John Hersey Leadership Blog

It was one of those typically spectacular sunny March afternoons in Fountain Hills, Arizona. Tops were down on many cars and the golf courses were buzzing with activity. It seemed as though everyone was outside. Everyone, that is with the exception of seventeen business leaders engaged in an enthusiastic leadership conversation at the home of Bob Ditta, former President of Dental Services Group.

George Obst, DSG former Chairman, and Ditta were there to contribute to The Leaders Institute, a collaboration between the Fountain Hills Chamber of Commerce and John  Hersey International. It’s mission is to provide business leaders with an opportunity to tune into a high level leadership conversation by exposing them to a variety of businesses and business leaders. The opportunity today was for these local leaders to learn from two leaders that led their team to purchase the Dental Services Group business and then grow that business, in a highly competitive category of 14,000 Dental Labs serving 118,000 Dentist, to double it’s size in fourteen years, without acquisition.

When Obst and Ditta, along with two other DSG executives, purchased the business through a leveraged buyout, it consisted of 34 Dental Labs across the United States doing approximately $30 Million in annual revenue. When the group sold DSG in 2005 it’s revenue’s were in the $60 million range.

This Livingroom Leadership session covered topics like:

• the 4 original partners are as different, behaviorally speaking, as different could be. How were they able to allow those differences and still run a successful company. George Obst offered that the solution was a clear delineation of responsibilities, largely tied to the individuals strengths. Ditta added that there was a remarkable consistency in values. Each of the partners was committed to growing the business through employee relations and development. Unlike many of their competitors, DSG took on training, at all levels, like no other company. The strategy was to help the employees learn more and achieve higher levels of knowledge and competence in their jobs. The belief was that it would actually lead to significantly lower turnover levels, more loyalty and thereby increased customer support and service. It worked!
• Creating Your Own ceremonies. Each year DSG spent gobs of money to put on it’s annual leadership meeting in Scottsdale (where else?). The teams would arrive with great expectation, primarily for the awards dinner. A pretty extravagant affair for nearly 300, the recognition awards always stole the show. Obst and Ditta agree that “recognition has always and will always be the key to motivation and employee loyalty.” Obst encouraged all  the Leaders Institute participants to create ceremonies, even if they were solo-preneurs.
  
• Performance accountability and reviews. Everyone at DSG, from the person working on a bench crafting, grinding and polishing the caps ordered by our dentists, to the Chairman and President, had annual goals. And, the leadership team, some 65 strong were trained to manage to those goals. Every employee had an annual review and the subject of goals was always discussed. As Bob Ditta put it, “Goals don’t lie. You either achieved the goal or you didn’t. If you didn’t, the why is relatively unimportant. How we can do better next quarter or next year is the key.”
• Educational goals. Everyone in the company had to have an educational goal. What were they going to do to get better at their job? DSG was willing to invest in these classes and seminars because, in keeping with the values of the 4 partners, training and development would pay dividends way beyond the cost.
• Listening. Listen to your customer, listen to your prospects, lost customers and employees. Then have a system in place where what you have heard can be acted upon. This is the bullet to excel, be the best. You will hear and observe  everything you need to dramatically improve on a regular basis.

Dental Services Group implemented strategies that were way ahead of the competition, at the time. We look at these strategies as sound, basic leadership habits that work every time. Well, I don’t know about every time, but these sure did work for George and Bob and Dental Services Group.