Why do Practice Managers and Principals struggle in business?
The #1 reason for failure for CEOs, Principals and Practice Managers today is strategy execution, lack of systems and accountability.
Although success is measured in a number of ways, there are two statistics that I believe relate directly to what most Principals regard as having achieved success:
- The first is practice profitability
- and the second is the ability to build productively the value of the practice and then to successfully sell that business.
This Guide will provide you with 7 steps to create a business solutions model for your private practice. By following this business solutions model for private practice, it will ensure an extremely high profitability of turning your practice into a high performance, highly profitable practice that should be highly saleable when that time comes.
- High Level Goals & Strategy
Determine where you are now and what you wish to achieve over a selected timeframe, include business/exit/personal goals. What are your high level strategies and vision of the practice?
- Practice Success Factors
All practices should determine financial and non-financial success factors. Revenue and profit represent key financial goals, but a complete review of the practice should be undertaken that commences with patient expectations. What makes the patient happy? What are your competitors offering to the patient? Rethink the practice – become patient focused. Review the success factors of the practice and translate these into strategic goals. Start with your customer success factors and then review the other assets of your operations.
- Strategies, Actions & Milestones
Strategy is the plan of action designed to achieve the goals and vision of the company. For each strategic goal, the practice should create an accompanying set of sub-goals and then assign actions and initiative to key employees. Develop key milestones with dates and accountabilities. Ensure you have a detailed Business Plan.
- Monthly Practice Review
All practices should review their practice performance on a monthly basis. Each month review your practice performance, successes and obstacles and your strategy. Adapt your Business Plan to changing circumstances.
- Systems and Workflow
The stronger the operational procedures and systems are within a practice, the stronger, more reliable and scalable the practice will be. ‘Tidy up the practice’ and develop the systems and workflow to help execute strategies and ensure the practice is not totally reliant on individual staff and the Principals. Ensure systems are in place to protect the practice in relation to Health & Safety and Human Resources regulations.
- Employee Engagement
High achieving practices recognise that good communication and well defined employee goals and targets are the key to motivating employees. Employees must feel respected and valued by the practice. Praise, encouragement and acknowledgement are essential ingredients and these should be combined with employee performance targets and goals that set clear benchmark standards.
A Human Resources Management software system can assist with storing and recording all HR related information thereby protecting the practice against non-compliance with the Fair Work Act and unfair dismissal claims as well as create a ‘best practice” HR framework incorporating source, develop, systems, quality. It is also designed to create a high performance culture.
- Culture Change and Sustainability
Changing the practice mindset so that high performance is the norm and not the exception. The practice needs to breed a high performance culture; meeting deadlines, performance management and quality outcomes must govern employee behaviour and management expectations. Ensure that management and Principals are committed to an agreed set of systems, standards and workflows.
Healthcare practitioners are experts in providing medical care and support in their area of discipline. The years of study to prepare for this did not include business management and administration. For this reason, the above business solutions model for private practice has been developed into a coaching programme for Principals and Practice Managers – Your Business Success. This can be delivered in an individual coaching programme with your practice and staff or group workshops. Please click on the link below to learn about how to implement the business solutions model for private practice.