Measuring Performance Critical for Success
Let’s discuss the simple example of wanting to set a goal to be able to do a greater number of pushups. Since this was one of my own goals, I can share a very effective technique that worked for me. The first important step was to measure how many pushups I could do. Rather than just drop and start counting pushups, I decided to make it interesting by measuring the number of perfect-form pushups I could accomplish in a three-minute period. Over the next few months, this measurement tool actually became a training tool to help me significantly increase my number. It is amazing how much additional exhaustive effort I was able to exert when I was only a few pushups shy of a personal record. Without measuring and tracking my performance, I would not have been as motivated.In your dental practice, it is very important to measure your performance in many difference areas, in order to help you gauge your progress as you strive towards your goals. There are many important calculations, in addition to production and collection. For instance, if your goal is to be more efficient at chairside, you should calculate your production per hour, each month. I also like doing this calculation for the hygiene department, as a group, and each hygienist individually. Additional critical measurements, include new patient exams performed (0150), percentage case acceptance on new treatment plans, and appointment cancellation rates.
An office in which I was recently working had a cancellation rate in their hygiene department of 12% one quarter. This was the percentage of time that went unused on the schedule, due to last minute appointment changes. During the following month, the dentist frantically called me, very upset that things were getting “out of control” in his hygiene department due to “way more” patient cancellations than normal. Upon calculating the actual percentage, we found that the rate had slightly improved. Had we not been diligent about measuring and tracking this information, we never would have been able to put the problem in the proper perspective.
There are dozens of measurements that can be tracked to help an office successfully reach their financial goals. Measurements should be taken every month; however, I suggest that a detailed study of the measurements be made once per quarter. The quarterly trends can then help you chose an alternate course of action that may be needed. Reacting to monthly fluctuations in performance may cause premature course changes that could prove to be detrimental.
Very long-term goals can also be effective motivators. It’s not too early to set a retirement goal, which is 25 or 30 years away. Many, many years ago, I made a goal to log enough total miles running to equal the distance around the planet Earth at the Equator. If you’re curious, that number is 24, 901 miles. Twenty-three thousand miles later, I’m still motivated to reach this milestone. At the end of each year, when I add my annual total to my Excel Spreadsheet, I reaffirm my desire to stay healthy and injury-free long enough to continue my quest. I’ll let you know if I eventually make it.
Well, gotta run…
Dr. Mike Goldstein
Goldstein Management
