Understanding the MDAR Model
Once you make a decision, the universe conspires to make it happen.
–Ralph Waldo Emerson.
Now, this may be the case, but you really want the universe to know what actions you need taken first.
The decisions you make in your practice define the activities that are undertaken, which then drive the results – good, bad or indifferent.
The key is to have a tool in place – a framework to be able to measure and report back on those results, so you can make informed decisions about which activities to stop, start or continue over the next cycle of business.
The MDAR Model (a concept inspired by Keith Cunningham) is one such framework Troy walks through in his video above.
The MDAR Model stands for:
- Management
- Decisions
- Activities
- Results
As an owner in our healthcare businesses, we make decisions, which in turn inspire activities, which determine the results we get.
But how do we drive activities into results?
To see and understand the results – what is actually happening in our business, this is where we usually need our Accountant or Bookkeeper (or whomever does our figures) to step in and measure the business data.
Measurements might look like Profit and Loss, positive or negative cash flow, the rising or falling equity in your business, it could be certain KPIs (patient numbers, number of leads or conversion rates).
It is through our bookkeeping, accounting or measurements that we get a clear understanding on what is actually happening in our business.
The reality is unless we know the score we can’t win the game.
Decisions can be made when we know the score.
Once we understand our results, we can identify what are we doing that generates these results and how can we do more of it.
Alternatively, if your results are not so great you can identify those activities that are contributing to that.
So why is the MDAR Model important?
Everything that shows up in our business; the results we get – come from the decisions we make – and the activities that follow.
The MDAR also reminds us, that if we track and measure regularly we get to make corrections as soon as possible, and not wait until the end of the financial year.
It’s in timely, regular reporting, where the decision-making power lies.
Imagine the decisions you can make and the impact you can have on your business – one to two weeks into a new month, rather than waiting 10 months.
Ultimately, in business as in life – we get out what we put in.
We get what we deserve.
Remember, the power lies in your hands. Our results are on the back of the decisions we make and the activities which stem from this. To correct your course, track and measure your business figures regularly.
