Orthotown November 2013 - (Page 33)

feature // practice management by Donald E. Machen, DMD, MSD, MD, JD, MBA, CFA and Hollie A. Machen, Esq. As an introduction to the topic, a definition of strategy seems necessary. Although disagreement exists as to a definition for strategy, the authors suggest the following as a working definition: the art of distributing and applying the means to fulfill the ends of a stated policy. In orthodontic practice, this presumes that a policy has been articulated. In hundreds of consulting engagements over the past 25-plus years, it is a rare orthodontic office that has a stated "policy" before we begin to work together. To put this in perspective, it might be helpful to give several examples of generic strategies. Most of us are familiar with the low-cost strategy often described as no-frills. At the opposite end, we have a luxury or high-end strategy that attempts to maximize the customer experience. There is also a focused strategy wherein a limited array of services or service area is offered in an effort to own that market. From this, the reader can see how having a strategy enables the business to obtain a segment of the market or a market share. By way of a further example, imagine there are three orthodontists in town. Each one has approximately one-third of the market. One day, a new orthodontist decides to open an office. Over the next several years, each of the now four orthodontists will likely have a quarter of the market. This is true, for the most part, if none of the three original orthodontists obtained a sustainable competitive advantage (SCA). An SCA occurs by developing and implementing a durable strategy. Specifically, it is a strategy that takes planning, time and resources to develop. In other words, it is a strategy that is not easily copied. Merely obtaining a competitive advantage isn't enough since simple strategies such as the ones mentioned previously are easily copied, at least in the short run. Also, some strategies might not be as attractive as others. Not everyone wants to be the lowcost provider, especially in orthodontics. Similarly, attempting to be the luxury orthodontic provider long term might prove to be a very difficult strategy, especially in the wrong locale or economy. Also, it might be difficult to convince the marketplace of the merit of providing only one type of treatment, no matter what the problem. continued on page 34 orthotown.com \\ NOVEMBER 2013 33 http://www.orthotown.com

Table of Contents for the Digital Edition of Orthotown November 2013

Orthotown.com Highlights
Wired for Success: Building Your Dream
New Members’ Thoughts on SL Brackets
Help! Any Good Resources Out There for Office Start-ups?
New Office Design – Thoughts?
Seven SEO Strategies to Accelerate New Patient Acquisition
Office Visit: To Serve Others
You Should Know: Boyd Industries
Product Profile: DEXIS
Implementing Strategy in Orthodontic Practice
Addressing the Issue of Compliance – Treating Severe TM Joint Pain Without Surgery
Ad Index

Orthotown November 2013