We all understand the importance of having a strong practice group in the organization. An effective practice management allows the organization to develop a brand name identity that would resonate with prospective clients. It allows enhanced opportunity for intellectual exchange and a means for attracting and retaining good talent. It provides an easier way to train the juniors. Practice groups can help create the organizational assets such as common methodologies, check lists, templates, and documents that could do away with redundancy and iterated efforts.
Well! I agree that the benefits of practice management are longer than the above list. But the question is do we really practice to achieve these benefits? Seldom is it focused on risk management, ethics and strategic planning. Often, the aim of practice management - to help members evaluate themselves and their roles and responsibilities in the enhancement of both the quality and efficiency of services they provide - is forgotten. Why is it so? What do we need for this?
The first and foremost is to create a strategic plan by evaluating the current practice methods. Most of the time, practices exist just for the sake of it with no effective planning and just working as resource pools. Strategic Planning is the essence of success and it should be concentrated on building and growing a practice, a long-term imperative. The growth requirements needs to be assessed and a growth strategy should be developed along with technology, services and marketing strategies for the practice.
At the same time, People strategy also needs to be developed which will address the composition (staff mix), the practice culture, communication, hiring, inducting, retaining and developing the existing staff, risk management, quality control issues, self-regulating discipline, ethical issues, quality processes and professional standards for specific areas. People strategy should focus on developing a critical mass for better perceived quality and shared expertise through designer training programs for the group.
A set of Key Performance Indicators (KPI) or Key Result Areas (KRA) should be defined and monitored. Most of the time, the practice managers are unclear what KPI / KRA needs to be set for the individuals and for the group. This only worsens the practice management.
Once the strategic plan is in place, a business plan needs to created, fitting the strategies and structuring the practice by building a risk management approach into it. Business plan should identify the target client, which will help build the brand image.
Do not forget to have a finance plan with respect to the strategic plan. The buy-in of the management is most important with respect to the financial feasibility after considering the financial issues, general considerations, benchmarks and the risks. Once done, put the plans into operation.
Communication too plays a pivotal role in the operational success of the practice groups. To and fro communication between the management and the members is very important. Practices should have regular follow-up meetings to review the progress. We, as individuals, a disciplined member of the Practice Group, have to devote our attention and time to make practice management work as well.
If we focus, commit, and practice properly, Practice Management is an effective means for high profitable growth.