Can you predict the future?

Originally published in OVMA Focus Magazine July/August 2024

BY GREG TONER

As a kid, I loved the movie Back to the Future and its sequels. It has good humour and a great soundtrack, and there was something about the concept of knowing what’s going to happen in the future that stuck with me.

Early in my career, one of my mentors talked to his clients about “seeing what’s coming around the corner,” and that expression has resonated in many of my own discussions with clients.

How do we know what’s coming around the corner? Well, we don’t. But, if we spend some time thinking about what we want to be around that corner, we can then think about what will enable it to happen and what might prevent it from happening.

So, what do you want to be around the corner? More time with family? More money? A smoothly running practice with the capacity to handle surprises? Spend time thinking about this, as a poorly defined goal will give you results that you don’t want. Once you have an idea of what you want, think about:

• What are the things that are getting in your way?

• What are the things that you need to do more of?

• What are the things that you need to say no to?

Many practice owners I work with have a degree of chaos in their lives. They’re entrepreneurs, and every day brings new challenges. It can be the most rewarding and draining part of running a practice. This chaos can have an impact on them, their teams and their families. The most chaotic practices see high staff turnover, which adds to the chaos.

What if we could take away the most draining parts? For example, the feeling that everyone needs your time and that only you can solve issues that come up, or the anxiety during the slow days and the stress of busy days when you don’t have enough time to eat.

Getting control of the factors that add chaos to your day will help you predict how your days, weeks and months will unfold. You’ll be able to “see” into the future. These changes take time to make an impact. The top three changes that I’ve seen help practices are:

1 Tracking and reviewing key practice data.

There are a few key pieces of data from prior years that can help you predict what the next month or year will look like. Track things like the number of invoices, number of surgical cases, number of dental cases, revenues by service type, number of appointments and number of staff hours by role. It’s also important to know your clients and your client retention. Measure the number of active clients, new clients and pet ages. Monitor your practice’s performance relative to last year’s figures. Are you on track? What do you need to change? What levers do you need to pull to make those changes? It’s easy to watch revenues, but they don’t tell the whole story. By tracking these other data points, you’ll dig below the surface and get an idea of the health of your practice.

2 Developing and sharing clear processes for clinic operations.

Have processes in place for critical functions of your practice. For example, the beginning and end of day, new client visits, existing client visits and maintenance. If you do something more than once, you should have a documented process for that activity. This will ensure consistent results, and it will allow you to delegate more effectively. Make sure these processes are easily accessible and followed.

3 Hiring and promoting based on clear job descriptions and having a training plan.

Does your staff know the difference between an average and an amazing employee? Do they understand how to advance in your practice? What can they do to develop professionally? Having clear job descriptions and a progression of levels for the same role will allow you to identify who your star players are and reward them. It will also help your whole team progress, regardless of how skilled they are when they join your organization, since they have a path to follow. Develop training protocols for new hires, assign a mentor/trainer and have regular staff check-ins for your whole team.

If you have data (and more than just a revenue number), you can relax when it makes sense. You’ll know what’s normal and when it’s time to energize your staff and push harder. If you know what you want and don’t want to happen, and you document those processes and make sure they’re followed by your staff, you won’t have to worry about as many surprises. And if you hire and promote based on clear job descriptions and have a training plan to support those roles, you’ll be able to quickly identify who’s a good fit for your team and who isn’t. You may not be able to predict the future, but if you can reduce the number of surprises and move with more confidence through each day, isn’t it kind of the same thing?

Greg Toner, CPA, CA, TEP, CLU, is principal at VetCPA.

Reprinted from the Ontario Veterinary Medical Association’s Focus magazine www.ovma.org