2009.06.18 23:19:32

John McDaniel

You only get one chance to make a first impression.  I am guessing you’ve heard that before, right?  How does this impact the management of your office?  In what ways are you managing your patients’ first impressions?

In my experience, impression management is underrated and under emphasized.  If you doubt the seriousness of the impact of first impressions I direct you to Malcolm Gladwell’s book “Blink” and Michael Levine’s “Broken Windows, Broken Business.”  Or you can take my word for it and do this to get your thinking right on the importance of impression management:

1. Determine the level of importance you think first impressions have on your practice
2. Now double that importance
3. If you are not motivated to make immediate changes from this analysis, double it again

The purpose of this blog is to call attention to a few types of first impressions that many practices seem to neglect or consider less important.  These areas are the front door, the business sign, the parking lot, the landscaping around the building, and the reception area.  Below are a few thoughts on each of these critical areas.

The front door of most businesses is one of the most overlooked aspects of the physical plant.  In most cases, every customer walks through this to access the business, yet very little thought is given to the door and its condition.  Take one day a year and have the staff and yourself look at the door.  Consider a new door.  At the very least, keep the door clean and representative of the atmosphere you are aiming for.  Realize that the door has to be more than “just OK.”

Signs are more expensive than people expect.  This leads to some bad decisions regarding signage; specifically doing signs on the cheap.  Realize that the only people that do not use the sign to identify your business from the road are the already established customers.  Every single new patient is highly likely to see your sign before anything else related to your business.  Pay the extra money to have the best signage you can – it is worth it.

Your parking lot can make or break your business.  I am not exaggerating for effect or being flippant when I write that statement; it is a fact.  All patients that come to your office will use the parking facilities.  To them the parking lot is your lot.  Is it clean?  Is it kept up?  How convenient is it to get in and out of the lot and the individual spaces?  Is there more than enough parking for your busiest day of the decade?  Is it easy to find the parking spaces for your practice?  Parking lots are one of the top 3 issues for consideration when choosing a location for a business.

The landscaping (the hard and soft-scapes) for most offices fall into one of three categories: terrible, non-descript, or slightly above average.  All three assessments are unacceptable.  This is an opportunity to distinguish your practice from all other businesses and not just other practices.  Most towns/cities have a business that has a pond with fish, an outdoor seating area, or some other notable exterior feature.  Consider using the landscape to distinguish from the pack.  At the very least, landscape so people perceive something different and positive as they approach the building.

The reception area sets the tone for the entire internal experience in the practice.  Most reception areas in most office look OK and are utilitarian in their design.  That is fine for the reception area of a cheese sciences lab but not for a health care practice.  All of the senses should be considered when designing (or redesigning) the reception area.  The look should reflect the vision of the practice.  The smell should be inviting and pleasant.  The sounds should be relaxed and not chaotic.  The feel should be warm, cozy and comfortable.  Consider offering a way for the area to taste great as well, such as coffee or mints.  Reinvent the reception experience in your office and you will be rewarded down the road.

Le Meas,

John G. McDaniel, OD, MLHR
President/Founder
Waugoo Consulting Group, LLC
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first impressions | branding | marketing | office appearance | image management

2009.06.10 02:20:09

John McDaniel

I get this, or some variant, of this question all the time.  Another common version is “I saw a job application form for sale at Office Depot today and was wondering if I needed to buy it.”  The short answer is: always use a job application when processing candidates for open or potentially open positions.  You should not consider anybody a legitimate candidate until they have turned in a completed job application.  Also, never accept an incomplete application.  I have to admit I have been curious as to the reasons why optometrists don’t use applications much.  I’ve heard many reasons, but most seem to fall into one of the following categories:

1. It is an added expense and I don’t want to spend the money
2. I don’t know what questions to include on the application and I am afraid I will ask something I shouldn’t ask
3. I get resumes and they tell me all I need to know
4. If I have applications it will draw all of the chronically unemployed into my office to fill out applications so they can continue to collect some form of welfare benefits

Let’s tackle these objections one by one…

“It is too expensive”
The first objection is a joke, to be honest.  It shows that the person with this opinion hasn’t spent even twelve seconds analyzing the cost of recruiting and hiring new staff.  The costs of creating and printing job applications are so miniscule when compared to the benefits that the costs are not even worth consideration.  Still not convinced?  Look at your profit and loss statement from any year you’ve been in business.  What percentage of your revenue goes to labor costs?  What is the actual dollar figure?  Is the return on the investment of those dollars irrelevant to you?  Of course not.

