Key Performance Indicators Measure Gains and Losses.pdf
Key Performance Indicators Measure Gains and Losses.pdf
Key Performance Indicators Measure Gains and Losses.pdf
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong> <strong>Measure</strong><br />
<strong>Gains</strong> & <strong>Losses</strong><br />
Steven Sunder, BS, ABOC, FNAO<br />
Vice President – Southwestern Region. Eyefinity/OfficeMate<br />
<strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong>, also known as KPI or <strong>Key</strong> Success <strong>Indicators</strong><br />
(KSI), helps a practice define <strong>and</strong> measure progress toward practice<br />
goals. Once a practice has analyzed its mission, identified all its<br />
stakeholders, <strong>and</strong> defined its goals, it needs a WAY TO MEASURE<br />
PROGRESS as it moves towards those goals. <strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong><br />
are those measurements. KPIs are both qualifiable <strong>and</strong> quantifiable!<br />
Measuring Methodology<br />
Working with <strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong><br />
1. What are <strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong>, aka; KPIs?<br />
Once an organization has analyzed its mission, identified all its<br />
stakeholders, <strong>and</strong> defined its goals, it needs a way to measure<br />
progress toward those goals. <strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong> are those<br />
measurements.<br />
2. What Data is used to <strong>Measure</strong> KPIs?<br />
Some of the data sets would be new patients, staff productivity,<br />
accounts receivable etc?<br />
3. KPI Methodology?<br />
<strong>Key</strong> performance indicators (KPI) are high-level snapshots of a<br />
business or organization based on specific predefined measures.<br />
KPIs typically consist of any combination of reports, spreadsheets,<br />
or charts. They may include global or regional sales figures <strong>and</strong><br />
trends over time, personnel stats <strong>and</strong> trends, real-time supply chain<br />
information, or anything else that is deemed critical to a clinic's<br />
success.<br />
4. Developing a Monthly Trend Report?<br />
<strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong> (KPI) are high-level snapshots of a<br />
business or organization based on specific predefined measures.<br />
KPIs typically consist of a combination of reports, spreadsheets, or<br />
charts. They may include global or regional sales figures <strong>and</strong> trends<br />
over time, personnel stats <strong>and</strong> trends, real-time supply chain<br />
information, or anything else that is deemed critical to a clinic's<br />
Page 1
success.<br />
Learning Outcomes<br />
1. How to develop <strong>and</strong> measure the critical practice criteria aka “<strong>Key</strong><br />
<strong>Performance</strong> <strong>Indicators</strong>.”<br />
2. Learn how to measure the practice performance to the industry<br />
benchmarks <strong>and</strong> isolate areas of opportunities.<br />
3. Define target performance levels <strong>and</strong> then decide the best way to<br />
represent variance from that target.<br />
Course Agenda<br />
• Introduction to <strong>Key</strong> <strong>Performance</strong> <strong>Indicators</strong> (KPIs)<br />
• Selecting Data to <strong>Measure</strong> KPIs<br />
• KPI Methodology<br />
• Developing a Monthly Trend Report<br />
• Applying KPIs in Your Practice<br />
• Q&A<br />
Your New Glasses Will Cost What!?<br />
Page 2
Introduction to KPIs<br />
As the decision maker, you need at-a-glance access to KPIs so you can<br />
quickly assess the health of your practice <strong>and</strong> take comm<strong>and</strong> when<br />
conditions change.<br />
• KPIs reflect your practice’s goals.<br />
• KPIs are definable.<br />
• KPIs are measurable.<br />
Selecting Data to <strong>Measure</strong> KPIs<br />
• What is your professional revenue per hour?<br />
• How many patients do you see per hour?<br />
• How long is the Patient wait time?<br />
• How many new patients are you seeing?<br />
• What is your optical eyewear capture rate?<br />
• What is your average eyewear sale?<br />
• What is your receivable collection rate?<br />
• What is your revenue per square foot?<br />
Take Control of Your Practice<br />
• Are you willing to take this opportunity to take control of your<br />
practice or leave it up to chance?<br />
• “Be first <strong>and</strong> you will automatically be different. If you can hang in<br />
there <strong>and</strong> fight off the imitators, you will be very successful.” Jack<br />
Trout<br />
Collecting KPI Data<br />
• Total professional fees.<br />
• Total optical sales (frames <strong>and</strong> lenses).<br />
• Total contact lens sales.<br />
• Aggregate fees <strong>and</strong> sales.<br />
• Cost of goods sold.<br />
• Cost of all other practice operating expenses.<br />
• Accounts receivable.<br />
• Office square footage.<br />
• Collections.<br />
Page 3
Additional KPI Data<br />
• Facility square footage.<br />
• Support Staffing costs.<br />
• Physical inventory count (frames <strong>and</strong> saleable contact lenses).<br />
• Working days in the month.<br />
• Doctor patient contact hours during the month.<br />
• Aggregate monthly staff hours worked.<br />
• Number of exams performed.<br />
• Amount of frames sold.<br />
• Established patient exams performed.<br />
Page 4
KPI Methodology<br />
Questions to ask yourself:<br />
• What professional services do I track?<br />
• What optical services do I track?<br />
• How do I apply this information?<br />
Sample KPIs<br />
Developing a Trend Report<br />
Page 5
The Trend Report<br />
Practice Benchmarks Trend Analysis<br />
Page 6
Practice Expense Ratios<br />
Applying KPIs to Your Practice<br />
• <strong>Measure</strong><br />
• Monitor<br />
• React<br />
• Plan<br />
Q & A Session<br />
Page 7
Change language