Interview with Ron Gleitman Ph.D., Director of Practice Development, Phonak, Illinois
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AO/Beck: Hi Ron, thanks for speaking with me today.
Gleitman: Good morning Doug. Happy to do so.
AO/Beck: Ron, before we address practice management issues, would you please tell me a little about your professional background?
Gleitman: Sure. I got my Ph.D. from Purdue in 1992, and then I went into a private practice in Chicago. After 12 months working for someone else, I decided to open my own practice and so I purchased a two-office-practice from a hearing instrument specialist in Chicago. After four years in my own practice I ended up buying the first practice that I started with, and so I had four offices. I merged the four into three offices, and really had a nice practice with lots of growth for many years and then in September of 2001, I decided to sell the offices and get out of direct patient care. I took a little time off and started with Phonak as of January 2002.
AO/Beck: Ron, what does your job at Phonak involve?
Gleitman: My job is to help independent practitioners compete in their market place. Of course there are many ways to do that, and Phonak supports and helps the practices in their growth and expansion plans. We plan to achieve this support through seminars and consultation with our customers.
AO/Beck: Very good. Let's discuss specifics. For example, what are the most important things you try to communicate to every practice?
Gleitman: Probably the first and most important issue is that excellent patient care is good business. If you provide excellent care for your patients, you create apostles and they will promote your practice and your services. Promotion from your apostles is an extremely valuable marketing tool, which cannot be purchased by your competition! After that, the next issue is to have an up-to-date business plan to help you think in terms of your practice as a business, and its weaknesses and strengths.
AO/Beck: Ron, what percentage of the practices out there actually run according to their business plan?
Gleitman: It is probably about ten percent. I think many practices start with a business plan, but as the practice evolves and new challenges are managed and new strategies are implemented, the business plan is shelved, when it should be updated! We did assemble a focus group a few months ago, and we brought in a mix of practitioners and only three of them had a business plan that was used in the day-to-day management of their business. Additionally, very few business plans have any way of measuring success! This is of course a critically important point, but even the offices that had intact, up-to-date business plans did not have a way to measure their success.
AO/Beck: What sort of measurement are we talking about here?
Gleitman: A good goal might be to increase revenues ten percent a year, or perhaps to increase your profits ten percent a year, or to see more new patients per year, or by reducing returns by 25 percent per year, and on and on. The basic issue is that the business plan should not be stale or stagnant, it should have future goals and targets, and it should spell out future goals and it should address how the accomplishments will be evaluated.
AO/Beck: Do you have a sample business plan that we can attach to this interview?
Gleitman: Yes we do. I will attach it at the end of this interview, and it can be used as a model for private practices, or really any dispensing practice.
AO/Beck: In the business plan, do you cover marketing and advertising?
Gleitman: Yes, but in the business plan, we address three types of practices. For example, we have the medical model, the retail model and the mixed model. Each model has a different approach to marketing, based on the practice needs. For example, the medical model probably would require less advertising than the retail model, and conversely, the retail model would have the largest advertising budget. In addition, there is also difference in how the different models market their patient base. Each model will have a different marketing and advertising strategy.
AO/Beck: That makes sense. Any surprises in the business plan?
Gleitman: Well, not in the plan itself, but one issue is that the medical model practices are responding to the relatively flat market growth over the last year, and they are beginning to ramp up for more aggressive marketing campaigns. I think that has significance in that the medical model will probably become more active in traditional retail venues over the next few months.
AO/Beck: Yes, I think that is a reasonable expectation, and it probably is a response to the flat growth, as you've suggested. On a slightly different issue, suppose that I have a practice that is an Audiology based practice in a medical/professional building,a nd supposing that I have revenues of about 300 thousand dollars annually. What percentage of my revenues should I be spending on marketing and advertising?
Gleitman: Probably about 10 percent.
AO/Beck: That seems low to me, typically I hear about 15 percent?
Gleitman: Well, each market is different, and I can really only address the market here in Chicago. The costs of advertising and marketing varies, and it really need to be addressed for each targeted demographic area. For example, in Skokie Illinois, the largest population segment is older adults at about 26 percent. In Naperville, where the Phonak factory is, the older adult population is only six percent. So the numbers vary with the region, and the targets and the goals, and there is no one size fits all approach to marketing. You need to identify the targets, and then assemble a business plan that allows you to achieve the goals.
AO/Beck: What is the number one mistake you see practices making time and time again?
Gleitman: I'd have to say the big issue is the lack of a business plan. They tend to shoot from the hip, and that is not a solid model on which to build a practice!
AO/Beck: What is your advice for the small practice situated in the backyard of a national practice?
Gleitman: You need to identify your niche, develop that niche, market that niche and stick with it. You cannot be all things to all people, and if you're really interested in digital hearing aid sales, or FM systems, you need to make sure that you're not out there developing industrial audiology accounts! You need to focus and build a solid foundation within your niche, or your core strength, and if that isn't working, don't start to shoot from the hip! Evaluate your strengths and weaknesses and incorporate them into your revised business plan.
AO/Beck: Can the hearing healthcare practitioners reach you directly through the switchboard at Phonak?
Gleitman: Yes, absolutely. I am accessible via the toll free number, and I'm always happy to speak with hearing healthcare professionals. The phone number is 1-800-777-7333 extension 5151.
AO/Beck: Thanks Ron, it's a pleasure to speak with you and I thank you for your time and sharing your knowledge with us.
To see the SAMPLE business plan, please Click Here.
