THE ART & SCIENCE OF GROWTH
THE ART AND SCIENCE OF GROWTH
IMTIAZ MANJI CHAIRMAN, SPEAR EDUCATION
The Last Lecture (Randy Pausch) • What is, is. What can be, can be. • Creating your own “movie” for the people you care about • The audacity to live your dream • “Never stop dreaming!” • Search term: “The Last Lecture”
DENTSPLY SIRONA WORLD 2019
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THE ART & SCIENCE OF GROWTH
The Last Lecture (Randy Pausch)
• IF YOU KNEW WHEN YOUR LAST DAY ON EARTH WOULD BE, WHAT WOULD YOU CHANGE REGARDING YOUR POSSIBILITIES?
Would Your Possibilities Be… • • • • •
More money? More time? Better relationships? Discovering your true passion? Each person’s possibilities are defined by their personal beliefs and values PERSONAL & PROFESSIONAL LIFESTYLE
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THE ART & SCIENCE OF GROWTH
Some aspire to (and drive towards) owning multiple locations
OWNER, LEADER, CLINICIAN & CAPACITY
While others achieve precisely the same level of comfort and satisfaction with operating just one successful practice
BOTH HAVE IMPLICATIONS TO LEADERSHIP, SYSTEMS AND TIME
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THE ART & SCIENCE OF GROWTH
“LEADERS ARE GROWTH-ORIENTED AND HAVE AN ABSOLUTE UNDERSTANDING OF THEIR IDEAL PRACTICE, AFFORDED BY THE KEY DRIVERS OF POSSIBILITY. THE ‘HOW-TO’ FOLLOWS THIS.” – I.M.
The Broken Model • Dental insurance • Preventative focus • Tooth-based treatment MULTIDISCIPLINARY: THE BOUNDARIES WERE CLEAR
DENTSPLY SIRONA WORLD 2019
$90 CROWN AND $1000 LIMIT… A GREAT BUSINESS MODEL IN THE PAST!
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THE ART & SCIENCE OF GROWTH
REVOLUTIONS IN… • • • • • •
INSURANCE TO PATIENT-CENTRIC
Materials Esthetics Technology Interdisciplinary dentistry Patient experience Tooth-based to comprehensive DIGITAL DENTISTRY & WORKFLOW
DRIVERS OF POSSIBILITY—BEST PRACTICES
1 CHOOSING YOUR PLACE
DENTSPLY SIRONA WORLD 2019
2 CLARITY FOR ECONOMICS
3 THE IMPACT OF COMPOUNDING
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THE ART & SCIENCE OF GROWTH
1 CHOOSING YOUR PLACE
A C T I O N S
C O M M U N I T Y
M I N D S E T
GROWTH ZONE
RISK ZONE
P L A N
DENTSPLY SIRONA WORLD 2019
CRUISE CONTROL
COMFORT ZONE
V I S I O N
CYCLES
V A L U E S
LEARNING ZONE
B E L I E F
L I F E
G O A L S
S T R A T E G I E S
PIVOTAL
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THE ART & SCIENCE OF GROWTH
I have increased my collections by 20%, but the caveat is that I have taken significantly more time off than the previous year - approximately 5 additional weeks YTD than the previous year as of September 1st.
Dr. Robert Conte — From Comfort to Growth Zone • Comprehensive digital dentistry • Learning platform (team partnership) • Patient retention at 89% (up from 68%) • Production up 40% ($209,000) Dr. Robert Conte, DMD Warwick, RI
ROUTINE AND PATTERNS: GROWTH ZONE
LEARNING ZONE
RISK ZONE
COMFORT ZONE
DENTSPLY SIRONA WORLD 2019
• • • • • •
Minimum stress & risk Habits are deeply engrained Minimal drive, ambition and adaption We avoid confrontations Each person’s comfort level is different We rationalize our comfort zone THE COMFORT ZONE AFFECTS BOTH OUR PERSONAL AND PROFESSIONAL LIVES
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THE ART & SCIENCE OF GROWTH
WE ARE AT CAPACITY: • • • • • • •
GROWTH ZONE
Growth Team Patient base Treatment and procedures We “flirt” with growth “I don’t have time” “It’s not the right time”
LEARNING ZONE
RISK ZONE
CRUISE CONTROL
COMFORT ZONE
WE FEEL INCOMPLETE
RISK IS ANOTHER WORD FOR “FEAR” GROWTH ZONE
LEARNING ZONE
RISK ZONE
• • • • •
When there’s any uncertainty Self-doubt in our capability Patient rejection / Team rejection “Change” feels like a burden The more comfortable we’ve gotten, the more risk we feel • Will I get a return on the investment of time AND money?
