Four Tips on Practicing Open Book Management With Your Dental Teamby Dr. Ron Arndt
Educate your team to what each line item means and how it impacts the practice profitability. This ensures that you will grow a successful dental practice and have a stronger “buy-in” from your employees.
Follow these 4 tips and action steps to engage Open Book Management into your dental practice:
- Consult with your accountant to develop financial statements that are easy to read and organized.
- Bring in your accountant or CPA to read and review your financial statements for a Lunch and Learn with your team members on a quarterly basis.
- Begin tracking important practice numbers each month and share their significance with every member of your team. Examples include: production, collection, collection percentage, hourly production for the hygienist and the doctor, treatment recommended vs. treatment accepted and the associated percentage, amount of broken appointment time, and the impact on practice income.
- Develop solutions to reducing overhead and increasing production so that profitability can be shared.
“Man’s mind, once stretched by a new idea, never regains its original dimensions.” ~ Oliver Wendell Holmes