Do Your Team Employees Know How Much Their Employer Makes?by Dr. Ron Arndt
How much have you shared with your team regarding your practice numbers? What do they know about the financial statements? When did you last discuss the profitability of your business at a Morning Huddle?
Too many Dental CEOs operate under the philosophy that practice revenue numbers are top-secret. To the Dental CEO, the numbers should be kept in Fort Knox.
In my experience as the Dental Coach, I’ve seen that failure to share key financial information misses a huge opportunity to get everyone involved in growing a profitable dental practice.
Use an Open Book management approach to teach your employees how their individual function contributes to the profitability of the company’s profits.
- Educate your team to what each line item means and how it impacts the practice profitability.
- Ask your accountant to develop easy-to-read financial statements.
- Track important numbers each month and share the significance with your team. Examples are production, collection, treatments recommended vs. treatment accepted.
- Invite the team to make suggestions for places to cut costs.
Open Book Management enables employees to make better decisions and leads to explosive growth. It implies that you trust your team, believe they are capable of understanding the business and have faith in them.
“Man’s mind, once stretched by a new idea, never regains its original dimensions.” ~ Oliver Wendell Holmes