How to Build Your Ideal Practice

By | Uncategorized

By Dick Vessels (An excerpt from our Fortune Management book: How to Build Your Ideal Practice)

“Culture is magical. It cannot be bought, set by policy, directed, or memoed. It cannot be rushed, hurried, or pushed. It starts with a dream, an idea, a feeling. Close your eyes and picture the perfect office, the perfect experience, the perfect day. Once you see it, then set it. Your dream is now your goal, your focus.

“Two years ago we met the Fortune Management team, and we were asked to picture our dream practice. Closing our eyes, we saw patients who accepted prescribed treatments, a team of experts who pushed each other toward greatness, double-digit growth, the ability to care for those who can’t afford it, and a practice that is not wholly dependent on the owner-doctors being in the office. Our coaches reviewed our dream with us, took it from a dream to a plan, and committed to helping us work the plan to achieve our dream. They not only committed to working with us as doctor-owners, but they committed to our team to work with them, too. As I write this, I can positively say that we are on our way to achieving our dreams.”

—DR. AARON WERNER, El Cajon, California

TThe significant difference between mega-successful teams and those who are at or below average is rarely clinical talent. It’s simply the discipline to live and honor co-defined culture agreements. Top-notch, A-plus dental teams — those who are the highest paid for the emotional and professional value they bring to each other, their patients, and the marketplace — are formed in an environment of mutual respect, safe communication, and accountability. These top-notch teams also consistently reach goals that support integrity, value, and lasting relationships. Egos are secondary where continuous practice growth, sustained practice profitability, and high compensation reside. This level of success begins and ends with a defined winning team culture.

Of course, every dental team aspires to be a winning team and have the rewards that come with being at the top of their game. And, obviously, winning does not just miraculously happen. Instead it takes dedication, devotion, and commitment. I believe these five fundamental elements define what is required to perform at a mega-successful, A-plus level:

1. The “Be” Mission: How will we serve? What values are absolute? Why are we here? How will we make a difference? This is the absolute guidepost of existence and needs to be addressed daily with emotion and energy.

2. Culture Agreements: How will we behave in the workplace toward our team members and patients, while being individually accountable? Define clearly the character, attributes, and people skills necessary to be involved in an A-plus culture.  Acquire them diligently.                                      

3. Vision: Where specifically are we going? Where will we be? Who will be with us? What will we look like in one year, five years, and ten years? How will we be accountable? This includes daily, monthly, and yearly goals, as well as specific provider commitments.

4. Communications: What specific process or processes are we committed to? These must be rehearsed and utilized with impeccability by all stakeholders regardless of status.

5. Celebrations: As goals are attained, share them generously and evenly. Play as an A-plus team, learn as an A-plus team, and win as an A-plus team!

These simple five fundamentals are at the core of every peak performing practice or business I have had the privilege to encounter. A commitment to them is richly rewarding. Master these, and expect success beyond expectations!

Cerec 30 for FREE in 1, 2, 3…

By | Uncategorized
It’s no surprise that continuing education is an integral component of building and sustaining a successful and profitable practice. Whether you’re looking to grow your practice vertically or horizontally, there are a variety of both clinical and practice management CE opportunities available to you. Many doctors, however, find that getting quality CE can be expensive and burdensome. As a result, they find themselves scrambling toward the end of the year to find the quickest and cheapest CE courses available. What if I told you that you could take any course you wanted for FREE? What if I told you that you could go anywhere in the world, participate in the highest quality courses, delivered by the most well known speakers, and it would cost you absolutely nothing? Where would you go? What courses would you take?
For Dr. Paul Bass, a practicing dentist for more than 21 years, cost was also a consideration. He too wanted his team to have access to the best courses available. He wanted to be able to attend major events around the country without creating a financial burden. During a team meeting, he and his team became very curious. They asked a profound question that ultimately led to a solution that can be replicated in every practice, even yours! They asked, “What would have to happen for us to attend these major events and it not impact the bottom line?” The answer was, “The Travel Game”. The Travel Game is a simple three step process that will allow you and your team to attend any event you desire, without it impacting your profitability one cent. You can use these three steps to take your team to the largest digital dentistry event in history for FREE! This is how it works:

1. Estimate The Costs

Estimate how much it would cost for you and your team to attend the event. Consider costs such as air fare, hotels, meals, tuition, cabs, shopping, etc. Let’s say you have five team members, not including yourself, and you have estimated costs of approximately $20,000 to take your entire team to Cerec 30 in Las Vegas on September 17th – 19th, 2015. Now we move to step 2.

2. Determine Your Net Production Per Day

Let’s say you determine your net production per day to be $5,000. This means you only need to work an additional four days that are not currently working days to fund the trip. Since you are utilizing these days to fund your trip to Cerec 30, employees are not compensated, nor are the doctors. The days will be used to earn a FREE trip.

