Veterinary Hospital "A" is developing a strategic business plan to improve operations and financial performance. The plan involves analyzing strengths, weaknesses, opportunities, and threats. Goals for 2012-13 include enhancing the client experience, improving patient care standards, reducing costs, and increasing revenue through marketing. Specifically, the plan aims to develop staffing efficiencies to lower turnover costs, enhance the client experience, drive revenue increases, and reduce inventory costs. Metrics such as staffing costs as a percentage of revenue and appointment usage will be monitored.

1. Veterinary Hospital “A”
Strategic Business Planning

2. “The trouble with not having a goal,.....
is that you can spend your life running up
and down the field and never score.”
- Cricket Umpire Bill Copeland

3. I. Business Planning

4. The Seven Components of a
Successful Business Plan

5. What Exactly is the Difference Between a
Vision and a Mission Statement?

7. Mission Statement
• Your Mission Statement describes what business you
are in and who your customer is.
• As such, it captures the very essence of your
enterprise - its relationship with its customer.
• Your mission statement must “work” not only today but
for the intended life of your strategic plan of which your
mission statement is a part.

8. Developing Your Statement
• It should be broad enough to allow for the
diversity (new products, new services, new
markets) you require of your business.
• And it will also be specific enough to provide the
focus necessary to the success of your
business.

9. Vision Statement
• A Vision Statement begins not at “today” - but
at some point in the future.
• That’s because a vision is not true in the
present, but only in the future.

10. Developing the Vision
• Your vision should project a compelling story about the
future.
• Asked of his vision initially, Steve Jobs said, “An Apple
on every desk." Well there wasn’t then an Apple on
every desk, and in fact, there won’t ever be an Apple
on every desk. That’s OK. The vision can be
figurative, rather than literal.
• It’s also important for management not just to speak
the vision, but also to live the vision.

11. Communicate the Vision
• Your team needs to decide how it will
communicate its vision to your employees.
• How to continue to nurture and support that vision
every day, in every way.
• How to empower employees to fulfill that vision.

12. Values
• Your company’s values influence “everything.”
• For example, for any statement, whether mission
or vision, to be embraced and acted upon, it must
reflect the values of your organization.
• Values describe what your management and
ownership team really cares about. What it holds
dear.

13. Goals
Objectives
Identify targets and/or benchmarks
associated with objectives
General Business Plan
Structure
Execute/Implement
Assessment
Mission Statement Vision Statement
Values
Typically, before setting goals and objectives,
a business will conduct a SWOT analysis

14. SWOT Analysis
Strengths Weaknesses
Opportunities Threats

15. Strengths
High standard of care and aggressive diagnostics for
patients
Doctor and technical staff on site 24 x 7
Access 24 x 7 for emergency and appointments during
traditional ‘off hours’
Options for dedicated prescription refills
Phone consults 24 x7 with technical staff
Multiple options for reminders/communications (e-mail,
postal, texting, etc,...)
Modern facilities and equipment On-call surgeon
Generous and open visitation for hospitalized patients
Doctors with strong surgical and medical skills and
average tenure of approx 12.5 years
On site specialists including board certified surgeon, and
an internist, acupuncture, & physiotherapy services
Strong technical staff with an average tenure of approx 8
years
Longevity of the practice (50 + years of service to the
community)
Excellent community reputation for medical care

16. Weaknesses
Not “Customer-Centric” Cumbersome discharge process for all patients
Poor communication frequently, and specifically related
to providing clients with recommendations and cost of
care
Inbound calls not answered timely or by someone
qualified enough to assist the caller; lends itself to poor
service level and low staff morale
Inconsistent care from doctor to doctor
Doctors not adhering to the hospital’s identified
standards of care; not all areas of care have relevant
standards as yet
Fragmented client base with many clients using more
than one regular clinic
We have not provided care the level of care to the
senior pets that we should and they comprise a
significant % of our patient demographics

17. Opportunities
Improve communications with clients, specifically in
those areas identified as weaknesses
Improvement of discharge process
Review and enhance operational processes to improve
service and reduce overall costs
Deployment of on-line pharmacy to enhance service
delivery of products to clients and reduce the on-site
inventory footprint/cost
Strategic re-deployment of staff specifically related to
the client services area to manage on-site arrivals and
inbound calls; client services staff re-deployed in more
of a concierge role, designed to enhance client
experience
Develop the physiotherapy program
Development of comprehensive marketing campaign
inclusive to primarily digital content, on-site materials,
and promotional opportunities
Enhance patient care, specifically that of senior pets

18. Threats
New market entries competing for emergency medical
care
Strong presence of on-line pharmacies; market
changes driven by pharmaceutical companies (ie. flea
medications can be bought at Target OTC without an
office call, which we still require); big box retailers are
increasingly offering products at a much cheaper cost
Market saturation for well-pet care
Population demographics are not increasing for the
region

19. 2012-13 Business Goals
• Enhance the client experience
• Improve patient care through use of standards
• Better management of expense-side costs
• Revenue increase via strategic marketing efforts
• Improve business reporting/KPI's

20. • According to studies conducted by AAHA
and the AVMA, 62% of practice owners
do not use financial concepts to manage
their business.
• Those that do earn two thirds more.

21. Plan Objectives
• Develop staffing efficiencies and reduce the cost
of staff turnover
• Enhance the client experience
• Drive revenue increase through marketing
efforts, and improved compliance
• Reduce costs affiliated with inventory
management

22. A. Expense Side
Management

23. Staffing & Turnover
• In 2010, the client services department alone,
experienced turnover of 16 employees,
resulting in costs exceeding $200,000
• This was payroll expense for staff members
who are no longer on the payroll
• The costs are higher still when other
department turnover costs are factored in

24. Staffing Targets
• Staff costs should be targeted towards 26-28% of
total revenue
• Establish effective support staff ratios
• Overtime costs should be able to be monitored
more effectively through ADP (based on prior
database design, it is impossible to determine
what it truly was for 2010)

25. Opportunities
• Staffing the registration desk and call center with
greater number of technicians will yield a direct
reduction in turnover costs, improved service
delivery, and enhanced efficiency in delivering
services to clients
• New ADP software will provide improved reporting
to monitor staffing cost trends

26. Monitoring Visit Volume
• Software should be used to effectively monitor
client visit volume and use trend analysis to
forecast staffing needs
• Identify % of use of available appointments for the
doctors scheduled; should be 65-70% on average
• Staffing adjustments should be considered if goals
are not met