Week 1 Flashcards
(28 cards)
What is a business strategy?
A collection of intentional decisions that a company makes to give it the best chance to thrive and to differentiate it self from the competitors.
What is a vision?
A clear and inspirational description of what an organization would like to accomplish in the future
What is a mission?
Its defines what the business is and why it exists. (concrete statement of how to achieve vision)
What is the importance of a mission statement?
- Template for decision making
- Assist in organizational alignment
- Welcomes helpful change
What is an external mission?
Your pledge to your customers
What is an internal mission?
Your pledge to your team
What are values of a company?
Define organizations culture and beliefs. The fuels needed to get/ achieve a vision
What is the culture of a company?
A collection of a companies assumptions, values and
beliefs.
What type of statement is a mission statement?
It is a written statement
What is a Key Performance Indicator (KPI)?
A performance measurement that uses a number/metric that ties to a goal or standard that is important to the business
What is a KPI used for?
- Used to measure progress toward goals
* Used to measure agains
What are the factors that make a good KPI?
- Depends on the organization
- Depends on the goal
- Ease of understanding
- Presentation of data
What are the main components of a KPI?
- Financial
- Customer
- Learning and growth
- Internal business process
What are the metrics that drive revenue in PT?
- Visits
- Collections: how much money is coming in
- Average value of each visit
- DSO
What is a Days of sales outstanding(DSO)?
It is a way to tract revenue, that tells you how much you are collecting for the services being provided.
DSO= AR(accounts receivable)/average day worth of sales
Average day worth of sales= monthly collections or working days in month
What are the typical benchmarks for DSOs in PT?
- 60+ days: trouble
- 30-60 days: average
- 20-30 days: industry leading
What are the metrics that drive expense in PT?
- Salary/wages/benefits
- Rent/lease cost
- Marketing expenses
- Operating expenses
What are the metrics that drive the customer?
- Customer satisfaction
* Friends/family % d/t pt referral
What is the benchmark goal for friends/family referral?
30%
What are the metrics that drive internal business processes?
• Productivity: amount of visits per day • Visit/new patient: duration • Units/visit • Cancellation/No Show rate - Goal is less than 10%, avg is 12% • Arrival rate: # of seen new patients/# of referred new patients • ETC
What are the metrics that drive learning and growth?
- New patients
- Employee engagement
- Clinical outcomes
- ETC.
What are the 3 management competencies as highlighted by nicholas bloom et al?
- Targets: does the org support longterm goals with tough but achievable short term plans?
- Incentives: does the org reward high performers with promotions and bonuses, while re-training and moving under performers?
- Monitoring: does the org rigorously collect and analyze performance data?
What are the steps needed to monitor management competencies?
- Collect data
- Visualize
- Relate to goal: what will this metric look like when i am making the progress towards my goal that want to make?
- Budget to goal
What is a method to help easily track short term changes in a business?
By looking at 3 month moving averages/trends over 3 months, rather than just looking the past month’s changes
