The Wisdom of A Seasoned Staff Consultant

Human Resources, Managing Others, Practice, Resources

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There is a resource reference in the summer issue of Profitable Practice magazine entitled A Startup’s Secret Weapon: Retirees by Liz Brody. Recent U.S. Bureau of Labor Statistics reveals that people 65 and older lead the way as the fastest growing segment of the American labor force. For the most part, these people have exited their former jobs and careers for retirement. Many, it seems, want more than a sunny beach, an afternoon nap or satisfying round of golf. They are not ready to go quietly into retirement and believe they have much to share given their previous experiences.

As a consequence, there are a number of companies today (YourEncore, Empowered Age, Patina Solutions, Work At Home Vintage Experts etc.) that are staffed with these “retirees” who bring expertise from a wide variety of business jobs and careers. They act as consultants as characterized by Liz Brody “who have been there and done that”. Their clients are often young millennial-aged entrepreneurs with startup business problems. These young gurus often face a business impasse they can’t seem to bypass and are stymied. While they are often superb risk takers and decision makers, they realize they need help and that more brain power and another pair of eyes is required to get them mobile again.

All entrepreneurs try to invent a new product, service or process or at least apply an innovation to an existing one. In doing so, they are repeating a journey that many others have taken before them—a few successfully and the many who got hung-up along the way. Health care practitioners are constantly searching for new and better ways to deliver health care service. Many find a successful track of operation either by perseverance or by enlisting the aid of others.

The above scenario got me thinking about my own company, which my father started and eventually sold to me. Recently my dad and the company received recognition for 45 years of distinguished service to the practice sales industry. In my case, he was always there in the background giving me the wisdom of his experience. In addition, the company had—and still has—a number of senior associates (retired dentists for the most part) who left dentistry to start a new career in practice sales. This core of elders was invaluable to the growth of our company and allowed us to be successful by avoiding many of the impasses all businesses face.

To my mind, no matter what business or health care practice you are in, it is wise to seek out the advice and ideas of both the young and old. Health care graduates today are schooled in the latest procedures and technologies and bring a contagious enthusiasm and a refreshing willingness to share with and learn from their older peers.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.

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Analyzing the Performance of your Website’s Content

Marketing, Resources

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In today’s world, every optometric practice needs to have a website. While there was a time a health care practitioner could hang out a single or put an ad in the phone book and patients would find them, that has changed. Now we rely on online searches to find a business or health care provider.

In Canada, there is a 60/40 for online searches for a business. 60% of people who do a search online have a specific business name in mind before they even search (via word of mouth, a returning client, etc.). 40% of people have a need for a business or service and do not have a name in mind. They don’t even know you exist.

For that 40% of customers who don’t know you, you should be laser-focused on two things:

  1. Getting your business found where and when they’re looking, and creating ads that entice them to engage with your business.
  2. Post. Click. Conversion.These are the results that let you know how effectively you have engaged your intended audience.

For the first point, Google Adwords and Facebook ads are the most effective. These are the ads that will pop up and be displayed to the consumer when what they are searching for matches the ad and the key words you have created and paid for.

Post Click Conversion is the measure of how well your website explains what you will do for them. It evaluates how well the information on your website is meeting the needs and interest of the audience reading it.

The trick is to try displaying information in different ways in order to find what will resonate with your audience. Ask questions of your audience and encourage them to contact you. Put your phone number, contact form, and email address everywhere. Then use the results of your post click conversion analytics to evaluate what is working and what is not. If you have pages of medical information that no one is clicking into, maybe this information is irrelevant on your website. Conversely, if you find that your patients are spending a great deal of time reviewing the brand names that you carry, you may want to consider adding more information to that page.

If you truly own the responsibility of finding out what happens when people visit your website, you will have a lot more success marketing your business.

ERIC HARBOTTLE

With 15+ years of marketing experience, owner of Addison Marketing Solutions and co-founder of MarketingforOptometry.com Canada’s newest marketing agency option for Optometrists, Eric Harbottle knows what it takes to succeed in a robust and confusion digital world.