COMFORT ZONE
IN THE RISK ZONE, WE FEEL INSECURE
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THE ART & SCIENCE OF GROWTH
A POWERFUL FORCE: GROWTH ZONE
• Affects our decisions and actions • Affects the goals that we set • The smallest obstacles reinforce the comfort zone • Excitement fades easily
LEARNING ZONE
CYCLES
RISK ZONE Change only occurs when the anxiety of doing nothing OUTWEIGHS that of meaningful change
COMFORT ZONE
CONSISTENCY: GROWTH ZONE
LEARNING ZONE
RISK ZONE
• Don’t overthink things • Be realistic about time & effort • Don’t question the goals (after setting them in motion) • Creating “productive” discomfort • Turning failure & obstacles into learning • Have growth partners
COMFORT ZONE
RISK IS REALLY ABOUT “I DON’T KNOW ENOUGH”
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THE ART & SCIENCE OF GROWTH
TRUST YOURSELF: • • • •
Create a Learning Framework Create a calendar and activity time plan Process first; Results will follow Own it
GROWTH ZONE PIVOTAL
LEARNING ZONE
• One new “thing” per quarter: • Treatment expansion • Case acceptance • Patient retention
RISK ZONE
• Internal marketing
“BE A LOBSTER!”
ONE STRATEGY PER QUARTER
DENTSPLY SIRONA WORLD 2019
COMFORT ZONE
PIVOT TO A GROWTH CULTURE
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THE ART & SCIENCE OF GROWTH
TENACITY… GROWTH ZONE
LEARNING ZONE
RISK ZONE
• • • •
“Approximately right” Imperfections are acceptable Creating conditions for a Growth Culture Hiring and educating for value rather than for routine • Time vs. “value of time” • The “Comfort Zone” becomes the new “Risk”
COMFORT ZONE
THE CAPACITY YOU CREATE BECOMES THE DRIVER
DIGITAL DENTISTRY—BREADTH & DEPTH
GROWTH ZONE PIVOTAL
THE CAPACITY YOU CREATE BECOMES THE DRIVER
LEARNING ZONE
CYCLES
RISK ZONE
GRAVITY FOR PERSONAL AND PRACTICE LIFESTYLE
CRUISE CONTROL
COMFORT ZONE
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THE ART & SCIENCE OF GROWTH
A C T I O N S
C O M M U N I T Y
M I N D S E T
V I S I O N
RISK ZONE COMFORT ZONE
V A L U E S
P L A N
LEARNING ZONE
B E L I E F
L I F E
G O A L S
S T R A T E G I E S
GROWTH ZONE
Your Mirror…
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THE ART & SCIENCE OF GROWTH
1 CHOOSING YOUR PLACE
• • • • • • •
Digital dentistry Leadership and Learning Frameworks Choose your level of success Treatment and Procedure expansion Productive discomfort Remain in the Growth Zone Growth Partners
• TRUST YOURSELF!
DENTSPLY SIRONA WORLD 2019
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THE ART & SCIENCE OF GROWTH
I have increased my collections by 20%, but the caveat is that I have taken significantly more time off than the previous year - approximately 5 additional weeks YTD than the previous year as of September 1st.
Dr. Michael Snider — From Success to On Fire • • • • •
Comprehensive digital dentistry Lifestyle: Fewer days worked New patients up by 20 per month Treatment plan up 20% Yearly revenue up by $470,000
Dr. Michael Snider Greenwood, SC
2 CLARITY FOR ECONOMICS
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THE ART & SCIENCE OF GROWTH
Driving the “Net” • • • • • •
Which is better? 65% or 70% 65% of $680,000 is $442,000 (NET: $238,000), but… 70% of $1,000,000 is $700,000 (NET: $300,000) 65% of $1,000,000 is $650,000 (NET: $350,000) Is this an investment issue or “revenue” issue? Maybe it’s both!
Understanding Practice Economics • Overhead is 100% until you break even • Overhead is the lowest after break-even (variable) • Driving hourly growth is key • Driving capacity is also key
• Investing in the right team profile
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THE ART & SCIENCE OF GROWTH
Procedure Expansion (Monthly) NUMBER OF MAJOR CASES PRESENTED: AVERAGE CASE VALUE: VALUE PRESENTED: CASE ACCEPTANCE RATIO: VALUE ACCEPTED:
BUT WHAT IF WE ADDED JUST ONE CASE PER WEEK?
16
20
$3,500
$3,500
$56,000
$70,000
AN ADDITIONAL $14,000
60%
70%
UP 10%
$33,600
$49,000
AN ADDITIONAL $15,400
1 MORE CASE PER WEEK
The Impact on Annual Cashflow — 1 Case Weekly + 70% ADDITIONAL AMOUNT PER MONTH X 12 MONTHS LESS VARIABLE EXPENSES (18.5%) NET CHANGE IN CASHFLOW
DENTSPLY SIRONA WORLD 2019
$15,400 $184,800 $34,188
HOW MUCH WOULD YOU INVEST FOR AN ADDITIONAL $150,000?
