Eight steps for strategic analysis of dental practices.

Dentistry has become increasingly competitive over the last decade. Some of the major causes are the increasing supply of new dentists, more dental substitutes (auxiliaries), changing patterns of dental demand and the increasing bargaining power and sophistication of buyers. Despite these competitive pressures, dentistry remains an attractive industry, and expenditures on dental services have increased substantially in Canada. Total expenditures are now over $5 billion.1 Demand can be expected to continue to increase over the next decade. The combination of industry growth and increased competition suggests that dental practice strategy will be the key to success in the future for most dentists. However, there is almost no strategic advice for dentists that moves beyond simple bromides. Hard-nosed strategic analysis that leads to higher profitability and a better practice is difficult. Without some tricks of the trade, most dentists will find it difficult, if not impossible, to do effective strategic planning. This paper presents an easy-to-follow but reasonably comprehensive strategic approach. Rather than advocating full-scale strategic planning, our more simple approach revolves around eight related key steps.2 These steps can stand alone or can form the basis for a more comprehensive strategic plan. Particularly useful, these steps provide a way to start any strategic planning exercise.