3. Schedule The Days & Execute The Plan

The only thing left to do is to schedule the four days necessary to fund the trip, hold the funds until you incur the expenses, and execute the plan.
The Travel Game represents the ingenuity and creativity of people who constantly strive for improvement, and desire all of the experiences that our creator has made available to us. It is up to you to take advantage of this incredible opportunity and prepare your team and practice for the digital revolution. You can use The Travel Game to take your entire team to Cerec 30 and share in the excitement with practices all over the country. We look forward to seeing you there!

3 Simple Steps to Increasing your Profitability

By | Uncategorized

Whether you’re a few years into owning your own private practice, mid-career, or seeking to transition, you have most likely asked yourself this question, “Where is my money going?” We all know what the answer to that question was when you were in school: books, tuition, fees, and for a fortunate few, entertainment. But now that you own and operate your own business, where is it going? How do you make and keep more of it? Profitability is arguably the single most important factor in running a successful dental practice. In this issue of Fortune Management E-News, we will share with you three simple steps for increasing your profitability without doing more dentistry.

1. Fee Positioning

Notice that step one does not say fee increase. That is because I do not believe that increasing fees is an appropriate strategy for improving profitability. I have, however, found that the fees of many practices are not consistent with their brand. This sends a mixed message to consumers. You can’t have Nordstrom prices with JC Penney quality and service. Conversely, you won’t be in business very long if you are providing Nordstom quality and service with JC Penney prices. For many practices, fee positioning gets neglected, which results in diminishing margins. Simply positioning fees so that they are consistent with your brand will increase your new patients, maximize your active patients, and increase your case acceptance with those patients to which your brand appeals. Your position should be a direct reflection of your brand. Is your angle convenience, impeccable service, economy? Determine what your brand is, and then evaluate how you have your fees positioned. If you are not positioned appropriately now, simply plan periodic increases of no more than 12% per year, until your fees are where they need to be. Once your fees are positioned appropriately, I recommend an annual increase of 10% to compensate for inflation.

2. Insurance Negotiation

This is an area that is often overlooked, and can be an area of tremendous opportunity. Many practices don’t know that they can renegotiate reimbursements each year. This is also one of the reasons that the fees for many practices aren’t positioned appropriately. If you don’t raise your fees to compensate for inflation, insurance companies have no incentive to increase their reimbursements. Over time, as your costs continue to increase, your margins dwindle away and you’re wondering why your payroll, lab, and supply costs are above your accountant’s recommendations. It’s not because you’re paying too much; it’s because your business model and strategy are not compatible with one another. Although there are some dental insurance companies that will not renegotiate, the vast majority will. If you don’t feel that you or a member of your team is equipped with the skills to negotiate with insurance companies, there are several companies that can support with this process. One in particular is Profitable PPO’s. It takes about six months to complete and can have an extraordinary impact on your bottom line.

3. Cost Containment

When is the last time you looked at your Profit and Loss Statement? Do you have specific and strategic allocations for each and every cost you incur? Do you have a targeted profit margin? For many practices, reviewing the Profit and Loss Statement seems to be an insurmountable task. What goes into each into category, and more importantly, how do I keep them within healthy ranges? The answer is focus, awareness, and individual accountability. The first two steps will naturally bring many of your costs within a healthy range, but that’s not enough. For something to improve, you must monitor it. I recommend reviewing your Profit and Loss Statement each month with your team. That’s right: with your team. They are not just administrative coordinators, assistants, and hygienists; they are Vice Presidents for the departments of your practice for which they are accountable. It’s time they be empowered with sufficient resources, and held accountable for playing the game at a higher level. Most team members will jump at the opportunity, and the few that run are probably not the right team member. Identify different people to be accountable for specific line items on your Profit and Loss. The five to focus on are Payroll, Lab, Dental Supplies, Office Supplies, and Marketing. Leadership is about results. Give them the freedom to achieve your desired allocations in each area, and hold them accountable to the result.

Regardless of where you are in practice, profitability is an extremely important consideration. If you’re just starting out, the additional cash flow will help you market effectively and make the necessary investments to build your practice. If you’re mid-career, it will allow you to keep up with the advancements in technology and make facility upgrades to support your competitive edge. If you’re seeking to transition, it will ensure the financial capacity to compensate an associate as you help him or her build their patient base, without taking a hit on personal income. As the saying goes, “Cash is King”. Follow these three simple steps and I am confident you will not only see an immediate impact on your bottom line, but reduce personal and professional stress simultaneously.

LEADership

By | Uncategorized

Ever wonder why team members fail to follow through even though you have made the same request time and time again? Ever wonder what it would be like to have a team of people that just DO what needs to be done, rather than wait to be asked? After studying the connection between leadership, performance, and accountability for a few decades now, there are certain characteristics that seem consistent in every high performing, high producing business, even dental practices.  When these habits are part of the owner’s daily ritual of leading his/her team, the team members give their hearts and souls to the vision, the patients, and their teammates.

