Business structure and planning

Question 1

Traditional business measures commonly rely on looking at the what happened over previous period and are therefore commonly referred to as “lag indicators”. Reliance solely on financial measures could therefore lead to numerous potential issues for veterinary businesses including:

Answer 1

• Poor staff morale
• Negative perceptions of the business solely as a money-making enterprise
• Lack of motivation within the team, if they feel the needs of staff, clients and patients
is secondary to profits
• Poor reputation as a care provider if clients feel patient and client care is not the primary concern of the practice
• Potential impact on service if cost cutting exercises are undertaken which impact
levels of care
• Not reacting in real time

Question 2

The balanced scorecard considers which four main areas?

Answer 2

1. Finance
2. Internal business processes
3. People (Learning and Development or Learning and Growth)
4. Customers (Clients)

Question 3

If implemented correctly the balanced scorecard has numerous benefits including:

Answer 3

1. Increased productivity via appropriate process alignment
2. Motivated, educated employees who have been invested in by the business
3. Enhanced information systems
4. Monitored progress via KPIs
5. Improved customer service leading to greater client satisfaction and improved loyalty
6. Revenue growth from new and existing clients

Question 4

The most common business structures encountered in the veterinary sector are:

Answer 4

1. Sole ownership (increasingly rare)
2. Traditional partnership
3. Limited liability partnership
4. Limited company
5. Not-for-profit organisation
6. Registered charity

Question 5

There are two common organisational structures utilized by businesses are?

Answer 5

1. Hierarchical

2. Matrix

Question 6

Describe hierarchical structures

Answer 6

Hierarchical structures allow for clear understanding of where different teams sit within an organization alongside overt reporting pathways for line management, but may lead to siloing of staff in different departments which can make collaboration more
challenging.

Question 7

Describe matrix structures

Answer 7

Matrices set up reporting relationships as a grid rather than in a traditional hierarchy and can allow for the combination of traditional departments within specific project teams. This allows different departments to collaborate and bring specific knowledge or skills to a temporary or permanent project. One challenge with this type of structure can be the potential for dual management of an individual from departmental and project managers which can lead to conflict.

Question 8

Many businesses including veterinary practices will utilise a one-page business plan with which three key aspects ?

Answer 8

1. Vision - what you want to achieve in the mid-long term future
2. Mission statement - core purpose
3. Core values