Top Three Office Design Trends of 2007

High-tech, hospitality and HIPAA (Health Insurance Portability & Accountability Act) drive the evolution of future optical interiors according to top designer Barbara Wright, of Barbara Wright Design. Here are Barbara’s top three design trends for eye care interiors in the coming year.

1. HIGH-TECH EQUIPMENT
• Computers Everywhere
The paperless office is now a reality for many practices. For a new practice it makes sense to go paperless right from the start. Designers locate computer outlets in every room whether they will be immediately put to use or not.

• Multiple Data Collection Rooms and Workup Areas
One Data Collection room is not enough, even for the smallest office. Practitioners feel pressured to increase productivity but don’t want to sacrifice quality patient care. Having staff perform more data collection allows the doctor more personal interaction with the patient. The ongoing proliferation of new and better data collection devices requires two, three or more separate rooms or nooks to prevent bottlenecks and keep patient flow running smoothly.

• Flat Screen Video Monitors
Video screens dot the future office landscape because they are such excellent tools for patient education, product and service promotion. Large plasma screens put the message across in waiting areas; smaller flat screens replace the “old school” eye chart projector in the exam room and add MTV-style flair to frame selection in the dispensary. Adding extra electrical outlets for every possible future video screen location is a must.

2. HOSPITALITY INSPIRATIONS
• Reception Counter
When patients step up to the latest reception counter designs they may feel like they are checking in to a fine hotel. Reception counters often have granite countertops and gleaming brass logo signage on the wall in back of the counter. The new style reception counter has no untidy piles of paperwork or messy file cabinets in sight to mar the mood.

• Coffee House/Bistro Corner
No need to stop at Starbucks before going to the eye doctor. There’s a coffee bar in the waiting area. Some practices take it a step further and provide bistro-style table, chairs and a copy of the daily newspaper to make waiting a pleasurable experience.

• Restaurant-style Restrooms
Plain old utilitarian restrooms aren’t good enough if you want to impress patients. Now restrooms are equal to those at your favorite fine dining establishment with colorful ceramic tile floor and walls, elegant lighting and sturdy built-in stainless steel paper towel/trash unit.

• Adventurous Color Schemes
Richer darker colors on walls, multi-colored art glass pendant lights, tapestry upholstered chairs and elegant patterned carpet are just a few of the elements designers borrow from the restaurant industry to create an indelible first impression. Earth tones have morphed into the new botanicals: deep olives, pale artichoke, sage greens and other hues drawn from plants and dried herbs.

3. HIPAA REGULATIONS
• Patient Record Privacy
Records must be filed out of sight of patients in lockable file units or in a room with a locking door. Computer screens showing patient records must be positioned so the general public cannot see them. Designers must anticipate visitor sightlines during the floor plan design stage to prevent privacy problems.

• Confidentiality at Check Out Counters
Containing conversations at check out counters is important for patient privacy. Multiple check out counters are becoming the norm in order to prevent bottlenecks at the front desk. Building walls between counters, dropping the ceiling above and providing background music to mask conversations help provide confidentiality in the new offices of 2007.

It's 2007 – Do You Know Where Your Numbers Are?

You should be getting your year-end figures from your accountant soon. Are you one of those people blessed with a knack for numbers who is eagerly anticipating gains over last year? Or are you one of those too busy running the business to bother with numbers?

The fact is that you can't improve what you don't measure. Now you're probably wondering, why is this designer going on about numbers? Isn't my accountant or bookkeeper supposed to keep track of that stuff?

Your bookkeeper can keep your checking account straight. Your accountant can do your taxes. But until you start tracking and comparing how your business is performing from one year to the next, you're like a ship's captain without a compass.

If you keep on sailing in the same general direction you’ll probably hit some land sooner or later. But it won't be the destination you hoped for. If you want your practice to sail into the port called success, you have to start by finding out your current position. Then you'll be able to set specific goals and figure out strategies and tactics to reach those goals.

When I talk to practitioners who want to move to a new office or build a new building, one of the first things I ask for are a few basic financial statistics on their practice. Then I can talk with them about how the right design for the new office can result in big gains in those numbers. We can't set measurable objectives for the new facility without having current numbers to start from.

