7 easy steps to a better veterinary practice

As this year draws to a close and a new one looms, we all know it's impossible to predict the changes we'll see. But one thing is certain: Charting a new course with a tactical plan based on what you do know will help you navigate through the next year and into the future.

We know you've got goals in mind. You might want your practice to gross $1 million or $5 million. You'd like that shiny new piece of equipment. You'd love to give your team members a well-earned raise. Sit down at least once a year and use the following seven steps to help you conquer change and achieve goals like these.

1 IDENTIFY YOUR PRACTICE'S STRENGTHS AND OPPORTUNITIES

What do you do better than any other practice in the area? That's a strength. If you can't think of an answer, you have an opportunity. Strengths may include high scheduling rates and satisfied clients. Opportunities may include areas where you could improve your client service, patient care, and standards of care. An opportunity also might be taking advantage of an untapped market niche. (See page 14 for one idea for a new service.) And don't neglect to think about such challenges as a new practice in your area or a decline in the number of new clients.

Dr. Lee Burnett, owner of Palmetto Animal Hospital in Florence, S.C., recognized that his receptionist didn't always have time to schedule appointments for dental cleanings and other recommended care during the checkout process. At busy times, she was answering phones, checking in clients, and trying to juggle checkouts too. "This was a missed opportunity for us," he says. When Dr. Burnett identified areas for improvement, it was time to develop some targets.

2 DEVELOP NEXT YEAR'S GOALS

Given what you know from the strengths, challenges, and opportunities you've recorded, plot the direction your practice will take in the short term (the next one to two years) and the long term (the next three to five years). Cover the following five areas of management:

> Medical development. Does your practice have hospital standards of care? If not, what standards will you develop for the next year? Does the practice fill a local niche in a certain procedure? How can the practice teach clients about that niche procedure?

> Staff development. What external continuing education will team members attend? Will you offer in-house continuing education? How will compensation and benefits change, if at all? How will you present changes to team members? Will you need to hire additional employees? If so, which positions will you fill, what will the starting pay scale be, who will train the new hires, and how will you communicate the staffing changes to your team?

> Client development. Is your team active in the local community? Is your community aware of your services, both for-profit and volunteer? What sort of continuing education can you offer for your clients? Consider hosting an open house and providing information on your services, or adding a calendar of practice events to your website. By the way, if you don't have a website, you guessed it—that's an opportunity.

> Facilities, equipment, and technology management. What aspects of the facility's physical plant need a facelift or outright renovation? What equipment purchases do you need—or want—to make? What would you like to improve in the future?

> Financial management. Before the tactical planning meeting, the management team will complete a proposed budget. Then you'll compare last year's budget to last year's actual performance. Note the differences and review the proposed budget for the upcoming year. It's perfectly fine to make changes to the budget based on decisions you make in other management areas or as a result of unforeseen challenges or opportunities in the marketplace, such as changes in team compensation or staffing, equipment purchases, an influx of new clients, and so on.

3 CREATE AN ACTION PLAN

To reach the short- and long-term goals you defined in each management area, you'll need to prioritize those goals and identify the steps you must accomplish to reach those goals. Your action plan should be a brief description of tasks the team must complete to meet the practice's goals. Include a timeline in your plan with deadlines to complete two or three tasks every two months. (See "Sample goals for tactical plans" on page 25.)

When Dr. Burnett recognized he was missing revenue and patient care opportunities because his receptionist didn't have time to schedule appointments, he looked to some of his colleagues and noticed they were performing checkouts in the exam room.

"The team members give clients all the information from their visit, review the diagnosis and treatment plan as well as recommendations, and make the follow-up appointment," he says. "Then they can take the client's credit card, process it in the hallway, come back in, have the client sign a piece of paper, and the client can walk right out the door."

4 IMPLEMENT YOUR ACTION PLAN

After the tactical planning meeting, tell team members about your new goals and action plan. Explain the logic behind your decisions so your team understands the purpose of their new goals. You'll get better buy-in if you consider their input on the action plan and the implementation process. After all, they'll be the ones doing most of the work. Delegate responsibilities so everyone knows who's responsible for each action item.

Dr. Burnett was eager to try exam room checkout at his practice, but first he needed to make sure his employees were on board. "I asked, 'Do you guys think this will be a good idea?' And they said, 'Yeah, we'll try it,'" he says.

5 MEASURE RESULTS

What gets measured gets done, so quantify as much of the action plan as possible to track your progress and results. Then periodically discuss your results and the team's progress toward the goal. For example, Dr. David Brummer, ACVIM, who owns Orchard Park Veterinary Medical Center in Orchard Park, N.Y., says his team sets dates to complete each task and project, and they review these goals quarterly. And Dr. Burnett says he sends frequent e-mail reminders to his team members to check in and make sure they're making progress.

6 REVIEW THE ACTION PLAN AS NECESSARY

Monitor progress toward your goals monthly or quarterly. If you find you're not making steady progress, take steps to get back on track. Remember, it's important to correct mistakes as they occur. Ask your team what they've learned from these mistakes and how they'll use what they've learned to meet their goals. And review the action plan as necessary based on current trends and unexpected situations. It's OK to change the plan and the budget if your first goals were unrealistic.

"I'm open to suggestions, and I let my team members run with the idea and make it work," Dr. Burnett says. "The key is to get the right team members on the right projects."

7 CELEBRATE YOUR SUCCESSES

Track your team members' accomplishments and your practice's improvements, and remember to aim for progress, not perfection. An occasional pat on the back will encourage your team's momentum. For example, at Dr. Brummer's practice they have small parties, such as lunches for the day staff and dinners for the night staff, to recognize they've reached a goal or say thanks for a job well done.

You can't plan for every eventuality, but you can prepare for some of the challenges you'll face. Use last year as your baseline for next year's tactical plan. Learn from your mistakes, set quantitative goals you can measure easily, and create a plan to ensure you achieve your goals. Monitor your progress and celebrate your accomplishments, and no matter what happens next year, you'll be ready.

How to ...

Denise Tumblin, CPA, is a Veterinary Economics Editorial Advisory Board member and president of Wutchiett Tumblin and Associates in Columbus, Ohio. Helen Hoekstra is a financial and valuation analyst at Wutchiett Tumblin. Please send questions or comments to ve@advanstar.com

Theory into action

Prepare for a tactical plan meeting

Follow this foolproof list to get your practice tactical planning meeting off to a great start.

1. Schedule a meeting at least once a year.

2. Select a location—off-site offers fewer distractions.

3. Select a facilitator.

4. Develop and distribute an agenda.

5. Identify the participants and request that they prepare in advance.

6. Designate a recorder for the day of the meeting.

Food for thought

Mold your meeting style

The best approach to team meetings is the one that inspires your team and keeps energy high. Dr. Lee Burnett, owner of Palmetto Animal Hospital in Florence, S.C., has developed a meeting process that works best for him.

The practice's previous owner held structured, formal meetings. "But for some reason, things never got done," Dr. Burnett says. "We talked about things and everyone nodded their head, and then when we left everything went on the way it used to. Two or three months later, we'd have another big meeting, and we'd rehash the same issues over and over."

Dr. Burnett says the best approach is to discuss the problem directly, talk to the employees or managers who can fix it, get their input, and then make the change.