Page 498 - ONLINE PROCEEDING BOOK WSAVA 2017
P. 498

An Urban Experience
WSVA7-0444
DSAVA: PRACTICE MANAGEMENT - PART 1
MOTIVATING THROUGH BUDGETS AND KEY PERFORMANCE INDICATORS
C. Kolthoff1
1Cand.med.vet, E-MBA, IAF cert. facilitator, Groennevej 17, 8680 Ry, Denmark
During my carrier as practice owner and practice management consultant, I have worked with more than 130 practices primarily in the Scandinavian countries. Very often, the reason that the practice owner calls me
in is that they are not performing very well  nancially. Understanding the business, using simple simulation models and working with key performance indicators (KPI) are key to this work. I often discover that if I use KPI’s the right way, I can use it to motivate the whole team. On the opposite hand, I have often experienced practice owner demotivating their team through improper ways of using KPI’s. In this talk, I will go through the basics of using KPI’s as a tool to motivate veterinarians, nurses and technicians.
Important: In this lecture I focus on KPI’s for motivating – not KPI’s that I use for managing the business.
Creating a common understanding with simulation models
The basis of using KPI’s in practice is that you make the team understand the business dynamics and how the different KPI’s interact with each other. If they do not understand the numbers (and if they do not believe that they are correct), you cannot motivate them by KPI’s. The three following models are my most frequently used for creating a common understanding and thus for using KPI in practice.
praQtice simulation model (Download at www.praqtice.dk)
This is a very easy model for everyone in the practice
to understand and I use it as a basic model, for
most activities in the practices, I work with. Numbers can be easily found from the accounts and practice management software. Some software programs though
have problems identifying number of clinical visits. I suggest that you  ll it in with your practice numbers and then experiment with changing numbers together with the staff (real time in Excel). I start by explaining how
an EBITDA on at least 10% means job security and the possibility to buy the equipment that they would like to have. Then we start working through the numbers with special attention to clinical transaction value, visits per active client and number of active clients. I also have them to focus on staff costs in % of gross pro t (total revenue minus cost of goods) bearing in mind that it does not motivate when you argue how to keep it low.
When I go through the model with the staff, I ask them to come up with realistic and motivating targets. Often they come up with way to high targets, and I will  nd myself negotiating lower targets.
Individuals pro t model
The “Individuals pro t model” is more tricky to implement as veterinarians often tends to get defensive and argue that it goes against team spirit. Thus, I have a lot of focus on introducing the model in a positive way.
The idea behind the model is that veterinarians have to understand that they are part of a business. They have to realize that no one is allowed to cost money and preferably they should bring in at least 20.000 euros per year. Most veterinarians are very competitive and if they see, that they are costing money, the make an extra effort trying to change the numbers.
The way I use the model is that I explain how I extract the numbers and  ll it in an Excel sheet. In some practices, I allow everyone to see each other’s numbers and in other practices, we only show them on an individual basis.
The key to this model is that we divide the “other staff costs” and “ xed costs” based on how much each of the vets uses. Often the one doing most surgery has a high turnover, but they also carry many expenses and so forth.
Turnover per minut seeing clients
498
42ND WORLD SMALL ANIMAL VETERINARY ASSOCIATION CONGRESS AND FECAVA 23RD EUROCONGRESS


































































































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