Many times the gains turn out to be higher than they first dared hope for. I like to know the numbers so I can keep score on how well my designs perform for my clients. (By the way, I know the numbers on my own business and I use them to improve our performance year by year. I practice what I preach.)

Office design is first and foremost about higher performance and productivity, which as a bonus comes wrapped in an attractive package. When you have "before and after" numbers for comparison, you can figure out the exact return you are getting on the investment you made in the new office. If you have a nice-looking new office, but aren't seeing significant gains in your numbers, you have made a bad investment.

What are these magical numbers that you should know about your practice? Here are the very basic statistics that will tell you if you're going in the direction of your dreams or foundering in the doldrums.

1. Gross revenues
This is the easiest. Most people have at least a rough idea of how much money came in the door last year or last month. But it's much better to have an exact number to work from.

2. Growth rate
Compare this year's gross revenue with last year's. Did you take in 10% more (average), 20% more (better than most), 30% more (on the fast track!)? If your growth rate is less than 10% you are in the danger zone and you'd better do something about it pronto, like hire the best practice consultant you can find!

3. Average number of exams performed per month
Your office management or accounting software should be able to pull up this number for you without much fuss. If it doesn’t, have your accountant or bookkeeper figure out a way to get this number and report it to you monthly.

4. Average revenue per exam per month and per year
This is a simple calculation that even the most number-resistant business owner can and should look at every month. Just divide your monthly income by the number of exams performed that month.

At the end of the year average out all twelve months to see your average revenue per exam for that year. Here's where the story gets more interesting. Small improvements in either or both of these numbers can translate into a great deal more income over time.

Is your practice maxed out on productivity? If you are booked out two weeks or more and office bottlenecks prevent seeing more patients, then it's time to start planning a move up to a bigger office! A business that’s not growing is in danger of slipping backwards.

Is your dispensary set up right so the frames practically sell themselves? Or are your opticians handicapped by poor lighting and outdated displays? Improving the dispensary should always result in higher average revenues per exam, putting more money in your pocket whether or not the number of patients seen increases.

However, a dispensary upgrade should also result in more word of mouth referrals and more new patients. When you invest in a new dispensary, reserve some money for advertising and promotion of your new and improved look.

One of the most powerful words in advertising is the word “new,” so take advantage of having something new to promote! With a one-two punch of new dispensary plus promotion, your average revenue per exam can easily shoot up 20% or more.

5. Profit
When all expenses are subtracted from all income, this is the "bottom line" that the business gurus always talk about. If some of your other numbers show gains, but there is little or no gain in profit, then you need to do some serious pruning on those expenses. Or maybe take a look at whether you're spending so much on new equipment that it's eating up all your profits. Equipment junkies will hate to face that one!

There are many more sophisticated comparative statistics that a business consultant can help you glean from your accounting records. Then a good consultant will teach you how to use them to improve your practice and your profits. At the very least you must have a handle on the basic five above if your ambition is to join the ranks of the top practices in your area.

Bargain Alert: Leather Side Chairs $106.99

Spotted during my last Costco run: Beautiful dark brown leather-upholstered side chairs perfect for use at dispensing tables for $106.99 (Item #809625). If you want new dispensing chairs at an incredible price, this is it. Now be forewarned – these chairs are residential grade, not commercial grade, so you can't expect them to last as long as a commercial grade chair.

However if the style and color works with your decor and you want a low-cost way to spruce up your dispensary, these chairs are a great value. If your local Costco doesn't have them you can order similar chairs online at the Costco website. The online styles shown as of today's date range in price from $219. to $369. – still a bargain for well-made chairs.

Mystery of the Missing Profits

A while back I spoke to a client whose office I designed some months ago. When he told me that he hadn't met all of the financial objectives we set at the beginning of the design process, I was surprised and puzzled. The average revenue per exam had only increased 11%.

This troubled me greatly as I am used to glowing reports from clients that their average revenue jumped up 25%, 35%, sometimes more. I racked my brain thinking back over the dispensary design and couldn't find a reason why people weren't spending more. He was offering a bigger selection in a beautiful new dispensary with state of the art lighting. Something was not right.