Coming from a strong background working and consulting with some of Canada’s largest marketing agencies to offering SMB solutions at the ground level with his boutique agency, Eric is able to understand the needs of every level of client with unique optimism and an experienced view as a business owner himself targeting KPI’s and goals to help every client achieve success.

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Overhead Costs

Accounting Basics, Finance|Wealth, Resources

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As a small business, overhead costs are just a part of doing business. While many of your overhead costs are fixed costs that don’t vary much year to year, it is still important to analyze these costs periodically.

Overhead costs include things like rent, utilities, office supplies and software maintenance. As a guide, aim to spend no more than 8% of your Gross Revenue on Overhead Costs.

How long has it been since you reviewed what you are currently spending on office supplies? You will be surprised how much you spend on this. Track it to see how much you spend. This category includes everything from pens and paper to snacks and refreshments. Ultimately, we want you to continue to offer all the extras that create your unique patient experience. We are just suggesting that you take the time to price shop your options. For many of these items, there is a bulk buying opportunity.  Creating lists and buying in bulk can save the office quite a bit of money versus buying ad hoc.

Sometimes “just in time” supplies can save you money too, depending on the situation.  At home, we have signed up for an ink service.  The printer is connected to WIFI.  When we are starting to get low on ink, a message is sent to the company to send out ink.   We are limited to the number of prints we can do per month (300) but if we don’t use them all, they carry over to the next month.  This ensures that we always have ink when we need it and saves me from impulse purchases at the store!

The Little Things Can Add Up.

Another way to save money in Overhead Costs is to retrofit your office lighting. For many offices, cabinet lights are on all day long and use a lot of energy. Consider replacing the GU19 bulbs in the cabinets with the LED version or LED strip lighting.  Replace your florescent bulbs in your grid ceiling with LED flat panels. This could save you between 50-75% of electricity costs used on lighting and will generate no heat. These bulbs are also less maintenance. They can last 50,000 hours (10 years) without any maintenance. The cost to do this has come down significantly so that is it almost equivalent to what we used to pay for traditional bulbs.

For some offices that provide cell phones to their employees, shopping cell phone plans can present another opportunity to save. There are bundles that will allow employees to share the data you are paying for.

We get used to using the same things but it is possible that there are better priced options. Often there is some down time over the summer as doctors take vacation. This could be a good summer project for staff with extra time on their hands.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.

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Don’t Hire in a Hurry: Why Panic Hires Can Bruise Your Bottom Line

Human Resources, Talent Acquisition

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If there’s one situation that’s guaranteed to make practice owners and managers break out in a sweat, it’s an open position that goes unfilled for too long.

The pressure to fill open jobs quickly is real, and with good reason; the costs of empty positions are very real too:

  • Uncertainty for patients and customers
  • Increased workload for other employees
  • Reduced revenue
  • Lost productivity
  • Poor employee morale

The best way to mitigate the damage is to get your team back up to full speed by recruiting new staff as quickly as possible, right? Wrong!

Hiring in a hurry may seem like a good idea, but in fact will likely bruise your bottom line even more.

The High Cost of Bad Hires

Unfilled positions are costly, but bad hires are even more expensive in the long run.

With increasing pressure to fill vacancies, it’s tempting to fall into the trap of believing that somebody – anybody – is better than nobody. In most cases, however, a “panic hire” only serves to make a bad situation worse.

In the rush to hire a warm body, shortcuts such as interviewing too quickly, not screening applicants carefully, and failure to assess the candidate’s “fit” with the job and your office culture are common, and costly mistakes.

A U.S. Department of Labour study found the cost of the wrong hire can be as much as 30% of the employee’s first-year earnings. Can your practice afford that financial hit?

Bad hires inevitably result in high employee turnover. Turnover is costly.

A study from Inc. Magazine pegs the average turnover cost for a minimum wage job at $3,200; for managers and higher-level staff the costs increase significantly:

  • Entry level: 35-50% of annual salary
  • Mid-level: 150% of annual salary
  • High-level: 400% of annual salary

Take Time to Hire Right the First Time

As tempting as it may be to fill a vacancy as quickly as possible, a bad hire is more costly than having no hire.

