How to Measure Practice Performance

How to Measure Practice Performance for Optometrist Practice Owners

It’s clear that nearly every optometry practice has felt the impact of COVID-19. More than ever, it is vital to track key performance indicators (KPIs) such as cash flow to help your practice survive and thrive in the new normal. Here are four steps to help you track your practice’s performance effectively.

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 higher traffic to your website. Before you can know what to measure, you need to first decide what you want to achieve.

Examples of Business Goals:

• Increase sales by 10% this year.
• Achieve a 4.8 rating on Google reviews by the end of the year.
• Increase profit margin by 8%.
• Reduce patient time in the clinic to 45 minutes or less.

Step 2 – Develop Key Performance Indicators (KPIs)

KPIs are standard ratios that provide insight into your business performance. Examples include revenue generated per patient or doctor. These indicators help you measure performance against the goals you’ve identified.

Setting KPIs will vary between practices. It is important to choose KPIs that are meaningful, measurable, and aligned with your goals.

Step 3 – Define Suitable Metrics

Business metrics are quantifiable measures that track and assess the status of specific business processes. Depending on your practice and your goals, you may want to focus on certain metrics, including marketing, sales, financial, and online metrics.

These metrics keep practice owners and employees informed and aware of how the practice is performing.

Step 4 – Track and Measure

Narrow down the information you think is crucial to track. Choose a few major business goals, develop related KPIs, and focus on collecting relevant data.

Tracking metrics allows you to see performance patterns in your practice. Numbers don’t lie—they reveal the truth as it is, not as you wish to see it. Understanding the story behind your numbers is powerful because it puts the wheel that drives your practice in your hands, not in the hands of chance.

Identify a few goals for your practice, assign a benchmark for each goal according to industry norms or your past performance, establish metrics to track factors affecting the success of your goals, and identify the KPI for each goal to track performance. Tracking these numbers is crucial.

You should know your KPIs like the back of your hand. Ideally, track them daily, but if you’re not there yet, at least track them monthly.

If you’re struggling in your practice, I hope this article inspires you. You truly hold the power to change your future. Can you see that now? YES?! Good, because my goal is to inspire and empower you!

If you’re thinking, “This all sounds great, but I don’t know where to start,” you’re not alone. Many others feel the same way. You don’t have to do it alone. That’s what I’m here for. If you’d like my help, click HERE to get more information about my consulting program. I work with you on each step and help you create a success blueprint for your practice.

I look forward 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 our CEO of YOU Business Coaching program!