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The practice, which had a complete business overhaul, impressed the judges with profits that rose 13-fold for 2008 on 2006, despite investment in new stock, premises and repairs. The average transaction value rose from £121 in 2006 to £164, while turnover was projected to rise 22.9 per cent and the conversion rate went up by 7 per cent.
The business review was prompted by a drop in profit-per-patient from 2004 to 2006, in spite of BBR being a busy practice that saw itself as forging ahead clinically, with the latest in instrumentation. Director and optometrist Nick Rumney added: 'The experience was all the more saddening because it was clear that all staff were under pressure, mostly from patient numbers and sheer activity. How could we say to them, you are all working so hard but we are making no profit?'
As a result, the Investor in People-recognised practice benchmarked itself against a similar practice and found over 100 things it did differently. At the time of the Awards judging, BBR Optometry was half way through its three-year plan, the results of which Rumney described as 'astonishing'.
The judges were unanimous in their decision, agreeing that this was a practice that was open and honest in sharing data on its results, along with detailed customer feedback and methods of addressing any complaints. 'Sparked by a drop in profit-per-patient, it has implemented considerable change that has improved both its figures and the patient experience,' said the judges.
The company decided to reduce the numbers of patients for 2007-2008, now averaging 24.6 per day compared to 26.37 in the previous year. Rumney summed this up: 'It's not rocket science to aim to be less busy and more profitable. Buck the trend, spend time with your customers.'
Highlights of the changes
Among the changes were development and communication of a clear business plan in its 'Mindmap' strategy. Rumney and sales director, dispensing optician Nicholas Black set aside management time, changed key performance indicators to retain profit and established strictly budgeted overheads.
A contact lens optician was appointed as CL manager, and a pre-reg optometrist and ABDO-trainee DO were taken on. There was a significant investment in IT and the network, with an upgraded Optisoft system and the training to go with it. Eye exam fees were raised to £41 and all charges were clarified through literature and recall. A policy of patients being asked to opt out of extended exams, as opposed to opting in, has doubled the conversion rate for extended exams.
Extra effort was put into actively managing a more selected group of suppliers. A mid-month report on exams conducted and accounts raised was produced, and team meetings were introduced to share performance data in a 'non-confrontational and non-judgmental fashion'.
The practice moved all but one internal phone from the front desk, with incoming calls routed to the back office, leading to a calmer atmosphere and enabling staff with back-office duties to conduct these without interruption. A new way of working brought much closer links between the teams, resulting in more dispensing leads from the consulting room. Patients are less rushed and fewer patients have to wait for dispensing after an eye exam, which increases the conversion.
'This practice was mature but stale and patients took our high standard of care for granted, they were paying more, but not so much more than elsewhere,' said Rumney. 'Alongside this change in economics, the staff levels have risen from 12 to 19. We believe we're firmly pitched for a new era.'
He added that the real success of the business initiative was buy-in from all members of the practice at all levels, with recognition that there could be no demarcation between staff when it comes to customer service.
'The steps we have taken have not required significant investment in capital, but a massive investment in our attitude to people. We have been prepared to look impartially at our operation and strategic values and undergo wholesale re-engineering of the delivery of our service. We have given people the opportunity to suggest and implement ideas and empowered them to take ownership of their roles.'
The judges concluded: 'BBR has changed the way it does business, from front of practice attention to eye test charges, and the overall effect of a raft of small changes across the practice is an impressive rise in transaction value.'
And while Rumney admitted that some of the change had been more difficult to 'bed down' than others, he still gets feedback on how much staff enjoyed being part of a Business Initiative of the Year winning team.