This morning I presented a seminar for the O'Brien Dental Lab, Mastermind Study Club. The following is some material that the participants requested that I post on the blog.

This is a list of useful consultants:
Zuelke & Associates (http://www.zuelke.com/) Accounts Receivable Control
Hollander Management Consultants (http://www.hollanderconsultants.com/) Practice Management
Cain Watter & Associates, PLLC (http://www.cainwatters.com/) Financial Management
Paragon Dental Practice Transitions (http://www.paragon.us.com/) Practice Transitions
But don't forget the "crem de la crem" Dentist CEO

This is the list of the stats that I monitored weekly, monthly and yearly besides the standard financial reports from my accountant and accounts receivable and aging reports.

Production *
Collections
Collection percentage
Office production per day
Dr. Production
Dr. production per day
Assistant production
Assistant production per day
Hygiene production
Hygiene production per day
New Patients *
Referrals
Full Months & Panos
Crown & Bridge Units
Days booked to goal
Retention (Number of new patients who come back for their 6 month recall exams) *
No Shows
*Bonus Monitors

Here is the bonus system that I used on a monthly basis. This is in addition to the yearly production bonus that was generally an office trip that served not only as a reward but an opportunity for staff bonding and education.

The Monthly Bonus Program

The monthly production goal is determined by averaging the previous three months production. If collections are at 90%, the full time staff will divide $100 for each $1000 production over the goal

The monthly new patient goal will be determined by averaging the previous three months new patients. Each full time staff member will receive $5 for each new patient exceeding the goal.

The monthly retention goal is determined by comparing the number of new patients who return six months later for their recall appointment. An average is determined for the previous three months of the percentage of the new patients who returned. Each full time staff member will receive a $5 bonus for each percentage point above the goal.

The Give Away

When I was practicing one of the real challenges was to have a "give away" that was useful, tasteful ,durable and affordable. Over the years I tried various different products to varying degrees of success. I recently received a reusable grocery bag as a promotional item. I used to give my new patients and recall patients toothbrushes, sample tooth paste and floss. Over the years we ordered customized bags for the patients to use for these samples. While the reusable grocery bag is larger than needed for these items, it does provide a tasteful, useful and durable alternative to the plastic or Mylar bags, I used. While the customized bags are a little on the pricey side, starting at $1.00, they send a great message to your patients and as patients take your customized bags shopping they become a walking bill boards advertising your practice. Check out the following web sites. I think that this promotional item is a winner.

www.greensak.com

www.reusethisbag.com

www.bagsontherun.dom

What Are You Selling

When your patients spend time in your reception area do they know what you are selling? Our reception areas are overflowing with magazines of every type. Each of these magazines is filled with advertisement for every imaginable product and service. Those products and services are competing for the expendable dollars that we are hoping patients will invest in their oral health. Most of us think of the dentist down the street as our competition when in reality it is the new car, the trip to Laguna Beach, the dinner at Olive Garden, the sale at Target and the latest movie release. The irony is that we provide our competition free advertising. Have you ever noticed the lack of magazines in a dealership show room? Once you drive onto the lot the entire focus is for you to purchase a car. In fact rarely to I even make into the showroom before I am met by a salesman. While I am not advocating that we adopt the “car salesman attitude”, I do believe there is a lesson to be learned from them. First, we should reduce the wait time in the reception area so that there will be less need for magazines. Secondly, we really ought to pay more attention to the magazines we provide, do they reinforce message of health and well being that we are promoting in the operatory? Thirdly, we need to take advantage of the captive audience that we have in the reception area and as patients are on “hold” by promoting our practice. “On Hold” messages are a great way to entertain the patient and promote the practice at the same time. Flat screen advertising provides a great opportunity to inform patients about new services, staff members, and technology and office events. These messages should be short, understandable and engage the interest of the patient enough to ask for further information. The focus should be promotion first and education second. The real education should take place in the operatory. It is up to use to promote dentistry because the last I checked, neither Ford nor GM does. Check out the links for Hold Time Music (http://www.holdtimemusic.com/) and Brican American LLC (http://www.bricanamerica.com/) for more information about on hold messages and reception area promotions.

Be the Pack Leader

A couple of weeks ago we purchased a new puppy, Scooter. Scooter is a six month old Tibetan terrier. Since it has been a long time since we had a puppy in our home, I visited our local Petco for puppy supplies. While I was there, I picked up a copy of the book, “Be the Pack Leader,” by Cesar Millan. Millan as well as other noted trainers such as Don Sullivan, contend that in order to have a “perfect dog” you have to gain the respect of the dog as the pack leader. Millan additionally points out that in order to create your ideal pet there are three essential components, exercise, discipline and affection. If a dog does have adequate opportunities for exercise it will not be able to be controlled. Without a clear picture of the expectations and boundaries, the dog will not learn self control and will control who it can, namely it’s master. The mass appeal that dogs have as pets is a testament to the affection nature that most dogs inherently possess. As I read this, bells and whistles were going off in my head. Most of us have struggled at times with personnel issues. I believe that the principles of creating the perfect pet are the same that are necessary to create the perfect staff. If the staff does not see the doctor as the leader of the pack, an efficient team will never happen. Nothing can be quite as disheartening for a new staff member to “climb on the bus, only to find that there is no driver.” As CEO of the practice, it is our responsibility to set the pace for the office. Each staff member needs to have a job that engages them emotionally, intellectually and physically just as the dog needs exercise. As the leader of the pack it is our responsibility to set and communicate the boundaries and expectation to each of the members of the dental team. And of course lastly, our staff members need to know that they are appreciated. The expression of appreciation not needs to be the form of a fair compensation but can also be as simple as a frequent verbal "thank you." In retrospect I realize that when I provided the necessary leadership to be the pack leader and an atmosphere of exercise, discipline and affection, my staff became more productive and more cohesive as a team. We thoroughly enjoy having Scooter in our home; and in a like manner, I found the relationships that I had with my staff to be of great value and a source of joy.

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.