“I don’t know what questions I should ask”
The second objection is legitimate but easily solvable.  Buy a single job application; many states departments of labor have examples available online.  Take those questions as a start.  Now, add you own questions.  Common ones added include “what days of the week are you available to work?” and “list the optician duties you have performed during past employment.”  You can tailor this job application to weed out a lot of things that are incompatible with employment in your practice well before you go through the time and expense of an interview.  Afraid of asking an “illegal” question?  Hire a consultant or a labor attorney to spend the half an hour it will take to vet the application.  At Waugoo we review almost any job application for only $300 and will make recommendations on additional questions that can help the selection process and save you time and resources.

“I just use resume’s”
Resumes are wonderful evaluation tools.  Just keep in mind who decides what data goes on a resume: the applicant.  Do you think felons elect to put their conviction details on there?  Do you think registered sex offenders detail their “offenses” on resumes?  Obviously, the negative “stuff” does not make it to the final resume in most cases.  Resumes are, therefore, a nice adjunct to the job application.  The data collected via the job application is controlled by you and therefore essential.  The resume is nice; but not necessary.  Conclusion: if you only take one of these make it the job application.  I prefer both because you can check for inconsistencies.  If you’ve spent any time comparing resumes to job applications you know that the inconsistency rate is at least 30%.

“Job applications are gold for those on unemployment”
Finally, the concern over having job applications leading to a rush of the chronically unemployed does not play out in reality and can be avoided if it were to ever become an issue.  Realize that having a job application does not effectively have any impact on your recruitment process.  In other words, you’ll be attracting the same applicants via the same methods as when you did not use an application.  Even if the “word” spread on the streets and it became known that you were a supplier of coveted job applications you can eliminate the problem very easily.  My favorite solution is to put the job app online.  Many offices require computer and Internet savvy and this provides a nice way to verify even the smallest level of comfort with both.  If the applicant can’t fill out the application online they reasonably can’t do the computer/Internet work required in your office.  Not to mention that once you have the application up there you have no expenses for printing or paper so the application is functionally free.  If you don’t like the high tech solution, simply require that applications be filled out outside of the business space and limit the hours they can be dropped off and picked up.

There is no good reason to not use job applications for every applicant from this day forward.  Now go design your job application now!

Le Meas,

John G. McDaniel, OD, MLHR
President/Founder
Waugoo Consulting Group, LLC
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human resources | selection | job application | hiring

2009.04.23 22:37:08

John McDaniel

Attention: Wisconsin Optometric Association Board Members

I am writing to formally submit my opinion of the current joint board certification proposal that is to be presented this June at the AOA Congressional Meeting.  Having served on this board in the past with many of you I am confident that you will understand that I am delivering an opinion only after serious and deliberate consideration.

I have analyzed the proposal from three perspectives: the need for board certification, the real implications of the process on the state of the profession, and the pragmatic ramifications at the individual level.

On the purported need for board certification, I am admittedly divided.  I believe there may some day be a need for a method to assure continued competence but I fail to see the urgency implied by such an aggressive schedule for consideration.  Having held a society meeting on February 17, 2009, I discovered that the topic of board certification was entirely new to most of the members present.  I believe hasty presentation and elucidation of the process will only serve to alienate a non-trivial proportion of American Optometric Association and Wisconsin Optometric Association members.  The future need for a true board certification process is worthy of debate and discussion but only on a more reasonable time scale.  I also believe that the construct of “board certification” is reserved for sub-specialties that deviate from the general practice of the profession.  By definition, what is being sought can not be considered “board certification” with any significant level of cross professional respect.

