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How Do You Keep Employees and Prevent High Turnover?

July 8, 2013 by howardfarran Leave a Comment

How Do You Keep Employees and Prevent High Turnover?

 

With pensions a thing of the past, most employees don’t have the mindset that they will work for you until they retire! So how do you prevent high turnover and keep those high-quality employees for the long term? Here are a few suggestions after hearing feedback from my employees for the past 25 years:

 

Corporate Culture: Providing a functional, organized and respectful corporate culture is key to retaining employees. If all team members knows what they are supposed to accomplish (goals and job descriptions) and you have functional, high-energy employees on the team who all abide by your Core Values and who are all striving for the same goals (mission statement), you will have a winning corporate culture and they won’t want to leave!

 

Pay Your Employees a Good Salary: You should strive at all times to have the best players on your team. Retaining those key employees means paying them well for giving 100 percent and striving daily to take your company to the next level. The key is having hungry, smart, dedicated, humble, well-incentivized people to make it happen.

 

Recognition: There are two components to recognition. The first one is rewarding someone for contributions and meeting business objectives, basically going the extra mile for the company. The second one is rewarding employees for their dedication or “years of service” to your company. Many large corporations have completely done away with service award recognition and it’s really a shame. I can’t tell you how many people I have talked to over the years who have decided to quit after 10, 15 or 20 years with one company because they don’t feel appreciated for their dedication. They have told me that receiving a corporate card and 10-year pin (for example) was like a slap in the face after dedicating that many years to one company. I know it’s expensive to have service awards in large corporations but they should find a way to make those anniversaries special for the employee.

 

Daily Recognition: We let our employees know their contributions matter not once a year but every day with a recognition program that allows employees to be nominated by their peers and their supervisors for going above and beyond, whether completing a big project or in a small way contributing to the success or culture of our organization. These nominations are posted continually throughout each quarter on a bulletin board in our break room. The one individual that stands out that quarter for his or her contributions receives a paid day off and we have a recognition lunch for all nominees and a drawing for gift card rewards. You must strive to celebrate success as often as possible and give your employees feedback daily. It takes work to have a program like this but it is so worth it in the long run.

 

Service Awards: Our service award program does include a small customized gift for each individual along with a monetary bonus based on years of service. The dollar amount of the award, in my opinion, isn’t as important as the fact these people are recognized for their dedication to the company. Our executive team takes it a step further by taking the individual to lunch with his or her team and presenting the service award. This serves two purposes: it recognizes the milestone accomplishment, but more importantly, it gives the managers/executives an opportunity to talk one-on-one with these individuals to find out how we are doing as a company, pick their brains for an hour in a relaxed setting to find out what they would like to see happen in the future and to get to know these individuals that are dedicating their lives to the company.

 

Remember the key is ensuring you have top-notch employees on your team – it’s an ongoing process as your company evolves. After you find the right team members you then need to reward them for their hard work and dedication – it’s a win-win in my book!

 

Filed Under: Dentaltown - Howard Blogs Tagged With: business development, dental, dentist, human relations, humor, inspirational, marketing, motivation, practice management, quotes, turnover

Think Logistics!

July 8, 2013 by howardfarran Leave a Comment

A dental assistant should never leave the operatory once a procedure begins. Your biggest costs are labor, lab and time. Why do you slow down to get up out of the operatory to go get something? Every single thing you need for every single procedure should be carried in the operatory in tubs or already be in every single operatory. Think Logistics! If it takes you 90 minutes to do a crown your overhead is usually 65%. If it takes you 45 minutes it is usually 50%. Labor, your collection policy (not your fee schedule), and the time spent doing each procedure are the largest cost drivers in dentistry.

Filed Under: Dentaltown - Howard Blogs Tagged With: business development, dental, dentist, human relations, humor, inspirational, logistics, marketing, motivation, practice management, quotes

Dr Pepper was really not a doctor!

July 8, 2013 by howardfarran Leave a Comment

Don’t forget to tell your patients that Dr. Pepper was really not a doctor! Drinking calories is the fastest way to tooth decay, obesity and diabetes.

Filed Under: Dentaltown - Howard Blogs Tagged With: business development, dental, dentist, Dr Pepper, human relations, humor, inspirational, marketing, motivation, practice management, quotes

Are you a real Doctor?

July 8, 2013 by howardfarran Leave a Comment

True leaders serve the people they lead. The word “Doctor” comes from the Latin word Docere, meaning to teach. All leaders are teachers. Are you teaching the people you lead? Real doctors teach everyone to become doctors themselves.

Filed Under: Dentaltown - Howard Blogs Tagged With: business development, dental, dentist, human relations, humor, inspirational, marketing, motivation, practice management, quotes

It takes six months to build a Rolls Royce and 13 hours to build a Toyota.

