What's the Alternative to Production Goal KPIs?

Is it possible to measure production without looking at your actual production figure? Would you prefer to track other metrics other than simply invoices? And would it better suit your team culture and vision to focus on different KPIs? If so, this might help...

Bare with me as I lay a foundation for my suggestions!

The production goal is a critical KPI (key performance indicator) and it is often measured on a daily, monthly and annual basis. Your production goal is the calculated number your practice needs to generate to remain profitable. Not a 'pie in the sky' made up number, but what is actually required to fulfill all your business financial obligations. It's essential it is realistic and correct. Tracking and analysing it is a necessary function. 

The production goal, production charts, discussing production at morning huddles etc can be stressful and uncomfortable for some employers and teams. If it is the only number you care about, the pendulum has swung too far and now you and your team seem to care more about 'money' than you do quality of care and service.

This is the conundrum: Production is a critical KPI and we all need to understand and track it but when it is looked at in isolation and becomes the driving force, it can have a negative - even counterproductive impact . It can leave you feeling desperate if you don't meet it and stressed if you meet it going against your practice vision or team culture.  Your staff feel it and it can even seep into your interactions with your patients. 

As with any KPIs you track and measure in your practice, you cannot look at them in isolation. Often multiple KPIs influence and impact each other. That's why as a PM and consultant, I look at a minimum of 20 practice KPIs (mostly financial and scheduling) on a monthly basis and analyse them in groups to assist me in planning and strategising how best to move forward.

Knowing that numbers work together to paint a more realistic picture can bring you reassurance if you decide not to look at production goals with your team. You can instead choose other targets you know that if achieved, guarantee you are meeting your production goals. And perhaps this is a substantially better, more positive way for your team to measure productivity.

So what are these other KPIs?

These KPIs are anything else that directly contributes to your practice making your production goal. In other words, what activities or actions need to happen that allow you to generate the required amount every day?

In practices I am involved with, there are 5 such KPIs.

1. Number of adult new patient comprehensive exams. We understand that most of the high value treatment comes from comprehensive treatment planning, addressing all the needs and wants of every patient. Spending quality time building relationships, understanding and addressing the patient's motivations and concerns, and creating an exceptional experience. We calculate how many of these are required each day for each provider.

2. Treatment plan acceptance. Our aim is to create a comprehensive, truly personalised plan in partnership with the patient that is accepted and completed. Our plans ensure we restore the patient to health and good function and if desired, include aesthetic considerations. We have a minimum amount required to be planned and accepted. 

3. Recall success rate. We call this our Preventive Care (hygiene) or Active Maintenance (perio) programs. These regular visits are another stream of potential treatment from periodic examinations and 'update' comprehensive examinations. They are also an opportunity to revisit incomplete treatment, provide further information and address concerns preventing patients from completing treatment. We look at a combination of the required amount of recall patients per month, the pre-booked rate and the number of recalls completed.

4. High value treatment units. We identify which treatment or services generate the highest fee per hour and calculate how many would be required for each provider every day. We know that if we complete and collect on these, we have generated approximately 70-80% of our daily production.

5. Lost production. This is a combination of failed appointments and patients. We look at no shows, cancellation and rescheduled rates, failed recalls and discounts or 'adjustments'. We have a maximum allowable rate for each, striving for zero.

Overall, it is the perfect combination of the right patients accepting the right kinds of treatment and services for your practice that generates production. 

In my opinion, "bums on seats" or "fill every minute of the day" (quantity over quality) has never been a positive approach to achieving production goals. 

What we are aiming for is creating opportunities for the ethical and comprehensive treatment planning of high value services while maintaining a positive team culture and dedication to health and service.

I would love to know what you consider to be the best approach to measuring financial KPIs in your practice!

Would you like assistance to analyse your practice KPIs?

Contact Renata to book a complimentary 30 minute call to discuss your concerns or needs.

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