The 80/20 Rule to Driving Success
Executive Editor Daniel Alter, MSc, MDT, CDT | firstname.lastname@example.org
Business environments and ecosystems have changed to some extent in recent years, but the fundamental value proposition has remained the same; in fact, it has truly delineated the difference between the race to the bottom with price and the value-add mechanisms of service, expertise, and products for the laboratory's dentist-clients and their patients. Laboratories that keep innovating their offerings and services tend to excel in these types of fiscal environmental shifts, because they recognize their value proposition and what their value offers to their dentist-clients; they drive that value to gain maximum output, thereby leading to optimal success.
How does a laboratory owner or manager recognize their value proposition? Simply put, it is where your laboratory can shine the most in a manner that provides the most knowledge, expertise, and experience. Each laboratory has its own unique value proposition, which is good because it provides for a unique and manageable competitive edge for your laboratory. Not every dentist-client is meant for every dental laboratory, nor is every dental laboratory meant for every dentist—and, in my humble opinion, recognizing that in your growth phase will alleviate much of the unnecessary anxiety and stress, allowing you to lead and produce the growth you desire. Attempting to offer all products and services to any and all clients may dilute your laboratory's unique value proposition and take away your competitive edge. It is better to align those needs with other laboratory partners who offer the very best and provide that to your dentist-clients, rather than to attempt to offer all. As the saying goes, a jack of all trades is a master of none.
The "80/20 rule" should become a laboratory's focus for growth, marketing, and more when the value proposition to the dental community has been identified. Simply put, you can use the 80/20 rule as a subjective compass for planning and executing your efforts. Ideally, the laboratory's value proposition should be in 80% of your product and service offerings, which generates an additional organic growth process whereby the positive momentum yields autonomous growth. Also, 80% of the laboratory's management time and efforts should be dedicated to ensuring its objectives are generated and the value proposition is maintained, which will keep the laboratory on track and maintain success. The remaining 20% could be allocated to producing, learning, and testing other products and services that could satisfy the needs of the dental market today and also could be incorporated eventually into the 80% offerings as the laboratory excels and recognizes this effort as a new value proposition.
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