Three basic principles of success
ROGER LEVIN, D.D.S., M.B.A., F.A.C.D.
While very few dental practices ever undergo bankruptcy, practices do range widely in terms of financial success and overall dentist satisfaction. The degree of failure or success depends in large part on how well three basic business principles are applied. More significantly, these principles often determine what sort of practice a dentist will experience throughout his or her career. These principles (Figure
) are
- – creating strategy;
- – setting objectives;
- – carrying out tactics.
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STRATEGY
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Some dentists believe strategizing is an arduous and time-consuming task. In fact, creating strategy can be as simple as stating what you would like to have. Strategy acts as the long-term statement that makes possible a workable specific plan and methodical steps toward the stated goal.
A strategy statement is highly specific and captures the direction of the practice. Most small businesses and dental practices do not plan strategy, although doing so can be a major factor in long-term success. Some examples of strategy statements are
- – "To build a high-end restorative and cosmetic practice that does not depend on dental insurance or managed care."
- – "To build a family practice that serves the community and accepts up to 50 percent of its patients with dental insurance."
- – "To continually increase the size of the practice by adding new patients and moving to expand space as necessary."
- – "To own three separate dental office locations."
Each dental practice would do well to create between five and seven strategy statements that describe the general direction of development desired for the practice.
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OBJECTIVES
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Once strategy statements have been formulated, the next step is to set objectives. Creating objective statements is the second part in a three-step approach to moving the practice from general direction to specific actions. For example, if a dentist wants to build a high-end restorative and cosmetic practice, objective statements (also sometimes called goal statements) may include the following:
- – provide a complete range of cosmetic services, including whitening, porcelain laminate veneers, posterior tooth-colored restorations, complete anterior esthetics, crowns, bridges and implant dentistry;
- – purchase two technologies that specifically expand the ability of the practice to provide cosmetic services to patients;
- – attend specific continuing education courses to enhance advanced restorative skills;
- – build a new facility with a high-fashion interior décor.
Objective statements describe tasks that must be achieved to complete the strategy. The final step is the action step, or tactics, used to implement the plan.
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TACTICS
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Many people confuse tactics and objectives. An objective is a specific achievement or goal. A tactic is an action, or set of related actions, that must be taken in order to achieve the objective. While both strategy and objectives should be clearly delineated in writing, it is equally important to document tactics. It is even more important to make sure your tactics are monitored at regular intervals so that the desired results can be achieved. Statements of tactics must include deadlines for completion, and the results must be measurable.
For example, suppose a practice has an objective to provide a complete array of cosmetic services. Some tactics used to achieve the objective might be written as follows:
- – purchase the XYZ kit in order to provide better composite bonding services. Deadline: Jan. 15;
- – identify the best laboratory to work with for porcelain laminate veneers. Deadline: Feb. 14;
- – educate all staff members about all cosmetic services and the benefits to patients. Deadline: March 16;
- – attend an in-depth course on case presentation for cosmetic and implant dentistry. Deadline: April 15.
While it is beyond the scope of this column to fully describe and set forth all of the tactics necessary to provide a complete array of cosmetic services, the point is that all tactics must be clearly defined and have an established deadline. As each tactic is completed, the dentist and practice move closer to achieving the stated objective. Achieving each objective brings the practice closer to performing according to the stated strategies.
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KEY PERFORMANCE INDICATORS
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Key performances indicators are the best way to measure the success of the tactics. Identify the 10 to 15 key statistics that will drive the practice toward the specific objectives. Measure those key statistics at standard intervals so you can track the progress of the practice toward achieving the stated objectives. Unless a method for tracking progress is in place, it is likely that implementing strategy, objectives and tactics will fall short of targeted achievements and overall success. Tracking progress will reveal when and where corrections need to be made in the tactics used to reach the objectives.
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SUMMARY
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Basic business principles all but ensure success when they are followed consistently. Putting strategies, objectives and tactics in place is the first step toward being able to document systems, initiate scripting and improve staff training. Without the basic steps, systems, scripting and training the practice for performance would be hit or miss, at best. More importantly, applying business principles ensures that limited practice resources are dedicated to the achievement of the strategy. By following this simple, three-step process, a dental practice can significantly enhance both financial success and dentist and staff satisfaction.
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Dr. Levin is chief executive officer, Levin Group Inc., 10 New Plant Court, Owings Mills, Md. 21117, e-mail "rlevin@levingroup. com". Address reprint requests to Dr. Levin.
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The views expressed are those of the author and do not necessarily reflect the opinions or official policies of the American Dental Association.
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