When revenue starts to fall in a business we have a tendency to try to cut costs in an attempt to get things back on track. We assume there is fat in our staffing or that our trials and tribulations are due to some over bearing vendor taking advantage of us. Perhaps our utility costs are high. So we cut staff, change vendors, take the coffee out of the break room, turn out the lights more often, fix the running toilets etc. etc.
These are short term fixes if they work at all. If you are looking for a long term solution to your business woes you can’t get there simply by making cuts. I’m not saying not to get lean and mean and cut your waste, I’m saying that in addition to getting cost fit you need to examine the revenue side. If you want to PROSPER (not just survive) you need to GROW your revenues.
Leaders don’t just get the business healthy and cost efficient, they grow it.
Take a closer look at your goods and service offerings. Which product or service is making you the most money? Brain storm with your team on how to grow this “low hanging fruit”. Shed the products or services with small margins or small growth possibilities.
When NewLight Healthcare begins with a new client a team of experts is sent in to assess the situation and find areas for revenue growth. We have structured a team of experts to lead this transformation and to assist with the numerous challenges facing healthcare organization.
NewLight Healthcare will work with your existing executive team or place an on-site management team that is approved by your Board. Our daily oversight of your hospital will:
- Create a values driven organization with a clear vision, mission and core values.
- Retain a leadership team that embodies the values of your organization.
- Instill accountability throughout the organization with key operational benchmarks and financial reporting.
- Promote performance improvement through financial, operational and strategic consulting services provided by top industry consultants.
- Provide advisory services to the Hospital Board and present best in class benchmark comparisons to peer hospitals.
- Find new avenues for revenue and growth.
Don’t assume the “fix” is going to be budget cuts and layoffs. Growing your way out of adversity is one of the best methods for sustainability.
For a prime example of turnaround through growth, check out our latest Case Study.