I decided to call and talk to the head optician to see if there was something I could suggest that would boost the dispensary sales to the level where I knew they should be. Just a few minutes into the conversation, he gave me the key to solving the problem.

Turns out the doc wouldn't let him order the more expensive designer lines and in-demand brands! The doctor was afraid no one would buy them. He had a great new dispensary with a special area designed to sell high-end frames, but no high-end frames to sell!

It took another call and some convincing from me to get the doctor to remove the price-point handcuffs he had put on his optician. I had to remind him that optical retailing is the ONLY retail industry that has incredibly liberal return policies. If it doesn't sell, the sales rep will take it back. His risk was very low, and the upside potential very high.

With a little more coaxing he agreed to try just two or three high-end lines. "Work with the sales reps," I said. "They know what's selling in this area and will get you started with a good selection of their most popular styles." I promised to call back in two months and see what progress they had made.

When I called my client back I could tell from the happy tone of his voice that there was a big smile on his face. They had experienced the thrill of their first $1,000. sale and the higher ticket frames were practically flying out the door. What really shocked the doctor was that some of the patients he had pre-judged as tightwads actually wanted those high fashion frames and spent more with no arm-twisting.

Sure the moderate priced frames still make up the majority of the sales. But between the new higher income patients that he was now attracting and the existing patients who stepped up their style, his average revenue per exam had leapt up from $265 to $393. That's a 67% increase...and $25,600. more revenue in one month if you figure an average rate of 200 exams per month. He’s probably doing many more exams by now.

With this kind of result the entire cost of the new office would be recouped in less than a year. I suggested that he send a postcard to all the people he had examined in the new office before the new merchandise arrived. Offer them a little discount and invite them back to see the new styles.

I don't know if he followed up on it, but I bet that if he did, he is probably buying tickets for that Hawaiian golf tour vacation he's always dreamed of.

Optometry and Dental Office Together?

From Ask The Expert:

Q. Have you ever built a joint optometry and dental office?

A.I have been involved in a number of projects where an optometrist and dentist are side by side. It seems to be a natural fit that works well for both practices. Last year I did a project for a husband and wife – he's an optometrist, she's a dentist. They purchased a building and put both their practices into it.

I did the interior design for the optometrist, another firm did the interior design for the dentist and we coordinated our design work on the shared entry and public restrooms. I think both clients got the best results by using designers who specialize in their respective fields.

A bit of wrestling went on between the two designers because both of us were fighting to get all the space we needed for each of our clients. It took quite a few revisions of the shared areas and the location of the demising wall separating the practices before we reached a solution that was satisfactory for both. The client's marriage survived the conflict in good shape because they let the designers duke it out (in a very professional manner, of course), rather than having husband and wife butt heads over design issues.

I've done other projects where an O.D. shares a waiting room with another type of practice. I think that some separation of the two practices is generally better than combining them. Business-wise, each practice needs separate accounting and office functions.

If you want to consider combining optometry and dentistry, you need to think through how everyday operations would work. Would patients (and possibly staff) get confused with two kinds of practices going on in the same space? You may want to talk with a practice management consultant before deciding what your best set up would be.

Why Would I Want To Use You?

Q. Why would I want to use you? Most of the optical display companies will do free floor plans. My builder will do all the other drawings from there.

A.That's an excellent question so let me take the time to give you a thoughtful answer.

You are right, anybody can give you a plan. It's like the old joke about doctors: "Do you know what they call the guy who graduates dead last in his class in medical school?... they call him doctor." Yes, anybody can draw you a plan.

My plans do two things better than anybody else's plans: 1) make the most money possible, every year, for the life of the office and, 2) give patients and staff a great feeling about being in the space that goes beyond the lighting, the colors, and the style.

Some people think so much of my designs that when they want to sell their practice they advertise it as a "Barbara Wright designed office." Once a practitioner has had me design a space for them they often have me do their second, third and all their succeeding offices. (My clients tend to be very successful people.)

My initial design helps them to outgrow the first office so they can step up with confidence to a bigger one. This is true especially if they value their time during the planning process, want to increase their profit per square foot and value the feel of their space no matter what the size.

