Hello and Welcome to the May Edition of CEO News.
Have you heard the expression “a plan without action is really just a wish”? It reinforces the critical importance of not just the planning process, but also the commitment to executing a plan. Each year, the ProVision Leadership Team collaborates with ProVision Directors to discuss and agree on a forward strategy, with the underlying goal of executing initiatives that have the biggest positive impact on practice improvement.
This year is a combination of building on previous initiatives and launching new ones, including a focus on practice staff recruitment, big data, enhancing the patient experience and strengthening our education offer (to name a few). These focus areas are a direct result of last year’s Member Survey feedback, so we appreciate your input. We have a clear strategy and a concise execution plan, and we look forward to delivering on things that you’ve identified as important to you.
Member Update – Webinar Recording
A strategic update webinar was held for all Members back in late March. Content included a performance update, insights into recently commissioned consumer research, feedback from Member surveys conducted late last year, and an overview of key initiatives that ProVision will be focused on in the coming year to help practices grow and prosper in the year ahead
For those that were unable to attend, a recording of the webinar can be found here >
Macro-Economic Outlook
Consumer confidence saw a decline in May after a bounce in April that was mainly attributed to the RBA pausing their cycle of interest rate hikes. The fall this month, however, was due to the RBA surprising the market with a 25bp hike and the handing down of the FY24 Federal Budget i
The fall in consumer confidence was noted across both renters and mortgage holders, but the two-lane economy (as noted by Morgan Stanley) continues to be evident, with 24% of the population happy to continue spending. This still leaves a large majority who will be more discerning about how and where they spend their money. One saving grace is that essential services continue to be impacted less than discretionary spending, which bodes well for health providers.
Unemployment is expected to increase in the period ahead, but despite this, the level remains below the long-term average which adds some confidence to the labour market. A wages correction is also starting to be felt across many sectors as a direct result of the employment rate decline ii
KPMG's ongoing forecast is for Australia to experience a slowing of economic activity. There are positive signs emerging that the inflation rise is starting to ease, with commodity and freight prices retreating and supply chains returning to pre-pandemic operations. CBA economists forecast that the RBA has completed its tightening cycle and that no further hikes will be delivered. If this is the case, consumer sentiment may have some support in the short term. However, the fixed rate roll-off and anticipated
CEO News, May 2023
CEO News, May 2023
material-slowing in the economy is likely to keep consumer sentiment depressed for some time to come.
Results To Date
April saw a modest 2.5% increase in like-for-like sales, as we no longer reference this year’s results against last year’s lockdown months. We continue to track at 9.8% growth for the financial year to date, but we have received feedback from members about a slowdown in sales and appointments for the start of May It's important to note that sales typically decelerate during this period, so it's advisable to compare with similar periods in previous years. We recommend that you maximize use of the current campaigns, have a strong recall system, maintain a robust marketing calendar, and seek guidance from your business coach to keep your appointment books full.
Different regions across the country are experiencing varying outcomes, predominantly influenced by the lingering effects of last year's floods. As a result, both NSW and QLD are showing robust sales figures. However, Victoria, WA, and SA are witnessing a gradual decline in retail sales.
Year to Date (Jul22–
Apr22
Variance%
Apr23) This Year v Last Year Variance % VIC -1.3% +8.6% NSW +2.8% +15.4% QLD +9.8% +10.0% SA +3.8% +4.7% WA -7.0% +2.0% TAS +8.2% +4.2% NATIONAL +2.3% +9.8%
v Apr23
CEO News, May 2023
Over the past twelve months, we have witnessed a noteworthy upward trend in purchases, following a continuous decline that lasted nearly ten months from July 2021 to May 2022. It is important to note that the last two months have shown a slight softening compared to the significant spike observed in November of the previous year.
The collective annual total purchases depicted in the chart below largely reflect stronger member trading over the past half year, yet the outlook for the period ahead is still expected to be influenced by the impact of both inflationary pressures and related consumer confidence (in part), as mentioned in the macro-outlook earlier.
