9 Critical Pitfalls to Avoid when Scaling
James Childress, founder of CAC Advisors, is a 20 year CPA turned strategy and growth advisor for rapidly expanding clinical practices and agencies.
Childress gets the importance of measuring data and the challenges that can arise when attempting to track metrics!
In his words: “The biggest pitfalls I see practices falling into when trying to scale revolve around failing to run by the numbers - financial and non-financial alike.”
When it comes to pitfalls, here are 9 of the top obstructions that Childress sees consistently impeding on clinicians when scaling:
When owner’s “attention has become diluted,” either from focusing disproportionate time on clients or on their growing team/ operations
Not using the “proper reporting and insights”
Failing to meet growth demands with the best tools
Not distinguishing between baseline goals and “stretch goals”
Ignoring the way seasonality can impact productivity
Lacking a clear mission statement with specific metrics attached that “defines what success looks like for you”
Focusing either only on the financials (P&L, Cash Flow, Revenue, Profitability) or only on non-financials (Session Counts, Time & Productivity Metrics, Client Experience)
Targeting Speed without Quality, or Quality without Speed
Misapplying certain metrics and principles that lead to misdiagnosing a problem and scapegoating one “Root Cause”
As Childress concludes, “You (as a clinician and owner) are a finite resource!” It is vital to monitor progress and leverage data to streamline your day-to-day goals and operations, optimizing your time spent on each responsibility.
He closes by referencing a quote from his business mentor: “Eighty-five percent of the reasons for failure are deficiencies in the systems and processes, rather than the team. The role of management is to change the process, not badger team members to ‘do better’.”
It all comes back to using data to make the best decisions, form the best systems, and empower your team to work towards reaching its collectively defined goals.
