Art of Growth and Science

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

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$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

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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

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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!

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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

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$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.