Take the time and use all the resources available to ensure you fill the position with a candidate who not only is qualified, but is the right fit for the job.

It’s easier than you think! Web-based platforms like Eyeployment.com can help reduce the workload and take the guesswork out of the hiring process for businesses both large and small.

By screening candidates both on your criteria, and on their potential fit with the job, these tools help you identify which applicants have the skills, values, work ethic and personality traits most likely to lead to success in your position.

Eyeployment.com even creates customized interview guides for each candidate, ensuring you focus on the right questions that will help you make the best decisions.

Bottom line – don’t panic! Hiring in a hurry is no way to find the best fit for your job vacancy.

Focus on what really matters – employee fit – and you’ll be glad you took the time to hire well.

JAN G. VAN DER HOOP

Jan is the co-founder and president of Fit First Technologies, a company that applies its predictive analytics to the task of matching people to roles. Those algorithms drive platforms such as TalentSorter, FitFirstJobs and Eyeployment.com, which are relied upon by organizations to screen high volumes of candidates for “fit” in their open positions.

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How Patients Find You Can Define Your Marketing Spend

Advertising & Promotion, Digital Marketing, Marketing, Resources

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The normal attrition rate in an optometric practice is 13%. Patients move away, pass away or sometimes choose a new office. We advise our clients to aim for a 20% new patient rate to replace this loss and to continue to grow their practice.

There are a number of ways to attract new patients. The most common are word of mouth (WOM), referrals from other doctors, the location appeal of the practice, social media referrals, memberships to community organizations and Google searches.

Which method is the most effective for your office?   

If you aren’t already, put a process into place with the staff to ensure that you record where every new patient heard about your office and track this information every month.

Depending on your strategy, the sources can vary. For instance, if you have set up a medical practice, you are more likely to see doctor referral as your main source for new patients. If you are in an area catering to young professionals and families, you are more likely to see Google at the top of the referral sources.

Pushing the analysis a little further, we are also curious to see which referral source is the most profitable in each office. Again, there is going to be a correlation between the strategy and this result.

When you are clear about your strategy, it drives all other decisions to ensure you are offering all the products and services that the patient is expecting from the practice.

Tracking Can Optimize your Expenses

As many EMRs don’t easily allow this analysis, it is likely that a manual process is required, but it’s worth the effort.

Using a spreadsheet, record where all new patients heard about the practice and how much they spend at the office, including all services and products.  At the end of the month, sort by referral source and get an average RPP (revenue per patient) for each referral source.

We recently did this exercise in an office where we putting a lot of resources towards Google adwords. Interestingly, the analysis came back that the office’s most profitable patients were from WOM.

What does that mean?

First, we revisited their strategy. They have a long history in their community and their patients have a lot of trust in them. The people that they refer are their friends and family, who likely have similar expectations of loyalty and trust in their practitioners. Perhaps this is why they more readily accept the recommendations of the office and opt into their services and purchase their products.

With this information, we know that we need to spend more time and energy on encouraging more WOM referrals. Marketing efforts may include activities such as email blasts with “loyalty” coupons for referrals. We may let every patient know that we would be happy to see their friends and families as patients too.

This is such an exciting time for your business. There is so much information available to help guide your decisions. Tracking and analyzing your new patient information will take the guess work out of where to spend your time and money in marketing.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.

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The Importance of Updating your Website

Digital Marketing, Marketing, Resources

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Coffee shops, grocery stores and other refresh locations update their physical locations every 3-5 years. There is a very good reason for this.  The changes indicate to their patrons that they are staying current and relevant. As humans, we are also very curious about anything new. We are compelled to investigate and see what the latest trends are.

In fact, your virtual presence also needs attention and updating. Your website is often the first time that a new patient interacts with your practice and you want to make sure that it reflects the experience that the patient will encounter if they were coming into the physical office.

Every business has a different strategy, look & feel and personality. It is important that the website reflects all of that so that the patient can be sure that it is the right fit for their needs.

