Creating Value in Your Practice

“Getting things right the first time is more important than getting things done quickly.” - Roger McNamee

The analysts have all spoken and the prognosis is clear…the bear market is upon us. Wildly fluctuating stock prices, layoffs, closures, economic downturn…this is reality for many communities and dental practices within them. Our free-fall financial boom may be over for a while, but its’ demise creates plenty of opportunity for those dental organizations who are dedicated to not just surviving – but thriving - in tough times.

Thriving practices will have the opportunity to innovate, but first each aspect of the business must be scrutinized to determine how necessary, how relevant, how effective each system is in relationship to your practice’s total fiscal health. What could be done more efficiently? What are people buying today? What are they likely to buy more of tomorrow? Is the best use of time given to every system or project? Is the right person in place for every responsibility? These questions are ones smart practice owners are asking themselves right now.

So what is the smart way to stay on track, not lose ground in profit creation, and potentially get ahead in sticky times? Here are three ground rules for creating more value in your dental practice:

Do More Of What Matters:
Recession isn’t a new financial situation; we have had many in the past. The tendency is for fear to overtake us as dentists/business owners, and to hunker down until everything is “over”. Actually this is the best time to take stock of what is working/not working in your dental practice and correct those things that aren’t creating value for your patients or those on your team. Traditionally, recession creates a “what can I cut?” mentality in all types of businesses. Far better to focus on accelerating the one or two points that can get you through the tough times and leave you prepared for whatever is next: brand-building and relationship initiatives, such as chart auditing, are two of the best investments. If you’re not sure what a “relationship initiative” really is, try our Chart Audit Protocol, available at the end of this article.

Formulate Your Talent Strategy:
The easy way out for many companies is to cut positions during recession. Smart dental practices will use this lull in business to train and develop key staff to be their very best. Cross-training team members while running a lean payroll matrix can be difficult but the payoff in increased awareness, flexibility and shared knowledge is invaluable. The investment your practice makes in employee’ development can’t just stop at required continuing education, but must include specific strategies to propel your team forward and address issues. What’s key here is that there is no shortage of great talent available, and this economy creates opportunity for every practice to have the absolute best employees in its lineup. If you aren’t satisfied with your current team, it’s the perfect time to get results either through training or hiring the ideal candidate.

Have What Your Patient Wants:
Within the past year, there’s been a huge shift in patient awareness of products like Zoom© and the availability of porcelain veneers, etc, to the average person. An example? The success of television shows like “Extreme Makeover”, where plastic surgery and aesthetic dentistry transform a few brave individuals. The general public is beginning to understand the options available to them, and how dentistry can change their appearance forever.

Smart dental practices will capitalize on this shift by having what their patients are looking for on hand, and creating opportunities to buy good feelings right in their consultation rooms. Innovation within parameters is the rule of the day here: buying every bell and whistle won’t make you successful, but having the skill and the technology in place to meet patient requests will set you up for success in lean times - and good ones.