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Do you measure what truly matters in your dental practice? Nearly every conversation I have with a fellow dentist-entrepreneur circles around how to know your investment and time is working, ‘how do you know that you’re actually growing your dental practice?’ 

You Can’t Improve What you Do Not Measure

Common sense tells us that in order to keep improving you must keep examining the results of what you’re doing. What is the point of doing a tremendous amount of work unless you’re going to review it to see what has been effective and what has been a waste of time? 

“In God we trust, all others bring data.”

-W. Edwards Deming

Reading a slew of reviews about a business who consistently makes incredible hamburgers but their fries are always soggy is literally reading the lagging indicators of a business that refuses to accept feedback and examine its protocols to address what is working and what is not. Reviews are one way to gain insight into what’s working in your business and what’s not working. They are also a look back into the near past: one person’s recent experience at that one hamburger joint. Make sense?

Here’s What to Measure in your Dental Practice

So, how do you measure and what do you measure? Two vitally important questions every business needs to ask and answer constantly and consistently.  

In the case of dental patient treatment plan acceptance, patient nurturing and dental patient experience, not all actions are created equal. Some of our actions have a greater impact on our environment than others and it’s a good idea to know which ones have a greater impact and which ones have a weaker impact.  

Lead Measure Vs. Lag Measure

First, let’s define some terms. Lead measures or lead indicators help you predict which actions might successful and which might not, in other words, what to keep doing to keep getting the same successful results.  

A lag measure or lag indicator, measures your wildly successful goal with results that have already passed like profit, revenue, and patient satisfaction. They are a little harder to gauge because the results are correlated to actions taken in the past.  

In my book Extraction: The Surprising New Formula to Systemize, Scale and Sell Your Business, I breakdown different forms of measurement and the importance measuring growth and goal achievement play in your leadership role. Let’s look at three measurable areas of your practice here.  

Dental Practice Revenue Growth

Safety in Your Dental Practice

Managing Employee Turnover in Your Dental Practice

What Type of Growth is Expected in My Dental Practice?

The Measurement of Growth is A Measure of Leadership

These are just a few examples of how using and measuring your leading and lagging indicators can improve so many areas of your dental practice. The key takeaway is that leading indicators can be used to predict future outcomes, while lagging indicators show the results of past actions. By tracking both leading and lagging indicators, you can better understand how your actions, decisions and the actions of your teams affect performance so you can make more informed decisions about future strategy. 

The role of a leader is not just to delegate, guide and grow, it is also to measure so you can continue to improve on what has come before. If you’re working with a strategic plan in order to scale your practice, how will you know when to buy your second practice? Is it simply when you’ve socked away enough money or is it when your key performance indicators show that, not only are you financially ready to buy but it’s also the right economic environment to buy?  

Mastering Dental Practice Entrepreneurship

If you are ready to measure your growth and assess the current health of your practice, why don’t you take the next step and attend one of our masterminds. My partner, Josh Gwinn, the co-founder and CEO of Optimize Practice Services, hosts a mastermind just for dentists and dental practice owners, to help you succeed.

A mastermind is a group of peers who come together to solve their biggest challenges, share resources and inspire each other to grow, take risks and support each other through the process of growing your businesses. Masterminds have been an incredibly important tool for so many successful entrepreneurs. Are you ready to supercharge your business?

Are you ready to tackle your biggest fears, gain great insights and receive the answers you’ve been looking for? Join us for our next mastermind and discover that you are not alone.