With regards to the impact the process may have on the profession as a whole I see several aspects that concern me.  First, the process will serve as a means to further divide the field.  There are enough divisions in optometry already including mode of practice distinctions and State-to-State privilege variations.  The inevitable discourse the board certification effort will engender is not worth the eventual benefits.  Second, the board certified designation itself will provide a direct and visible line of demarcation between optometrists.  This division will only serve to provide additional avenues on which to discriminate against a sector of optometrists.  Thirdly, the economic costs of this proposal are exorbitant and far outweigh any proposed benefit.  When such economic costs are attached to a proposal it is only logical to “follow the money” and become cautiously suspicious about those expected to gain from its implementation.  This suspicion may also further divide our profession.

Finally, the individual optometrist has many difficult issues to deal with in day-to-day practice.   In my opinion, the most significant of these issues are access to third parties and the limitations of state-by-state licensure.  While the current board certification process purports to address the third party access issue, I believe the net impact will be negative at best for most optometrists.  The break even point for analyzing the individual costs of the board certification process and the purported increased access to third party plans may well take decades to materialize.  Even that analysis assumes that third parties will not seek an alternative reason to exclude optometrists as providers.

In summary, I am convinced that the current board certification proposal is not in the best interest of optometry, the AOA, or the WOA.  I am asking that the WOA delegates vote “no” at the AOA meeting this June.  If you have any questions regarding my recommendation please do not hesitate to contact me.

Warm Regards,

John McDaniel, OD, MLHR

BC | board certification | WOA | opinion | john mcdaniel

2009.04.05 13:21:40

John McDaniel

When I ponder the concept of naming a business I automatically think of constipation.  Not that yours truly has suffered such ailments but a client that I remember has.  During the process of starting up his business (not optometry related) he phoned to say “I need to the right name for business and I need it now!”  I asked why the sudden urgency to make this decision.  Suffice to that I learned that increased stress levels and constipation are rather good friends.  It is funny what things you remember.

Naming a business is stressful.  A plan and some guidelines can reduce the stress.  That said, before I give my variation of naming guidelines it is imperative to point out that some of the best business names in history are the ones that break all the “rules.”

Purpose
It is important to consider the purpose of a business name.  A common misconception of this purpose is that a name should attempt to convey as much information as possible about the business.  That approach is a big mistake.  It leads to long, unruly, and unremarkable business names.  The real purpose of the name is to brand a business as succinctly as possible.  Branding is a broad concept but pertains to naming by dealing with two questions:

1. What is the “big” picture point of the business?
2. What differentiates you from your competition?

Crafting a list of adjectives and adverbs that seek to succinctly answer those questions is a good place to start.

Long Term Business Strategy
The next consideration is the long term strategy of the practice.  More specifically, an analysis of where the practice falls on the business life cycle is useful.  Early on in the life of a practice the name of the doctor tends to be of utmost importance.  It is often necessary to develop a “doctor centered” model to grow a practice during the early phases (including the early phases of an ownership transfer).  As a practice moves through the life cycle there is a tendency (a good tendency) to move toward a “practice centered” model.  This implies a stronger focus on the “entity” versus the “doctor.”  This results from, among other things, an increase is technical support as well as increased delegation of patient care tasks.  Some practices also find that their unique combination of human resources drives this change in focus of its own inertia.  Further along the life cycle exit or succession considerations become apparent.  A more transferable name is desired.  For example, it is easier to transfer equity in a practice named “Community Eye Center” than it is a practice named “Bob Smith, OD.”