The website also acts as one of your most important sales people. It is going to work for you 24 hrs per day, 365 days/year!

Now the question is, do they have the skills to sell what you do and/or offer?

Take a close and critical look at your website:

  1. Copycat – the highest form of flattery! Look at your competitions websites, see what they are doing. Find other websites in your industries in other major cities and look at what they are doing on their websites.
  2. Hire wisely. Find someone you trust in house or outsourced to be your web person. Look at their previous work and get multiple quotes!

How will you know that your updates are effective?
Conversions! Conversions are people who contact you from your website.

The TWO most important questions you want to know in regards to your website are :

  1. What is the conversion rate to contact from your website?
  2. What is your close/sold/hired/won percentage from those contact conversions?

For example :

100 people visit your website

20 Contact you via Phone/Form Submit/Email (Mix)

You are a closer and your offer and service is great, you close 10.

Your average client value to you is $700

The Answers:

  1. Website Conversion Rate : 15%  (20)
  2. Closed Sale Conversion Rate : 50% (10)

The Math:

For every 100 visitors in our example 20 contacted and 10 became closed/won business.  If it costs $5.00 per click on search to drive 100 that’s $500.00 = 10 New Clients at $700×10 = $7000.00 ROI

ERIC HARBOTTLE

With 15+ years of marketing experience, owner of Addison Marketing Solutions and co-founder of MarketingforOptometry.com Canada’s newest marketing agency option for Optometrists, Eric Harbottle knows what it takes to succeed in a robust and confusion digital world.

Coming from a strong background working and consulting with some of Canada’s largest marketing agencies to offering SMB solutions at the ground level with his boutique agency, Eric is able to understand the needs of every level of client with unique optimism and an experienced view as a business owner himself targeting KPI’s and goals to help every client achieve success.

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Two Ways To Lose And why customer care is still the be-all and end-all when dealing with clients

Differentiation | Business Strategy, Practice, The Patient Journey

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I have been a long-time, loyal client of a local dry cleaner. A new owner (who I quite like) took over the service. However, it soon became clear to me that a pre-existing, long-term employee was not happy with this new owner.

One day, when collecting my clean clothes, the new owner was absent and the employee in question told me she disliked working there and asked if I knew anyone who was hiring. I suggested she send me her resume.

Our firm happened to be hiring and we interviewed her, but her qualifications were inadequate for our position and she was not offered a job. Since then I have encountered her again on a number of occasions and she remains unhappy and is unpleasant when dealing with me and other customers.

It’s possible she’s mad that we didn’t offer her a job. I hesitate to say anything to the new owner because this is a convenient location for me and I want to remain a customer. Yet, it is difficult to go to this business because of this employee.

Is this the fault of a bad new owner who doesn’t treat his employee well? Or, is this a disgruntled employee who’s angry she was not offered a job and free her from an unhappy situation? I don’t know the answer, but I know I’m not happy and may move my business elsewhere, despite the inconvenience.

When a business sells, a new owner brings new policies, procedures and an ownership style that might not suit some employees. They may become resentful about the changes being implemented. That resentment may negatively affect the new business. It’s a given that customer care and service is what makes a business successful. All it takes is one employee not providing the required customer care for a business to fail. My advice to the owner would be to terminate her, even though she was an ideal employee at this dry cleaner for many years.

In any health care practice, customer care is also crucial. My son, daughter-in-law and my three grandchildren have been loyal to the same dentist for more than 10 years. Recently, my son arranged appointments for two of my grandchildren, one at 5 p.m. and another a half hour later. There was some confusion about the appointment times, but my son looked through his messages and verified the 5 p.m. arrival time. Because he’s not the most efficient at managing the kids, he arrived five minutes late and was informed that there was only enough time to see one of the children because they had given away the 5:30 p.m. appointment to another client.

Like all young families, my son and daughter-in-law are very busy. They were upset that after 10 years of loyalty and many treatments—my grandkids have had substantial work done on their teeth—the office staff would treat them this way.