These days managed care is forcing every practice to operate at peak efficiency or be left in the dust. Your level of efficiency is either built-in or botched in the floor plan design. If you make mistakes in your floor plan, you'll have to live with them for the next 10 years or more because they are too costly or downright impossible to correct later.

Some people, however, save a few dollars, get a free floor plan design and never realize what it cost them. They may have saved a few thousand dollars up front by not using me but passed up the typical 20% to 30% increase in profit possible from one of my designs vs. the free one done by a “no-name” designer.

Let's be conservative and say that the average additional profit from my design is just $200. per day. If a practice is open 20 days per month that's an extra $4,000. per month or a total of $48,000. possible profit increase in the first year alone. Over a 10-year office life span, that means $480,000. that never materializes, all because they tried to save a few bucks.

I recently spoke with a client whose office I designed four years ago. He reported that the practice experienced a 25% increase in the first year alone, but subsequently has grown another 25% in the second and third year, as well. It looks like the fourth year will be the same story. This phenomenal growth went way beyond his expectations.

Those “free” designs are offered by fixture manufacturers with the expectation that you will buy the company’s pricey products. Most practitioners realize that the plan is not really free and that it's liable to be worth little more than what you paid for it.

If you are in a moderate to low income area, have a very small space to work with, have no concerns about staff turnover, and have no intention of optimizing your profit per square foot of floor space... then you don't need me.

If optimizing your profit and the feel of your space is critical for you then I am the best deal going and we should talk further. This is especially true if your time is worth the $500+ per hour that I suspect it is and your specialty is not office design; it takes precious few mistakes to blow both your budget and your time.

If you still want to try doing it yourself, my book Ophthalmic Office Design Guide can help you. But if you want to be certain your new office will be a model of efficiency that pulls in maximum revenue for you, then give me a call toll-free: 888-422-0361

Let's discuss your project and your goals. Then you can make an informed decision on whether investing in top-notch office design makes sense for you.

Which Building Shape Is Best?

From Ask The Expert:

Q. My building started out 60 X 40. Told the builder I needed about 3200 sq ft. I would prefer the building be made longer, wider or both to make the size.The builder wants to make the building the size I need by adding a 25 by 30 extension on the back (he had his architect draw this in with a kitchen, Dr offices and Flex Future Lab). I faxed this plan to your office and want to get your help with my design.

My question is this, am I correct that a square or rectangular building will work better (better design potential and less heating/cooling problems because the addition has 3 exposed walls) than a building with an addition on the back. Next, if I can't have the exterior design changed, because of building position, set backs or what ever, how much of a problem do you see designing a well working building with the back addition.

A. Regarding the plan you sent, an L-shaped building footprint would not be my first choice. An "L" shaped plan cannot be as efficient as a rectangular or square shape. It will require more hallway space. That creates extra steps for you and your staff.

Heating and cooling an L-shaped building should not be a problem as long as your architect gets a good mechanical engineer to design the system properly. You might want to consider having a system with 2 or 3 zones that can be regulated separately.

If there is no other choice because of setbacks or other factors, I can certainly work with that shape and give you the most efficient patient flow possible within those confines. Putting staff rooms (lab, breakroom, private offices, storeroom, etc.) in the back leg of the "L" is usually the best solution. We'll keep all the patient traffic in the main part of the building so you'll still be super-efficient where it counts.

A rectangular or square shape is preferred because it enables me to make the best use of every square foot. It requires less hallway space which means more space devoted to patient care and less steps for you and the staff. The closer the shape of the building is to a perfect square, the easier it is to achieve the coveted one-way circular patient flow that is a big contributing factor to high productivity.

Sometimes the final shape of the building is dictated by factors that we cannot change, such as set-backs, irregular lot shape, easements, driveway requirements, etc. If that's the case I will wrestle the footprint of your building into the most advantageous size and shape possible despite the restrictions.

I'm delighted to be working with you and I'm very glad you brought me on board at the beginning of the project. Now I'll be able to coordinate my work with your architect to make your patient flow perfect and your dispensary a visual drawing card for your practice.