I have a friend who writes for a magazine for independent auto repair shop owners. We marvel at how many similar issues confront auto shops and pharmacy owners. For example, insurance companies dictate how much they can charge for repairs. Finding certified repair personnel is difficult, and the competition from national chains is tough.
He shared an interesting phenomenon he says seems to be present in successful repair shops. He calls it “the invisible competitive advantage.” As he described the term it resonated with me. I have felt this — an invisible advantage — when I visit a truly remarkable pharmacy. The term describes the feeling you get when you walk into a successful business. Somehow you can just tell that the people who work there enjoy their jobs, are good at them, and love taking care of customers.
Pharmacy KPIs
Pharmacy system vendors often suggest that pharmacies use key performance indicators, or KPIs. There are at least a dozen key ones to monitor, such as inventory turns, gross profit margin, and payroll as a percent of revenue. I am a fan of them, as they serve as a way to measure how your pharmacy is performing in critical areas. And better yet, many of them come with ideas for ways to improve a KPI.
Part of the problem with the invisible advantage is figuring out how to know if you have it. And if you don’t, how to get it. I have not seen anyone offering suggestions for improving this success factor. So I’ll offer up a few.
Building a Successful Pharmacy Team
Finding ways to build a successful team is a challenge, but it must be done. This task starts with the owner or manager. Take some time away from the pharmacy counter. Ponder the atmosphere, feeling, and ambience of your pharmacy. Do your employees’ faces light up when they walk in? Do team members treat each other with respect? If yes, then great. If not, then it’s time to go to work.
Next, get off-site with a few key staff members and share this concept with them. Ask for their impression on how your pharmacy rates in the area of team camaraderie. In this type of meeting, it is essential you ask a question, listen to what is said, and then encourage people to dig a bit deeper and provide suggestions. Be prepared to hear comments about pay, time off, working conditions, disruptive employees, and your inability to delegate effectively. All these comments should be greeted with appreciation. You need not agree or comment on them, other than to say, “Thank you, I’ll ponder that. Now, can you elaborate further?”
Make Small Changes
After this meeting you’ll organize the comments into a list by type: monetary, management policies, working conditions, etc. Then, one by one, follow up with those who participated, show them your list, and ask them for specific suggestions for improvement. Again, listen and keep track of the suggestions.
You are looking for specific changes you can make. They need not be big, but they must demonstrate your commitment to improvement. One owner I know told me that, in doing this type of exercise, he learned his policy of having staff members rotate in cleaning the bathrooms was a “sore spot.” So he arranged for a cleaning service to come and clean the pharmacy after hours. No one got a raise, but they no longer needed to perform this task.
You are looking for something you can do that proves you listened, learned, and responded. Then, the idea is to do as the shampoo bottle says: Lather, rinse, and repeat.
Here’s hoping something I shared here will help you do more and be better. CT
Bruce Kneeland is an independent pharmacy veteran, author, and podcaster. He can be reached at BFKneeland@gmail.com and listened to at www.pharmacycrossroads.com.