There are four cornerstones that every leader must develop to be effective and have effective people on your payroll.  Take the LEAD:

L – LOVE

You must understand that this practice is only one facet of your employees’ lives, and that when they leave the office, they have another team that is waiting on them at home. You must develop a genuine interest in the lives of your team members. Be empathetic when they are having difficulties, celebrate the successes of their children. This does not mean that you have to become “best friends” with your employees, it simply means that when you take an active interest in what is important to them, they will take a more active interest in what is important to you.

E – EMPOWER

I sincerely believe most people are capable of more than they are allowed to do in most cases. Owners fear giving over too much “control,” or they fear the mistakes that may arise from having someone less familiar take on a new task. As leaders, we must understand that mistakes are part of learning, part of developing new skills, and being able to add new value. Empower your team members to take on new tasks and let them know you have faith in their ability. Train them and let them practice this new skill. Be okay with a few mistakes, and when a mistake does occur, don’t overreact. Simply bring the mistake to their attention (lovingly) and then ask them to make the appropriate correction. By allowing them to make a few mistakes, you calm their fears of failure and increase their confidence, thereby increasing their willingness to take on more.

A – ACKNOWLEDGE

The biggest complaint most employees have is that they are unappreciated: that the smallest mistake brings major focus but when they do something well, it goes unnoticed. When we fail to acknowledge small steps of progress, small contributions, we teach people that those things are not important. We teach them that there is no reward in working hard. Understand that performance is largely based on how individuals feel about themselves. You must actively look for things to acknowledge them for, things they can feel good about. Look for ways to make your employees feel significant and important. The more important they feel, the more valued they feel, the more they will contribute and the better they will perform.

D – DELEGATE

Trust and assume that you have great employees who are ready, willing, and able to take on new tasks and responsibilities. Give them the opportunity to add more value by delegating things that you do not HAVE to do. Don’t assume that just because it may be a complicated task, or something with which they are unfamiliar, that they would be unwilling. Give them the chance to surprise you. Free up more of your time so you can focus on patient care and allow your team members to do more. With appropriate monitoring and team meetings, you can follow up as often as needed to ensure a job well done.

 

LEADership is an art, and a skill that must be crafted over time. As with all things, practice makes perfect. Begin to sharpen your LEAD with your team members and you will be amazed by the changes in their attitude, their performance, and their overall value.

 

Paying too Much for Supplies?

By | Uncategorized

Has your supply bill been steadily increasing over the past few years? Do you find yourself researching less expensive models or brands for your most commonly used supplies? Have you changed suppliers in the past few years certain that you were overpaying?

The evaluation of overhead is much more complex than just assessing the dollar amount you are spending with your supplier. It is actually an evaluation of investment and return, an evaluation of resource maximization, and an evaluation of value delivered versus value gained.

In order to properly assess your overhead, you must make certain that purchases are being classified properly. Remember “Garbage In, Garbage Out”? If we are not coding or classifying properly, then how can we truly be certain we are over spending or under spending?

Below are the Most Common Coding/Classifying Mistakes:

1. CEREC BLOCKS: Of those practices leveraging the power of Cerec Technology in their practice, I find that many list Cerec blocks with their supplies. The truth is that, the blocks should actually be coded under lab expenses. Why? Because theoretically, the block is a foundation for a “finished product” we would have to order from the lab without this technology in place. Additionally, the savings would show up in your overall lab expense. Listing it with supplies gives the false illusion that your supply bill is out of control.

2. PATIENT COMMUNICATION SYSTEMS: Another item that creates some confusion is patient communication systems such as DemandForce, Solution Reach, Patient Activator, or Revenue Well. If the system was purchased from the supplier and the bill comes on the same bill with other clinical supplies, it will usually get lumped in with clinical supplies on the profit and loss statement instead of under “office supplies” or “advertising and promotions”. Patient communication systems are used to keep your message/brand/education in front of your patients. From that viewpoint, it would most accurately be allocated under “advertising and promotions” and not under clinical supplies.

3. IMPLANT SUPPLIES: Implants are becoming more and more common in general practices and many are noticing their supply bill sky rocket as a result. If you are providing implants in your practice, consider creating a line item on your profit and loss statement for “Cost of Goods Sold” or “Implant Supplies”, and create a new revenue column for “Implant Revenue”. Implant supplies are much more expensive than the usual and customary dental supplies and the service comes with a higher fee per unit as well. To be able to effectively determine the value of implant services and the cost, a separate allocation is really needed for each.

Proper classification of expenses allows the practice owner to be better informed when making spending and investment decisions for his/her patients and practice. Many times if overhead is higher than industry standards, there is a challenge in your practice with the maximization of resources (patients, team, time). If specific line items seem higher than industry norms, it could simply be due to improper classification, and a closer analysis may be needed.