The Absence of Correlation
Sunday, January 18, 2009 at 11:18AM 
Most business owners, entrepreneurs, managers, etc. will tell you that the correlation between effort and income is absolutely necessary to keep a company financially viable.
Without the ability to forecast money received based on services rendered or products sold makes for a difficult, if not impossible, economic course to navigate.
Especially during these tough times.
Pizza Guy know exactly how much money he will bring in on any given day when he bakes and sells 50 pepperonis with extra cheese.
Ms. Manicurist knows how much take-home money to expect when she does the nails of 15 customers.
With the Honor Box, however, I am clueless.
Over the years, I have studied the stats and have computed an overall figure as to what the average patient visit yields.
But on a day-to-day basis, I am constantly taken by surprised.
For example, at the end of a crazy, busy day when I see on my sign-in sheet that I have adjusted 75 patients, I may open the Honor Box with high expectations... and find instead hardly anything inside.
Then there are "slow" days when patient volume is way down from the average and I'll open the Box and find a crazy amount of unexpected dollars. Big money!
This absence of correlation between the number of adjustments I give and the money I take in is both a curse and a blessing.
A curse because it is extremely difficult to rely on the numbers-- to predict with any sense of certainty. If on paper, X amount of marketing is supposed to yield Y amount of patients and Y amount of patients is supposed to generate Z amount of cash, the reality of the Honor Box and its incalculable nature makes budgeting and income projections frustrating at best, nearly impossible at worst.
However, the removal of the correlation between effort and money from my business has also been a huge blessing. It is easier to see people as people, not as dollar signs. It is easier to focus on quality care instead on "chasing paper". It is easier to feel aloha instead of greed and need.
It has made me a better chiropractor.
Reader Comments (1)
Bravo! Dr. Reed! However, did you overlook the other huge blessing? When you "know" there is little room for faith. Seems to me you are living your faith!! Much as Abraham placed his faith in God. He "knew" he had to sacrifice his son, yet because of his faith, God provided for him. An alternate sacrifice!
Abraham was blessed with his treasure, his own son. You might suggest, my brother, with be blessed with your treasure as well. Only God knows, we must continue on Faith in Him!!!
May He keep you in the Palm of His hands!