July 8, 2013 by howardfarran Leave a Comment

Perform dentistry faster, easier, lower in cost and higher in quality and everyone wins! Focus on the rich classes and you will most likely be poor and eat with the masses! Focus on the masses and you will do so well you will eat and live with the classes! God gave you two eyes so you can keep one eye on your patients’ needs and one eye on cost. Lowering your cost gives your patients the freedom to save their teeth! Please share your amazing tips and ideas on how you perform the best dentistry, faster, easier and at a lower cost for your patients!

Filed Under: Dentaltown - Howard Blogs Tagged With: business development, dental, dentist, human relations, humor, inspirational, marketing, motivation, practice management, quotes, rolls royce, toyota

You Need an Associate Now

July 8, 2013 by howardfarran Leave a Comment

Every year around this time, 5,000 lesson-weary yet fresh-faced dental students emerge from dental school ready to take on the challenge of maintaining and improving the oral health of millions of Americans. When I look across the American landscape at the 125,000 general dentists currently in practice it blows my mind that those 5,000 grads haven’t been snatched up by their junior year of dental school because of how valuable they are.

Don’t think the same way? Indulge me a little while I prove that no matter what you currently think, there is, without a doubt, room for you to hire an associate immediately.

Phones

Your current phone system is just awful. You’re probably using the same copper cable technology invented by Thomas Edison, you have someone manning the phones only during business hours and when you’re closed all calls go to your little answering machine that still uses the little cassette tape. Hey, doc, wake up! The turn of the century happened 13 years ago already! You need to move to a digital phone system – a voice over Internet protocol (VoIP) – run it through the Internet and your network. My practice, Today’s Dental, in Phoenix, Arizona, uses Avaya (formerly Nortel) and it is awesome! When my practice is closed and we get 12 phone calls from people who didn’t leave a message, we can track the missed phone calls and someone on my team can call those numbers back first thing when they get in.

Humans are extremely complex. They’ve got a three-and-a-half pound brain powered by a trillion circuits. The brain is influenced by a person’s nutrition, genetics, whether or not they’re hopped up on caffeine, chocolate or sugar, etc. Humans are very imperfect decision-making machines. When a human brushes her teeth at 6 a.m. and feels something missing in the back of her mouth, she will pick up her iPhone and call her dental office. When an answering machine picks up instead of a live person, she shrugs her shoulders, says, “Eh, whatever,” and just hangs up to either A. just live with it or B. call another dental practice later on that will pick up the phone so they can fix her up. If you can track when your calls are coming in, not only can you call those numbers back right away, but you can adjust your staff ‘s schedule to best cover when the majority of your phone calls are coming in. That way when patients call, you can assure they’re being answered by an actual person.

What I find most ridiculous about your phone system isn’t the technology itself – it’s that you only have someone living and breathing answering the phone 8 a.m. – 5 p.m., Monday through Thursday, with an hour break for lunch each day. There are 168 hours in a week and the average dental practice is open for 32 of them. A practice’s primary concern is, “How the heck can we get more new patients?” Easy answer, make sure a living, breathing person is answering your phones during high-call-volume hours.

Almost every dental practice I visit has two dental assistants and a dentist doing all of the dentistry, and there’s only one person out front filling the schedule. I always say, “Here’s what we’re going to do. We’re going to change your phone system to a digital VoIP, and instead of having two assistants helping do the dentistry, we’re going to move one of those assistants up front. Also, instead of having one person answer the phone from 8 a.m. to 5 p.m., one receptionist is going to come in at 6 a.m. with the owner doctor and she’s going to take a lunch from 11 a.m. to Noon, and then she will leave at 3 p.m. The other receptionist is going to come in at 9 a.m. with the associate dentist and she’s going to work from 9 a.m. until 6 p.m. That way the phones are going to be 100 percent answered when the majority of people are calling. We’re going to stagger the staffing of your front desk because 50 percent of the incoming calls to your practice are made when you are closed early in the morning and later in the evening. Also, of the calls that do come in while you’re open, 50 percent of those go to voicemail while your one-person front desk is taking care of other business. And if both front-desk staffers have their hands full, you need to make sure that any staff member in your practice is comfortable picking up the phone. This way you have much better coverage at the front desk and you’ll be able to fill more holes in your schedule so you can do more dentistry!” If you answer twice the number of calls coming into your office with a live, highly trained receptionist, you will increase the number of appointments. When you increase the number of appointments, most dental offices today can actually absorb almost all of that capacity. Dentists don’t have a problem if you double book them, triple book them, have to work them through lunch, or make them work past 5 p.m.

Don’t want to be open more, or keep someone in the office longer to cover the phones and make appointments after hours? Fine, but I challenge you to track the phone calls you’re missing and then tell me you’re OK with the status quo.

If you have an antiquated phone system, your little answering machine isn’t going to tell you about the missed call at 6 a.m., and unless your patient is fiercely loyal to your practice, you might not hear back from her at all. But if you use the digital VoIP system, your front desk comes in at 8 a.m., notices the list of missed calls and starts calling the numbers back immediately. When you call your 6 a.m. patient back, it clicks with her and she says, “Oh, yeah, I did call you this morning. Thank you so much for calling me back so soon. I have a problem. I think I’m missing part of my tooth.”