Permanence
A name is forever.  Well, not really; but kind of.  I think it depends on what the meaning of “is” is.  This perception of permanence is what I believe to be the strongest factor in causing business owners so much stress when naming a business.  The sense is that once you commit to a name, you have committed to that name forever.  I say differently; only diamonds are forever.  Practice names can be changed as long as the process of changing the name is managed well and the time horizon is years versus months.  A common name change is to go from the doctors name to a less personal entity name, e.g. going from “Bob Smith, OD” to “Community Eye Center.”  This type of change happens all the time.  There are two key lessons here.  First, pick a name for the five year plan of the practice and not for the 15 year plan.  Long term, in this case, should mean five years.  Second, your practice will be dynamic and the branding needs will change.  When they change you should at least consider the possibility of a name change.  While not the first club out of the bag by any means it is, none-the-less, a club in the bag.

The key to a name change is going slow.  The process needs to take years and there should be well defined and well planned stages in the morphing process.  The name change should occur additively.  In other words don’t go from “Bob Smith, OD” to “Community Eye Center” all at once.  At first merge the names, if possible, or create a hybrid of the two.  Then, over the course 1-2 years, begin to drop the old name from things.  Do the name changes in stages that makes sense for your given situation.  Consider all things with the clinic name associated independently such as stationary, signs, the webpage, exam forms, e-mail addresses, etc.

General Recommendations

1. How memorable is the name?  This is likely the most important factor when selecting a name.  The more memorable the better assuming the associations and connotations are positive (e.g. Ted Bundy’s Eye Care)
2. Consider the web domain name – pick the name that is available in a domain name if possible
3. Legal – check with your state regulations regarding business names and have an attorney check the availability of names.  Before you have a lawyer check create a ranked list of 3-5 options in case the first few checked are not available
4. Check the competition – within your local market your name needs to help separate you from the competition; select a name that helps with this process of differentiation
5. Pronunciation – the name should be easy to pronounce.  Or you could just pick “Waugoo” and confuse everybody all the time.
6. If relevant to the life cycle stage of the practice, consider the ability to add doctors, staff, products, services, and locations with respect to the name.  The more flexibility the better.
7. Get three to five opinions from business people you respect.  It is best if some of those people have participated in the naming process before.

Finally, stop stressing too much.  I’ve never seen a practice not sell because of an incompatible name and I’ve never seen a practice thrive or starve because of a brilliant or disastrous name respectively.  Besides, whatever name you pick 10% of your patients will call you “Dr. McDonald” at the “ear clinic” anyway.  People…gotta love ‘em.

Le Meas,

John G. McDaniel, OD, MLHR
President/Founder
Waugoo Consulting Group, LLC
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Practice naming | business names | naming a business | marketing | branding

2009.03.28 14:30:12

John McDaniel

In the last consumer behavior blog I discussed the odd-numbered pricing theory.  A related, but distinct pricing theory is called the round numbers theory.  After some careful consideration it will become clear that if you follow the odd-numbered pricing theory to the fullest extent you will, by default, follow the round numbers theory as well.  That said, it is worth examining the two theories separately for two reasons.  First, many practitioners follow the odd-numbered theory selectively.  I commonly see people utilize the odd-numbered approach for materials but not for professional fees.  Second, if you aren’t going to follow the odd-numbered theory the round numbers theory can provide some improvement over the typical pricing approaches out there.

The round numbers theory says that the best pricing strategies never result in round numbers.  Round numbers are tempting for prices because they are easy for staff to work with.  If your primary pricing objective is the ease of the sales staff job then you have to reprioritize your objectives.  I commonly see professional fees priced in a way that violates this simple concept.  Even if calculations are used to aid in determining the fees there is a strong tendency to round the fees off for the sake of convenience.  Many times people feel that if they round up they will have higher returns than if they used the “ugly” calculated fee result.  Research shows that this is not the case.  Round numbers feel contrived, psychologically.  “Ugly” numbers feel legitimate and formulaic.  Go with ugly numbers.  Make the prices have cents; not just $0.80 but go for the $0.89!  At the very least the final dollars figure needs to be something that is not zero.

The next consumer behavior blog will discuss just noticeable differences and pricing.  Again, I’ll expect to see you sitting on the edge of your seat if not off the edge.

Le Meas,

John McDaniel, OD, MLHR
President/Founder
Waugoo Consulting Group, LLC
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pricing theory | marketing | pricing | Consumer behavior