Are you flying blind?

As I mentioned in a social media post last night - my Wednesday was spent working through no less than 9 sets of financial data, sent by clients for review and comment.

• Calculating Key Performance Indicators (KPIs) and comparing them to benchmarks;

• Calculating Operating Cost Per Surgery Per Day (OCPSPD) and comparing that to benchmark;

• Looking at the impact of increasing wages on profitability;

• Calculating the Average Daily Yield (ADY) of every fee-earner (gross revenue generated per day from either NHS delivery, private treatment sales or plan revenue);

• Conducting the crucial analysis of the profitability of each individual fee-earner;

• Establishing ADY targets for every fee-earner (as an alternative to the currently useless conversation around reducing percentages or moving to sliding scale - it's about production, not pay);

• Analysing the profit contribution of each "product line" (a.k.a. treatment modality) and determining winners and losers in the product mix;

• Calculating Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and using that to suggest a likely goodwill valuation for the business in current market conditions (and then looking at exit strategy);

• Reviewing current prices and suggesting price increases to maintain target profit margins.

All of the above are the dental business equivalent of a pilot's instrument panel.

I have a simple question for you this morning........

Have you done the same?

Or are you flying blind?

Let me know if you need help. coachbarrow@me.com