Berning & Affiliates

Leverage Your Strengths

Very interesting recent conversation with a doctor CEO who has had the good fortune to discern the areas that he is very good at and then leverage them. How? He related that through some trial and error and discussions with family and staff he had arrived at a list of his core strengths. For him this included his very warm and friendly personality and when talking with anyone an authenticity that with great frequency translated into a trusting relationship. This particularly helped to build his new patient flow. But his practice skills in the areas of financial management, personnel and regulatory compliance were poor. He for some time has focused on being in the community actively, on charitable boards, on local government panels etc. In his office his accountant and key staff coordinate the financial policies and "run the numbers". He has an outside personnel firm help find staff and administer periodic personnel reviews. He is so pleased and confident of the powerful approach being used that I thought it would be beneficial to share this success story with you! By the way, his "numbers" are impressive.

Are You Rich?

It depends, is the answer. Apparently, lots of personal and family aspects as well age and lifestyle all get added in when a person answers whether they consider themselves rich. As you know some people consider themselves rich because they have good health, or have the house mortgage paid off. But, a more definitive answer as it related to money was posted as a result of a small survey by Spectrum Group. It was recently reported in the Wall Street Journal as part of their Money Blog. The writer, Robert Frank, notes that "Having a net worth of $1.4 million will put you in the top 5% of Americans, according to the Federal Reserve." Which is true. Of course many doctors know that in certain areas of the country that $1.4 is just what the house costs!

"Do I Need Professional Help?"

In a consultation this week with a doctor evaluating numerous options for a practice transition strategy he wondered about the following: his investments and their performance, his insurance coverage and whether it was adequate, the documents being prepared (for nearly 2 years) for his estate plan and whether the firm preparing them should take into account his potential practice transfer plans, the marketing and management of the office and how it would be best developed when he brought in an associate or partner. There was more than that which gives you an idea of the number of questions and unmet needs being discussed. All of this discussion was prompted by his wife asking "when are you going to have a plan in place to transition the practice?" And his response to her was, "Do I need professional help to develop the plan?" The answer became obvious the more they talked! If you end up in a similar discussion don't wait -- in this case the doctor and his wife had their discussion 3.5 years earlier and he was just getting around to calling yours truly!

Taking Time for Fun

We all have different definitions and enjoyments that we call fun. In my case, I have enjoyed a wide variety of activities, in part by joining in with many of my clients in what they enjoy! In a recent memorable and just plain fun outing, I joined with Dr. Robert Fisher a pediatric dentist from Northern California to hike in the Yosemite high country at Tuolumne Meadows (http://www.yosemitefun.com/tuolumne_meadows.htm). We hiked from about 8,500 to 10,000 feet and enjoyed a great camp out with lots of superb views, scents and discussion. Here's hoping you get your share of enjoyable times by scheduling it right into your annual planning as a CEO leader.

The Doctor CEO & Taxes

Every once in a while a short to the point statement really sinks in. The following is from an Opinion article by Ari Fleischer, a former White House press secretary and president of his own communications firm. This excerpt is from the Monday, April 16, 2007 Wall Street Journal. Doctor CEO's, often amoung the highest income earners, should participate fully in the national and state tax policy debates.

The Taxpaying Minority

By ARI FLEISCHER

April 16, 2007 Page A15

If the tax forms you're filing this year show Uncle Sam entitled to any income tax, you increasingly stand alone. The income tax system is so bad, and increasingly reliant on a shrinking number of Americans to pay the nation's bills, that 40% of the country's households -- more than 44 million adults -- pay no income taxes at all. Not a penny. Think of it this way. After dropping off your tax forms at the Post Office, you find 100 people standing on the sidewalk. Forty of them will be excused from paying income taxes thanks to Congress. Twenty of them, the middle class, will pay barely a thing. The 40 people who remain, the upper middle class and the wealthy, will pay nearly all of the income taxes. Look at that crowd again and find the richest person there. That individual will pay 37% of all the income taxes owed by those 100 people. The 10 richest people in the crowd will pay 71% of the income-tax bill. The 40 most successful people will pay 99% of everyone's income taxes. Yet for some lawmakers in Washington, these taxpayers aren't paying enough. ....

