Before we dive into this blog, we want to provide a quick note! We originally wrote this piece before the discussion on 60-Day Dispensing took place. We decided to hold off on its release due to the evolving landscape of pharmacy and the uncertainties that lie ahead. However, upon reflection, we realised that this blog remains relevant and timely. Despite the unknowns, we firmly believe it holds significant value for owners in taking charge of their role within their pharmacies. Therefore, we invite you to enjoy reading this insightful blog on delegation.
As a pharmacy owner, you wear many hats. From managing inventory to handling customer service, there's no shortage of tasks that require your attention. However, trying to do everything yourself can lead to burnout, stress, and ultimately, a less effective business.
This year, we have worked with two consulting clients in the pharmacy industry. The first client had an epiphany and realised the importance of easing micromanagement in their pharmacy by delegating tasks to their team members. The second client, on the other hand, continuously overloads themselves by managing every aspect of their business.
Let's talk about our first client, whose team structure and personal outlook has undergone a complete 360-degree transformation in the last six months. Initially, they had a negative perception of their team and were involved in every management task at their pharmacy, resulting in overworked weeks and a lack of time to focus on their business's growth. After conducting a thorough audit of their staffing, bookkeeping, and management team, we identified areas where we could ease the pressure on them and delegate some of the management tasks to their Retail and Pharmacy Managers. As a result, their team feels empowered, they have a more positive outlook on their management, and they now have the freedom to pursue their passions for their business, such as expanding their compounding service.
Moving on to our other client, who owns multiple spectacular pharmacies with great potential for growth. As outsiders looking in, we are thrilled to see them serving their local community and promoting good health. However, they tend to keep their cards close to their chest, and whenever we touch base with them for meetings or advice, their plates always seem to be overflowing. They juggle attending meetings, processing payroll, organising rosters, placing stock orders, and working behind the dispensary etc. At times, they work a full 12-hour day at the dispensary and then spend their evenings doing the pharmacy's bookkeeping until the wee hours of the morning. This unsustainable level of work leaves them running on pure adrenaline, and we foresee a burnout in the not-so-distant future if things continue this way.
As consultants, we understand the pressure and the desire to be in control when it comes to running your own business, and pharmacy owners are no exception. Many owners treat their pharmacy like a child - fiercely protective and involved in every aspect of its care. But, just like parents, there comes a time when exhaustion sets in, and a trusted helper can offer much-needed relief. The same is true for your pharmacy. There are members of your team who can assist with day-to-day management tasks, and outsourcing certain business functions, such as bookkeeping, can be a powerful way to free up your time and energy for other important areas of the business. We firmly believe that effective delegation can be a game-changer for pharmacy owners who want to focus on growth and success.
To strengthen our argument about the power of delegation, we've gathered some key statistics. A Gallup survey found that organisations that excel at delegation have 33% higher revenue per employee than those that struggle with delegation. In addition, a study published in the Harvard Business Review shows that managers who effectively delegate tasks and responsibilities have employees who are 33% more engaged than those who do not delegate effectively. Finally, a survey by the National Bureau of Economic Research discovered that businesses that successfully delegate tasks and responsibilities experience a 15% increase in productivity. These statistics highlight the benefits of delegation and demonstrate how it can positively impact a pharmacy business.
We hope that these two case studies have encouraged you to re-evaluate your pharmacy management strategies. It's essential to review your responsibilities as the owner and assess which tasks can be delegated to other team members. If you're interested in delegating your bookkeeping tasks to a reliable and experienced partner, Peak is here to help. We can provide tailored bookkeeping solutions that suit your unique needs and budget. Book a suitability meeting with us today to discuss your options and take the first step towards a more efficient and stress-free business.
References:
The Gallup survey on delegation:
"State of the American Manager: Analytics and Advice for Leaders." Gallup. 2015. https://www.gallup.com/workplace/238085/state-american-manager-report.aspx
The Harvard Business Review study on delegation:
"High-Performing Teams Need Psychological Safety. Here's How to Create It." Harvard Business Review. 2017. https://hbr.org/2017/08/high-performing-teams-need-psychological-safety-heres-how-to-create-it
The National Bureau of Economic Research survey on delegation:
"Labor Delegation and Firm Performance: Evidence from a Field Experiment." National Bureau of Economic Research. 2014. https://www.nber.org/papers/w19886