Episode Transcript
Key Takeaways
- KPIs are essential for understanding business performance beyond vanity metrics.
- Many practices lack effective software solutions for tracking KPIs.
- KPIs provide critical insights into business growth and efficiency.
- Monitoring KPIs can prevent internal issues like theft and inefficiency.
- Proper use of KPIs can significantly enhance practice profitability.
Introduction to KPIs
Welcome back to another episode of Practice Perfect, the podcast for medical professionals and anybody running a services business as opposed to a bricks and mortar store.
On today’s show, we’re gonna talk about something that is probably the second most boring topic in the world. The first being operations, which one of our guests is an expert in as well. But this boring topic is probably one of the most important things that you can have in your practice. What I’m talking about are KPIs. If you’re not familiar with the acronym, KPIs are key performance indicators. They are the things that matter to a business.
The Origin of Atlas KPI
Joining me today, I’ve got Isaac Muesli from Atlas KPI. He’s the CEO and I’ve also got Randy Torben who is the VP of sales at Atlas. They are both experts on the subject and we’re going to get into it in just a little bit. So Isaac and Randy, welcome. Thank you. Thank you for having us.
So let’s start with Isaac. Isaac, give us a little bit of a background of what your history is and how you came up with the idea of Atlas KPI and why you guys started it up. So the true story is that it started from a professional need as I used to be a general manager in a different software company.
The Importance of KPIs
For me, KPIs is almost like a shortcut to get the insight of your business performance.
If you’re looking and isolated, only the revenue that you bring in from existing customers that’s referring to you, their friends, it has much more than just a revenue number. You represent the NTS or how much the customers are happier. What’s the level of service that you provide?
Challenges in Practice Management
And what Isaac said there about them still using paper, a lot of them are still in this same situation. So, you’ve got everything from resistance from staff for not using DMR type software to manage the records, to just them getting stuck in their old ways, or frankly, a lot of the times software just gets in the way more than anything. It creates more of a problem than it solves.
The Role of Technology
Nick, if I can, I’d like to add to that, especially focusing on what you had just said about the doctors being in and out of the practice. That’s one reason why it’s so important to recognize that the technology in the industry has grown to not only allow these doctors to move from paper to software, but to now have that software be available through their mobile phones.
Preventing Internal Issues
If you can’t measure it, you can’t manage it.
When you grow to a certain size, and you’re not really paying attention to your business, people start to steal. You could have a bad egg, or it could be systematic, it can be job dissatisfaction, but I’ve seen everything from people taking Botox and running a business on the side to just flat out embezzling two, $300,000 out of a practice.
Key KPIs for Success
So let’s start from the office manager, when I’m assuming and understanding that majority of office manager also is playing the role of patient coordinator these days, especially from the practices we’ve met. Most important for office manager, and some of them also in charge of the expenses as well, I think that the number one for them in terms of priority will be to look at the conversion rate, looking on the customer acquisition cost to understand how is it being built.
Real-World Impact of KPIs
I’m going to use my father-in-law. He was our first customer, obviously. We did it almost on demand for him and the peers. One of the main game changer, I think, within his practice was when we got to the point that not just he had all the realizations of the data that he had never seen before, and data started to make sense to him, and it took a couple of weeks for him to practice and look again on the charts and ask the question to understand exactly how this data is coming together and what it exactly represents and why should he care about that if he goes up or goes down.
Conclusion
Thank you for having us. Thank you for the opportunity. Yes, thank you very, very much. Thanks for listening to Practice Perfect. I hope this episode’s given you a lot to think about.