Red to Black in 30 Days: Discover

Most problems are rarely anticipated and sometimes, practitioners cannot see the problem right before their eyes. 

I'm talking about the practices' financials. 

Then, all the sudden, there is not enough cash to last through the month, expenses are out of control, low case acceptance; all of this quickly become desperation. I've seen many offices appear to be doing well - on the outside anyway. After a quick review of the AR (accounts receivable), I begin to understand the true state of desperation its in. Other symptoms include low case acceptance, high customer complaints, and you, as the provider, are working too much. 

When practices are in this state the provider tends to go outward in desperate grasps to correct the course that practice had taken. More often the trend is to reach out to the accountant - surely there is a business model that's missing? The department budgets are incorrect? While this move isn't necessarily futile it's not where the attention needs to be focused towards. 

Setting the stage for Discovery will allow for immediate changes to happen. These changes alone will not bring the practice from red to black - it'll take a compact of this beginning step and the next two that follows.

During this phase I suggest focusing on three areas using this Score Card:

CONTROLLING CASH (AR)

REDUCING AND MINIMIZING EXPENSES (Budgets, overhead)

INCREASING REVENUE (Case Acceptance)

Just as an athletic coach coaches his players from numbers or statistics he uses, so can you as a business owner from the numbers on your Score Card. These Score Cards enables managers to see the breadth and totality of company operations while giving a quick and easy look at the status of the business. Plan on using this on a daily basis for the entire month. Review status at the end of each night and go over the previous day in morning huddle. 

Most are attempting to translate the scorecard into operational measures that become the focus for improvement. However, Score Card is not just a measurement system; it is a management system to motivate breakthrough performance. Translation: Don't stop using the Score Card at the beginning of the turnaround phase. This needs to be used continuously in your practice.