Expand Your Hours

Your front-desk staffer is still on the phone with your 6 a.m. caller, and your staffer should know her job so well that no matter the patient’s protests, she goes right for the close and says, “Let’s get you in. Can you come in today? What’s the best time for you to come in?” That’s at least what she should say, but is your practice able to accommodate emergency patients? When it comes time to schedule a patient, almost 140 million Americans will tell you from 8 a.m. to 5 p.m. they can’t leave their business because they’re working! Oh and you’re open Monday through Thursday from 8 a.m. to 4 p.m. – the same block of time your patient can’t come in. So what should you do? How about you hire an associate and expand your practice hours! You have the land, the building, and the equipment. Would you rather it just sit there costing you money, or would you rather use it and make money?! Bring in an associate and cover 50 hours a week instead of only 32.

Don’t think you can land an associate in your neck of the woods? The largest employer of dentists on planet Earth is the United States military. It employs around 5,000 dentists, and it can get these kids to sit on an aircraft carrier in the middle of the Pacific Ocean for half a year at a time, leaving their spouses and children on shore. You think you can’t land a quality associate because you live in Hays, Kansas? Are you kidding me? In Hays, Kansas, at least your associate can have breakfast and dinner with his family! Think about that!

Beef up your front desk so your practice can sell more dentistry, and stay open longer so you can accommodate your patients’ schedules and you can perform more dentistry. Pretty soon you’re going to have more dentistry to do than you have dentists to accommodate it. When that happens – hire an associate!

What are your thoughts? Once you’ve finished reading this, please log onto Dentaltown.com and post your comments under my column. See you online! – See more at: http://www.dentaltown.com/Dentaltown/Article.aspx?i=325&aid=4435#sthash.umefwXW1.dpuf

Filed Under: Dentaltown - Howard Speaks Tagged With: business development, dental, dentist, human relations, humor, inspirational, marketing, motivation, practice management, quotes

Is Dentistry Getting Too Easy?

July 8, 2013 by howardfarran Leave a Comment

This year I celebrated my 25th year of practicing dentistry and looking back over the last quarter century, sometimes I wonder if dentistry is just getting too darn easy.

The first five years I practiced, I had a 24-hour-a-day, 7-day a week, callous on my thumb and index finger from carefully moving stainless steel endofiles up and down all the time. When I graduated from dental school, it literally took me two hour-and-a-half appointments to manually clean out a tooth. Dentists today are so lucky! Now we have 300RPM nickel-titanium files that takes care of business in less than half the time – and in a single appointment, no less.

Radiology is also undergoing a complete revolution right now, and endodontics has become so much easier because of it. There is a high percentage of American dentists who use two-dimensional X-rays and it’s so surprising to me how few have moved over to the new 3D technologies. I have still not met a single dentist who’s gone from 2D to 3D and will ever go back. So many skeptics who still use 2D ask: “Well does insurance cover it? Will I have to charge extra?”Yet every single dentist I know who uses 3D says they don’t even care. It’s just amazing what you can see with the new technology. I mean, look at endo again. For years, every time a root canal failed we just assumed we did something wrong. Like, maybe we were just short of the apex and we didn’t get it all cleaned out. When you use 3D imaging, you can plainly see the root is fractured. If you can see that, just imagine how much more dentistry you can diagnose and treatment plan!

I predict, within a few years, general dentists will not refer to endodontists who don’t have 3D X-rays – how would the endodontist even know if the tooth had a vertical fracture if she can’t even see it? Root canal failure is why so many endodontists warranty their work. If it fails in the first year, the patient will get 3/4 of their money back; if it fails in two years, the patient will get half of their money back and so on. If the root canal lasts four years, it’s good enough. The best endodontists, on the other hand, outright refuse to warranty their work. They’re good at what they do, and if they’re using 3D imaging, they can see everything! You’re telling me you’re OK with taking $1,500 of someone’s hard-earned money to perform a root canal that’s not going to last a year and you don’t feel any shame or guilt about it? That ruins endo and root canals for everyone! What sort of connotation does it carry when someone tells you: “I don’t want a root canal. Just pull the tooth. My cousin got a root canal and they had to pull the tooth a year later anyhow. What a waste of money.”

The American Dental Association was way ahead of the curve when they granted specialty status to oral radiologists. In the future, the dentist isn’t going to be the person reading X-rays. Oral radiology is going to explode – not just in the United States but internationally. That’s all thanks to the Internet! I see practices taking 3D X-rays and e-mailing them to an oral radiologist somewhere else on the planet, and within a few minutes, the oral radiologist reads the X-ray and tells you what you’ve got.

