Aligning Incentives, Leveraging Data, and Lessons in Growth
This blog is based on a podcast I recorded. Follow the links below if you’d like to hear my candid, rambling thoughts.
Tripp Talks: BTS: Aligning Incentives & Leveraging Data for Sustainable Growth
Welcome to the first installment of my weekly (ha, we’ll see if I keep it going) behind-the-scenes series, where I share insights, strategies, and lessons learned from the past week at the Advaita Collective. As we continue to grow and evolve, it's crucial to reflect on what’s working, what’s not, and how we can improve. In this post, I'll dive into some of the key themes we’re focusing on, including aligning incentives, becoming a data-driven organization, and the challenges of managing a growing team.
Aligning Incentives for Sustainable Growth
One of the biggest themes we've been tackling recently is aligning incentives. It sounds straightforward: align the goals of the organization with the goals of its individuals. However, in practice, it's much more complex, especially as we grow. At Advaita Health Ventures, we’ve implemented various strategies to ensure that our team members are motivated and their personal goals align with our organizational objectives. This includes:
Flexible Compensation Models: We offer different compensation structures, such as straight salary, productivity-based pay, and 1099 options. This flexibility allows our providers to choose what works best for them at different stages of their careers.
Productivity Bonuses and Additional PTO: To prevent burnout and reward extra effort, we've introduced options where team members who exceed their utilization targets can choose between cash bonuses or additional PTO.
Supervision Incentives: For our physicians supervising PAs and NPs who meet their targets, we provide financial rewards and reduce their patient contact hours, offering a pathway for upward mobility without increasing patient load.
Embracing Data-Driven Decisions
Our journey towards becoming a data-driven organization has been one of the most profound learning experiences. Integrating data across various systems (EHR, CRM, QuickBooks, etc.) has allowed us to turn raw information into actionable intelligence. Here are a few key benefits we've observed:
Improved Utilization Management: By analyzing utilization data, we’ve been able to manage workloads and ensure our providers are not overwhelmed, leading to better patient care and provider satisfaction.
Tailored Reporting: Custom reports in Power BI have helped us track key performance metrics and make informed decisions. This transparency has been instrumental in aligning our incentives and achieving our organizational goals.
Enhanced Recruitment and Retention: Data-driven insights have also improved our recruitment process. By understanding market trends and compensation benchmarks, we've been able to attract and retain top team members more effectively.
Recruitment and Team Building
Recruiting the right people is crucial for any organization, especially in the healthcare sector where our people are our product. We've recently introduced a referral bonus program to leverage our team’s networks and bring in high-quality candidates. Team members who refer physicians, PAs, NPs, or therapists receive a bonus after the new hire has been with us for 90 days. This not only incentivizes our current team to bring in like-minded professionals but also helps us maintain a high standard of care.
Learning from Mistakes
Reflecting on our past hires, we’ve learned the importance of setting up new roles for success. A recent example involved hiring a project manager without having the necessary project management systems in place. While the individual was capable and hardworking, the lack of structure and clear expectations made it challenging for her to succeed. This experience underscored the need to:
Define Roles Clearly: Ensure that job descriptions are detailed and aligned with organizational needs.
Provide Necessary Tools: Equip new hires with the systems and support they need from day one.
Continuous Evaluation: Regularly assess and adjust roles and responsibilities to ensure they remain relevant as the organization grows.
The Path Forward
Looking ahead, we’re excited about the potential to further integrate data into our operations. We plan to hire a full-time data analyst to continue building our data architecture and reporting capabilities. This will not only support our growth but also enhance our ability to provide high-quality, affordable healthcare. As we double in size over the next year, maintaining alignment between individual and organizational goals will be more important than ever. By focusing on data-driven decisions, flexible compensation models, and continuous learning, we’re confident in our ability to grow sustainably and effectively.
In Sum
Growth is a constant journey of learning and adaptation. At the Advaita Collective, we’re committed to aligning incentives, leveraging data, and building a strong, cohesive team. These strategies drive our success and ensure that we stay true to our mission of providing high-quality healthcare.