For more information on Phonak click here.
Click here to visit the Phonak website.
Gleitman: Good morning Doug. Happy to do so.
AO/Beck: Ron, before we address practice management issues, would you please tell me a little about your professional background?
Gleitman: Sure. I got my Ph.D. from Purdue in 1992, and then I went into a private practice in Chicago. After 12 months working for someone else, I decided to open my own practice and so I purchased a two-office-practice from a hearing instrument specialist in Chicago. After four years in my own practice I ended up buying the first practice that I started with, and so I had four offices. I merged the four into three offices, and really had a nice practice with lots of growth for many years and then in September of 2001, I decided to sell the offices and get out of direct patient care. I took a little time off and started with Phonak as of January 2002.
AO/Beck: Ron, what does your job at Phonak involve?
Gleitman: My job is to help independent practitioners compete in their market place. Of course there are many ways to do that, and Phonak supports and helps the practices in their growth and expansion plans. We plan to achieve this support through seminars and consultation with our customers.
AO/Beck: Very good. Let's discuss specifics. For example, what are the most important things you try to communicate to every practice?
Gleitman: Probably the first and most important issue is that excellent patient care is good business. If you provide excellent care for your patients, you create apostles and they will promote your practice and your services. Promotion from your apostles is an extremely valuable marketing tool, which cannot be purchased by your competition! After that, the next issue is to have an up-to-date business plan to help you think in terms of your practice as a business, and its weaknesses and strengths.
AO/Beck: Ron, what percentage of the practices out there actually run according to their business plan?
Gleitman: It is probably about ten percent. I think many practices start with a business plan, but as the practice evolves and new challenges are managed and new strategies are implemented, the business plan is shelved, when it should be updated! We did assemble a focus group a few months ago, and we brought in a mix of practitioners and only three of them had a business plan that was used in the day-to-day management of their business. Additionally, very few business plans have any way of measuring success! This is of course a critically important point, but even the offices that had intact, up-to-date business plans did not have a way to measure their success.
AO/Beck: What sort of measurement are we talking about here?
Gleitman: A good goal might be to increase revenues ten percent a year, or perhaps to increase your profits ten percent a year, or to see more new patients per year, or by reducing returns by 25 percent per year, and on and on. The basic issue is that the business plan should not be stale or stagnant, it should have future goals and targets, and it should spell out future goals and it should address how the accomplishments will be evaluated.
AO/Beck: Do you have a sample business plan that we can attach to this interview?
Gleitman: Yes we do. I will attach it at the end of this interview, and it can be used as a model for private practices, or really any dispensing practice.
AO/Beck: In the business plan, do you cover marketing and advertising?
Gleitman: Yes, but in the business plan, we address three types of practices. For example, we have the medical model, the retail model and the mixed model. Each model has a different approach to marketing, based on the practice needs. For example, the medical model probably would require less advertising than the retail model, and conversely, the retail model would have the largest advertising budget. In addition, there is also difference in how the different models market their patient base. Each model will have a different marketing and advertising strategy.
AO/Beck: That makes sense. Any surprises in the business plan?
Gleitman: Well, not in the plan itself, but one issue is that the medical model practices are responding to the relatively flat market growth over the last year, and they are beginning to ramp up for more aggressive marketing campaigns. I think that has significance in that the medical model will probably become more active in traditional retail venues over the next few months.
AO/Beck: Yes, I think that is a reasonable expectation, and it probably is a response to the flat growth, as you've suggested. On a slightly different issue, suppose that I have a practice that is an Audiology based practice in a medical/professional building,a nd supposing that I have revenues of about 300 thousand dollars annually. What percentage of my revenues should I be spending on marketing and advertising?
Gleitman: Probably about 10 percent.
AO/Beck: That seems low to me, typically I hear about 15 percent?
Gleitman: Well, each market is different, and I can really only address the market here in Chicago. The costs of advertising and marketing varies, and it really need to be addressed for each targeted demographic area. For example, in Skokie Illinois, the largest population segment is older adults at about 26 percent. In Naperville, where the Phonak factory is, the older adult population is only six percent. So the numbers vary with the region, and the targets and the goals, and there is no one size fits all approach to marketing. You need to identify the targets, and then assemble a business plan that allows you to achieve the goals.
AO/Beck: What is the number one mistake you see practices making time and time again?
Gleitman: I'd have to say the big issue is the lack of a business plan. They tend to shoot from the hip, and that is not a solid model on which to build a practice!
AO/Beck: What is your advice for the small practice situated in the backyard of a national practice?
Gleitman: You need to identify your niche, develop that niche, market that niche and stick with it. You cannot be all things to all people, and if you're really interested in digital hearing aid sales, or FM systems, you need to make sure that you're not out there developing industrial audiology accounts! You need to focus and build a solid foundation within your niche, or your core strength, and if that isn't working, don't start to shoot from the hip! Evaluate your strengths and weaknesses and incorporate them into your revised business plan.
AO/Beck: Can the hearing healthcare practitioners reach you directly through the switchboard at Phonak?
Gleitman: Yes, absolutely. I am accessible via the toll free number, and I'm always happy to speak with hearing healthcare professionals. The phone number is 1-800-777-7333 extension 5151.
AO/Beck: Thanks Ron, it's a pleasure to speak with you and I thank you for your time and sharing your knowledge with us.
To see the SAMPLE business plan, please Click Here.
For more information on Phonak click here.
Click here to visit the Phonak website.
