Introduction

Colette Henry

Business and enterprise, although now well established as taught disciplines in their own right, are still relatively new phenomena within veterinary scholarship. Current veterinary education curricula, as expected, are dominated by clinical content and balanced with ethical and legal teaching input relevant to the profession. Despite recognition that veterinary graduates need to have both an awareness and an understanding of the wider business dimensions of veterinary practice, as articulated, for example, by Lowe (2009), and highlighted as a professional competence requirement by the Royal College of Veterinary Surgeons (RCVS, 2006), research shows that not all veterinary schools provide business training in their undergraduate programmes (Henry, 2011). At a broader level, there is consensus that business and enterprise skills make a significant contribution to graduate employability across discipline areas (HEA, 2005) and, in this regard, veterinary graduates are no exception (Henry and Treanor, 2010, 2012).

This textbook was designed as a learning tool to support veterinary business educators in their efforts to embed business and enterprise into veterinary undergraduate curricula. Its aim is to provide students with a valuable learning platform that comprises both underpinning theory and related practical scenarios contextualized within the ‘real’ veterinary business world. Drawing on the expertise of both national and international veterinary educators and researchers, the text also helps address the current dearth of veterinary business educational materials, while at the same time building on and, indeed, complementing some of the contemporary veterinary practice management texts currently available (see, for example, Jerving-Back and Back, 2007; Shilcock and Stutchfield, 2008). The review questions provided at the end of each of the theory chapters, along with the case questions and team assignments accessible through the companion website, should also complement veterinary educators’ own business and enterprise lecture material, thus enhancing the collective student learning experience.

The textbook is strategically divided into two parts. Following this introductory chapter, and by way of laying the foundation for the rest of the book, Part I introduces veterinary students to a range of theories and concepts relevant to veterinary business and enterprise. In chapter 2, Martin Cake, Susan Rhind and Sarah Baillie present a systematic and comprehensive literature review of both perceptions of and evidence for the importance of business skills to the success of veterinary graduates. Their review reveals that ‘business skills’ are included as a core domain in all published competence frameworks, although there is some ambiguity about the use of business skills terminology. In studies focusing on stakeholder perceptions of importance, business skills were consistently rated of relatively low importance when Likert-scale rating surveys were used, although they rated higher when free text data were analysed. In contrast, however, surveys of perceived competence suggested business skills were one of the weakest competences in new graduates, with this being acutely perceived as a deficiency by both graduates and employers. As a result of their review, the authors offer a number of recommendations to help veterinary schools and educators deal with this issue.

Chapter 3, by Liz Mossop, explores the concept of clinical leadership, and discusses the various skills and behaviours necessary to become an effective leader within the veterinary profession. The rationale for the chapter is based on the fact that veterinary surgeons need to consider the development of professional skills with a particular focus on leadership. Veterinary practice teams can be complex, and require strong leadership skills in order to deliver effective clinical care. Management may differ from leadership, in that management can be more authoritarian. However, in veterinary practice there is often overlap between managers and leaders, and these differences may not be overt. Clinical leadership is therefore an important concept to consider, especially when implementing the requirements of the RCVS regarding clinical governance. Most importantly, leadership training needs to begin at undergraduate level but continue throughout a veterinary professional’s career.

The leadership theme is continued by Brian Faulkner in chapter 4, which highlights the importance of both leadership and management as valuable commodities in veterinary businesses. The chapter aims to provide students with valuable insights into the variety of models that have been used to capture leadership and management concepts within other business and political arenas. The differences between management and leadership are highlighted, with ‘leaders’ and ‘managers’ presented as two distinct modes of operating, and with entirely different levels of focus and scope, ranging from the more externally observable or ‘tangible’ dimensions of leadership, as described in the traits, skills and styles approaches, to the more intangible or psychological level, as articulated in the transformational and cultural models. The chapter concludes that veterinary leadership is important, and that some forms of leadership can indeed be learnt.

