Transcript Document

ViraCor-IBT Laboratories:
Insights & Innovation
John R. Martin
President
ViraCor-IBT Laboratories
October 9, 2009
Growth: Few things attract
us more
• New babies
• Springtime / Gardens
• Growing companies…like many of yours,
and…ViraCor-IBT!
…We love to be around growth; we want
to be a part of the miracle of growth!
The Pattern of Growth
“Every activity belongs to a
pattern. You identify with your
pattern or thought. Your
patterns leads your life.”
- J.G. Gallimore
Pattern of Growth
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The Call
The Fear
The Choice
The Growth (or lack thereof)
The decision to grow always involves
a choice between Risk and Comfort
Risk and Comfort
• If we’re honest, though, most of us are
seekers of comfort
• Extreme comfort would be nice…or
would it?
University of CA at
Berkeley Amoeba
Experiment
Challenge and Growth
• There is something about all living
creatures, even amoebas, that demands
challenge
• We require change, adaptation, and
challenge the way we require food and air
• Comfort alone…will kill us
The Pattern of Growth
• Both choices—risk and comfort—tend to
grow into a habit or pattern
• Each time you decide to take a risk, you
become a little more likely to do so the
next time
• It’s not that the fear goes away, but you
get used to living with fear
• You realize that it doesn’t have the
power to destroy you
Walk on Water…
• At ViraCor-IBT, we have chosen “to walk
on water” rather than sit in the boat
• We have chosen a bold pattern of
growth that involves choosing risk
– Courage alone is not enough, it must be
accompanied by wisdom and discernment
– This is not a story about extreme sports; it’s
a story about extreme discipline
Agenda
• The story of ViraCor-IBT
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Overview
The entrepreneurs
The business guy (me)
The growth (ViraCor focus)
The merger
• Insights into Innovation
ViraCor-IBT Laboratories
Leader in molecular
diagnostic testing for
infectious diseases
Preeminent clinical
diagnostics & biomedical
research laboratory
specializing in immunology
& allergy assays
ViraCor-IBT Laboratories
Overview
• Recent merger (June 30, 2009) to form ViraCor-IBT
• Both KC area companies founded by entrepreneurs
(ViraCor in 2000; IBT in 1983)
• Specialty diagnostics clinical laboratory business
• Market niche: Patients with immune-related
conditions, encompassing allergy, immunology and
infectious disease
• >200 employees
• Serve >4,000 physicians, hospitals, commercial
laboratories & biopharmaceutical companies
• Impressive financial performance: strong growth in
in revenue and earnings
Founding Entrepreneurs…
Science and Service
Dr. Jack Halsey,
IBT Founder
Flip Short,
ViraCor Founder
Both share a passion for taking care of the client,
and building a great place to work
The business guy…what
did I see?
• ROIC…foundation for sustainable
competitive advantage
“Most managers focus
only on margins…and
ignore the multiplier
(Net Asset Turnover).”
ROIC
Return on Invested Capital
Balance Sheet
Income Statement
Net Asset (a) Turnover
Sales
Net Assets
Operating Margin
X
Operating Income
Sales
a) Net Assets = NWC + Net PP&E + Net Other; Net Assets = Invested Capital
Growth: Know Thyself
• We understand what our company
stands for…
We save patient lives by
delivering complex tests fast
Growth: Know thy
Customer
• Competitive keys
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Science/Quality
Turnaround Time/Service
Ease of Doing Business
Price
• Innovation
– Anticipate customer needs
– News tests, improved turnaround time, new
services
Growth: Company Culture
“A company’s culture and a
company’s service are two
sides of the same coin.”
- Tony Hsieh, CEO Zappos.com
Growth: Innovation in Speed
& Service
• Speed: Jump to the next curve
– Not better sameness, but true innovation
– Unparalleled test result turnaround time from a
high complexity lab (went from 1 week+ to 1
day)
– Same-day Turnaround Time: 99%, consistently
• Compassionate, personalized service
– Expertise in immunocompromised patient
conditions; direct access to scientists
– Patient-first culture and supporting systems
Growth: Built-in Scalability
• Leaders – HR executive/culture in place to
develop leaders and implement scalable
growth
• Integrated Science / Systems / Service
technology platform
– Strong core systems integrated and enhanced
with application-rich intranet
– Scalable for significant future growth and
accommodation of other laboratory workflows
The Merger: Our Strategic
Vision
Become the Premier Specialty Lab in
Immunology and Infectious Disease
• Patients have need of it!
• Industry landscape is ideal--large commercial labs
have difficulty matching service and specialization
• ViraCor-IBT is well positioned among small,
independent labs in molecular diagnostics/
immunology to become the premier specialty lab
with scale
Agenda
• The story of ViraCor-IBT
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–
–
–
–
Overview
The entrepreneurs
The business guy (me)
The growth (ViraCor focus)
The merger
• Insights into Innovation
Insights into Innovation
• Looking backward
• Looking outward
• Looking forward, and…
…I’ll save that for the last slide
Looking Backward - ViraCor
Founding Principles
• Patients First
• And, Associates, too
Looking Backward - Remember
who you are…
• “If we take care of patients, everything
else will follow.” – Flip Short
• Remember that we are a team that
works together, unselfishly, for our
clients
“It is amazing what you can accomplish if you
do not care who gets the credit.”
- Harry Truman
Looking Outward
• Gaining fresh perspective by looking outward
– Industry Conferences
– Consultants/Thought Leaders
– Customers/Physicians
– Associate Survey/Feedback
– Scientific Literature/Content
– Domain-specific Content
– Management Books
– Leaders in Business/Society
Looking Outward…
Pattern of Growth:
The Call, The Fear,
The Choice
Hedge Hog, Fly Wheel/
Building for Breakthrough,
Culture of Discipline
Leaders: Energy, Edge,
Execution, Resilient/See
Around the Corner, Optimistic
Looking Outward…
- The Art of Innovation
- The Art of Execution
- The Art of Driving Your
Competition Crazy…
- Simple
- Unexpected
- Credible
- Concrete
- Emotional
- Story
Looking Outward…The Art of
Innovation
• Make meaning
• Jump to the next curve (not better
sameness)
• Don’t worry, be crappy
• Churn, baby, churn
• Let a hundred flowers blossom
• Never ask people (customers) to do
what you wouldn’t do
Looking Forward…
“Vision without action is merely a dream.
Action without vision is just a waste of the time.
Vision with action can change the world.”
- Joel A. Barker
ViraCor-IBT Vision (Patients First)
Looking Forward...Change
the World!
ViraCor-IBT Actions (Mission, Associate Attributes, Business Plan)
Insights into Innovation
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Looking backward
Looking outward
Looking forward, and…
Looking inward
Looking inward…
• I close with a quote from my uncle, Oliver Martin,
a businessman, written after enduring three years
of the Great Depression in 1930’s…
“The past three year’s experiences have convinced
me that that there really is a silver lining…
But there’s no use looking for it unless you use an
X-ray, because it’s inside us.”
- Oliver Martin
March 4, 1934
ViraCor-IBT Laboratories:
Insights & Innovation
Questions?
John R. Martin
President
ViraCor-IBT Laboratories
October 9, 2009