Veterinary Hospital “A”Strategic Business Planning

“The trouble with not having a goal,.....

is that you can spend your life running up and down the field and never score.”

- Cricket Umpire Bill Copeland

I. Business Planning

The Seven Components of a Successful Business Plan

What Exactly is the Difference Between a Vision and a Mission Statement?

http://youtube.com/v/vRd4OhGFO-E

Mission Statement• Your Mission Statement describes what business you

are in and who your customer is.

• As such, it captures the very essence of your

enterprise - its relationship with its customer.

• Your mission statement must “work” not only today but

for the intended life of your strategic plan of which

your mission statement is a part.

Developing Your Statement

• It should be broad enough to allow for the

diversity (new products, new services, new

markets) you require of your business.

• And it will also be specific enough to provide the

focus necessary to the success of your

business.

Vision Statement

• A Vision Statement begins not at “today” - but

at some point in the future.

• That’s because a vision is not true in the

present, but only in the future.

Developing the Vision• Your vision should project a compelling story about the

future.

• Asked of his vision initially, Steve Jobs said, “An Apple on every desk." Well there wasn’t then an Apple on every desk, and in fact, there won’t ever be an Apple on every desk. That’s OK. The vision can be figurative, rather than literal.

• It’s also important for management not just to speak the vision, but also to live the vision.

Communicate the Vision

• Your team needs to decide how it will

communicate its vision to your employees.

• How to continue to nurture and support that vision

every day, in every way.

• How to empower employees to fulfill that vision.

Values• Your company’s values influence “everything.”

• For example, for any statement, whether mission

or vision, to be embraced and acted upon, it must

reflect the values of your organization.

• Values describe what your management and

ownership team really cares about. What it holds

dear.

Goals

Objectives

Identify targets and/or benchmarks associated with objectives

General Business Plan Structure

Execute/Implement Assessment

Mission Statement Vision Statement

Values

Typically, before setting goals and objectives, a business will conduct a SWOT analysis

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

StrengthsHigh standard of care and aggressive diagnostics for

patientsDoctor and technical staff on site 24 x 7

Access 24 x 7 for emergency and appointments during traditional ‘off hours’

Options for dedicated prescription refills

Phone consults 24 x7 with technical staffMultiple options for reminders/communications (e-mail,

postal, texting, etc,...)

Modern facilities and equipment On-call surgeon

Generous and open visitation for hospitalized patientsDoctors with strong surgical and medical skills and

average tenure of approx 12.5 years

On site specialists including board certified surgeon, and an internist, acupuncture, & physiotherapy services

Strong technical staff with an average tenure of approx 8 years

Longevity of the practice (50 + years of service to the community)

Excellent community reputation for medical care

Weaknesses

Not “Customer-Centric” Cumbersome discharge process for all patients

Poor communication frequently, and specifically related to providing clients with recommendations and cost of

care

Inbound calls not answered timely or by someone qualified enough to assist the caller; lends itself to poor

service level and low staff morale

Inconsistent care from doctor to doctorDoctors not adhering to the hospital’s identified

standards of care; not all areas of care have relevant standards as yet

Fragmented client base with many clients using more than one regular clinic

We have not provided care the level of care to the senior pets that we should and they comprise a

significant % of our patient demographics

Opportunities

Improve communications with clients, specifically in those areas identified as weaknesses

Improvement of discharge process

Review and enhance operational processes to improve service and reduce overall costs

Deployment of on-line pharmacy to enhance service delivery of products to clients and reduce the on-site

inventory footprint/cost

Strategic re-deployment of staff specifically related to the client services area to manage on-site arrivals and inbound calls; client services staff re-deployed in more

of a concierge role, designed to enhance client experience

Develop the physiotherapy program

Development of comprehensive marketing campaign inclusive to primarily digital content, on-site materials,

and promotional opportunitiesEnhance patient care, specifically that of senior pets

Threats

New market entries competing for emergency medical care

Strong presence of on-line pharmacies; market changes driven by pharmaceutical companies (ie. flea medications can be bought at Target OTC without an office call, which we still require); big box retailers are increasingly offering products at a much cheaper cost

Market saturation for well-pet carePopulation demographics are not increasing for the

region

2012-13 Business Goals• Enhance the client experience

• Improve patient care through use of standards

• Better management of expense-side costs

• Revenue increase via strategic marketing efforts

• Improve business reporting/KPI's

• According to studies conducted by AAHA

and the AVMA, 62% of practice owners

do not use financial concepts to manage

their business.

• Those that do earn two thirds more.

Plan Objectives• Develop staffing efficiencies and reduce the cost

of staff turnover

• Enhance the client experience

• Drive revenue increase through marketing

efforts, and improved compliance

• Reduce costs affiliated with inventory

management

A. Expense Side Management

Staffing & Turnover• In 2010, the client services department alone,

experienced turnover of 16 employees,

resulting in costs exceeding $200,000

• This was payroll expense for staff members

who are no longer on the payroll

• The costs are higher still when other

department turnover costs are factored in

Staffing Targets• Staff costs should be targeted towards 26-28% of

total revenue

• Establish effective support staff ratios

• Overtime costs should be able to be monitored

more effectively through ADP (based on prior

database design, it is impossible to determine

what it truly was for 2010)

Opportunities

• Staffing the registration desk and call center with

greater number of technicians will yield a direct

reduction in turnover costs, improved service

delivery, and enhanced efficiency in delivering

services to clients

• New ADP software will provide improved reporting

to monitor staffing cost trends

Monitoring Visit Volume• Software should be used to effectively monitor

client visit volume and use trend analysis to

forecast staffing needs

• Identify % of use of available appointments for the

doctors scheduled; should be 65-70% on average

• Staffing adjustments should be considered if goals

are not met