Chapter 5, by Lorna Treanor and Martin Whiting, introduces veterinary students to the ethical management of people and practices, highlighting the knowledge and skills that employers and RCVS expect from new graduates, while also providing an insight into what they might expect as employees. Human resource management (HRM) practice within veterinary businesses is discussed, with special consideration given to the motivation, training and development of all practice staff including veterinary nurses. Key theories and concepts of ethics, professionalism and management are introduced to students, with both good and poor practice examples used to illustrate possible practical issues that may arise in the workplace.

In chapter 6, Robert Smith and Martin Whiting explore the highly controversial yet important issue of criminal enterprise within the veterinary sector. The chapter draws on case evidence to focus on the illegal trade in veterinary medicines, presenting this as a contemporary example of criminal entrepreneurship. The authors highlight the hidden and often denied nature of this illegal trade, alongside its huge negative impact on the veterinary sector in terms of both ethics and revenues. Interestingly, the chapter draws parallels between the stereotypical images of veterinarians and entrepreneurs, both of which are socially constructed as ‘heroes’. The authors conclude that there is a need for veterinarians, both individually and collectively, to be vigilant so as to prevent industry outsiders or organized criminals from taking over black market opportunities. There is also value in educating and training veterinarians in how to spot and deal with examples of criminal entrepreneurship.

Chapter 7 by Andrew Morton introduces veterinary students to the concept of marketing. Effective marketing has increasingly been seen as one of the main drivers for long-term sustainable growth and, as such, has required greater investment in time and money. Additionally, recent changes in consumer behaviour and market conditions have resulted in far greater risks for veterinary practice owners and managers. This chapter outlines the main elements of good marketing planning, strategy and tactics, and demonstrates how these elements can be used efficiently and effectively in veterinary practices of all sizes. Throughout the chapter relevant frameworks and concepts are discussed in a practical and straightforward manner. The chapter also usefully compares the roles of sales and marketing in a veterinary practice, demonstrating how the two integrate. It also addresses the need for veterinarians to understand their different client groups, highlighting the value of segmentation analysis for building long-term ‘competitive advantage’. Additional concepts such as branding and digital marketing are also introduced in the chapter. Finally, some valuable and cost-effective monitoring tools and techniques that can be adopted by veterinary practices to assess their marketing efforts are also discussed.

The branding theme is continued and further developed in chapter 8 by Cathy Coates. Reflecting the nature of the veterinary profession, the chapter focuses on developing a brand for a service rather than a product offering. The author notes that the use of branding to promote veterinary services is a relatively recent development, and that the potential benefits to be gained from the use of branding by veterinary practices and hospitals are not yet fully understood. In this chapter, students explore the three key dimensions of branding – brand identity, brand value and brand equity – and their application in the veterinary context. The author posits that the branding (or, in most cases, re-branding) process inevitably leads to a rethink of the overall values that the veterinary business represents and the image it wants to portray to its clients. Branding in the veterinary context essentially helps clients to better understand the value of the professional service being provided. Particular attention is paid to veterinary hospitals, with the author proposing a theoretical re-branding model that could usefully be applied.

Chapter 9, by Jeremy Phillipson, Amy Proctor, Philip Lowe and Andrew Donaldson, focuses on the important role played by the farm animal veterinarian as knowledge broker. As veterinary professionals, farm animal veterinarians are part of the knowledge-based economy in which they earn their livelihood by selling their expertise directly to clients. Indeed, they play a key role in enhancing the skills and development of tens of thousands of farming businesses. Thus they face complex and ever-changing calls on their expertise and are required to keep their knowledge up to date in practice. The chapter draws on recent research conducted by the Newcastle research team that explores the composition of field expertise and the role of field advisors in knowledge exchange. Essentially, ‘field professionals’ such as farm animal veterinary surgeons (but also agronomists, nutritionists, ecologists, etc.) act as intermediaries bringing science to the farm. Furthermore, veterinarians broker different types of knowledge apart from formal science; they also generate new knowledge and actively solve problems that they encounter as they strive to safeguard animal and public health. Veterinarians thereby build up their own experiential and experimental knowledge in and through practice. They are more than just transferors of knowledge from others; rather, they combine, translate and repackage information and draw on their own accumulated field knowledge to tailor it to the circumstances of the client. From an ethical perspective, this chapter also resonates with some of the concepts discussed in chapters 5 and 6 in relation to ethical business practice and veterinarians’ requirement for vigilance as they go about their business of safeguarding animal welfare.