The best endodontists in the profession use 3D cone beam computed tomography (CBCT), and they have the ability to place implants. I want my retreats to go to an endodontist who can take an accurate 3D X-ray and if she decides that the tooth isn’t salvageable, the money isn’t an issue because she can either make $1,500 doing the retreat or she can make $1,500 pulling the tooth and placing the implant right then and there. That is outstanding customer service to the patient!

You’d have to agree with me; dentistry is getting so much easier! Look at CAD/CAM. Since I’ve been a dentist all the best labs that I know will tell you that all the best dentists have about a six percent remake rate (couple that with the dentists who say they have never had a remake in 25 years, you know the truth is somewhere in the middle). Now with impressions going digital with optical scanning, those same labs say remakes drop from six to one percent. One percent! When you digitally scan the teeth, if you’ve got a huge monitor that’s two feet by a foot, you just can’t see a prep better than that. You can’t even see a prep that well with loupes on. Taking it further, if you have a milling machine right there in your office you don’t even have to send the impression out to the lab, and you can take care of your patient in the same day. I mean, CAD/CAM technology is something we only dreamed about and wished for 25 years ago. Now it’s a reality, and there are still some of you who won’t give it a shot. You can’t afford to sit on the sidelines with CAD/CAM. If you’ve been thinking about it, take the next step!

Look at implants! I got my fellowship from the Misch Insitute, I got my diplomat from the International Congress of Oral Implantology and I’m telling you, just thinking about placing implants in the 1980s makes my stomach turn. Placing implants has come such a long way since then. When you placed an implant back then, you were talking about long incisions, and when you thought you had an inch of bone to work with, you really didn’t know until you got in there, and you’d receive such a shock that you really only had half as much bone. You had to stay so far away from the mental foramen for fear that an anterior loop could ruin your day. It was such a difficult procedure! Today, you don’t even need to extract the teeth before you get started on placing an implant. You take a 3D X-ray, send it to a lab, the lab makes a snap on retainer with a pilot hole, you get it back, numb the patient up, snap on the retainer, drill right through the pilot hole and the tissue and place the implant. There are dentists who come up to me at seminars to tell me they don’t pull wisdom teeth and that they can’t stand the sight of blood, but they purchased a 3D CBCT machine and are placing seven to 10 implants a month. They’ve gone from zero to 60 in about three seconds in the implant world. I mean, tell me dentistry hasn’t gotten too easy!

And then there’s orthodontics! I remember doing ortho in my practice from 1987 to about 1992, bending stainless steel with these three prongs, trying to figure out the best way to improve someone’s smile. You could literally get a migraine headache trying to figure out what you had to do with the wire. Some things are extremely difficult to wrap your head around and orthodontics in the 80s and early 90s was one of them. There’s a reason orthodontists take so much more school! Then nickel-titanium wires came out, where they could pre-cast the archwire so everything was at the right angle, and all you have to do is bend it into the bracket. The wire straightens all by itself and drags the teeth with it! It’s just gotten so much easier!

What’s even more amazing is thinking how much easier dentistry is going to be in another 25 years! Think about it!

What ways has dentistry become easier for you? When you’ve finished reading my column, I wish you would jump onto Dentaltown.com and post your thoughts under my column this month. See you online! – See more at: http://www.dentaltown.com/Dentaltown/Article.aspx?i=322&aid=4386#sthash.kFjkk5GV.dpuf

Filed Under: Dentaltown - Howard Speaks Tagged With: business development, dental, dentist, human relations, humor, inspirational, marketing, motivation, practice management, quotes

What Winners Do and Losers Don’t

July 8, 2013 by howardfarran Leave a Comment

For the last 25 years, I have been interested in what winners do and losers don’t. There are varying definitions of “what winners do,” so to make sure you understand what this column is about, I’m not defining winners as dentists who fit crowns within a few microns. I’m talking about the big picture here.

One of the strongest predictors of being a winner is having a massive intellectual curiosity, which is easily measured by the number of hours of continuing education one takes. You will be a success if you pursue a Master of the Academy of General Dentistry (MAGD) designation. I’ve never met a dentist with an MAGD who has gone bankrupt. I just haven’t. If all you can do is take an X-ray, and do cleanings, fillings and crowns, you’re just not going to be successful. By the time you have forced yourself to cross-train in the very structured 16 different categories of continuing education requirements to get your Fellowship of the Academy of General Dentistry (FAGD) and then take another 600 hours to get your MAGD, you know how to recognize, diagnose and treat so many different oral health issues that you’re just always busy. A dentist with an MAGD can do twice as much dentistry on the same number of patients a regular dentist sees because an MAGD dentist can see it, understand it and diagnose it better.

