Dispensing Frontiers
Performance Reviews that Work
Done the right way, a review can be great for office productivity.

In theory, a regular performance review for your optician sounds like a good idea. However, doctors often postpone them because the optician expects an increase in compensation. Reviews often leave both parties deflated instead of energized. In fact, the problem lies with the way the review is executed.

SETTING THE RIGHT PARAMETERS

To have a positive effect, a review should focus on hard numbers, clarify which behavior patterns or system problems are causing them, and allow you and the optician to set goals and develop strategies to achieve those goals.

A review shouldn't automatically trigger a pay raise. If you pay a fair base salary plus performance bonuses, you should only provide cost-of-living ad-justments to the base salary (unless the standard for a reasonable base salary in your area changes). A proper review increases your optician's compensation by helping him generate more bonuses.

Schedule a review every 6 months with a brief update every 3 months. This will correct problems more quickly and minimize the presumed connection between reviews and pay raises.

CHECKING THE NUMBERS

Track overall dispensary performance and compare it with individual performance (if you employ more than one optician) for at least 6 months:

• Did more than 40% of your refracted patients buy glasses from you?
• Did less than 20% of eyeglass purchasers buy lenses only?
• Was your average sale more than $225?
• Did more than 40% of patients purchase multiple pairs?

The answer to these questions will tell you whether your delivery system and optician performance are on track.

PREPARING FOR THE REVIEW

The more your optician is involved in the evaluation, the harder he'll work to improve. Before the meeting:

• Ask him to explain, in writing, what he did that resulted in both the good and not-so-good results.
• Ask him to list factors that kept him from achieving goals.
• Ask him if current goals should be raised or lowered, and by how much.
• Evaluate your optician's work and write down what you'd like to see happen during the next period.

IDENTIFYING PROBLEMS

ILLUSTRATION: AMY WUMMER

Problems may result from the way your dispensary is operated, not just your optician's performance. (Management techniques that worked elsewhere may not work in your office, but they may be the only ones your optician knows.)

During the review, listen carefully to your optician. If his performance is better than overall dispensary performance, or he's stressed out from trying to maintain current numbers, or dispensary performance is stagnating, the system may be a big part of the problem.

Once you've identified problems, jointly address them. Set 6-month goals and clearly define how changes in the system (or optician behavior) will improve the numbers. Make sure your optician understands what's expected of him, and that the expectations are fair. (If your optician needs sales, technical or management training, provide it.) Write down and sign an action plan that both of you agree to. Set a 3-month check-in date to verify that you're on track.

DOING IT RIGHT

Performance reviews don't have to be a dreaded formality. Done right, they'll make your practice more productive, which was the idea all along.

Leona Meditz has 25 years' experience opening, owning and operating dispensaries. If you have questions regarding this article, please visit her Web site at 3Ps4Profit.com or e-mail her at leona@3Ps4Profit.com.