Leadership Insights

from   LeadershipOD.com
July 2011- Vol 2, Issue 7
In This Issue
Fundamental #2
Be in the Top 20%
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Greetings!  

 

Outta Here! Don't you love the summer time?  Long, hot days and every single patient has been on a trip (or is planning one) that is an instant conversation in the exam room.  Our family song for the summer has been Kenny Chesney's, Outta Here.  

I am thrilled to announce that this fall, we will be releasing the BluePrint, an on-line practice development program.  It is in Beta testing right now and the feedback has been remarkable.  If you would like to learn more about this program, just let me know and I will make sure you know about the first release.

In this issue, I write about the second Basic Fundamental in having a successful optometry practice.  Last month, we started this series based on a study of many practices over the years.  We have gotten a lot of feedback, and a few AMEN's, and certainly welcome more.

I am also delighted that Dr. Ted McElroy wrote an article for us about a critical topic, budgeting.  Ted is the expert that I always turn to when I need some input on this topic.  

I hope you enjoy.  

Sincerely,

Mike Rothschild, LeadershipOD

Leadership Tips from Mike Rothschild

Dr. Mike Rothschild

Fundamental # 2 - Have a Plan, a Vision, a BluePrint

 

Call it what you want, but all successful practices know what success looks like. In other words, it has been defined, explained and is clear to every member of the team. 

 

It is not uncommon for us to have an idea about the practice we would like. I believe that everyone thinks about what could be before they start or purchase a practice. I also think we do it when we accept a new position within an organization. But for some reason, it usually doesn't make it beyond the idea stage.

 

I wrote the first "Vision" for my practice before I started it. It was called a Business Plan and it was a requirement from the bank. To me, I thought this was a waste of time because it was common sense. Why was it necessary to spend all this time putting it on paper, organizing my thoughts? That document is still re-visited from time to time.

 

Visualize

Seeing into the future is possible, but it takes practice. When you visualize what you want, you can start taking the necessary steps to make it real. It involves using a part of the brain we aren't used to using. Many of us start "what if-ing" when we try to create a vision. We start looking for all the reasons it might not happen. "What if I don't get enough patients?" "What if a competitor moves in next door?" "What if?" is a defensive question that stops us.

 

But what if it became a hopeful question? What if we opened our minds to what could be? "What if" is now hopeful and empowering. It is an action phrase. "What if I had a well established reputation in my community as the doctor that truly listens?" "What if I became the first in the area to offer sports vision services?" "What if every patient sends me one new patient?"

 

How to start

You can start developing your Vision simply by completing the Defining the Dream form on LeadershipOD.com. It is designed to draw out of you, just what you want the practice to look like when you are "finished." Whatever finished means to you. This is always the first exercise I go through with any client I have. Why start going, if we don't know where we are going?

 

 

 

 

Spending Control by Ted McElroy

Dr. Ted McElroy

How would you like for your practice to be in the top 20%?

 

You see it all the time with your family and friends: Too much going on and not enough money to be doing it with. However, they go out and do it anyway. And they keep going at the costs of their bank account and our economy at large. What would happen if they just took a look at where their priorities were and their finances and planned just a little? Would this make finances more liquid? Wastes less? Life easier? Yes, yes it would.

 

Things are no different with our practices. 

 

If you do not budget, you may incur missed opportunity costs as I did early on in my career that could be costly. Did you know only about 20% of OD's budget for their practices? Those that do typically have the better practices you know of.

 

Now, I hear you saying, "OK, Ted, I get it. Budgeting helps you plan. I have been in practice for a while already and I have been making it OK so far. I would like to do much better, but where should I start?" It is simple. 

 

1 - Start with a dream or something you are wanting to do in your practice to make it better (remodel, equipment, start your own practice, etc). Now figure out what it would cost you to do all those wonderful things you have in your vision.

 

2 - Next, take the P&L from your accountant and figure where the money went last year. Then, find some wiggle room. Where have you frivolously spent money when you did not need too? Were you overstocked on frames or contact lenses? Did you purchase equipment that was so cool on the exhibit hall floor but now you have no idea how to make it work in your practice? What about that "CE" in Lake Tahoe last winter you took at the last minute even though you have plenty of hours? I am not saying don't have any fun, but take those expenses that now look a little silly and cut them out of your wallet. That will be the beginning of your reserve fund. You will set a budget item for that too.  

 

3 - Now, take a look at the "non-frivolous" expenses. Can you live with the dollars that you are putting toward those expenses? If so, great, you can sleep well tonight. If not, sharpen your pencil and start working on whittling away at the excesses. If you feel as though a particular item deserves more money, that is great, as long as you have the excess dollars (not in your reserve fund budgeting) that have been shaved away from something else from last year's spending. 

  

And what happens if you want to make a purchase that there is no money for in your budget? You do not make that purchase. Again stay away from your reserve fund line item. That is for the rainy day that IS coming.

  

One last thing, many will say budgeting is boring, restricts too much and will keep you from doing what you choose to do. That will not be forever. It will only be maybe just for this month, week or year or two. As you build up your reserves, you can adjust your budget next time to make those opportunities happen. My budget changes yearly with our practice goals and priorities. That will be what keeps this stuff interesting and fun.

  

Good luck and good hunting.

 
Dr. McElroy is in private practice in Tifton, GA and is the current state trustee for SECO.  He can be reached at: tmcelroy@friendlycity.net.