Early Stage Healthcare Company—Shedding Waste and Driving Efficiency
Situation: A unique and novel medical device product and service company had grown slowly and steadily in a multi-state area in the Midwest. Founded by leading physicians in their field, they had succeeded in developing the company from startup to a profitable, multi-million dollar enterprise.
Virtually overnight, the founders realized they were rapidly succeeding beyond their capacity to manage the company. They were, in fact, hemorrhaging money and seeing an unknown percent of their profits sucked into a black hole of waste and mismanagement. After all, they were trained as physicians and not executive managers. Statistically, they had grown 30% in size, but profits were holding steady to slightly declining.
Action: A search was undertaken to thoroughly understand the actual situation and causes of the inefficiency in order to craft a position profile. This profile identified precisely what skills were absent from the organization and what the requisite background and experience would be to correct the situation.
The process road map included companies, known for high efficiency in their operations and finance management with success firmly grounded in sophisticated and contemporary management techniques.
The slate of candidates presented had common backgrounds, proven success in large companies, training in and knowledge of the medical device and health care service field, with broad finance and operations skills. A finalist for the COO position was selected; an offer was presented and accepted.
Results: Within six months, substantial realignment of resources and assessment of operations were completed, resulting in the correction of multi-millions in loss and waste. The cost of the search, the salary and bonuses of the COO, including all of the incentive bonuses, were paid for literally 10 times over in the first year as a result of this hire.