It’s possible that an administrative error occurred regarding the appointments, even if they had previously been confirmed. It happens. What was upsetting was how disrespectful the office staff was to a loyal patient and his family. My son was distraught when he relayed the story and told me that he changed health care practitioners.

The result: a young couple with three kids left their health care practitioner of more than 10 years and connected with another one closer to the family’s home. The new practitioner is thrilled to now provide services to this family of five for many years to come.

Appointment times can be confusing when texts, emails and other means of communication are used. When more than one staff member is working and reworking the appointment schedule, human error can occur. But upsetting a busy young man with family responsibilities, who’s been a loyal client for years, makes no sense. I would hate to calculate the amount of revenue lost by alienating and losing the opportunity to serve a growing family of five for many years.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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Hiring a Receptionist? Get it Right Using Behavioral Science.

Human Resources, Managing Others, Talent Acquisition

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The first face of your practice is, arguably from a customer service perspective, the most important. A friendly and empathetic first encounter can leave a lasting positive impression on your practice … or… it can go the other way and be the root cause of a nasty review on Yelp!

Using the scientific algorithm from Eyeployment.com, the behavioural characteristics of an “ideal candidate” can be determined with science.

Because of the way Eyeployment.com’s assessment engine has been designed, it is able to compare the personality traits and other attributes of an individual to those of people who have been high performers in a given role, and generate a FitScore™ that is a very accurate predictor of success in a particular role.

Ideal Candidate Traits: Health Care Receptionist

For each role in your practice, Eyeployment.com has identified the the ideal behvioural traits that can make the difference as to whether your new hire is a star or a passenger.

 Extraversion: Degree to which one requires social interaction and authority.

Perhaps surprisingly, a Receptionist position calls for people that display this trait less prominently than most people. The ideal candidate will likely follow group consensus when required to work in a group.

Agreeableness: Tendency to be friendly, approachable, and easy to get along with.

This position calls for people that display this trait like most people. The ideal candidate usually cooperates with others in order to ensure group harmony as long as their goals do not drastically differ from those of the candidate.

Conscientiousness: Tendency to strive for perfection, sometimes at all costs.

Receptionist positions call for people that display this trait like most people. The ideal candidate prefers to be precise in their actions, but can take the big picture into account when necessary.

Stability: Degree to which one reacts positively to negative or stressful situations.

This position calls for people that display this trait more prominently than most people. The ideal candidate is usually objective in their decision making and actions, even in trying circumstances.

Openness: Willingness to try new ways of doing things.

Receptionist positions call for people that display this trait like most people. The ideal candidate usually appreciates being able to try new methods, but is able to accept tried and true methods as well.

Resolve: Willingness to work for the intrinsic benefit of work and its ability to enhance character.

This position calls for people that display this trait differently than most people. The ideal Receptionist candidate tends to be passionate about their work and get a lot of enjoyment and pleasure out of it.

Reliability: Tendency to behave in an uncompromising and consistently honest, moral, and ethical manner.

Receptionist/Information Clerk positions call for people that display this trait differently than most people. The ideal candidate always follows through on their commitments to others to the extent they are in control of a situation.

Cooperativeness: Tendency to be friendly, agreeable, and to be a team person.

This position calls for people that display this trait more prominently than most people. The ideal candidate is generally not one to express their opinions unless absolutely necessary.

Above all else, don’t short-change the evaluation process if you are hiring a receptionist.   Using behavioural science can help you find the ideal candidate for this important position.

JAN G. VAN DER HOOP

Jan is the co-founder and president of Fit First Technologies, a company that applies its predictive analytics to the task of matching people to roles. Those algorithms drive platforms such as TalentSorter, FitFirstJobs and Eyeployment.com, which are relied upon by organizations to screen high volumes of candidates for “fit” in their open positions.

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Summer Staffing with OD Students is a Good Thing!

Practice, Resources

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We are finally approaching the well-loved and relaxing season of summer. Life seems a bit easier; you can get out the door with less layers t and you don’t have to worry about snow-induced traffic delays. Summer vacations and trips to the cottage are coming.

