One interesting aspect of analyzing so many cosmetic medical practices throughout the country is that we are able to observe and compare the various company cultures and their impact on the success or failure of a business.
One important point that everyone in business needs to understand is that the leader of an organization drives the company’s culture. Interestingly enough, the leader that is identified on an organizational chart (oftentimes a physician owner) is not necessarily the real leader of the organization. I’m sure you’re wondering what I mean by that statement.
Well, it is important to realize that every company has a formal organizational structure and an informal organizational structure. The one that counts is the informal structure…that’s what drives the business. For example: just changing company policy on paper will not necessarily have any impact unless the informal leader not just the formal leader embraces the change.
Too often we see leadership abdicated to individuals that may or may not have the best interest of the practice at heart. Team members, especially in these economic times, will usually place their personal interests above those of the company and that is understandable however, it is essential that on-site ownership hold the key leadership position with the team.
It’s ok to share this leadership with a manager but never wash your hands of this one very important responsibility.
Understand that when you embrace your role as the leader of your business, you will have the impact that you want and you will dictate the company culture. It will become a reflection of who you are as a leader. This means making the tough decision along with the fun ones.
FXA
As an aside to this post: Always align your management compensation including salary, benefits, commissions, incentives and bonuses with the interests of the practice. This will insure that their personal interests are aligned with your business interests.
Filed under: General Business, Human Resources Tagged: | cosmetic practice managent, leadership
[...] 7. Formal vs. Informal Organizational Structure – October 29, 2009 [...]
I found your comment to “always align your management compensation .. with the interests of the practice.” I have an excellent officer manager who is very personally involved in the success of the practice. She is instrumental in persuading clients to undergo treatments, and is much better at that than I. I pay her an hourly rate and commissions for sales. She is internally driven but I feel she should benefit from my success as so much of it is a direct result of her efforts. I am wondering which incentive you have found to be the most beneficial to all parties?
thank you,
Michelle Parsons
I would recommend providing incentive to promote the behaviors your seeking. I you want to increase your revenue then provide sales incentive, if you want to reduce your expenses then provide incentive based on profit.