Philosophy of “Net Production” in a Dental Practice.
In order to start making this tool work for you and your practice TODAY, the very first piece of information needed is to have you identify your Annual Net Production Goal, however before we get into the numbers and how this tool will help you and your practice, let’s talk language and more importantly, philosophy…or in my humble opinion, the real meaning of “Net Production” in a Dental Practice.
100% Dental Health for your patients
Isn’t that what you really want? I mean, saying that you have a $1 million or $2 million practice is a huge accomplishment but is that really what gets you out of bed each day or the real reason why you decided to get into Dentistry?
Sure, I get it, a Dental Practice is a business and if your business is not productive or profitable you can’t stay open and help those patients, even without a lot of business experience, everybody knows that.
How about your team, which you know you need, what keeps them motivated and moving forward? Do you know with certainty that every member on your team wants to help you reach YOUR Annual Net Production Goal? Do they carry the same pride as you do with being a $1 Million Practice? Do you ever feel frustrated and misaligned with your team because they don’t want the same thing as you?
What if there was a different way to approach hitting your goal? A very small shift in perspective that you and your team could take when trying to slug it out daily and hit your production goals?
Well, I believe from my experience in working with Dental Practices that there is. I think that we in the industry may have had the philosophy just a little bit upside down. I believe that you can have both a thriving, profitable practice while at the same time accomplish what you really want which is happy, healthy patients that everyday are being moved just a little bit closer to 100% Dental Health.
Here’s what I mean by saying that…
Let’s say you have a practice that has approximately 2000 patients. If you were to put all those patients in a bag (I know, interesting analogy, it will make sense in a second) and sprinkle them on this graph below, where would each fall?
1% being horrible Dental Health with tons of work that needs to be done, maybe even life saving work and 100% being those that, at this current time, are healthy. The 100% group just needs to come in twice a year for maintenance to keep their healthy status. Pretty safe to say that you would have groups of patients at different points on the graph. Some at 10%, some at 80%, you get where I am going.
The number of where they are exactly on the graph is not super important because you know you have patients all along that line. What is really important is a visual understanding of where they are and more importantly what you are doing in the practice to move them all closer to 100%.
If I had to sum up the real mission, the “Why” in a dental practice, that would pretty much sum it up in the simplest terms I know.
So, how does your Annual Net Production Goal relate to this?
Well, in order to move each of those patients closer to 100% Dental Health, daily work needs to be done. Crowns, Root Canals, Perio, you name it…or in traditional context…PRODUCTION. The more patients you help move closer to becoming 100% healthy, the more production you do. Production is the bi-product of helping your patients.
So, here is philosophy mind shift number one, let’s commit to changing the word production in the practice to “Dentistry”. Instead of an Annual Production Goal, let’s say, Annual Dentistry Goal. How much Dentistry can we get done this year? How many patients can we help get closer to 100% Dental Health? When you break it down monthly or even daily, let’s say to the team, “what is our Dentistry Goal for January or what is our Dentistry goal today? You know that getting Dentistry done and completed for patients moves them closer to being much healthier while at the same time, helps you build, grow and run a productive, profitable practice.
So, now that we have the philosophy down, let’s get started and talk about the value of this tool, how it works and how you are going use it to help you grow both your business and at the same time, help your patients get healthy.
Big Dreams to Small Action
Let’s say last year you did $750,000 in Net Dentistry (Remember, this would be your Net Production) and now want to do $900,000 in Net Dentistry?
Let’s take a second to think about this…$750,000 a year in Net Dentistry is on average $62,500 a month. $900,000 a year is $75,000 a month. When you break it down and look at it per month, that’s just $12,500 more dentistry completed a month.
What’s even crazier is when you look at it by day…If your practice operates an average of 20 days a month, you are doing on average $3125 a day in Net Dentistry as a $750,000 a year practice. A $900,000 a year practice working an average of 20 days a month does on average, $3750 a day in Net Dentistry. When you look at it per day, that’s just $625 more per day to get you to your goal of $900,000.
Now, ever have this happen…
You have your first meeting of the year, or that first meeting of the month and you say to the team…”Ok team, get motivated, we are going to do $900,000 this year!!.” “But Dr. we did $750,000 last year, how in the world are we going to $900,000?” Or, “We need to do $75,000 this month, ready…GO!” You get all fired up, they are fired up for a day or 2, only to lose traction just a couple days into the month. There could be many reasons for this, but I believe from experience the slippage comes more from not knowing how to take Big Dreams and break them down into Small Actions.
Don’t you think that if you presented that much smaller number to your team, it would be a lot easier for them to wrap their head around completing just $625 more dentistry per day than what they are already doing?
Welcome to the tool that is going to help you accomplish your goal!!