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Unlocking Team Potential by Jill Allen

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Unlocking Team Potential 

A guide to effective bonuses and incentives

by Jill Allen

In orthodontics, the caliber of your team is a critical determinant of your practice’s success. A well-structured bonus system can be a powerful tool not just for motivating your team but also for aligning their efforts with the broader goals of your practice. To truly harness the benefits of a bonus structure, it must be meticulously crafted, with clear objectives, realistic targets and transparent metrics. Having seen my fair share of bonus structures, I want to delve into the nuances of designing a bonus structure that incentivizes performance and drives sustainable growth for your practice.


Defining clear parameters
The effectiveness of any bonus system hinges on its clarity and precision. A bonus structure that is ambiguous or poorly defined will lead to confusion, frustration and disengagement—and in some cases, turnover—among your team. To avoid this, you need to establish a clear timeline for the bonus—both start and end dates should be explicitly communicated. Additionally, the criteria for earning the bonus must be measurable, attainable and directly tied to a practice’s key performance indicators (KPIs).

Rather than relying on vague metrics like “increasing production,” I always encourage a well-designed bonus structure that’s anchored to specific, quantifiable goals such as a percentage increase in net production over a defined period. This approach not only eliminates uncertainty but also ensures that the bonus system is fair for your team.


Team bonuses
One of the most effective ways to motivate your entire team is through a bonus structure that rewards collective effort. Multiple metrics can be used in this, but for this article I’ll talk about the most common one: net production. Net production reflects the overall output of the practice, making it a metric that I believe all team members can influence, from clinical staff to administrative personnel.

I always want to see bonus goals based on the average monthly net production, measured quarterly. This methodology smooths out any anomalies and provides a more accurate reflection of the practice’s performance over time. By linking the bonus to quarterly performance, you encourage sustained effort across the entire team, fostering a culture of continuous improvement.

While I know some might argue instead for using collections as the measurable, given that it represents actual cash flow, net production is a more comprehensive measure of the actual practice’s health, which is why I wanted to speak to this specifically in this article. It accounts for the collective efforts of the team, from securing new patient starts to ensuring high-quality patient care, which directly affects overall production.

It’s with that in mind that it becomes even more important to set realistic and achievable goals for net production bonuses. For example, if your practice has historically grown at a rate of 3% per year, setting a target of 5%–7% growth may be ambitious yet attainable with the right strategies in place. Conversely, setting an unrealistic target—such as 20% growth without substantial evidence to support it—will demoralize your team and undermine the effectiveness of the bonus structure, because that goal will be simply unachievable. Think of it this way: The goal is to challenge your team without setting them up for failure.


Timing and implementation
The timing of introducing a bonus structure is critical to its success. For new practices, I would advise to wait until the business has reached a certain level of stability before implementing bonuses. Typically, this would be around the three-year mark, by which time the practice should have established a steady patient base, consistent cash flow and a clear understanding of its growth trajectory.

In the early years, the focus should be on building the foundation of the practice—establishing efficient processes, building a cohesive team and ensuring high-quality patient care. Once these elements are in place and the practice has a more predictable growth pattern, a bonus structure can be introduced to further incentivize and reward team performance.

For larger practices, bonuses can be implemented at any time. You may find that there are ebbs and flows in your growth and a bonus might spark new energy around reaching goals. It can also influence a renewed effort in team building and continuity.

It’s important to mention that not all practices are in the right spot to offer a bonus. If you’re experiencing a lot of team turnover or are having a hard time with systems and processes, trying to meet additional goals will only confound the situation. A bonus is not a fix-all! Practices that implement bonus structures should already be in a place of stability, looking to push the team and practice to the next level.


Individual bonuses
While team bonuses are perfect for driving collective performance, there are instances where individual bonuses are more appropriate. For example, a treatment coordinator bonus is a great way to motivate a high-performing individual into even higher conversions.

It’s important to ensure your TC is already performing at a high level. If a TC consistently converts consultations into starts at a high ratio, you might introduce a bonus structure that rewards starts above a certain threshold each quarter.

Set strict parameters to ensure the starts are what we’d consider to be financially viable. For example, a TC shouldn’t be able to meet their bonus by lowering down payments or offering unsustainable payment plans. Make sure your individual bonus structure aligns with the practice’s overall financial strategy and patient retention goals.


Final considerations
Designing an effective bonus structure requires a strategic approach, one that balances the practice’s growth goals with the realistic capabilities of your team and current economy and market. It’s not enough to set ambitious goals; those goals must be achievable, measurable and directly linked to the factors that drive your practice’s success.

Remember, transparency is key. Every aspect of the bonus structure—from the metrics used to calculate it to the timeline for payouts—should be clearly documented and communicated to your team. A well-designed bonus structure is more than just a financial incentive—it’s a strategic tool for driving practice growth and ensuring your team is aligned with the goals of the practice. With careful planning and execution, you can unlock your team’s full potential and achieve sustainable success in your business.
Author Bio
Jill Allen Jill Allen is an international orthodontic consultant whose core strengths lie in guiding orthodontists through practice start-ups, acquisitions and comprehensive team training, and supporting practitioners at every stage of their orthodontic careers. With a proven track record of success and a dedicated team of professionals, Allen has become a trusted leader in the orthodontic field. Website: practiceresults.com



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