An often overlooked advantage of specialization…

…staffing 

I recently spoke with Tim Rosenauer, Business Development Manager, with Account Resolution Corporation (ARC).  These folks provide an array of services in the field of medical collection.

When I asked Tim what distinguished his company from his competitors, he told me his practice management clients appreciate the fact that ARC specializes in medical collections.  ARC’s collectors know the idiosyncrasies of medical billing and are able to assist practice managers with billing and adjustment codes.  They also are more adept at helping delinquent customers understand the services they received and the value of those services.

This specialization allows ARC to:

1. focus on a narrower set of skills and experience when hiring staff
2. limit the amount and types of training necessary to enhance employee skills
3. create a more flexible workforce because all collectors possess similar knowledge and experience
4. monitor changing practice management needs
5. adapt more quickly to that changing environment

What about the employees?  How do they feel about ARC’s strategy?  ARC touts one of the lowest employee turnover rates in its industry.  Why?  Imagine that you’re a collector and you’re considering offers from two companies, one that specializes in one industry and the other who represents customers from a variety of industries.  On the surface, the company that serves multiple industries might seem attractive because it offers more variety in your job.  But once you’re on the job you realize that this “variety” also adds a great deal of complexity to your job.  How?

Each industry/profession has its on idiosyncrasies, its own language and its own preferred practices.  This not only makes your initial orientation more difficult, it makes keeping current on changes within each industry/profession more difficult.  This complexity typically slows collections at the same time that you’re being evaluated on your ability to collect quickly.  Is it any wonder that the better collectors migrate to firms that specialize?

While many business owners may view this kind of specialization limiting, the reality is exactly the opposite.  It’s counter-intuitive, but specializing allows your firm to:

1. gain a greater understanding of the customers you serve
2. monitor the ever-changing environment in which they work
3. provide higher levels of service to those customers
4. charge premium prices commensurate with the higher service levels
5. recruit, retain and reward staff more effectively

Take a page from ARC’s playbook and specialize.

The 7 Steps to Becoming INVALUABLE program I offer is designed to help you see more effective ways of doing business – ways that dramatically improve your bottom line while making your life easier.  In today’s blog I used Step 5, Contrarian Mindset, to show how industry specialization can work to your advantage.  Contributory Negligence, Step 1, was used to show how we often inadvertently complicate our lives and add to the cost of doing business by trying to serve multiple markets.  For more information on the 7 Steps to Becoming INVALUABLE visit http://www.furtwengler.com/7steps.htm

Please share your experiences and wisdom with Invaluable Leader readers by posting your comments.  If there are topics you’d like me to address, please send me an email at dale@furtwengler.com.