Don't ask Alice
Dr Marc Cooper, dental business consultant, shares his thoughts on the recession and its impact on dentistry in his latest e-newsletter.
"The impact of the recession on dental practices currently runs the gamut. Some practices remain healthy, maybe even growing. Some practices are staying flat. But more and more practices are starting to contract. And for those practices that are contracting, they will soon face some tough choices.
If you are one of these practices, there will be no clear signs about what choices to make. No crystal ball, no seer that can predict with certainty what will happen. You will have to think for yourself. You'll have to make up your own mind. You'll have to decide who and what to believe.
Now certainly I might be wrong. There are those who say the recession won't affect you, so keep on doing what you're doing. Hey, they might be right. I happen to see it differently. It is my assertion, sooner or later, that nearly every practice will have consequences from the recession.
And these consequences will bring changes in practice requiring choices - choices that will shape your practice for years to come. Remember, no choice is 'just another choice.' Choices last.
Of course you'll talk to colleagues. You'll go to programs that present opposing views. You'll read articles, maybe even follow a few blogs. But no one can help you in that final moment when you have to make these choices. You can get all the advice, information and opinion you want, but it will never be enough to make your choices easy or a sure thing.
Do you sign up for plans now or later? If you do, which plans do you sign up for? Do you reduce the number of hygiene hours since the book isn't full? Do you restructure you financial arrangement so patients can afford more care but you'll have to increase your receivable?
Making a choice commits you to a future path. Making a choice is one of those existential moments when you are totally by yourself with your hand on the switch only you can pull.
What will you choose?
Who will you believe?
Some Say:
Some Say that only 11 percent of the population is being directly impacted by the recession. You don't need to make any changes in your practice. In fact, this is a good time to expand your practice.
Some Say "My practice is doing fine" and "It won't ever happen to me." Some Say "Things will soon return to normal so you don't need to make any changes, in your personal or practice spending." Some Say "This recession is all made up."
I Say:
I Say the 80/20 rule does prevail, but that 80 percent of the dental practices in this country and worldwide will be impacted by the recession. I Say that like any bell curve, the extremes on either side of the curve (the very young practices and very old practices) will get smacked hard and the impact will be less as you move into the higher and strongest part of the curve - but nearly everyone on the curve will be affected.
I Say context is decisive. I say that disruptive changes of this recession will permanently alter context and the financial context will be forever altered. I Say that if you are expecting the value of your house, your IRA, and your 401K to return to last year's levels, dream on. I Say it will never go back to the way it was.
Some Say:
Continue to sell high-end dentistry, raise fees, and spend money on new equipment. Continue your personal spending on second homes, additional cars, and luxury items. You deserve it for how hard you work. Some say the Incomes Statement is all you need to run you practice.
Some Say the "Associate - Partnership" route is still the best way to accumulate wealth and sail off into the sunset. Some Say people still have plenty of expendable income they will easily free up to spend on cosmetic dentistry. Some Say those decreases in new patients, case acceptance and production are only temporary and there are no changes you need to make.
I Say:
Consider (at least for a moment), participating in 3rd party plans. Reflect on whether a patient in the chair is better than no one in the chair. Consider not raising your fees. I Say tightly manage your personal spending. For now, give up the fantasy of the vacation home on the beach. Keep the four year old car. You don't need a more expensive watch. Appreciate what you have, not regret what you don't have.
I Say start to get very clear on your balance sheet and expenses. Make decisions based on this data. I Say consider 'flat' as the new growth. I Say consider that people may want health more than beauty at this time. Consider that those decreases in new patients, case acceptance and production are not short term, and redesign your practice for this reality.
CHOICE
You are the chooser. Remember, every choice has a consequence.
If you choose what "Some Say" and things turn out like they suggest, you made the right choice. You didn't have to change your practice. You didn't have to reduce your spending. You didn't have to take on plans. You didn't have to manage and own more rigorously. You didn't have to do anything, but ride it out.
On the other hand, if you make the choice of doing nothing and your practice continues to contract, if you don't make any changes or plans, refuse advice on how to run the practice in a recession, didn't curb your spending personally or practice-wise, then that choice may put you up the proverbial creek.
For many of you, it's getting close to the point where you have to choose. What are you going to do? What will you choose?
Copyright © 2004-2010 Dr. Marc B. Cooper & The Mastery Company - All Rights Reserved.
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The subject of ‘leadership’ has fascinated me for decades; what constitutes a good leader, are they born, chosen or just wired that way? And I want to start this article with the punch line - that we are ALL leaders in some aspect of our lives, professional and/or personal. So we may as well accept that and learn some skills.
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Recruiting the right people for your practice can be seen as a daunting and time-consuming task. Dental recruiter, Tracy McLaughlin from DentaFind in London, sheds some light on how putting certain processes in place can help you hire and retain staff members that are ideally suited to their roles and more importantly, your practice.
