The Adoption Curve and You
In “The Tipping Point,” the bestselling book by Malcolm Gladwell, the author defines the tipping point as “the moment of critical mass, the threshold, the boiling point.” Gladwell’s book explains the “mysterious” sociological and marketing changes that happen as new products and ideas come into majority acceptance and usage. “Ideas, products, messages and behaviors spread in the same way as a virus; from only a few until it explosively reaches many.” Computers, cell phones, flatscreen TVs, bluetooth technology, and online shopping are but a few examples. Once the tipping point is reached, it is certain that the product, idea, or behavior will move into the mainstream.
Group-practice dentistry is rapidly approaching the tipping point. Few, if any, new dentists are purchasing solo practices. Additional evidence that the tipping point has nearly been reached is the almost 20 percent growth of group practices/DSOs, as opposed to the 7 percent shrinkage of solo practices, per year. Additionally, the volume of investment capital is flowing toward group practice and away from solo practice.
DSOs and managed-group practice development precisely followed the adoption curve. In the beginning, in the 1980s and 1990s, DSOs were less than 3 percent of dental practices. By the mid-2000s, DSOs were about 10 percent of the dental industry. Today, there is significantly more DSO expansion, caused by an influx of early majority folks now accepting the validity of DSOs and their history of success. This is further evidence that the tipping point has been reached.
Presented below is the classic adoption curve. If you are a dentist, consider where you are on the adoption curve. It is my observation that most dentists are the either in the late-majority (late adopter) stage or the late-mass (laggard) stage.
The late majority group tends to be conservative. The more you move to the right on the adoption curve, the more conservative you become, until you cross into the late mass stage. In the late mass stage, people are deeply opposed to adopting new technology, ideas, or products — no matter what.
Are You Change-Averse?
As an adjective, conservative means “holding to traditional attitudes and values; cautious about change or innovation.” As a noun, conservative means “a person who is averse to change and holds to traditional values and attitudes.” This explains the Facebook posts and emails I receive from dentists about the evils and wrongdoings of managed groups and DSOs.
As in other areas of life, the more conservative you become, the less willing you are to change. Those dentists in the late-majority and late-mass stages are reluctant to consider anything but what they already have in place. They don’t want to accept that managed-group practice is the future. And they don’t want to look beyond what they know.
My work is with dentist-entrepreneurs. They are early adopters and now members of the early majority. These dentists are not afraid of change; they see the opportunity that conservatives cannot see. They see a future beyond the past. They see where dentistry is going, not where it has been. They are willing to take greater risks.
I invite those dentists in the late majority and late mass stages to reconsider their position. It may be that to wait until the DSO concept is so fully established and firmly ensconced that the negotiable value of your practice assets, goodwill, and talents become worthless.
What good is a rotary phone in today’s world?
Things will change; that is certain. Dentistry will change; that is certain. Managed-group practices will dominate; that is certain. Maybe defending your position might not be the best position to take.
—“Delay is the deadliest form of denial.” — C. Northcote Parkinson