$150,612
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THE ART & SCIENCE OF GROWTH
• It’s about spending plan & net • Overhead is 100%...
2 CLARITY FOR ECONOMICS
• Programming the right NET • Procedure expansion • Number of cases, case value / type & daily goal • Growth investments
3 THE IMPACT OF COMPOUNDING
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THE ART & SCIENCE OF GROWTH
Compounders…
• Long term value-seeker • Steady & stable • Methodical, analytical and disciplined • Seekers of knowledge THEY HAVE GREAT FUNDAMENTALS
The Safe Bet… • Warren Buffet’s core is compounding • Seeker of long-term growth • Immediate payoff not required • Proactive about future red flags • Great FUNDAMENTALS…
FUNDAMENTALS: INTERDISCIPLINARY DENTISTRY | DIGITAL DENTISTRY | CASES PRESENTED | CASE VALUE | CASE ACCEPTANCE NET WORTH AGE
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THE ART & SCIENCE OF GROWTH
X 20 YEARS
X 10 YEARS
$1.0MM
*ALL CALCULATIONS ARE APPROXIMATE
X 5 YEARS
1 case weekly + 70% case acceptance = $150,612 Additional expenses: $50,612 Tax: Approximately $35,000 $65,000 at compounding return of 6% Compounding impact over time
$475K
• • • • •
$2.74 MILLION
Procedure Expansion…
Other Areas of Compounding • Increasing case value • Fee adjustments • Rationalizing insurance / fee for service • Patient base—retention & growth • The ability to attract an Associate • Increased Practice Value • Lifestyle choices (personal & practice) THE HIDDEN VALUE OF COMPOUNDING
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THE ART & SCIENCE OF GROWTH
• Great fundamentals • Methodical, analytical & disciplined
3 THE IMPACT OF COMPOUNDING
• Seekers of knowledge & value • Connects the present to the future • Understand the value of execution • An investment in yourself is always the safe bet • Growth partners
The Impact of the Comfort Zone • No case acceptance today? No impact on today • No savings today? No impact on today • No framework today? No positive impact on tomorrow • “Today’s value is a result of the past” • Future value and lifestyle is determined by the choices you make TODAY
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THE ART & SCIENCE OF GROWTH
Engineering Your Possibilities • Treatment planning • Case value & case type
GROWTH ZONE
• Case acceptance • Patient experience
• New patient flow • Patient retention • Digital dentistry
LEARNING ZONE RISK ZONE
LEADERSHIP & PRACTICE MANAGEMENT
COMFORT ZONE
1 CHOOSING YOUR PLACE
2 CLARITY FOR ECONOMICS
DENTSPLY SIRONA WORLD 2019
3 THE IMPACT OF COMPOUNDING
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THE ART & SCIENCE OF GROWTH
“LEADERS OWN THEIR VALUE, UNDERSTAND THE LONGTERM IMPLICATIONS OF THE CHOICES THEY MAKE TODAY, AND PUT THEIR FULL WEIGHT BEHIND CHASING THEIR DREAMS.” — I.M.
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CULTURE OF GROWTH PYRAMID
GROWTH ZONE
RISK ZONE CYCLES
RISK ZONE
COMFORT ZONE
Understanding the Culture of Growth Pyramid (and where you currenty stand within it) it is important in establishing the next steps in your journey to success. A Culture of Growth with a Leadership & Learning Framework in place allows you to only feel risk when you are spending too much time in your “comfort zone.”
COMMUNITY
GROWTH ZONE
LEARNING ZONE RISK ZONE COMFORT ZONE
Copyright 2019 Spear Education, LLC. All rights reserved.
The Three Drivers of Possibility
Believe it or not, we all get to choose where we stand in our careers. The default setting for most of us is to stay within the Comfort Zone. That’s the place that keeps us feeling warm, cozy and safe. We need to get out of Cruise Control, punch through the Risk Zone that acts as a barrier to the Learning and Growth Zones. But only after we encounter our Pivotal moments can we advance far enough to stay firmly planted in the land of Growth.
1 CHOOSING YOUR PLACE
Steady and consistent progress compounds to success beyond your highest expectations, opening up more available choices about practice and personal lifestyle.
2 CLARITY FOR ECONOMICS
3 THE IMPACT OF COMPOUNDING
The lowest overhead is after you break even. Top-line growth after that significantly impacts your net. Invest to protect and enhance it.
Copyright 2019 Spear Education, LLC. All rights reserved.