The Greatest Thing About A Vacation

Just returned from a two week trip to cities my son wanted to visit in Germany, Italy and Prague in the Czech Republic. Yes, it was great to travel and absorb different aspects of various cultures and for my wife and I to see again the remains of history and art in Florence, Rome and Venice. But the real benefit to me was to gain perspective. For all CEO's time away, really away, can provide that much needed benefit. By perspective I mean the press of little day-to-day problems falls away. The larger picture regarding what is needed to move a business forward becomes evident. Convictions harden. For me, and I suspect many others, the great reward for a time away from the day-to-day press of a professional practice is the perspective gained on the big picture.

Take Note NEW FTC Identity Theft Web Site

Doctors and their staff work with a host of personal identify information. Now there is a new web site designed for consumers and business to be alert and learn about identity theft. Here is what the home page states, in part: "This web site is a one-stop national resource to learn about the crime of identity theft. It provides detailed information to help you deter, detect, and defend against identity theft. On this site, consumers can learn how to avoid identity theft – and learn what to do if their identity is stolen. Businesses can learn how to help their customers deal with identity theft, as well as how to prevent problems in the first place. " Go to http://www.ftc.gov/bcp/edu/microsites/idtheft/

This site can act as an information resource you can pass on to your patients. Consider using the site as a staff meeting discussion starter.

Health Improvement, That What You Do!

When doctor CEO's in the healthcare area are asked "What do you do"? I've heard all kinds of responses, from the simple, "I am a dentist" or "I am a surgeon", as if this explains everything, to the effusive, "I am the grave digger for third molars" (can you guess what practitioner said that!?). But one I heard yesterday was the best yet. "I help to improve your health and with improved health you will have improved well-being." This really sums it up for almost all health care practitioners. It puts in context what is done and the result. I'd like to suggest that all doctor CEO's think through and have a ready well thought out response to the question, "What do you do"? If you lack a short response, use the one above and then add to it your actual area of concentration, "and I provide ______". Just fill in blank, periodontic or endodontic care or whatever your area or specialty may be.

CEO Less Stress

Had a good conversation with Dr. Peter Chiang, the managing partner of a large pediatric dental office in Salinas California, a few days ago. He related that he had been on a week vacation and on returning didn't feel the stress he used to when he was away from a very busy practice. What was the secrete? He asked key staff and his partners to keep him in the loop for a variety of practice related emails, even on routine matters, during the period he was away. He indicated that he seldom sent an email unless absolutely necessary during the period he was away, but just the fact of having what amounted to a daily running update made him feel much more in touch with the affairs of his office. The result, less stress on returning to the practice and a feeling of being right in step.

Doctor CEO Performance & Decision Making

We all like to be top performers. Doctor CEO’s stand out as notorious for wanting to accomplish a lot in a condensed time period. Yet, so often in analyzing a doctor’s performance in our planning sessions one or more areas of the practice just seems bogged down. Why? It is often not for lack of trying! Many doctors plan to death the steps they will take to add an associate, expand the practice, or initiate a marketing effort. But the decision to "go" or the multiple decisions needed to move forward lag or are never made. Increasingly our view is that doctors can be far more effective making decisions and moving on to implementation than over planning. During a wonderful lunch yesterday in Naples with Dr. Richard Weinstein and his wife Audrey and their local friends, we reflected on the decisions he had made in 1996. When he determined to bring on his associate and move forward with a partnership. Health issues several years later upended their longer term plans. But Richard and Audrey both commented on how thankful they were with the early decisions I had helped them to put in place that allowed the practice to transfer easily when his eyesight changed. The lesson here, top performance means making and implementing your decisions. Avoid over planning or endlessly waiting to execute your plans.