Orthotown November 2024 - 46

Not all practices are in the right spot to
off er a bonus. If you're experiencing a lot
of team turnover or are having a hard time
with systems and processes, trying to
meet additional goals will only confound
the situation.
Timing and implementation
Th e timing of introducing a bonus
structure is critical to its success.
For new practices, I would advise to
wait until the business has reached a
certain level of stability before implementing
bonuses. Typically, this would
be around the three-year mark, by
which time the practice should have
established a steady patient base, consistent
cash fl ow and a clear understanding
of its growth trajectory.
In the early years, the focus should
be on building the foundation of the
practice-establishing effi cient processes,
building a cohesive team and
ensuring high-quality patient care.
Once these elements are in place and
the practice has a more predictable
growth pattern, a bonus structure can
be introduced to further incentivize
and reward team performance.
For larger practices, bonuses can
be implemented at any time. You may
fi nd that there are ebbs and fl ows in
your growth and a bonus might spark
new energy around reaching goals. It
can also infl uence a renewed eff ort in
team building and continuity.
It's important to mention that not
all practices are in the right spot to
off er a bonus. If you're experiencing a
lot of team turnover or are having a
hard time with systems and processes,
trying to meet additional goals will
only confound the situation. A bonus
is not a fi x-all! Practices that implement
bonus structures should already
be in a place of stability, looking to
push the team and practice to the next
level.
Individual bonuses
While team bonuses are perfect
for driving collective performance,
there are instances where individual
bonuses are more appropriate. For
example, a treatment coordinator
bonus is a great way to motivate a
high-performing individual into even
higher conversions.
It's important to ensure your TC is
already performing at a high level. If
a TC consistently converts consultations
into starts at a high ratio, you
might introduce a bonus structure
that rewards starts above a certain
threshold each quarter.
Set strict parameters to ensure
the starts are what we'd consider to
be fi nancially viable. For example,
a TC shouldn't be able to meet their
bonus by lowering down payments or
off ering unsustainable payment plans.
Make sure your individual bonus
structure aligns with the practice's
overall fi nancial strategy and patient
retention goals.
NOVEMBER 2024 | 46 | ORTHOTOWN.COM
Jill Allen is an international orthodontic
consultant whose core strengths
lie in guiding orthodontists through
practice start-ups, acquisitions and
comprehensive team training, and
supporting practitioners at every stage of
their orthodontic careers. With a proven
track record of success and a dedicated
team of professionals, Allen has become
a trusted leader in the orthodontic field.
Website: practiceresults.com
Final considerations
Designing an eff ective bonus structure
requires a strategic approach, one that
balances the practice's growth goals
with the realistic capabilities of your
team and current economy and market.
It's not enough to set ambitious
goals; those goals must be achievable,
measurable and directly linked to
the factors that drive your practice's
success.
Remember, transparency is key.
Every aspect of the bonus structure-
from the metrics used to calculate it
to the timeline for payouts-should
be clearly documented and communicated
to your team. A well-designed
bonus structure is more than just a
fi nancial incentive-it's a strategic
tool for driving practice growth and
ensuring your team is aligned with
the goals of the practice. With careful
planning and execution, you can
unlock your team's full potential and
achieve sustainable success in your
business. OT
http://www.practiceresults.com http://www.ORTHOTOWN.COM
Orthotown November 2024

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