Education Calendar
After three years of absence due to COVID-19, ProVision is once again offering a comprehensive faceto-face education program in 2023. Learning and Development is a key pillar of the ProVision value proposition according to member survey feedback, so I would encourage you to review the remaining content for this year and participate in courses that can add value to practice operations or to your patient experience. Our capacity to deliver these face-to-face courses is heavily dependent on practice attendance, so your support and participation is actively encouraged and much appreciated.
You can review the remainder of this year’s calendar here >
Education Appointment
I’m delighted to announce the appointment of Georgina Bakas as Provision’s new Learning and Development Coordinator, effective 1st May. Georgina has extensive experience in Learning Management Systems and will be initially focused on improving the content and user experience on ProLearn. She will also lead the creation of the 2024 Education Calendar, so we’re excited to watch her contribution grow in the months ahead!
Essentials Member Support
To continue to deliver on our mission ‘to make ProVision practices relevant to consumers and their businesses sustainable,’ 18 months ago we appointed Margarida Faustino into the newly created role of Essential Member Relationship Executive. Margarida has been a part of the ProVision team for almost 8 years in the role of WA Business Coach, and previously provided Coaching support to members in Victoria for over 4 years.
In addition to Margarida’s continuing role as WA Business Coach, her expanded responsibilities have seen her regularly engage and communicate with Essential Members across the country. Her goal is to support your success and align you to ProVision business resources, systems and services that help address your pain points and ensure that you are maximising your membership with ProVision. She has supported Essential members of late by providing advice around digital patient communication, team member performance, policies and procedures, demonstrating/navigating ProVision systems and portals, and navigating access to resources
We understand from the recent member survey feedback that remaining connected to ProVision and minimising your pain points in-practice is important to you, and this role is specifically designed to address both concerns. The role is a personal touch point for you, and I encourage you to reach out and connect with Margarida via the details below if you haven’t done so already!
Margarida Faustino
P 0437 080 000
E mfaustino@provision.com.au
CEO News, May 2023
CEO
May 2023
August Member Meeting Roadshow
A five-state Member Update Roadshow is planned for August, where attendees will receive updates on ProVision performance and strategic initiative progress. In attendance will be the local Business Coach and myself as CEO, along with various representatives from the Leadership team (in some states) to answer any questions you may have.
To increase the value of attendance for regional practices especially, these events will be supported by a Supplier Partner trade show in three states (VIC, NSW, QLD), and an all-state education course facilitated by Paul McKinley who is the Director of Optometry Finance Australia (OFA), a specialist brokerage firm catering for the finance needs of Australian Optometrists.
A Chartered Accountant by trade, and now with over 20 years finance broking experience running his own companies, Paul & OFA have access to over 55 national lending institutions. They cover all the financing requirements for members, including practice purchase and fit-out, medical equipment and motor vehicles, residential, commercial and investment property (in addition to a variety of commercial loan facilities, tailored to your practice needs).
Paul has a passion for helping Members grow and helping you to better understand your practice financial position, so I’m sure you’ll find the session of value.
Please save the relevant date below as a placeholder in your calendar – full details (venues, times etc.) will be shared in an upcoming fortnightly e-update:
Supplier Partner Support
Merchandise Manager Rob Boelen is currently updating Supplier Partner agreements, so keep an eye out in June for a comprehensive wrap-up of all the new deals, offers and initiatives to support your practices on offer in FY24. Our new agreements commence from July 1, and it’s worth noting that over 65% of ProVision’s income is generated through supplier rebates - the more you support them, the more you are driving ProVision revenue which ultimately helps us invest in future initiatives that drive practice growth.
Our list of Preferred Supplier partners and trading terms can be found on ProSupply >
O=MEGA
The O=MEGA Trade Fair is fast approaching and is scheduled to take place in Melbourne on 8-10 September. This is a great opportunity to critique supplier offers, network with peers, meet the wider ProVision team, and better understand services such as ProAccounts, recruitment, and succession
News,
STATE DATE QLD 07 Aug 2023 SA 09 Aug 2023 WA 14 Aug 2023 VIC 16 Aug 2023 NSW 21 Aug 2023