Another element in determining success is presenting treatment. It seems like everybody I know who takes home $300,000 a year always has a separate person presenting the treatment. These dentists do not present the treatment plans themselves. Dentists by and large are introverts and have a difficult time explaining things like gingivitis and irreversible pulpitis in layman’s terms to their patients. I still contend that 99 percent of all physicians, dentists and lawyers could never make the income they make if they were salespeople. Just because you’re the dentist and you own the business, it doesn’t mean you’re the best person to explain treatment. When you find an energetic person who can understand the treatment plan and can explain (aka, “sell”) it to your patients, your treatment acceptance skyrockets. It is very important to know what you’re good at, but I think it’s more important to know what you’re not good at. Data has shown that the average dentist fills 38 out of 100 cavities diagnosed. You should go to your report generator and look up your own numbers, but why is it some offices have an 80 percent close rate and other dentists have less than half that? How can you call yourself a winner when two-out-of-three people who come into your office with a cavity leave with a cavity and still have a cavity at the end of the year?

I tire of the so-called 20-20-20 dentists (dentists who are so proud that they bond with a greater than 20 megapascal strength, their wear rates are less than 20 microns a year and their indirect crowns, inlays and onlays fit within 20 microns), who are so into the science and themselves that they completely ignore the big picture enough to realize they suck at getting actual dentistry done! Tell me again how well your inlays fit when you only do one out of every three you diagnose.

The true litmus test for me is in answering, “Would I send my own children to your office?” I don’t want to send my four babies to a dentist who only has a one-in-three chance of even removing the cavity. I’d rather send my kids to a dentist whose fillings were 30 microns of wear a year and whose crowns fit at greater than 30 microns a year as long as the dentist at least numbed up the tooth and removed the decay.

Another variable that determines success is whether or not you have an emergency operatory. We always talk about new patients, new patients, new patients. We all want more new patients. If I could sum up your receptionist’s job description in one sentence, it’s, “Your receptionist sells appointments.” If someone were to call your practice and say, “My tooth really hurts. Can I come in?” and all your operatories are scheduled, the answer is, “No.” So the patient calls another practice that will see her. My practice keeps an operatory open for emergencies all the time. Nobody schedules it. If you’re saying you can’t do this because of your schedule, you’re the same dentist who continually complains about no-shows and cancellations. Free up one of your operatories! These practices probably make $50,000 a year more than the ones that don’t.

Another success factor is whether your practice is hidden in some office building that you don’t own or if you have a standalone practice that you do own. For years I’ve told every dentist I know to stop renting and move their practices to a visible commercial space. If you only have one or two operatories, get some courage and look for a bigger space. Almost every dentist I’ve talked to who built out their own space tells me if they could do it over again they would have made their practice bigger. Ever notice the companies that design 10’x12′ operatories never have to work in them? The happiest dentists I know are in operatories that are 15’x15′ or larger! Why would you want to work the rest of your life in a tuna can? Double your space! It’s so cheap right now! Make the move!

These are just a few variables of what I think differentiate the winners from the losers. Initially I thought about telling you what the winners do and the losers don’t from only my own perspective, but I thought, “That’s kind of a big responsibility to put on myself.” I want to always make sure I give good advice, so I contacted some of my friends – heavy hitters in the dental profession – and asked them what they think winners do and losers don’t. Here are some outstanding responses from Dr. Rhonda Savage, Sally McKenzie, Dr. Dan Fischer, Dr. Rick Workman, Linda Miles, Dr. Gary Kadi, Dr. Gordon Christensen, Cindy Kushner, Dr. Rick Kushner and Sandy Pardue. I know you’re going to appreciate this.

Dr. Rhonda Savage
Winners close their office doors and focus on patients, patient care (including correspondence with specialists and insurance company rebuttals) and staff training. Winners are warm. They connect. They listen well. Winners are focused. Winners ask for staff input and are fierce about communication systems like team meetings, morning huddles and performance reviews. Winners hire carefully. Winners train well and are clear about their expectations. Winners follow up, coaching and appreciating. Winners are positive. Winners show up early or at least before the start time. Winners start on time respecting the team and their patients’ time. Winners are passionate and inspire others. They share their short-term and longterm goals. Winners discuss the “why.”

Sally McKenzie
Winners seek and learn and execute and measure and share in celebrating. Unsuccessful practices just do the same old thing the same old way.

Dr. Dan Fischer
Winners have integrity. They listen well. They put their patients first and treat them with respect. They communicate and educate. They inform before they perform. They are not egocentric. Winners keep current on new technology. They do not push their own agendas. They are generally happy, enthusiastic people.

Dr. Rick Workman
Winners are open, positive and mentally flexible. They have an optimistic mindset and seek to build relationships with their team and patients. They seek to solve problems versus place blame. They visit other dental practices and study the world around them. They strive for mastery of their craft. They understand entrepreneurialism to a degree and realize success is up to them.

Linda Miles
Winners realize their business is only as focused, ethical, and accountable to customers/clients/patients as their leader. They have outstanding clinical skills and instruments, and expect the same of their staff. They communicate effectively with their team, patients and colleagues.

