It is clear that nearly every Optometry practice will feel the impact of COVID-19. More than ever before, it is vitally important to track key performance indicators (KPIs) such as cash flow to help your practice survive and thrive in the new normal. Here are 4 practical tips to help you track the performance of your practice.
To measure your practice performance, you need to track relevant metrics, also known as key performance indicators, that display a measurable value and shows the progress of the practice goals.
Measuring performance is a very important part of monitoring the growth and progress of any practice. It entails measuring the actual performance of a practice against the desired goals. Regularly checking your practice’s performance ensures that you reach your goals.
4 Steps to measure your practice performance
Step 1 – Set Clear Goals
What are you trying to achieve? Your goals might be acquiring new patients, improving patient care and satisfaction, or generating high traffic volumes to your website. Before you know what to measure, you need to decide what you want to achieve first.
Here are examples of business goals:
- Increasing sales by 10% this year.
- Get a 4.8 rating in Google review by the end of the year.
- Increasing profit margin by 8%.
- Reduce patient time in the clinic to 45 minutes or less.
Step 2 – Develop Key Performance Indicators
The KPIs are standard ratios that provide insight into your business performance. Examples include revenue generated per patient or doctor. These performance indicators help you measure performance against the goals you’ve identified.
Setting the KPIs will vary between businesses. It is important to choose KPIs that mean something to your practice, that can be measured and provide outcomes to achieve your goals.
Step 3 – Define Suitable Metrics
Business metrics are quantifiable measures that track and assess the status of a specific business process. Depending on your practice and your goals, you may want to focus on certain metrics. These include marketing metrics, sales metrics, accounting and financial metrics and online metrics.
These metrics keep practice owners and employees informed and aware of how the company is performing.
Step 4 – Track and Measure
Narrow down on the information that you think is crucial to track. Choose a few major business goals, develop related KPIs and focus on tracking and collecting relevant data.
In Conclusion
Tracking metrics will allow you to see performance patterns in your practice. When you track your numbers, you will see the truth as it is not as you wish to see it, because numbers don’t lie. Understanding the story behind your numbers is powerful. It’s powerful because it will put the wheel that drives your practice in your hands and not in the hands of chance or wish.
I urge you to identify a few goals for your practice. Once identified, assign a benchmark for each goal according to industry norms or according to your past performance. Then, establish a few Metrics to track factors affecting the success of your goals. Finally, identify the KPI for each goal to track performance. I can’t stress enough the importance of tracking these numbers.
You should know your KPI’s like you know the back of your hand. Ideally, you should track them daily, but if you’re not there yet – at least track them monthly.
If you are struggling in your practice, I hope this article inspired you. I hope it showed you that YOU truly hold the power to change your future. Can you see that now? YES?! Good, I’m glad, because I only have one goal in these articles – to inspire and empower you!
If you’re reading this and you’re thinking- “this all sounds great Lauretta, but I don’t know where to start.” First, let me tell you that you are not alone. There are many others out there who feel exactly the way you do.
Let me tell you this as well, you don’t have to do it alone. That is what I’m here for. I’m here to help you! If you’d like my help, click HERE to get more information about my consulting program. In it, I work with you on each step of the program and help you create a success blueprint for your practice.
I look forward to hearing from you and to helping you Dream big, Take risks, and become the CEO of YOU!
Need help setting goals and tracking performance for your practice?
Click HERE to learn more about Dr. Lauretta Justin’s CEO of YOU Business Consulting Program!
