Discover the CEO of YOU® – Administration, Time to Take Control!

Running a successful optometry practice isn’t just about clinical expertise; it’s about mastering the business side of your practice, too. According to our CEO of YOU® business model, a winning strategy involves creating a clear guide and performance assessment for each of the five pillars of business success: Leadership, Administration, Operations, Promotions, and Sales. Today, we’ll dive into the second pillar: Administration. This pillar is crucial for taking control of your practice’s day-to-day operations and ensuring long-term financial success.

Administration is often the backbone of any thriving business—it’s about measuring, managing, and monitoring all the systems within your practice to ensure everything runs smoothly. Let’s explore how you can harness the power of effective administration to take control of your practice’s future.

Pillar #2 – Administration: Measure, Manage, and Monitor

As management thinker Peter Drucker famously said, “You can’t manage what you can’t measure.” Without clear metrics and a structured approach to administration, it’s impossible to determine whether your practice is truly on the path to success. The core of administration involves managing five key areas of your practice: Financial Metrics, Business Protection, Human Resources and Payroll, Communication Systems, and Information Technology. Let’s focus on the most critical component of administration: Metrics, Key Performance Indicators (KPIs), and Benchmarking.

Financial Metrics, KPIs, and Benchmarking: The Heartbeat of Your Practice

Understanding financial metrics, KPIs, and benchmarking is essential for any practice owner. These tools allow you to assess how well your practice is performing, pinpoint areas that need improvement, and make data-driven decisions. Here’s a quick breakdown:

• Metrics: Quantifiable measures used to track and assess the status of various processes within your practice.
• Key Performance Indicators (KPIs): Specific metrics that demonstrate how effectively your practice is achieving its business objectives. KPIs are the targets you set to drive performance.
• Benchmarking: The process of comparing your practice’s performance against industry standards or your past performance to gauge success.

Story: When I first encountered these concepts, I was overwhelmed. I knew they were crucial but didn’t quite grasp how to apply them in my practice. However, by gradually identifying key KPIs and setting benchmarks, I gained control over my practice’s financial future. For instance, tracking patient satisfaction scores, appointment booking rates, and revenue per patient helped me identify trends and adjust strategies accordingly. Over time, these measurements became second nature, guiding my decisions and boosting my confidence as a practice owner.

Quote: “What gets measured gets managed.” — Peter Drucker. This quote resonates because it highlights the importance of accountability in business. Knowing your numbers isn’t just about tracking success; it’s about creating a roadmap to improvement.

Action Step: Identify a few key KPIs for your practice, such as average revenue per patient or patient retention rate. Set benchmarks based on industry standards or your past performance, and measure them regularly—ideally daily, but at least monthly. Knowing these figures will help you stay on top of your business.

Business Protection: Safeguard Your Practice

Owning a practice involves managing risk and protecting your business. This means hiring competent advisors—attorneys, accountants, bankers, and consultants—and meeting with them regularly to ensure you’re compliant with regulations and prepared for any challenges. For example, reviewing your insurance policies annually and having a clear understanding of contracts can help you avoid legal pitfalls.

Pro Tip: Schedule an annual business health check with your advisors to review your practice’s financials, legal compliance, and risk management strategies. This proactive approach helps you stay protected and prepared.

Human Resources and Payroll: Streamline Your Processes

Human Resources (HR) and payroll management are essential but time-consuming tasks. For many practice owners, the best strategy is to outsource these functions, freeing up time to focus on revenue-generating activities. Outsourcing HR and payroll not only reduces administrative burdens but also minimizes compliance risks.

Example: A fellow practice owner struggled with high turnover and payroll errors that impacted employee morale. By outsourcing HR, she was able to streamline her processes, reduce errors, and save both time and money.

Action Step: If you can’t outsource HR and payroll yet, consider using software solutions to automate as much as possible. Set a goal to eventually outsource these functions, allowing you to focus on what you do best—serving your patients.

Communication Systems: Enhance Internal and External Connections

Effective communication is critical in any business. It’s not just about talking; it’s about connecting with your team, patients, vendors, and the community. Administration should assess your practice’s verbal, written, and electronic communication methods to ensure clarity and efficiency.

Story: One of our practices faced communication breakdowns that affected patient care. By implementing a new communication system that included regular team huddles, automated patient reminders, and a robust internal messaging platform, the practice was able to improve both staff coordination and patient satisfaction.

Quote: “The art of communication is the language of leadership.” — James Humes. Effective communication fosters leadership and ensures everyone is aligned with the practice’s goals.

Information Technology: Invest in the Right Tools

Technology plays a pivotal role in modern practice management. From Electronic Health Records (EHR) systems to patient management software, technology can streamline your processes and improve patient care. Classify your technology investments into two categories: Revenue-Generating Tech and Operation Support Tech. This approach helps prioritize tech investments that directly impact your practice’s bottom line.

Example: A practice that invested in a state-of-the-art EHR system saw a 20% increase in productivity because staff spent less time on manual data entry and more time on patient care.

Pro Tip: Regularly evaluate your tech tools to ensure they meet your needs. Don’t be afraid to upgrade if it means greater efficiency and profitability.

Conclusion: Take Control of Your Practice

Administration is the heartbeat of your practice. It empowers you to measure, manage, and control every aspect of your business. As the saying goes:

• What you can’t measure, you can’t manage.
• What you can’t manage, you can’t control.
• What you can’t control will control you.

By mastering the administrative pillar of your business, you lay the groundwork for long-term success. Stay tuned for the next article, where we’ll explore Pillar #3—Operations. Until then, remember to dream big, take risks, and continue your journey as the CEO of YOU®!

Call to Action: Join the Optometry Divas Community!

Ready to elevate your practice and connect with a community of empowered women optometrists? Join the Optometry Divas community today at optometrydivas.com/join. Together, we’ll navigate the challenges of practice ownership and discover the CEO of YOU®! If you found this article helpful, share it with a friend or colleague, and help spread the message of connection, empowerment, and promotion!