By JONATHAN FINE
I don’t know about you but I really struggle with spreadsheets stuffed with loads of numbers. After about 10 minutes I get total blindness and cannot see the wood for the trees. What you need is ‘actionable’ information, which is often nearly impossible to see because we get information overload.
Some time ago we developed six critical pieces of information called Key Performance Indicators (KPIs) which, if updated every four weeks, will always provide you with a real understanding as to how your practice is performing and where to focus your attention.
Imagine driving your car for the next week without a speedometer, fuel gauge or engine warning lights system. It’s likely that you will get caught speeding, run out of petrol or damage your engine. Think of KPIs as the dashboard for your practice.
The six KPIs
1. Net practice growth
New patient count minus number of patients leaving = net growth
2. New patient value (£)
The value of their first treatment plan
3. New patient treatment plan take-up
% of patients who take up proposed treatment
4. Average patient value
Patients must visit at least once a year to be counted
5. Average daily yields (ADY)
Gross fees produced per day (regardless of the length of the day) by a clinician averaged over the days the clinician actually works
6. Profit/earnings before interest, taxes, devaluation and amortisation (EBITDA)
Practice gross minus practice costs (before you draw your income or meet any of your personal costs and before your personal tax).
Put them on an easy-to-digest infographic like this one (right) and share with your staff so the whole team can grasp the results at the same time and get a feel for how the practice is performing and where the weak points and the opportunities are.
If you’d like help calculating your KPIs or displaying the numbers clearly please get in touch and we can help you.
Best wishes
JJF
Call 07860 672727
Tweet @johnnyjfine
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