Dr. Gary Kadi
Winners ask, “How do we find a way?” instead of letting themselves off the hook. Winners focus on outcomes versus activity. They operate on a foundation of honoring their word – the builder of trust, empowerment and workability. Winners are not whiners. Winners face their fears. They are authentic and vulnerable. Winners have a clear vision and engage and enroll others to support them. They focus on value creation in every interaction; losers are value consumers. Winners do not sabotage opportunities when offered.

Cindy Kushner
The difference between winners and losers is simply the willingness to work hard – do whatever it takes to make a practice successful (within the realm of ethics). Winners try things outside their comfort zone. They have good work ethic and never believe they deserve success, but rather believe they can create it.

Dr. Rick Kushner
Winners accept responsibility for everything. They know their success, or lack thereof, is about them and nothing else. Losers always have something or someone else to blame.

Sandy Pardue
Winners realize the business aspect of the practice is different than technical skills. They are great at building relationships. They are willing to spend time focusing on the business of their practice because they understand that accountability, research, development and practice evolution all contribute to practice success. They are effective communicators. They have a skilled person answering the phone. Winners have set production targets for all providers in the practice. They keep as many services as they can inhouse versus referring them out. They have incorporated additional services such as implants, ortho etc. There is a solid recall system in place. Winners know if they continue to learn and make improvements, they will continue to improve and be more profitable. Winners insist on high ethical standards. They are strong leaders and they don’t let staff dictate the direction of the practice. They know that systematized training for staff and written procedures on how to do their jobs will increase efficiency, production and profitability. The practice has production goals set for each provider. The practice has a vision and goals that they created together. They understand that successful practices are built on good relationships. They delegate effectively.

Dr. Gordon Christensen
Winners are patient-centered. They offer a great value for patients, including moderate fees. They are not ego-oriented. They don’t over-treat. They are honest, authentic and live by the Golden Rule. They treat employees as equals and they keep up-to-date on technology and products.

When you’ve finished reading this, I want you to jump onto Dentaltown.com, and post a comment under my column this month to join in this conversation and let everyone know what you think winners do and losers don’t. See you on the message boards! – See more at: http://www.dentaltown.com/Dentaltown/Article.aspx?i=319&aid=4334#sthash.LFmVfaZt.dpuf

Filed Under: Dentaltown - Howard Speaks Tagged With: business development, dental, dentist, human relations, humor, inspirational, marketing, motivations, practice management, quotes

Dentistry Could Come Back with a Vengeance

July 8, 2013 by howardfarran Leave a Comment

This recession has been hard on all of us, but there is a little economic secret that you all should know that will turn your frowns upside down. It’s called pent-up demand, and you’re going to be seeing the results of it very soon.

During an economic contraction, if you decide at lunchtime you are not going to go to Arby’s and get a sandwich, fries and a Coke, but instead bring a sack lunch to work, Arby’s loses that sale. It’s finite, they’re never going to get it back. Knowing money is tight, you go home and instead of taking the family out to the local Mexican restaurant, you might stay home and eat Ramen noodles. That’s a sale the Mexican restaurant will never ever see. This always happens in down economies.

The thing we all need to keep in mind is with the nine recessions we’ve seen since World War II – the current one being the 10th – the economy always comes flying back. Why? You might not be spending discretionary income on things you don’t need, like going out to lunch or getting a facial, but you are still driving your car, your tires are getting bald, you’re still using the refrigerator you’ve meant to replace for years, lightbulbs need to be replaced, etc. Important things are breaking down; they are things you use every day that you need to replace soon before you end up in the dark, with a flat on the side of the road or with a refrigerator full of spoiled food.

That also pertains to dentistry and orthodontics. I’m 50 years old and when I was kid growing up in Kansas, there were a lot of families that had around five children. Usually then the child with the most crooked teeth was the only one in the family who got braces. Now, with birth control and as America progressed, we average around two children per family, and every child gets ortho. Since the beginning of the recession in 2007, a lot of orthodontic practices have experienced a huge drop in the number of cases they’ve started. Several ortho practices have had to shut their doors because of this. For the ones who have stuck this recession out, I want to remind you that all those families who put off braces for their children over the last five years are going to come back and get braces soon. It’s pent-up demand! Maybe Molly didn’t get braces at 12, but she’s sure as heck going to straighten her teeth when she’s 16! Maybe she’ll even pay for Invisalign herself when she gets her first job out of college. You might not have seen her in the last five years, but I guarantee you’re going to see a lot of her soon when she finally comes around to get treatment.

The economy is coming back in America. They say it’s always darkest right before sunrise, and I’m here to tell you I’m already seeing the sunrise in Phoenix, Arizona. We were hit massively hard here during the recession. Construction companies were building 60,000 homes a year here up to 2006, and after the great economic contraction, that number shrank to 10,000. All the people it took to build those other 50,000 homes each year lost their jobs. Home prices contracted big time. Also during this time, around 150 dental offices here in the Valley of the Sun closed their doors forever.

