Preparing for the New Year!

Lots of education in store for you eager-minded veterinarians and managers.

Here's a roster of what's coming up in the first two quarters of 2012!

Bloomsburg Veterinary Hospital:  January 5th, 2012  Effective Client Communication

Valley Central Referral:  January 26th, 2012  Key Performance Indicators and Budgeting

VHMA Managers Exchange, New Orleans, LA :  February 12th (with Andreas Pahl)  Employee Retention

PACE University, NYC:  Social Media for the Veterinary Professional with Brenda Tassava and the BAVMA:  April 10th, 2012

NorthStar Veterinary:  Social Media for the Veterinary Professional with Brenda Tassava and the NJVHMA:  April 11th, 2012

Valley Central Referral:  Social Media for the Veterinary Professional with Brenda Tassava and the PVMA:  April 12th, 2012

Washington, DC:  CVC  April 29th, 2012  6 Tracks of education for Veterinary Technicians

Please visit my website for more information on these events.  Tickets for the Social Media events will go on sale in January.

Results for Anger in the Veterinary Workplace!

Thanks to everyone who helped out with the Anger in the Veterinary Workplace survey.  The results are still coming in.  The topic is clearly a volatile one with over 80 respondents thus far (if you’d still like to weigh in, go to this link).

As a way of leavening the raw data, I consulted with attorney Matthew Blit of New York City’s top labor-law firm, Levine and Blit.  I also got extraordinary input from Dr. Joel Mausner, an industrial psychologist also working in New York City who has extensive experience on the subject.  As soon as I’ve completed putting together their full responses, I’ll post them as well.  I’m sure you’ll find what they had to say fascinating.  In the mean time, I’m posting the raw data below. 

One last request…since anger and conflict often go hand-in-hand, how do you feel about answering a few more questions on interpersonal office conflict?  Only 7 questions.  Very short, very easy.  Click here. 

Results of Anger in the Veterinary Workplace:

1. Have you ever yelled at or loudly admonished an employee in front of his or her peers?

Yes  28.1%

No   71.9%

2. Have you ever raised your voice and been visibly angry with an employee behind closed doors?

Yes   51.6%

No    48.4%

3. Have there been times when you were justified in losing your temper at work?

Yes   45.3%

No    54.7%

4. What are your thoughts on the repercussions of temper outbursts at your work place?

They are serious                                                             65.6%

They blow over in a few days                                        10.9%

They blow over in a few weeks                                       3%

Sometimes, it’s the only way to get through to people 6.3%

Other  14.2%

8. Some would argue that the work conditions in veterinary practices lead to a more volatile atmosphere.  Do believe that is true?  

Absolutely 12.5%

That may be true 46.9%

I’m unsure 12.5%

That’s probably not true 23.4%

Other 4.7%

Still feel like doing the conflict survey?  Only take you two minutes tops.  Once again, here’s the link.  Thank you for you help in getting this data together!

Paid Doctor Production for the 'New Normal' in Veterinary Economics

Paid doctor production is a way of remunerating doctors based on their gross sales.  Typically a doctor is paid a base salary (ideally 20% of their projected annual sales) and receives an additional 20% bonus on all sales that exceed their annual goal.  These additional payments may be broken down monthly, quarterly, or paid out at the end of the year.  Production deficits may be carried over to the next period or may be wiped clean after an accounting term depending on the practice.  Vacations, maternity leave, unexpected slumps in business, and associate rivalry have all bedeviled the success and perceived fairness of the system.   Production-based pay works extremely well for some practices and is a cause for rancor in others.

Regardless of your practice’s past level of success with paid production, it’s likely you’ll need to rethink your position very soon. As we price more competitively and invest in new services and team training, the old rules are simple not practical and I would argue, unrealistic.

Begin 2012 with a review of your practice’s margin on production-based services and products, then discuss your findings with your veterinary team.  Including everyone in the discussion will improve buy-in.  Keeping the conversation about margin, rather than a doctor’s level of involvement with a service or sale of a product, will keep egos at bay.

