Dental Tribune United Kingdom Edition

some of the practices that I vis- it. They are very much like the guy in the boat. They are quali- fied to be there, so they think they should be, but often have absolutely no idea how they are doing against the rest of the pack. But if they did, do you think that might motivate them to do something about it? Maybe to learn some new skills? Well of course they should! Most dentists are trained to be dentists, not businessmen. Run- ning a business needs skills in finance, marketing, sales, op- erations, people management, client experience and personal development (like leadership and vision). But getting skills is only half the story. Like the poor guy in the dinghy, for part of the race he had absolutely no idea he even needed help. That was until he started measuring his own performance against the restofthedads(andchildrenand dinghies). Benchmarking So, what about benchmarking? There are, of course, hundreds of things you could measure. So here is a selection of my top ten monthly KPIs (Key Perform- ance Indicators) that we regu- larly bench mark amongst our clients: 1. Principal ADY – Good old ‘average daily yield’ 2. Associate ADY – No hid- ing here, simply the bigger the better 3. Hygienist ADY – Ditto 4. Wages as a percentage of gross fees – We are talking about non-fee earners here. Often this can be the practice’s single biggest overhead 5. Fixed costs per surgery – This has been phenomenally revealing in the current eco- nomic climate 6. New patients – This is new patient registrations. The life- blood of any practice 7. New patient conversions – The acid test for selling skills 8. Number of surgery hours available – Where 60 hours in a week is the base line, multiplied by the number of surgeries 9. Net Profit – After drawings or owners salary 10. Net Profit as a percentage of the principal’s income – This is where many dentists realize that everyone in the building is earning more than they are! I guess the proof of the pud- ding is in the eating. Measuring things means you focus on them. Sitting with a group of dentists just a couple of weeks ago we found the average increase in turnover was a staggering 34 per cent in the past year. So, what do you think of that then? Can you think of a better way to win a rowing race other than to: a) Measure yourself against your immediate competitors b) Train in all the skills needed to row? I am yet to find a dentist without a cutting-edge, hard- nosed competitive spirit! DT About the author Mike Hutchinson is a director of Breathe Business. He draws on his experience as a partner in the larg- est accountancy firm in the South West as well as a Master NLP coach. Mike specialises in coaching den- tists on leadership, developing suc- cessful business models and imple- menting the right key performance indicators to grow dental practices. Breathe Business is the unique lead- ing dental business consulting com- pany, which specialises in working with dental principals and their teams in order to develop and grow their practices. Breathe Business: 0845 299 7209 or visit: info@nowbreathe.co.uk ‘Most dentists are trained to be den- tists, not business- men. Running a business needs skills in finance, marketing, sales, operations, people management, client experience and per- sonal development (like leadership and vision)’ 15Practice ManagementJanuary 24-30, 2011United Kingdom Edition A-dec 300 To learn more, contact A-dec at 0800 233 285 or call your local authorised A-dec Dealer. Visit our website: www.a-dec.co.uk A-dec Dental UK Ltd Austin House, 11 Liberty Way, Nuneaton, Warks, CV11 6RZ. Tel: 024 7635 0901 Fax: 024 7634 5106 Email: info@a-dec.co.uk Chairs Delivery Systems Lights Monitor Mounts Cabinets Maintenance Infection Control ©2010 A-dec® Inc. All rights reserved. Simple. Smart. Streamlined. A-dec 300 is designed for the health of your practice. Because your every movement counts, every detail matters. That’s why A-dec 300 is setting a new benchmark for optimal ergonomics, smart efficiencies, and lasting value. By asking what’s going to help you feel great at the end of the day, A-dec has arrived at a treatment room solution that ensures an easy, continuous flow that is as healthy as it is natural. In a world that demands dependability, A-dec delivers a proven solution without a single compromise. A-dec 300 streamlined.indd 1 03/11/2010 15:38:15