The other issue we had in Arizona was until recently the state didn’t have a dental school. Now we have two: Arizona School of Dentistry & Oral Health – A.T. Still University, and The College of Dental Medicine-Arizona (CDMA) at Midwestern University. See Fig. 1 for the number of new dentists each school has graduated since 2007:

We saw hundreds of new dentists graduate from our brand-new, local dental schools during the recession who tried to open their own practices and failed because they thought all it took to own a practice was to open up in a great visible location, in a strip mall anchored by a grocery store or a Walmart, next to a four-lane intersection, do some direct mail, and put up a website. The supply of dentists in our area was way oversaturated and massively changed the business of dentistry in the Phoenix area. The problem isn’t local to Phoenix, it’s everywhere. Look at Fig. 2, which shows unemployment figures from the Department of Labor since 1984, then take a look at Fig. 3, which shows the total number of practicing dentists each year since 1984. You’ll also notice in Fig. 4, that during this latest recession, the dental school graduate numbers have risen. Everyone talks about a demand problem in dentistry with this current recession, but what dentistry really faced in the latest high-unemployment years was a supply issue.

Things are changing, however. According to InternationalForestIndustries.com, due to rapidly increasing housing starts in the United States, “lumber and panel prices will move to new highs in 2013 and record highs for lumber in 2014.” The average median real estate price in Arizona has risen from $248,229 in Aug-Oct 2006 to $320,164 as of January 30, 2013 – that’s a 22 percent increase. Housing is the biggest sector of the economy. Everything I’m reading indicates housing prices are increasing, which means the inventory is being bought up, and wherever real estate goes, so goes the economy.

As the economy improves, we’re going to start seeing the results of a five-year pent-up demand for dentistry. It’s already happening! I’ve owned my dental office since 1987, and today we are doing more root canals as a percentage of income than we’ve ever done before.

I’m sorry to sound this upbeat and positive, because this truly is the dark side of economics. When the media talks about how bad Hurricane Sandy and Katrina were, it’s true, those storms were devastating. People lost their homes, their jobs and their way of life. On the other hand you don’t hear any construction companies complaining about it because they get a ton of work in the rebuilding process. Whenever you see a house burn down, it’s really sad for the family, but that devastating fire does provide jobs for firemen and people who build and remodel houses.

In dentistry, we diagnosed a lot of cavities in 2007, 2008, 2009, 2010, 2011 and 2012, when patients just said, “I lost my dental insurance because of this recession. I really can’t afford to take care of these cavities right now,” and walked away. Now those little $250 cavities have grown into the nerve, they’re painful and they require a $2,000 root canal build up and crown. You don’t feel good about it, but on the balance sheet, man, it’s just endo heaven. I’m also hearing stories all over the dental profession like little Molly has been whining to her mother for five years about her crooked teeth. When is she going to get them straight and when is she going to get braces? Housing is coming back, people are now getting root canals and crowns, and I see ortho starting to come back with a vengeance.

Better times are ahead, gang. Remember, dentistry is a need, and we’ve seen a lot of pent-up demand accrue over the last five years. The economy is improving and dentistry is just going to explode! What didn’t get fixed in the last five years is going to get fixed. – See more at: http://www.dentaltown.com/Dentaltown/Article.aspx?i=316&aid=4291#sthash.6CuPBQZA.dpuf

Filed Under: Dentaltown - Howard Speaks Tagged With: business development, dentist, dentistry, human relations, humor, inspirational, marketing, motivation, practice management, quotes

The SWOT Analysis

July 8, 2013 by howardfarran 28 Comments

Former Chairman and CEO of General Electric Jack Welch always used to say a company should either be number-one or number-two in a particular industry, or else leave it completely. How does your dental practice stack up in your area? How do you know if you’re in the top two dental practices in your zip code? How do you compare your practice to the competition?

When I earned my MBA at Arizona State University, one of the first things I learned when it comes to evaluating your competitors and your own business was the SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is a way of looking at businesses and determining its most impactful factors. I’ve always recommended that dental practices do a SWOT analysis on the top competitors in their area.

Just like in cross-country running or competitive swimming, there will always be someone faster and slower than you in your business competition. What are their strengths? Do they have more knowledgeable workers? Do they offer their services at a lower price? Do they advertise more efficiently? Are there any affiliations that are helping them? And what are their weaknesses? What opportunities does their business present you? What threats do they pose?

Doing a SWOT analysis with your management team to answer these questions is a perfect team exercise. We start off with a box (see page 18) and write down what we see are our competitors strengths, weaknesses, opportunities and threats. It’s a fantastic mental exercise and it really gives clarity to my team.

I learned years ago that there was another dental practice in my area that was entirely focused on Medicare/Medicaid business. That practice had a much lower cost structure because it used very low-cost, entry-level employees. So, in doing a SWOT analysis on that practice with my team, I gave up that demographic. I could not compete in the Medicare/Medicaid business because I employ several long-term staff members who are extremely knowledgeable, extremely developed, and we were making more of the middle-of-the-road, Ford-Taurus-type of dentistry.

