Sep. 16, 2008 at 9:17am

Differentiation as a math problem

Posted by Kathleen Deakins in Planning and Strategy, Practice Management
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Trying to differentiate your physician practice? Chances are someone else is doing the same thing you are. But do more different things, and it’s much harder to copy you. I was reminded of this lesson from Richard Horwath last week when I visited my gynecologist.

Add an activity, improve your odds                                                                                      Rich, a strategy professor and consultant, teaches that if you try to differentiate on just one activity, there is a 90 percent probability that a competitor will match it.

You improve your odds of outdistancing the competition with each activity. Increase to two activities, and the chance is 81 percent (90 percent x 90 percent). It’s easy to do the math. Five activities makes it 59 percent, and 10 gets you to 35 percent.

Here’s how Dr. Barbara Levy does it. Her Web site promises “holistic, sensitive and respectful treatment of women's special health needs.” An easy claim to copy. However, it is tougher to copy the combination of sculpture and poetry in her waiting room, tasteful feminine wallpaper and furnishings, cloth restroom towels and the warmth of everyone in the office.

Make the experience distinctive                                                                                         What I found most unusual was being invited to her office for a conversation before my exam began. We had the chance to relate to one another as two professional women – something decidedly difficult when craning to maintain eye contact between stirrups. Dr. Levy’s frank and simple language, her presentation of options and the time she took to listen and explore my perspective made this experience unique.

Taken together, she achieves what Rich Horwath says are the three criteria for great strategy: differentiation, focus and a system of activities.

Many possible combinations                                                                                        Think about developing a distinctive system of activities for your practice. It could be online appointment scheduling, electronic medical records, Web-based health library, customized health and nutrition information and text messages if the doctor is behind schedule. Or what about this system: house calls, extended hours, e-mail consultation, valet parking, espresso stands and Wi-Fi?

The right combination is downright difficult to duplicate.

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