I was managing a large eye clinic with well over 10,000 patients, and the practice was making a profit month after month. No problem, right?
Well, there was one problem. Our profits leveled off. Essentially, we weren’t growing. And in this day and age, if you aren’t growing, then you are dying. Why? Because someone else is growing, and their market share will eventually eclipse yours.
So, this is what I did. I gave every position in the office a bonus/spiff program. Each area was given a goal based upon a percentage increase of what they did in the respective month last year. If they hit the goal, I gave them money.
And profits took off.
You see, the staff only received the bonus if they hit a percentage increase from the year prior. That way, the doctor only bonused on increases, so the bonuses never hurt the bottom line.
We gave the staff more money, and the practice made more money. Why? Because bonuses motivate, and in addition, they also give an objective evaluation tool to management.
For example, let’s say in July of last year, you deposited $100,000. You then tell your staff that if the office deposits increase by 5% ($105,000) in July of this year, then everyone gets $100. Increase by 10% ($110,000), then everyone gets $150, and on and on.
On a 5% increased month, the practice deposits an extra $5,000. With a 7 person staff, the employees earn a combined $700 in bonuses. The office nets $4,300. You make more money because you gave your staff more money.
This gives your staff an additional reason to care about their performance and your practice. It gives you a goal to give your staff. And, it puts more money in the bank.
Don’t be worried about bonuses. As long as they are based on increases, you won’t lose any money.
Gordon Duncan is the CEO of ProSight Success. Tips like the one above, in addition to many others, are a part the ProSight Success System that has helped 100’s of Eye Care Practices in America and 5 other countries.
Gordon Duncan is an award-winning educator, salesman, teacher, manager, and writer. He has taught in the public school system, lobbied for school's accreditation, managed eye clinics, led sales' teams, and also publishes books on theology, church, and culture.