Tough Times

Over the course of the last several months there has been much talk about the condition of the economy. Unemployment rates have reached a five year high of 6.1%. As alarming as this statistic may seem, many of us forget that the employment rate is 93.9%. I found that focusing on the half full glass always produced better results than looking at the half empty one. After all in 2006 when the unemployment rates were the lowest during these same five years they were around 4.4% so in reality there has been an increase of 1.7%. Ninety four out of one hundred employable patients still have jobs. The offices that do the most effective job of marketing to the ninety four patients will be able to weather the economic storms. With the recent increases of fuel and the other price increases associated with the cost of fuel, the competition for discretionary spending has become more fierce. Just as any business, dentists need to understand the importance of creating a competitive advantage. Jack Welch stated, "If you don't have a competitive advantage, don't compete." Have you unidentified why patients should spend their discretionary dollars in your office? If you don't think you are in a competition for those dollars, look around your reception area at the magazines that your patients read as they wait for your services. Creating your competitive advantage has never been more essential. If you can't identify why patients should be spending their discretionary dollars with you, it is highly unlikely that they will be able to either. And that is not a good thing.

Paragon Dental Practice Transitions

I recently sign on with Paragon Dental Practice Transitions as a transition consultant and completed in Jackson, MS. The most significant business decisions that any dentist will make are the transitions whether it be a transition of a new office location, hiring an associate or the ultimate transitions of entry and exit practice. Paragon approaches transitions in a unique manner. Paragon recognizes that there is much more involved in the buying and selling of a practice that just “closing the deal.” I am convinced that there are not any better transition tools available than those from Paragon. I look forward to helping my colleagues achieve their financial and personal goals during their practice transitions using the “Fortune 500” business techniques of Paragon. Check out our website: www.paragon.us.com.

Finishing the Race

Leadership can be a lonely road. Many times we get discouraged when the results aren't as timely or notable as we had hoped. In times like that I recall the story of a lone runner in Mexico City in the summer of 1968.

Out of the cold darkness he came. John Stephen Akhwari of Tanzania entered at the far end of the stadium, pain hobbling his every step, his leg bloody and bandaged. The winner of the marathon had been declared over an hour earlier. Only a few spectators remained. But the lone runner pressed on.

As he crossed the finish line, the small crowd roared out its appreciation. Afterward, a reporter asked the runner why he had not retired from the race, since he had no chance of winning. He seemed confused by the question. Finally, he answered:
"My country did not send me to Mexico City to start the race. They sent me to finish."

While the end results of our leadership challenges may seem unremarkable there is a certain satisfaction that comes from completing plans. Little did that lonely run ever envision that forty years later his story would be retold, so it is with our efforts, we can not know what long term effects they will have on those around us.

The "PEP" Talk

I recently celebrated Father’s Day by attending the convocation ceremonies at the University of Chicago Graduate Business School as one of my sons received his MBA. The faculty speaker at the ceremony was Steven Neil Kaplan, Neubauer Family Professor of Entrepreneurship and Finance. While Dr. Kaplan’s research previously has focused on private equity and entrepreneurial finance, corporate governance and finance and mergers and acquisitions, he most recently studied personality traits of CEO that produced the most significant results for their companies. Previous studies by authors such as Jim Collins (Good to Great and Built to Last) have shown the value of such character traits such as humility, team players, good listeners and the ability of hire the “right” people, in transforming companies. Despite the fact that leaders in Collins’ studies did produce great results in transforming their companies, there are many leaders who have these exact same traits who are unable to achieve similar results. Dr. Kaplan’s research revealed three traits that seemed to be pivotal producing success. These character traits are proactive, efficient and persistent, “PEP.” Dr. Kaplan’s research confirmed that these three characteristics were universal in leaders who were able to make a difference. Dr. Kaplan encouraged the graduates to approach their business careers with “PEP.” As I listened to Dr. Kaplan, I had to agree. In my own personal journey as a dentist ceo, I find that when I am proactive in approaching a challenge, attack it in an efficient manner and follow through to the end, my results are stellar but when I sit back and wait, fail to get to the heart of the matter efficiently or acquiesce to the pressure of those around me, my result are less than adequate. Some of the most remarkable successes as a dentist ceo have been directly related to my level of “PEP.”