Consider pulling production-pay on products that are competitively priced like flea, heartworm or non-steroidal medications.  If spays and neuters are priced as loss-leaders, perhaps production pay on these services could be reduced rather than fully eliminated.  Again, you have everything to gain by allowing the whole practice team to participate in the discussion.  A meeting like this may be just the spark you have been looking for to ignite a hospital-wide understanding of today’s veterinary business challenges and what every team member can do to improve the likelihood of success.

For a full list of recommended doctor production rules click here and follow the hyperlink to Veterinary Paid-Production Rules.

Anger in the Veterinary Workplace

Anger in the Veterinary Workplace.  Hey all, I'm putting together an article and a presentation on some of our 'blow up' experiences in the workplace.  Would you like your thoughts to go on record?  Please take ONE MINUTE (swear that's all it takes) to add your ANONYMOUS thoughts to this 'hot' topic.

Tricks and Treats for my friends in the Lehigh Valley

Hey everyone,

Thank you so much for a great time at your manager's meeting (and big hat's off to Mary Ann 'MAZ' Zakeski of Merial for pulling it all together!)  I hope you found the material interesting and worthwhile.  As promised, here is additional information to help you and your practice succeed!

Cool video on monthly wellness plans for your clients.

Build SCRIPTS for your client service team members!  Here are two to get you jump started.  One is on diarrhea and another one on fleas.

Also, remember we talked about the NOLO worksheet available on Vetpartners?  Here's the link.  Just go to the page and click on the PDF on 'Avoid being a practice worth less'

I look forward to seeing all of you soon.   I'll be at Valley Central Veterinary Referral on January 26th for another discussion on Key Performance Indicators.  Also, keep an eye out for our Internet Marketing Wet Lab date with Brenda Tassava.  Internet marketing is no longer an option, it's a MUST and doing it effectively is your practice's only real chance of staying in the running with an increasingly competitive industry.  We will not let you leave until you've moved a mouse across a screen, Tweeted a Twitter and Rumbled a Tumbler.  Best of all five other industry experts will be on hand to lead small groups of five through the basics and best of how to optimally use these powerful tools.  Feel free to share any questions that you have regarding our last CE date (or any questions really).  I'm available here.

You don't need your training program

Outrageous?  Really?  Ask yourself, what is the goal of your training program?  If you’ve never asked yourself this question, yet gone on and created a training program anyhow, I’d argue it’s probably okay to toss it.  

I often call veterinary practices and ask them about fleas, diarrhea, euthanasia, you name it.  Invariably I get a client service representative determined to talk to me about the issue itself, but with no clear through line to the conversation.  It’s as though I ended up calling the Wiikipidia of veterinary medicine.  This is not the goal of your training program.  Your goal is this:  instruct your team members how to perform aspects of their job while advertising your mission statement in their words and actions.  Secondly, teach your team members how to educate clients that your products and services address their concerns and needs. 

All the brochures, all the reminders, all the infomercials we ‘train’ our team members to provide our clients are not the goal of any training program.  These are tools to achieve our ultimate goal:  demonstrating how our services and products answer client and patient need.  As you look through your training program, make sure that it does not end with a body of veterinary medical information…the life cycle of a roundworm, the vector for heartworm disease…but how these facts can edify a discussion on why a client should take advantage of the great service and the great medicines your practice offers.

Effective Client Communication at Pittman Animal Hospital in NJ

I'm an idiot.  I had the camera in my bag and didn't take a picture of practice, so you're going to have to take a look at this place using this link.

I was there yesterday.  It's one of those practices that screams service, great management and a progressive outlook even from the distance of the parking lot. 

The inimitable David Tanz of Merial was my sponsor and the Pittman gang my loyal, enthusiastic audience for a discussion on Effective Client Communication.  You know how you often encounter those 'silent' groups, unwilling for whatever reason to weigh in on a topic?  Not this group...even the medical director, Dr. Robert Harris, was in attendance (isn't it great when these busy practice leaders  acknowledge the importance of CS representatives and their work by attending these meetings?) and a vocal contributor.  