Of course, when you are running a small business, summer time can also present challenges, specifically around staffing.  Luckily, there are often university students who are currently registered in Optometry School looking for summer work. They are really ideal candidates to hire for the 4 months they are available. They are committed to the industry, they want to learn as much as they can and they are eager to do well.

In our experience, having this additional staff member has more than paid for itself. During the weeks when you are fully staffed, the summer student can tackle jobs that have been on the back burner; organizing the CL trial room, reviewing frame pricing, doing an inventory, price comparisons, the list goes on.

Further, many staff take summer vacations, and with an extra member on your team during this time, you don’t have to go short handed. The reality is, you want your patients who visit in the summer to have the same great experience in your office now as they would in the winter with a full compliment of staff ready to serve and assist.

Another advantage to hiring an OD student for the summer is the potential for grooming an associate for the future. Working in your practice, they will become very knowledgeable about the front end of your business. Understanding the flow from appointment booking to retail sales will make this associate a valuable member of your team very quickly.

It is tempting to consider going short staffed for the weeks different members are off on vacation.  This, of course, is not ideal. Not only will the patient experience be compromised but it will likely also have an impact on your Revenue per Patient (RPP) – the two are intimately related. Are patients receiving additional testing to improve their health care outcomes, are they finding glasses that they want to purchase, are they leaving with drops and vitamins for preventative measures? Discussing these solutions takes time and energy. Tracking and reviewing RPP will give you some reassurance that maintaining a full compliment of staff is in the best interests of both your patients and your business.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.

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Breaking Up Is Hard To Do

Finance|Wealth, Human Resources, Managing Others, Practice, Resources

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When a trusted, long-standing associate leaves, where does that leave you?

Throughout my career, many clients have shared with me the mixed feelings sparked when a long-term associate leaves the business. It’s never easy when someone leaves a practice, especially on short notice.

I’ve heard this story hundreds of times and listened patiently while a practice owner tells me how this feels. They handpicked their associates. They recruited them right out of school. They taught them everything they know. They helped them build their career. In short, they more or less helped them get to where they are today.

And then that young protégé they mentored says, “I’m moving on.” Sometimes he or she gives a lot of notice and is honourable about it…and other times he/she gives no notice or doesn’t even show up and sends a resignation by email.

I’ve been very fortunate that this has only happened to me on a few occasions and not for many years. When it happened the last time, I had known for some time that there was some staff dissension. The company has grown rapidly and my management team has expanded to the point that not everyone fits in, particularly those who started when the business was a small and intimate corporation.

It can be devastating when your long-term business relationship is suddenly and permanently severed. Even if you have a premonition, you really don’t see it coming. As a principal you might think, “They are probably better off with me than without me, so I can’t believe they would actually leave.”

In reality, principals should prepare for the eventuality of an associate leaving. If and when an associate feels able to do so, he or she will go his or her own way. Knowing this might help in your planning process, but it does not lessen the drama and stress that follows such a departure. What’s also deflating and disruptive is the confusion that results for patients.

For the most part, patients don’t like change when it comes to their caregivers. Principals are often left with major knowledge gaps and ignorance of patient’s preferences, established procedures, financial considerations and so on. And last but not least, patient confidentiality issues and company security measures may be at risk. More stress and consternation.

The truth is people will do what they think is best for themselves and their families, and I completely respect that because my own family has been protecting its interests for many years.

It’s the sudden impact of somebody simply saying, “I’m leaving.” That’s hard to deal with-no matter how many times it happens. We’ve all been through it in dating relationships, marriage relationships, friendships or business relationships. And when you don’t see it coming is when it hurts the most.

I’ve reflected on it in many different ways–anger, relief and most of all sadness. I still don’t understand where the relationship failed so badly. Remember, this is a business relationship. This is nothing like being in love with someone. Yet, I have to ponder, what could I have done better? Should I have been more attentive? Maybe I didn’t listen well enough? What did I do wrong? How did I upset this person to the point of deciding to leave?

Self-reflection is a large part of this experience, but when you’re a principal/owner and a long-term associate leaves, I can tell you one thing…

It hurts.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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