Staff Development

One of the greatest rewards I saw as dentist was in the growth and development of my staff. Finding ways to foster this development can be a challenge. Our weekly staff meetings always had time allotted for staff education. Finding materials that were applicable and geared directly to the staff was sometimes a challenge. Of course there are mandatory topics such as OSHA training, CPR and first aide recertification and HIPPA training. Other topics were discussed on an as needed basis. The availability of the online publication “Dental Assisting Digest” provides a valuable resource in staff development. It covers such topics as infection control, technology, and x-ray techniques. Check it out at http://www.dentalassistingdigest.com/.

Dental Marketing: Lessons from Harley Davidson

David Scott in his book, "The New Rules of Marketing & PR" advises markets to scrap the traditional 4 "P's" of marketing, namely, product, place, price and promotion, for a simpler more effective approach. He recommends marketers first consider their organization's goals and then focus on their buyers. One only needs to look at Harley Davidson to see how effective this approach is.

In the late 90’s it seemed that Harley Davidson was just another American company struggling to stay afloat amid the stiff foreign based competition. Americans had repeatedly witnessed the weakening of “our” corporations as the foreign competition heated up. The automobile industry was a prime example of a once proud industry that was brought to its knees as foreign automobile manufacturers were able to not only match but surpass American manufactures in the areas of quality and value. One couldn't help but wonder if Harley Davidson would face a similar fate as foreign competitors such as Honda, Suzuki, Yamaha and Kawasaki continued to encroach into Harley Davidson’s market. But the performance of Harley Davidson stock indicates just he opposite.

A look at the Harley Davidson mission statement and their marketing strategy reveals some valuable insights for company’s success. Harley Davidson’s mission statement doesn’t focus on the obvious but rather focuses on life improvement through dream fulfillment; “We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments”

While other motorcycle manufactures have marketed to the more obvious younger riders, Harley Davidson has focused on older, more financially stable market. As the “baby boomers” age, they look to recreational outlets that enable them to fulfill the dreams that have been shelved while they pursue their career goals and raise a family. As the kids leave and the career seems to be on auto pilot, they find themselves wondering, “is that all there is?’ At the same time the prospects of qualifying for a senior citizen discount has lost some of its allure. All of a sudden the idea of donning the leathers and riding off into the sunset on a “hog” sounds pretty appealing. Harley Davidson's mission of dream fulfillment resonates strongly with this market. In fact is resonates so strongly that Harley Davidson has been able to capture 49% of sales at the same time pricing their product 50% more than their competitors.

As dentists we face similar challenges as Harley Davidson, competition is strong, not only from our peers but also from other businesses who compete for our patient's discretionary dollars. As Scott recommends, by first determining on our practice/business goals and focusing on our buyer/patients, we can develop a marketing plan that will distinguish us from our peers and reach those patients who are desirous of our services.

Excellence

This morning I had the opportunity to return to George Fox to speak to an O'Brien Dental Lab study club. I couldn't help bask in the memories of attending MBA classes at George Fox. Enrolling in a graduate degree program turned out to be a great way to transition into this phase of my life. As it turned out I not only received a stellar educational experience but I also felt rejuvenated by the process. I was in the company of students half my age at the beginning of their careers as I was transition out of my first career. My perspectives though different were always welcome and respected. The faculty and staff at George Fox typify the description of excellence that I found very early in my dental career that impacted me throughout my practice as I pursued "excellence" in my delivery of patient care and managed my business. How fortunate I was to have found O'Connor early in my career.
"Pursuit of excellence is an attitude…it involves wisdom and sound judgment…it is a lifetime, career-long commitment…it is a way of life…it is doing the job right the first time, every time. It is inner-directed, not the result of external pressure, it is our own self-worth – who we are and the pride and satisfaction that comes from being the right kind of person, not just in doing the right things." James J. O’Connor