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Most practice management programmes are ineffectual. That’s right; useless, a waste of time, not worth a plug nickel. Stop spending your money. Practice management programmes don’t work.
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Dr Marc Cooper, dental business consultant, shares his thoughts on the recession and its impact on dentistry in his latest e-newsletter.
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Newly launched city centre dental practice, Ollie and Darsh (Liverpool, UK), shares some tips on how the right combination of business planning, branding, design and vision can lead to success and an an influx of patients. Join dental business coach, Chris Barrow, on a virtual tour through the practice.
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“The upcoming New Year looks much different than those of the past 10-20 years,” says Dr Marc Cooper, president and chairman of the Mastery Company. He explains that what you ask yourself what really matters to your wellbeing, the recession will not occur as relevant to your answer. He explores the tools and opportunities available to dentists to have a positive and fulfilling 2009.
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“During the recession, it makes good sense to shift the focus of your practice,” says Dr Marc Cooper from the Master Company. He explains that for many years, growth has been a focus for dental practices. “The way to grow more is with more, more of everything. But the tide has turned. A recession is defined by prolonged negative growth, negative real economic growth. Pursuing practice growth is now going against the tide. And if you continue to go against the tide, it's going to cost you big time,” he says. Read his latest article on how you can manage the new tide and remain afloat.
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“Regardless of whether the US economy is in a recession or not, you and your practice may be,” says Dr Marc Cooper, president and chairman of the Mastery Company. Ask yourself: Have my practice revenues stayed the same or declined over the last year? Has my personal income stayed the same or even shrunk over the last year? “With energy, food, housing and taxes all on the increase, this combination means that you and your practice are in a recession.” Dr Cooper has developed a 10-step programme to help you make the right decisions for your practice in the current economic climate.
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“People are a direct reflection of the conditions or circumstances surrounding them. When things are good, they are good. When things are bad, they are bad. In today's economic conditions, it is safe to say that ‘tense, anxious, nervous, stressed, edgy, and apprehensive’ describes most people,” says dental business consultant, Dr Marc Cooper. In the uncertainty of the economy, the constant flood of bad news and doubt about personal economic circumstances, Dr Cooper gives advice on how to take a stand a be a leader.
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“If your practice results are beginning to swirl down the drain, you need to consider managing yourself and your staff like there's a hole in the bottom of the boat. In a recession, you recalibrate and you reconsider. You look at what you must do to make that bottom-line number.” Dr Marc Cooper from the Mastery Company, explains how to adjust your mindset to survive in an uncertain economic climate.
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"Most dentists manage by job description. How dumb is that? Well, if you ask me, pretty dumb," says Dr Marc Cooper from the Mastery Company. "Description has no power. Describing how to perform your job and delivering high performance are not the same. But dentists believe that if you accurately describe to staff exactly what you want them to do, how you want them to do it, and why you want it done, it will produce the results. Now that's dumb!"
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"Once upon a time, in a dental practice far away, there was a young dentist named Doug. Doug knew that anyone who was anyone in dentistry had slaughtered the dragons that imprisoned excellence. The great knights spoke of their many battles and how they were able to take excellence into custody and keep it in their possession. Ah yes, excellence was able to be captured and Doug would not be denied." Dr Marc Cooper from the Mastery Company discusses the goal of excellence in the dental practice.
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"What kind of leader are you? Do you bore your staff or do you inspire them? Do you generate enthusiasm amongst your staff, or apathy? Does the future shine throughout the practice or is it dulled by business as usual? Is your staff on a mission or are they indifferent? Is your staff charged, revved up, on task? Do they show up early and leave late? Do they do everything they can to be at work, or do they do anything they can to get out of it?" In this article, Dr Marc Cooper from the Mastery Company investigates the role of a leader in the dental practice.
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However beautiful the strategy, you should occasionally look at the results.
Winston Churchill
If you're not producing results in your practice, why aren't you? I'm sure you have good reasons: difficulty finding and retaining good staff; bad location; the economy's gone sour; new competition moving into your neighborhood; hoodwinked into a lousy transition; Delta reimbursements suck; there are not enough new patients.
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Dental practice guru, Dr Marc Cooper, started his career as a periodontist, academic and researcher, and went on to become a practice management consultant and ultimately founded the Mastery Company. He welcomes dentists who have “strong core values, a driving intention to deliver quality care and an intense desire to be successful”. Dental Learning Hub asked him a few questions about his work, approach to life and thoughts on dentistry.
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Dr Markus Firla, dentist and quality management consultant, provides some insight into the current climate of dentistry in Germany and how it is set to change in the future.
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Dental business coach, Chris Barrow, talks to Dental Learning Hub about the predictors and capabilities required for success in the dental practice.
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