A focus on production is the single most important factor when it comes to the success of a dental practice, but surprisingly, most practices do not spend much (if any) time focusing on how to maintain and increase production. Perhaps this is because, prior to 2020, it was easy for practices to grow every year. But today's dentistry has new challenges: competition, different service delivery models, flat or declining insurance reimbursements, staffing shortages, and so on. Most industries face these types of challenges at different times, and right now, the dental industry must recognize that production growth will not be automatic. So how can a practice owner make progress toward improving production without being overwhelmed?
What is the 1% solution?
The famous quote, "there is only one way to eat an elephant: one bite at a time," is very applicable to a dental practice. If you have a large project, the only way to accomplish it is bit by bit. If you are looking to increase production, make many small improvements that your team can easily implement.
You can also consider the 1% solution, which means exactly what it says. Examine all areas of the practice and work to improve each by 1% (1% is not literal-it just means you should be making marginal improvements that stack up over time).
For example, you can increase production, collections, profit, or new patients by 1% while decreasing overhead, no-shows, or last-minute cancellations by 1%. You can also delegate 1% of the doctor's or office manager's actions and activities to other team members.
But don't take all of these tasks on at once. Make a list of 1% improvements that you would like to achieve, prioritize that list, and get going. A 1% increase in production may not sound like much, but when you do it again and again, it begins to add up. On the other hand, a 1% decrease in overhead is not necessarily easy because you must scrutinize your expenses and find out where there is waste or an opportunity to create higher levels of efficiency or lower purchasing costs.
The main idea is to start slowly. Identify those 1% improvements and focus on the small wins that eventually add up to big improvements.
