139: How to Play Dental Practice Money Ball
In 2011, Brad Pitt starred in a movie entitle Moneyball– the true story about Major League Baseball’s 2001 Oakland Athletics.
2001 was a tough year for the A’s and their manager Billy Beane.
Shortly after losing to the New York Yankees in the playoffs, they then lost their three biggest stars to free agency.
Beane faced an even bigger challenge with a budget to rebuild his team with of only $39M which was only one third of the budget of much richer teams like the Yankees who had over $120M to attract and retain the best talent.
Maniacal focus on Data and statistical analysis.
As part of his rebuilding process, Beane hired a young Yale grad and statistical genius named Peter Brand.
Together, they came up with the hypothesis that statistics used by baseball insiders such as runs batted in, stolen bases and batting averages were important metrics, but not the most important metrics to gauge the true value of a player… and the players with the best at the conventional stats garnered the most money.
So they scoured the league for players that had high on base percentages and higher slugging percentages (measuring the power of a hitter)- stats that were practically ignored by the traditionalists.
They assembled a bunch of “over the hillers” and underappreciated and unwanted players and outperformed many teams that had 2-3 times their budget.
The team went on to win 20 consecutive games and the 2002 AL West championship with playoff bids in 2002 and 2003.
So what does this have to do with your dental practice?
In this week’s episode of the Dentalpreneur Podcast, I draw the parallel between what Billy Beane and Peter Brand were able to do for the 2001 Oakland A’s and what you can do in your dental practice.
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