Discouraged by your current practice's culture?  If I lived in this area, I would high tail a cover letter and resume to this group.  This is the kind of practice the experts write about in the magazines.  I doubt openings make themselves available too frequently, but it wouldn't hurt to start a discussion with their practice Administrator, Judy, for future consideration.

Please make sure you contact me for more information on  my 'Effective Client Communication' lecture; a fun and engaging discussion that emphasizes our practice goals with every phone call and every client interaction.  My contact information is here.  Work strong fellow veterinary folk!

Solutions to Pricing and other Challenges

Great big thanks to all those that attended my lecture at Valley Central.  You were an enthusiastic and attentive audience and it was a great pleasure to meet the many of you that I did.

As promised, I’ve summarized some of the things we talked about.  Please feel free to give me a call if you have additional questions.

Working Solutions to Pricing and to

other Challenges in Veterinary

Medicine

www.halowconsulting.com

www.halowconsulting.blogspot.com

And don’t forget Halow Consulting on Facebook!

September 15th, 2011

Bash Halow

§ BA, CVPM and LVT

§ Contributor to DVM360

§ Over 10 years experience as a practice

manager, regional manager and administrator

§ Currently work with practices in NJ, PA, NY,

MD helping them achieve more productive,

happier teams and increased revenue.

§ Founder of the NJVHMA and the BAVMA.

§ Member of VHMA, AAHA, NJVTA, NJVHMA

Overview of what we

will cover today

§Discussion of current challenges within

the industry

§Additional challenges within our

practices

§A look at our pricing

§Alternatives to increased prices

§No successful practice can be without…

Current Challenges within the

Companion Animal Health

Industry

§Study by Brakke, Bayer and Karen

Felsted with the NCVEI showed a

decrease in visits to veterinary

hospitals:

§Prohibitive pricing

§Internet

§Client Ignorance

§Increase competition

§Recession

§And Cats, but we’ll save this for another

talk ;)

Additional Challenges

§Poor charge capture and giveaways

§Inconsistent SOC and uneven use of

our staff to promote it.

§No marketing training for our team

members.

§Our pricing tends not to have a logical

or systematic through line

§Our prices tend not to be embraced by

our entire staff and by some of our

clients

6 What to do?

§I know you want something immediate

so I’ll give it to you, HOWEVER…

§The true success of your practice

demands that you implement solid

managerial practices like a Mission

Statement, Goals, Budgets, Job

Descriptions, Consistent Training,

Regular Reviews, and an Empowered,

Respected Team.

§In the meantime…

Let’s Talk about Pricing

§We have hit a wall with increased prices

§When pricing, make sure your prices

cover your costs plus a healthy mark up

§Consider pricing some services as loss

leaders

§Allow your entire team to participate in

your pricing

Pricing Cont’d

§KNOW YOUR EXPENSES

§Build yourself a pricing calculator

§Buy yourself a calculator

Build yourself a calculator

§Basic formula for a pricing calculator is:

Cost of fixed /semi fixed expenses per

minute x # of minutes for service +

material costs+ desired markup= price

Build yourself a calculator

§Group your services together

§Add in discounts and giveaways

§Mark up services to at least 15% net

profit

§As an aside Pharm should be marked

up 140-160%.  Shopped pharm 100%.

Mark up of pharm does NOT include

label or dispensing fees

§Be careful with added fees that you

cannot readily justify or explain.

Believe in your prices!

§Make sure your entire team is onboard

with them.

§Have systems in place to make sure

that your clients perceive value for the

price that they pay.

Create and Monitor Revenue

Centers

§Classify (categorize) products and

services together using the following

guidelines:

• Services and products where client

education has a direct impact on sales.

• Services and products that are included in

doctor production and those that are not.

• Services and products where you are able

to control ROI directly.

 Examples of Categories

To Raise or Not To Raise Prices

§I only know of one practice that raised

its prices too high.

§A pricing calculator will reveal your

prices are too low

§Prices are not as heavily shopped as

you think they are.

§If your team understands your

expenses and understands the value of

the service you provide, you can

successfully raise prices

Part II

Alternatives to price increases

www.halowconsulting.blogspot.com

www.halowconsulting.com

And facebook!

