Simon’s KPI’s

KPI’s – key performance indicators – are the magic numbers that can tell both you and an outsider exacly what’s going on in your business.My favourite KPI’s for dentistry have always been (as a percentage of total sales):

  • Lab bills (10% for GDP’s and 14% for funky dentists)
  • Material costs (7% for everyone)
  • Staff costs (17.5% normally, rising to 22% of you salary your hygienists)
  • Profit before tax (between 25% and 40%, depending on number of dentists in the building)

That’s kept me going for some years now – then along comes Simon Hocken as my business partner – and I discover that he has a different set of criteria:

  • ADY (average daily yield per dentist) – aim for £1000 for an associate GDP and £1500 for a principal GDP
  • Net profit per month – duh
  • Daily bank balance and rolling average balance (is the trend up or down)
  • Active patient list size per full-time dentist (only needs to be 1000 if you do what’s right)
  • New patient numbers per month (<10, 15-20 or +20?)

Add the two sets of KPI’s together – and you can analyse and coach a client very quickly indeed.

Sad truth is, many principals never look at these numbers.

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Chris Barrow

Chris Barrow has been active as a consultant, trainer and coach to the UK dental profession for over 20 years. As a writer, his blog enjoys a strong following and he is a regular contributor to the dental press. Naturally direct, assertive and determined, he has the ability to reach conclusions quickly, as well as the sharp reflexes and lightness of touch to innovate, change tack and push boundaries. In 2014 he appeared as a “castaway” in the first season of the popular reality TV show “The Island with Bear Grylls”. His main professional focus is as Coach Barrow, providing coaching and mentorship to independent dentistry.