(Continued...)

Ideally at his production level, three full-time staff members, hygiene staff and a sterilization tech are needed. What he has is:

-- one talented, full-time administrative staff member
-- the pregnant assistant.
-- the new dental assistant.
-- 4 days of hygiene.

Because training is the priority right now and not everyone is able to work at full capacity, they are playing hurt and everyone is feeling the pressure.

Amy, the administrative staff member is working very hard. She's even working an additional half day to compensate for those things -- like collections -- that she's unable to get to during regular work hours. She's hopeful this is only temporary, and that after the assistant's maternity leave is over things will improve.
 
Dr. Jones came into work one morning and noticed that Amy had scheduled a meeting for the two of them to talk. Uh-oh. When they met, Amy asked for a salary increase, which amounted to almost 20 percent more than she currently earns!  Her current salary is in the top tier of those with her experience in their community. She explained to Dr. Jones that she had been working very hard and deserves it. She also said that since the sterilization tech had left, there was more money in the budget for her.
 
Dr. Jones felt backed into the corner. He agreed with most things she said, rationalized his feelings, and then told her "yes".
 
I received an email from him saying he gave an unexpected salary increase to Amy. We had a telephone call scheduled for the next day and I was anxious to hear what occurred.
 
He gave me the details, and frankly, I was very surprised, not to mention full of questions for him:

-- What was going through your mind when she asked for the increase?
-- Did you consider your personnel budget?
-- Why did you feel you had to say "yes"?
-- Did you consider negotiating with her?

Dr. Jones was not happy with his decision, and I had to get to the root cause of why he did what he did before I started to make recommendations. The best recommendations and support can only come from learning his truth surrounding the situation. Our experience and desire for transformational change proves this time and time again. Just because one approach works for one dentist does not mean it will work for others, like Dr. Jones. Generalizations are cheap. Here's what I learned:
 
With all the changes over the last year-and some were wonderful-he is running on empty. It was easier for him to say "yes".
He didn't want to upset her by telling her "no". He "guesses she deserves it". He didn't consider asserting his leadership and using another strategy-like negotiating a much lesser amount.

Was I surprised that Amy, one of the finest staff members I have worked with, asked for a salary increase of nearly 20 percent, or frankly, any increase at all when collections are down?  You bet. We share the practice statistics at the "Numbers" meetings and have a plan in place to help the practice get through this rough patch. But that would be missing the point.
 
Amy is not the issue!
 
Dr. Jones is. Dr. Jones made a decision to not think the situation through, and the result had financial and emotional repercussions. Amy could, and should, have been 'set straight' by Dr. Jones about the impact her request would have on the practice. The potential for real improvement in this situation has little to do with Amy. It has to do with leadership ability. As consultants, there is nothing we love more than to encounter situations where there is great potential, which we know we can unlock as we work with the doctor to unlock their (often hidden) leadership skills and abilities.
 
So, what was my recommendation for next time?

Give yourself some time. Why must the decision be made immediately?  Say, "Amy, you have been working very hard and I appreciate your hard work and commitment very much. I will think about this, review my budget and get back to you within 48 hours."

Don't make decisions like this without consulting your annual plan and budget. With the significance of this salary increase, another expenditure may have to be put on hold.

No one should understand your business better than you do. Although Amy is an excellent staff member, she is not a business advisor or a business owner. A competent business advisor would not have supported a 20 percent salary increase. Trust your instincts.

Don't ever feel backed into a corner. There was nothing threatening about this meeting. If Dr. Jones had said he'd get back to her, I believe there would have been another outcome. He and I could have discussed the situation, reviewed the budget and quite possibly come up with a solution that would have satisfied everyone.

Be sure your staff is clear about your philosophy for salary increases. At The Practice Source we believe that increases are tied to practice profitability and performance (staff merit). Amy is a top performer but revenue is lagging and the entire team is not playing at 100%. It is simply too risky financially right now. When performance and collections are back on track, salary increases may be in order.

Ever wondered why you said "yes" when you really wanted to say "no"?

Is the thought of having a "sounding board", an objective third party you can confer with, appealing to you?

Throughout our consulting careers, the area of greatest transformational change we've seen has come through working with doctors on their leadership skills. This Case Study is a prime example of the power each and every Doctor/Business Owner holds, and how to learn the skills you need to avoid abdicating that power.

If you want to make solid decisions rooted in a strategic plan, based on your short- and long-term goals vs. decisions based on fear and the path of least resistance, call us. Call us today. You can do this differently, you can create an environment you truly enjoy working in. We know how to make that happen, and we will be there for you. 

If you have an issue that is making you feel backed into a corner, please call. We can help.