There is another dentist in my area who is entirely focused on the cosmetic end of dentistry, doing fancy veneers, bleaching, etc. He is focused on this type of high-end dentistry 40 hours a week. Because cosmetic dentistry is a very small part of our business, we decided not to be a “cosmetic spa practice that just focuses on smile makeovers.” We knew how to make the expensive Mercedes-Benz-type of dentistry but we decided not to focus on that area of dentistry because I practice in Phoenix, not Beverly Hills. Just like I didn’t feel like I lived in the area to sell the Mercedes- Benz-type of dentistry, I didn’t feel like I lived in the area to have a Medicare practice. I zeroed in on my demographics – solid, middle-class Americans – and consequently we focus on the Ford Taurus, mid-range, quality, no-frills, family dentistry.

As far as your core competency, like Jack Welch says, you have to be first or second in your market or you’re eventually going to get run over and die. So if you’re third, fourth, fifth or sixth place, you have to ask yourself if you can fix it. Maybe your competitors have a cost advantage. Maybe they employ minimum-wage employees, no frills, no thrills, and they have the lowest prices in town because they have the lowest cost. Maybe you realize you have a higher cost structure because you employ more expensive, more knowledgeable workers.

There are a lot of plumbing businesses in Phoenix – it’s rare to go for a drive and not pull up next to a plumbing truck at a stoplight. They’re everywhere. Even though there are dozens of plumbing businesses in our zip code, they’re different from one another, and not just by name. Some of them focus on residential plumbing, some are commercial plumbers, some focus on new construction and others focus entirely on 24-hour, same-day service. Even though they’re all plumbers, they all work in entirely different markets. By using a SWOT analysis, you can figure out who is doing what and who is going after what in your dental market. Is anyone doing cosmetic dentistry? Is anybody focusing on 24-hour emergencies? Does anyone focus on early morning appointments at 6 a.m. or 7 a.m., or after-work appointments at 5 p.m. or 6 p.m.? Is anyone open on Saturdays? Is anybody focusing on Medicare/Medicaid patients? Is anybody focusing on sleep apnea and snoring? Is anyone focusing on Invisalign? These are all areas in which you can differentiate your practice from competitors.

If you do a SWOT analysis of dental practices in your area, you’ll be able to better understand each practices’ unique selling proposition (USP), and you can see if there’s an opening in the market for you to offer your customers something more unique. Take emergency dental for example. You might find that of all your competitors, no one ever takes emergency patients on the same day. Emergency patients aren’t price sensitive. They’re in pain right now and want to get out of it right now; everyone else makes them wait three days to three weeks to get in, so you should adjust your business in order to get them in that very day.

After you do a SWOT analysis on your competitors and you figure out a way to differentiate your practice from the rest of the pack, the next time you go to the ADA Annual Session you might start thinking, “I practice in a small town of 5,000 people, there are eight dentists in this town and not one dentist mentions sleep medicine, snore guards, TMD or migraine headaches.” So instead of going to the ADA and taking your 300,000th course on fillings, root canals and crowns, you might instead take your entire team with the mission of: We’re going to be at this convention in New Orleans for three days, we’re going to learn something new and we are going to come back to the office and attack sleep medicine or Invisalign.

When you do a SWOT analysis of your competition, you should start at the same place all potential customers start: their websites! Get your team together and start looking at your competitors websites, asking them, “OK, knowing what we already know about our competitors, does their website spell out what they do? Is it clear?” Maybe after you do your SWOT analysis on your competitors, you’ll take a look at your own website and think, “Y’know, our unique selling proposition really doesn’t stand out on our website. Maybe we need to spend more time, money and effort on our web presence. Maybe our core competency should be in bigger letters on the home page. Maybe the things we don’t really excel at shouldn’t even be on the first page.” Like I said, it’s a great exercise for you and your team to discuss.

I’ve worked with Jay Geier and the Scheduling Institute quite a bit. The other day, Jay and I placed calls to some of my competitors. We called some of the elite dental practices in the area, and when the receptionist picked up the phone, you’d think you were calling Joe’s Tire Shop. That exercise alone made me double down on my front-office training, to make sure that we’ve got the best people on our front desk selling the dentistry we love to do. You just learn so much with a SWOT analysis!

Do your SWOT analysis on every one of your competitors and you will learn a lot of what to do, what not to do, what to focus on and what to give up. At the end of the day, remember, if you try to be everything to everyone, you’ll go out of business and end up being nothing to no one. – See more at: http://www.dentaltown.com/Dentaltown/Article.aspx?i=314&aid=4259#sthash.4F5ExCq0.dpuf

Filed Under: Dentaltown - Howard Speaks Tagged With: business development, dental, dentist, human relations, humor, inspirational, marketing, motivation, practice management, quotes

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