Most of that, he suggests, has to do with operating your business through smart, proper and active budgetary planning.
Mr. Giannetto’s four tips are:
Remember that budgets aren’t real.
“A budget has no bearing on what will happen within the market or even within your own organization. Too often management, especially senior management, expects that division heads or process owners will translate a financial budget into what actions should be taken on a daily basis to achieve the projected results.”
Focus on making a budget actionable, not accurate.
“Projections (or goals), by their very nature cannot be accurate. They are simply an educated guess on the expected outcome if everyone in the organization does what is expected.”
Identify drivers of financial performance.
“Financial performance is an outcome. It is the results of what was done in the past and as such, is not something that employees can act upon.”
Break away from the annual mentality.
“Measuring performance drivers cannot be a yearly event and will quickly move the organization into a more proactive form of management focused on influencing future results.”
For more turnaround stories:
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At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