Part II of the book comprises a set of seven practical case studies, all contextualized within the broader veterinary business sector. Each case demonstrates a different veterinary/veterinary-related business scenario, and presents a particular business challenge for students to solve. This part of the book is supported by additional online case learning material, especially designed for busy ‘mobile’-oriented students, and hosted by Elsevier’s dedicated learning web platform.

The first case study, presented by Claire Denny, Sarah Baillie and James Gazzard in chapter 10, depicts the typical veterinary graduate taking her first steps in the world of work. Ellie Prior has been well prepared for the clinical demands she is likely to face but is less aware and certainly less confident of her role as an employee in a small enterprise. The case allows students to consider, through the eyes of a new entrant to the profession, the operations of a typical small animal veterinary practice. It explores the role of new graduates and their business interplay with more experienced colleagues and clients. Specifically, it focuses on the challenging topics of talking about money and charging for professional services in a clinical environment. This case study provides a mechanism which veterinary students, recent graduates, educators and employers can use to discuss a number of core veterinary business issues. The specific challenge for students in this case is to reflect on the business mistakes Ellie has made and help her avoid making them again in the future. When reading this case study, students might find it interesting to reflect on chapter 2, which discussed the various perceptions of the need for business skills.

In chapter 11, Izzy Warren Smith presents the case study of the Church Hill Equine Practice, which maps the successful start-up, survival and growth of a large-animal veterinary practice located in the Welsh–English borderlands. The case identifies the key factors that have precipitated and facilitated growth, from opportunity recognition to expansion, and traces the progression of Church Hill from a rural large-animal practice to a specialist equine clinic. Issues such as practice specialization, the profitability of a large-animal practice and the changing rural market for veterinary practice are addressed, along with an in-depth look at how Church Hill have developed good business practice by building on their areas of strength. The case highlights both the positive and negative aspects of practice management, from marketing through to staffing issues, and in so doing provides students with ‘real-life’ scenario-building frameworks from which they can not only apply entrepreneurship theory but also learn about the practicalities of running a rurally based veterinary enterprise. The particular challenge for students is to draw on business and enterprise concepts to develop a growth plan to help move the business forward. In addressing this challenge, students might find it useful to reflect on some of the marketing concepts presented in chapters 7 and 8. In addition, students may find that the concept of the farm animal veterinarian as knowledge broker, as discussed in chapter 9, is particularly relevant here.

Cromlyn Vets is the case study presented by Colette Henry in chapter 12. In contrast to the previous chapter, this case focuses on a small mixed veterinary practice in Northern Ireland, established by husband and wife team Chris and Lynn Heffron. Practical veterinary business issues such as striving for and maintaining excellence in clinical veterinary care, maximizing resources, utilizing available expertise and retaining client numbers in the face of growing competition are discussed. The case provides students with an opportunity to really understand the challenges involved in developing and growing a small veterinary practice, and building up and sustaining the business over the long term. Essentially, Cromlyn Vets is a very successful and client-focused business, but the practice owners are very mindful of the changes taking place in both the wider and local veterinary marketplace. Students are challenged to apply marketing theories to propose an effective development strategy to ensure Cromlyn maintain their competitive edge in the face of new corporate competition. In this regard, students should find some of the concepts discussed in chapters 7 and 8 helpful.

