Dentaltown June 2017 - 12

howard speaks
column

Continued from p. 10
Then I'll ask dentists what their "close rate" is on
sales-and they reply, "What? Do you mean my treatment
plan acceptance rate?" They can't even use business
terms. Health care and government are too sacred to be
bothered with efficiency and profitability, but doctors
need to have an idea-the success of their practice relies
on that knowledge!

Think macro, not micro
I laugh when dentists can't tell me sales-related
numbers but can rattle off the fact that their bonding
agent bonds at 27 megapascals. Like that's supposed to
matter, as if billion-dollar dental companies would sell
glue that doesn't work! I don't need to take CE to see if
their glue works; I'm thinking if they sell a billion dollars
a year in glue, it's probably real damn gluey! But some
dentists would rather spend their time double-checking
the strength of that bonding agent by watching a lecture
(given by a dentist who doesn't even remember organic
chemistry) because that feels like a better use of their time
than recording all of their incoming calls and going over
missed opportunities that could've led to new patients.
Similarly, why are dentists so focused on composite
glues if only one person out of three accepts their
treatment plan? Why aren't dentists wondering why
the nation drills, fills and bills only 38 percent of the
cavities diagnosed, let alone everything else? If I said,
"The country would be better off if we just removed
100 percent of all the decay and then filled the resulting
holes with butter," I already can imagine the Townie
conversations online:
*
"Does Gordon recommend butter, or
margarine?"
*
"Which instrument does Dr. Kois use
to spread his butter?"
It's so important to rethink how we do business,
and which metrics are important when it comes to
success. Between 1955 and 2014, a full 88 percent of
what had been Fortune 500 companies either dropped
off the list or disappeared entirely. Nine out of every 10
Fortune 500 companies in 1955 are gone today, because
of market disruption and creative destruction, and that
churn is getting even faster in our modern society. The
companies that survive and thrive are the ones that can
provide customers with low prices, high-quality products
and services, and great service. Is your practice on track
for success? ■

12

JUNE 2017 // dentaltown.com

Off the Charts
(in a bad way)

These companies were in the Top 10
of the Fortune 500 list in 1955 but
off the list entirely by 2014.
Esmark (#5): The Chicago-based group owned
Avis Car Rental, Max Factor, Tropicana and more.
Was purchased in 1984 by Beatrice Foods, which
itself was purchased by ConAgra in 1990.

Chrysler (#6): After a U.S. government bailout
and a sale to German car company Daimler-Benz,
it's now owned by Italian car company Fiat.

Armour (#7): The meatpacking giant was
purchased by Greyhound in 1970 and has been
since split into components and sold again. (For
example, the German company Henkel now owns
Dial soap, which originally was an Armour item
because the soap was made from a byproduct
of the meatpacking industry.
Gulf Oil (#8): Merged into Chevron in 1984.
Cumberland Farms purchased Gulf's naming rights
in 1986, and then the company in full in 2005 to
"reinvent" the brand. It's now owned by ArcLight
Capital Partners, a private equity firm.
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