1:30min
For many optometrists, especially those of us just starting out in practice, key performance indicators (KPIs) are one more new thing to wrap your head around. But the function and importance of KPIs are not usually topics that take up much room on a university curriculum.
Recent graduates in particular can find themselves struggling to understand why businesses have KPIs and how they apply to them as employees.
Chair of ECONA Corporate Engagement committee Acyel Al-Alosi asked her colleagues Daniel Rafla and Tara Muralitharan, both of whom have worked in multiple practices, to share their understanding of how KPIs work in practice.
Acyel A: Let’s dive in! What are KPIs?
Tara M: The Term KPI itself stands for Key Performance Indicator. This is a quantifiable measure of performance over time for a specific goal. KPIs can be used as an indication of whether an employee is performing in conjunction with business values, objectives and structure. If that sounds very formal, it’s really just another way of making sure you’re working towards the team goals. For early-career optometrists, most KPIs are functional and relate to easily measured things such as conversions. A relevant example for an employee optometrist would be the percentage of suitable patients who proceed to a contact lens trial each month.
Daniel R: KPI’s are not just for employees – they apply to all aspects of a business, from higher level strategic KPIs such as annual revenue to more specific operational KPIs such as weekly sales.
Acyel A: From your experience working in multiple practices, why do you think optometrist practices have KPIs? Do all businesses have them? Why are they important?
Daniel R: They all have them! They might not call them KPIs – they might be ‘monthly targets’ or ‘team goals’, or a chart on the wall linked to a bonus, but these records are part of running any business. KPIs help CEOs and employers better understand the trends of the business as well as the performance of the individuals contributing to the business. Quite simply, a business cannot accurately measure its success or plan its future without them. They are a really good way to make sure that each employee and each team is accountable, working towards the overall goals of the business, and contributing to the team effort, rather than being carried along.
Tara M: KPIs provide employees, employers and teams with clear targets and common goals to aim for. They help avoid situations where team members are working towards different goals. Everyone is on the same page. They also provide valuable insights to allow for future planning. Because you can see what’s working (or not) you can tweak things, so you do more of the good stuff. Because KPIs measure an individual’s performance objectively, they also bypass personal biases between employers and employees. My colleagues in other allied health including dentistry and physiotherapy are also measured against KPIs unique to their business model.
Acyel A: What are some key KPIs that you’ve encountered?
Daniel R: Optometry as an industry has two main revenue streams, the revenue from services rendered (consultation and imaging fees) as well as and the revenue from the sale of optical devices, eyewear and other products. Common KPIs that I’ve come across in practice include:
- Average order value (AOV)
- Total eye tests performed, imaging studies and referrals
- Total revenue generated from eye-testing and retail sales
- Customer feedback via online systems as well as google reviews
Tara M: The only other KPI I’d like to add to the above relates to measuring the number of clinical scans such as OPTOS or OCTs that were taken.
Acyel A: From the perspective of the employee, do you think all KPIs are financial?
Daniel R: While not all KPIs in optometry are financially based, they can usually be used as a means of providing the context for certain financial targets not being met. For example, some practices may wish to determine the number of OCTs, dilation and reports being sent across a specific period, and examine how this may have affected the total revenue generated for that period. This could potentially be used to explain why there was a “down” period with respect to product sales and revenue.
Tara M: They do have KPIs relating to patient health such as a KPI for technology, monitoring the number of retinal scans conducted. Some organizations will also measure the number of positive feedback comments from patients, the number of diabetic reports done, number of correct prescriptions issued which all tell you how you can improve patient care.
Acyel A: Let’s drill down a bit more into that last comment of Tara’s. What are some ways that KPIs might impact clinical care? (Both positive and negative answers acceptable!)
Daniel R: KPIs are a means of measuring an individual’s performance in generating revenue but also in providing excellent patient care. It is important to recognise that KPIs are a quantifiable measure, and don’t always tell the full story, but they can provide lots of useful information regarding clinical care. For example, a certain optometrist may not have met their KPI targets (as set by the practice manager/owner) with regard to revenue generated per clinic in comparison to their peers. However, other KPIs surrounding patient reports, referrals and customer reviews may demonstrate that this optometrist is well-received by the patients, and has been diligent in their patient care, demonstrating their clinical care. The flip side of this is that KPIs can influence optometrists to feel pressured into meeting these KPIs by any means, which is not ideal. It is essential that the optometrist maintains ethical reasons for tests undertaking, referrals made and eyewear recommended. It is just as unethical to under-service your patient as to over-service them – whether that be imaging, referral, glasses prescription and contact lenses or therapeutics treatment.
Tara M: Clinical decisions should always be made in the best interest of the patient. If a practitioner is finding that they are in situations where they are under pressure to meet KPIs and it is not in the best interest of the patient, it is important that they speak to their employer and explain why they are unable to meet the assigned KPI. Often, good communication between an employer and optometrist can ensure a solution is found an avoids the possibility of KPIs affecting clinical care. In my experience, I have usually found that practice owners and managers understand the importance of clinical care to the patient and do not set unreasonable KPI expectations on their employees.
Want to find out more? Check out Optometry NSW/ACT’s KPI webcast Here. Or click here for the most listened to episode in Optometry Talks – the podcast of Optometry NSW/ACT – Enhancing your business mindset.
Still not sure about KPIs and how they apply to you? Call or email us in strict confidence for advise on employment issues or any other optometry matter.
About the authors:
Acyel Al-Alosi currently works as a clinical performance consultant with a store portfolio of over 50 corporate practices. In her role, she is currently supporting and coaching franchisees and their optometrists to improve patient outcomes. Prior to that, she worked as an optometrist in regional NSW working in both corporate practices and Indigenous outreach. She has a special interest in paediatrics and myopia control and has completed a Specialist Certificate in the Management of Paediatric Patients from the University of Melbourne. Acyel is also passionate about supporting the development of grads and early career optometrists. As such, she is currently a part of the ECONA Corporate Engagement Subcommittee.
Daniel Rafla graduated from Deakin University with a Bachelor of Vision Science and Master of Optometry in 2018 and has since been working in corporate practices in both regional and urban locations for the past 5 years. During this time in practice, he developed several initiatives to improve performance. Daniel completed a Master of Philosophy in Vision Science, submitting a thesis focussed on primary open angle glaucoma.
Tara Muralitharan graduated from Deakin University with a Bachelor of Vision Science and a Master of Optometry. She has completed a certificate in Children’s Vision through the Australian College of Optometry and has also completed the Brian Holden Vision Institute myopia education program. Tara has been working as a locum optometrist for the last 6 years. She currently works in several corporate optometry practices across regional and rural Australia and has extensive experience across a range of optometric settings. Tara has worked in every state and territory in the country.