An Example of a Company Game to Increase Production and Net

In past Silkin Management Group blogs we’ve presented different games and bonus systems that Silkin Management Group consultants use with their clients to get the entire staff motivated and more productive. In today’s blog we’ll give another example of an actual proposal written by an office manager to a practice owner that resulted in greatly increased production and net for this Silkin client’s office and a great staff reward. The name of the office has been removed for privacy sake.

PROPOSAL

Situation: The need to increase profit margin at ABC.

Data: Growth has been successfully stimulated at ABC by creating a 1 year staff games. In the past 3 years the game has resulted in an increase in services, production and management profit margin

See the attached grid which lays out the profit margin as follows:

o Management profit margin: The difference between average monthly collections and average monthly operating expenses.

o Owner profit margin: The difference between average monthly collections and average monthly operating expenses and owner/associate salaries.

My solution will be based on the projected grid for the upcoming year. This results in the following:

o increase in collections of $225,800

o “owner profit” margin of $15,000 per month.

o Record “management profit” margin of $50,000 per month.

The last two years when the staff won a similar game, production wasn’t adversely affected by the time off the staff received.

o Last Year – Feb stats up, March stats down.

o Year before – Feb stats down, March stats up.

The cost of winning the game the last two years was approximately $25,000. As you can see from the grids, the added profit margins more than paid for the game plus large increases in management and owner profits. Thus the game was financially very successful.

I surveyed staff to see the game that they preferred Each person preferred the last years’ game reward rather than the previous year. Two years ago we voted to go to Maui and ½ staff went one week and other ½ went the following week. Last year only 2 staff were They preferred this because it gave them freedom to go where they wanted and not voted by group, freedom to spend money allotted per individual preference and it was easier and more sane to run the office while staff was gone.

Overall, the game I propose is not quite as profitable for the clinic as the two year ago game, but more than last year’s game.

My solution promotes staff thinking a bigger game for themselves and the office. I feel this will reflect in a “go for it” attitude to win the game and get us back into “incredible growth” again.

SOLUTION: Goal: Service $1,533,333 and with collections: $1,380,000

o 5 paid days off

o $1,500 expense account

o No restrictions on where to go

o To be done over a 6 week period, schedule to be determined by Office Manager.

o Must be an employee all of this year and full time (26 hours +) to get full reward. Part-time will be pro-rated.

o Operating expenses not to exceed an average of $65,000 per month. (This increase in operating expenses takes into account reserves and pension fund which wasn’t done in previous average operating expenses.)

 

  • o Announce at Tuesday, January 17, staff meeting for maximum use of game.  Not to wait any longer.

 

I actually feel if this is approved that the goals will be surpassed, not just met.

 

Total clinic cost game $30,000 and vacation leave $6,150 = $36,157

Approved____________________

Disapproved_________________________