De’Ath, Slaughter, Davis and Jones is the case study presented by Lynne Hill in chapter 13. This particular case centres on branding and discusses the process and decisions that need to be made by an old established practice that is about to relocate to new premises. The practice has grown from a farm-centric business to a small-animal one with substantial referral work. The study depicts the senior partner considering the changes that have occurred to the practice caseload over the years, and how the dynamics of the business have altered during that period. Examples of financial information for the business including the profit-and-loss accounts are illustrated for the reader to enable him or her to formulate an understanding of what is actually happening to the business. The challenge presented to the student is to determine whether it is now appropriate for the practice to engage in a total re-branding exercise and, if so, what form such re-branding should take. The case explores the processes required for a business to re-brand itself, and asks students to develop a strategy to fit the strategic direction that should now be followed. The concepts discussed in chapter 8 should be of particular relevance here.

In chapter 14, Cascade Veterinary Practice – the first of two case studies from Australian authors Adele Feakes and Diane Whatling – the impact of changing demographics is discussed. This is an interesting veterinary business case as it is based on a marital partnership. Strategy and planning for the Cascade Veterinary Practice has become less of a priority for the owners, with family responsibilities and personal issues taking priority, much to the detriment of the business. There are a number of problems in this business, and training and development of staff could be key to the future survival of the practice. Students are asked to consider all aspects of the business, including current financial key performance indicators, to work out a plan for the way forward. Essentially, a new business plan is required – one that is more in line with projected income analysis. This is quite a robust case, which will really challenge students. It relates to many of the concepts discussed in the theoretical chapters. Thus, while the marketing chapters will be invaluable here, students will also need to draw on some of the leadership theories discussed in chapters 2 and 3, as well as the management and ethics concepts from chapter 5, the latter being particularly relevant in the light of the alcohol issue articulated in the case.

Northington Veterinary Clinic, by Adele Feakes and Diane Whatling, is the focus of chapter 15. The veterinary clinic depicted in this Australian case study is tired and rundown, very much reflecting the state of mind of the principal veterinarian. Peter, Northington’s owner, is contemplating retirement, and is considering making a succession plan. Jim, one of the veterinarians employed by the clinic, sees huge potential in renovating the practice. Currently, the organization is poorly structured, and staff morale is generally low. There is no clear strategic direction for the business, and the prevailing organizational culture is not very positive. A major reassessment of staff needs, including a training needs analysis and development plan, is imperative for success and must be actioned immediately. Financial accountability and cash flow are causing daily operational and legal issues due to poor management impacting on creditors. The current principal is also causing professional and ethical issues within the practice and with the veterinary surgeons board. Northington Veterinary Clinic requires a major makeover both externally and internally in order to retain current clients and attract a new clientele. The challenge here for students is to develop a plan that helps Jim determine whether taking over Northington and making the required renovations could actually give him a sufficient return on his investment. Once again, it will be useful for students to reflect on the concepts discussed in the leadership chapters.

The final case study, Parasol Kennels, presented in chapter 16 by Christopher Brown and Jane Taylor, focuses on the animal housing market. This case is different from the others as it was designed to help veterinary students explore innovation and sustainability within the broader veterinary and related sectors. It provides students with insights into the business development process with regard to both securing a market position and ensuring steady product innovation. The case shows how Parasol have managed to create competitive advantages around specific problems, developing solutions to meet the commercial and charity markets, and creating wider market opportunities for added-value products, especially those relating to alternative energy solutions. Essentially, the case study highlights an entrepreneurial small business that has achieved a great deal since its inception. It also amplifies the challenges the business is facing in its bid to expand both within and beyond the UK market. Drawing on some of the marketing chapters in the book to articulate their proposals, students are asked to determine the most appropriate export opportunity for Parasol to exploit.

It is hoped that the diversity of perspectives included in this edited collection of chapters can offer valuable new insights into current veterinary business and enterprise curricula. The combination of theory and practice-derived contributions should help enhance understanding of veterinary business while at the same time encouraging students to draw on their latent creative and enterprise skills and abilities to solve some of the very ‘real’ challenges faced by veterinary business owners.