Dental coach delivers KPIs Part II

[caption id="attachment_426" align="alignright" width="150"]

Dental business coach Andy McDougall from Spot On Business Planning takes a detailed look at KPIs[/caption]Dental business coach Andy McDougall from Spot On Business Planning introduced the important topic of key performance indicators in one of last month’s blogs. We hope you managed to make a start on identifying the KPIs essential to your dental business. To help build on what you’ve started here is part two.KPIs are fluid. By that we mean they are not fixed for eternity but change as the performance and needs of the dental business change. Some will be constant and some will be fluid. For instance, if cash flow were an issue, then it would be a key indicator because without monitoring it, you may run out and put your dental business at risk.However, if the cash issue is resolved over time because performance has improved, then once under control, the cash KPI can be superseded by something else that warrants focus. You may still measure cash, but in a cash-rich dental practice, it would not be a KPI. However, KPIs such as measuring financial performance against last year, last month and budget would always remain relevant because growth is a continuous pursuit of business.Andy McDougall, dental business mentor, mentioned that KPIs must come from a valid source and be consistently produced to ensure there is a sound basis for comparison. Don’t assume that standard reports from your dental practice software achieve this end.

Set up your software correctly from the outset

It is vital that your practice software is set up (structured) in the right way from the outset so that relevant KPIs can be produced and reflect our intended measure. Ask lots of questions of your software partner and most of all, make certain you speak with someone who understands the data and your requirements – not just a software programmer who has no business acumen. And be careful when it comes to terminology. Don’t assume everyone has the same meaning as you for dental industry lingo.KPI measurement facilitates improvement and drives motivation. As we mentioned in part one, what gets measured gets done! We humans, and that includes members of your dental team, like nothing more than to know what is important, to work hard to achieve a better result and to have regular feedback regarding how well we are performing and what we might do to achieve an even better result.And best of all, when the great results do start rolling in, you can’t get a bigger motivator than the well done that comes with seeing your hard work tangibly return improved results.

More KPI examples

Financial KPIs

• Cash flow
• Net profit by clinician
• Net profit by clinician by hour

Non –financial KPIsNon-financial KPIs are determined according to the specific needs of your organisation. Here are some more of the KPIs that may be relevant in a typical dental practice.

• Take up of treatments
• FTAs and late cancellations
• Diary utilisation by performer

‘A man without targets hits nothing.’ Old Chinese proverbMeasuring performance breeds improved performance. We challenge any dental business or dental practice owner to identify and measure six key performance criteria and NOT act when results have slipped or are under expectation.

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