 Alternatives to Increasing

Prices Create an Inventory

Budget

§Use the profit loss statement

§Pick a reasonable goal

§Break it down into months

§Encourage your inventory person to

field offers or work exclusively with one

vendor.

Alternatives to Increasing

Prices Create a Payroll Budget

§I have yet to see a practice that could

not save money on it’s payroll.

§Assign someone to do it.

§Set a reasonable goal, then break it

down by days.  Schedule the changes,

don’t just hope people will leave early.

Alternatives to Increasing

Prices Create a Standard of

Care

§ Agree on hospital wide standards for the way

you approach patients and disease

§ Refer to State or National Medical

Associations for recommendations or look to

AAHA.  CATalyst is another great resource.

§ Ask all the members of your team how they

can help.

§ Start small

§ Regularly measure your progress (chart

audits, software reportage, external reportage)

§ Standards of Care bond your staff members to

your clients.

Regularly track success

Compliance Tracking

Alternatives to Increasing

Prices Fight online pharmacies

§Don’t default to the idea that people are

against buying from you.

§Know how your services are superior

§ We provide one- on -one personalized education about

our products

§ We serve the companion animal community

§ We’re there if anything should go wrong

§ We guarantee our products

§ We price competitively

§ We’re convenient

§ We’re supported by manufacturers

§ We’re transparent

§ We’re safe

§ Create your OWN online pharmacy

Fight online pharms (cont’d)

§ Develop your own online pharmacy to combat

internet sales.

 Alternatives to Increasing

Prices

Improved Marketing

§ Direct Mailers

§ Improved reminder systems and compliance tracking.

§ Social Media

§ An attractive, well-functioning website

§ Increase the chances that those with veterinary medical

questions will come to you.

Alternatives to Increasing

Prices

Educate your clients

§Practice discussions with your clients

§Use the internet (NCVEI recent study)

§Email blasts

§Use videos!

 Alternatives to Increasing

Prices Train your team to

market

§  Hire all your staff members for communication skills.

§  Record phone calls and ask your team members to

review them as a way of giving them objective

feedback.

§ Ensure they understand the medicine and value of the

services you provide

         1.  Cross train

         2.  Have staff members try products or share 

              stories about services.

§ Regularly discuss staff member’s communication

success stories

          1. Acknowledge them in front of the group

          2. Reinforce positive behavior, ignore, as best

             you can, less than stellar performance.

          3. Identify empathy, understanding of client

              need, targeted education and catalyzed

              appointments when staff members

              discuss their success.

• Ask how the communication served the mission or your

practice goals.

Alternatives to Increasing

Prices Train your staff how to

discuss financial matters

§  Provide your clients with financial options that

the staff believe in.

§ Citi Health Care as an alternative to Care

Credit.

§ Rehearse ways that we should discuss money

with our clients

             1.  Out of earshot and sight of other

                   clients

             2.  With a clear understanding of the

                  many options clients have to pay their bill

             3.  With respect and understanding

             4.  With a very clear explanation of the

                  consequences of default.

Review your discounts and

giveaways

§Run a Standard Fee Exemption Report

§Run a report on regular discounts

§Audit charts

§Evaluate your team members’

commitment and feelings regarding the

service they provide.

Don’t do it alone

§Develop and Use and Empowered Staff

§Consultants

§Vendors

§Associations

§Online training

Use solid Management tools

§  Mission Statement, Core Values

§  Short and Long Term Goals

§  Annual Plans

§  Budgets

§  Job Descriptions

§  Regular Reviews

§  TEAM meetings and staff empowerment

Know how you impact your

practice

§ Know who you are and how you tick.

§ Flaws in your ability to interact well with others

are magnified in your leadership role.

§ Take the time now to identify shortcomings in

your interpersonal communication skills and

make improvements.

§ In my experience, owners and managers who

belittle or degrade, play unfairly, or have little

respect for their team are the ones with the

most problems.

Thank You!!!

Bash Halow, CVPM, LVT

917 825 1630

www.halowconsulting.com

www.halowconsulting.blogspot.com