Leaving a legacy and not a liability. This program is about developing like-minded future owner directors of your practice or business.
Objective
The first objective of this program is to ensure all owner-directors-directors are on the same page and hold a vision and direction for the practice that is fair and equitable.
The second objective is to provide a career pathway for future owner-directors. The program grooms them to one day buy a retiring share on fair and equitable terms, as well as value-add beyond the fees they may generate.
The third objective is to encourage a task force committee for aspirational owner directors to work live and closely with implementing the practice’s objectives. This road tests the applicants and also assist practices in delegating important projects to enthusiastic staff members on the team.
To achieve this goal, the Directors pathway training program is detailed below.
Clinical and Non-Clinical Governance training
For any practice with a board or contemplating a board (i.e. greater than one owner), governance is essential in nurturing the relationship it has with its stakeholders, such as other board members, the practice manager, employees, suppliers, government and patients. Governance is the set of processes and policies that determine the way a practice is directed, administered and controlled.
Clinical governance focuses on the practice’s accountability for continually improving its level of service, providing high standards of care, and implementing continual improvements that reflects clinical best practice, is financially sustainable and where all practice staff are empowered.
The Health and Life presentation provides practical thinking and problem solving tools including in-house delegation and monitoring programs for owner–operators .i.e. directors and potential directors. This training is for owner-directors and potential owner- directors.
Establish a vision – client to prepare
The vision is the Practice’s intended or desired objective or strategic direction. For example, to have a 10 consulting room, multi-disciplinary practice within five years. The ability to develop and plan a strategy over the next 12-months and five years is critical to the future focus of an organisation/practice. Owners must consistently work at a higher level on their practice and not just in the practice. This is critical to the practice’s succession planning and maintaining practice efficiency and profitability. We use information from the world’s best practice standards.
The presentation provides practical thinking and problem solving tools, including in-house delegation and monitoring programs. This training is for owner-directors and potential owner-directors. Accounting clients can request a free copy of our presentation slides and use them for an annual in-house strategic planning day with practice staff. Contact us for more information.
Establish a three to five-year Strategic Plan
Once the vision has been established a strategy can be set. A strategic plan involves setting a three to five-year business plan to realise the vision. It should detail the risks and opportunities involved as well as quantify the financial returns. This needs to be done at a very high level, with annual profit and loss projections from year one to year five. Actual financial and non-financial results are fine-tuned to ensure the practice is on track. Our clients normally request these projections at the beginning of their engagement with us for any major practice restructuring or building project and we have developed considerable expertise in this area.
Establish a 12-month Operational Plan
The 12-month operational plan is the incremental methodology used to implement the five-year strategic plan. Building and/or modifying strategic plans or major decisions for the year ahead are based on the time period referred to in the plan. For example if, in year one, the practice is developing a new location details of what needs to be done, how it is to be achieved and by whom and when need to be detailed in the 12-month operational plan. This report is expressed in words only and not in numbers. The Practice Manager reports to monthly Board meetings using the Monthly Dashboard Report and with appropriate progress explanations.
Accounting clients who use our annual The Good, Bad and Ugly Report that recommends financial and non-financial targets based on inter-practice benchmarks, and external environmental factors such as changes to Medicare rebates, or item numbers, or healthcare policy. Tasks can be delegated to potential directors by inviting them to task force sub committees formed at a Board meeting. A director from the Board would act as chair of this group. This training is for owner-directors and potential owner-directors.
Establish 12-month Operational Budget & Cashflows
When the 12-month operational plan is finalised, a 12-month operational budget needs to be developed to reflect your plans. Make sure the financial budgets are shaped by the plans and expressed in numbers, not the other way around. The operational plans are used for financial forecasting so progress can be monitored in financial terms and corrective action taken before the end of the financial year when it is not too late. This exercise will also provide instant feedback if goals are not viable and need to be scrapped, delayed or fine-tuned. This is critical if practices are concerned about maintaining good cash-flow management systems.
Once the 12-month operational and budget plans have been endorsed by the board then monthly Traffic Light Reporting and accountability programs can be implemented, such as the Dashboard Report and end of year annual performance management reports. Tasks can be delegated to potential directors by inviting them to task force sub committees formed from a board meeting. A director from the board would act as chair of this group. This training is for owner-directors and potential owner-directors.
Establish Monthly Dashboard Report
When establishing the 12-month operational plans, plan to review progress at least monthly. The budgeted figures need to be entered into MYOB or QuickBooks to ensure efficient, timely and accurate Traffic Light Reporting of any variations. The monthly Dashboard Report is used to monitor actual results against budgeted expectations, with appropriate explanations for any significant deviations greater than 15-20% and suggested solutions from management. This needs to be tabled and discussed at every monthly owners’ meeting. Tasks can be delegated to potential directors by inviting them to task force sub committees formed at a board meeting. A director from the board would act as chair of this group. This training is for owner-directors and potential owner-directors.
Repeat Steps 3 to 6
Assess results, check systems and risks, and review before setting Traffic Light Reports from June to September. Conduct formal performance review based on year end accountant-prepared figures and external reports such as the Good, the Bad and the Ugly report. Tasks can be delegated to potential directors by inviting them to task force sub committees formed from a board meeting. A director from the board would act as chair of this group.
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About me: David Dahm BA (Acc.), CA., FCPA, CTA, FFin, CPM, FAAPM, FAIM, FGLF.
Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service
David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)
After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.
You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.
