Professional Practices Part 1 – Profit Protection and Improvement
Turnover is vanity, profits are sanity and cash reality” is as valid a saying as it ever was. In the longer term practices do not survive because their strategy is no longer appropriate to the market conditions.
Getting your strategy right for the long term is where we start in this programme and, amongst others, whether the lowest cost provider model (volume based process driven) is right or is it the more normal collegiate service led approach and what tools can be used in developing strategy.
We then move onto the approach that management should adopt when seeking to protect or improve profitability through the use of the “Office model” whilst recognising the difficulties of managing a group of partners.
We then consider what may be the most important KPIs, some key benchmarks and how to manage the levels of WIP and debtors before addressing how to inculcate a culture that focuses on profit.
Finally Howard and Dave give their top tips on when back in the office, including that, where cuts are necessary, to do it only once and do it quickly and perhaps most controversially suggesting that consideration be given to linking drawings to cash collected.
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Next in the Series: Mergers