Spot On Business Planning we often see numbers bandied about in the dental media in the form of key ratios such as the wages in a dental practice should be x% of turnover. Such ratios are only applicable if you are measuring on a like for like basis. If you are a single-handed dentist without a practice manager and treatment coordinator, then comparing your wage ratios to such a practice would be illogical.
KPI examples
Financial KPIs
- Total sales versus budget in the month, year to date (YTD) and against the same period last year
- Gross profit %
- Net profit
Non–financial KPIs
Non-financial KPIs are determined according to the specific needs of your dental business. Here are just some of the KPIs that may be relevant in a typical dental practice.
- The number and source of enquiries received in the month
- The number and source of new patients converted from those enquiries in the month
- Prescribing values by clinicians
We will provide more examples of financial and non-financial KPIs in the next blog.
Free consultation
Spot On Business Planning specialises in the dental sector and offers a tailored service because your dental business challenges, like your performance monitors, are unique.Finance is at the heart of what we do and we have a track record of transforming under-performing dental businesses and taking well-performing dental practices to new levels. Our analysis uncovers the challenges facing your dental business and by taking a structured approach, we plan a completely different financial performance for the future.Spot On Business Planning offers a free initial consultation whereby we will analyse your dental business accounts and highlight where opportunities and risks lie. For no more than a few hours of your time you will get a better understanding of your dental practice, its weaknesses, its strengths and the focus of your approach to achieve improved results.To arrange a free consultation with Andy McDougall call 01949 851723 or email info@spoton-businessplanning.co.uk
Our upcoming events
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BDA Setting up a dental practice
The BDA Setting up a dental practice in-person workshop is a great opportunity for you to gain invaluable support, advice and insider information from expert speakers, including Andy McDougall and Anne-Marie Houston, on how to set out on your own for the first time.

Plan your successful exit
Due to demand, Dental Practice Sale (DPS) is hosting another fantastic opportunity for dentists to join leading industry experts. This free event in central London in October is ideal for dentists keen to plan a successful exit, maximise their exit value and gain tips for a smoother sale.
Join Dental Practice Sale, Spot On Business Planning and AMG Wealth Management on Thursday, October 16 for an informative live event.
The three companies will address key areas of concern to practice owners leading up to a sale, the sale process itself and post-sale aspects.
What should I expect?
- Learn how to maximise your exit value - what are the drivers?
- Understand the benefits of structuring your business ready for exit
- Determine the best point to exit
- Gain insights on the state of the market today
- Consider where your practice sits with the different buyers in the market
- Uncover the details in deal structures
- Be informed about the valuation process & how you can influence it
- Be aware of options pre sale such as EOT, Pre Sale Trusts, significant share holder exemption
- Transition into the next phase of life
- Ensure you run out of life before running out of money (cash forecasting)
- Protect the estate for now and future generations
- Complimentary drinks and buffet from 6.30pm
Location: Great Northern Hotel, King’s Cross St Pancras International Station, Pancras Road, London, N1C 4TB
Date and time: Thursday, October 16 | 18:30 - 21:59

Helping Patients Say Yes Without the Sales Pitch
This webinar is guided and led by your host, Dr. Mark Skimming and as a practicing dentist and business owner himself, Mark brings practical, hands-on insight into what it takes to run and grow a successful dental practice. His guidance ensures that every session is not only rooted in strategy but also highly relevant to the day-to-day realities dental practices face.
What You Will Learn:
- How to adapt communication to different patient personality types
- How to present treatment plans with empathy and clarity
- How to improve acceptance without pushy tactics
Who Is This Webinar For:
Practice owners, associates, and treatment coordinators who want to help more patients say yes to the right care without compromising their values.
Book your 121 Zoom with Andy McDougall
Fill in the form below.
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