Exactech

Source: Healthcare Digital

Date :18/02/2008 02:27:19

Exactech’s executives explain how the company has grown from a small operation in 1985 to become today’s multi-million dollar success story

Written by Emmet Cole and produced by Pat Harlow

Exactech’s commitment to improving the quality of life for every patient is highlighted by the story of a twelve year-old girl with arthritis so severe that she was confined to a wheelchair. When the time came for custom orthopedic implants to be fitted, she told her surgeon that her goal was to walk into school on the first day. But orthopedic companies turned the surgeon’s rush order request down, citing cost.

Not Exactech. Despite the short lead-time and likely cost, a company-wide team sprung to action to rally around the cause. An Exactech engineer flew to the operation site and delivered the implant himself to ensure on-time delivery. He even developed a close relationship with the family as they all awaited the outcome of her surgery. A short time later, the little girl walked into her first day of school.

“Of course this type of direct involvement with a patient is not typical, but it just struck a cord with us. So many people throughout the company wanted to make it happen,” says Priscilla Bennett, director of marketing communication and public relations. “That’s what makes Exactech different.” A customer-centric corporate culture permeates everything about Exactech, and it’s paying huge dividends as revenues have nearly tripled since 2001.

Patient and surgeon focus

Founded in 1985 by orthopaedic surgeon Dr. Bill Petty, his wife Betty Petty and biomedical engineer Gary Miller, Ph.D, Exactech strives to make each day “A Great Day in the O.R.”

“Dr. Petty was directly involved treating patients every day and he never wanted us to be one of those ‘me too’ companies that comes out with new products just to make a sale, or just to follow some market trend,” says John Pelc, VP of Operations. “We’re committed to only developing products that are dedicated to improving patient outcomes.”

Exactech’s best-of-breed product list includes differentiated knee implants, biologic materials, and hip implants with ceramic bearing surfaces and enhanced polyethylene for outstanding wear and mobility. The company’s new shoulder systems, a bone cement spacer that aids recovery from implant infection and a platelet concentrating system that helps speed recovery are the company’s latest breakthroughs. And in January 2007, Exactech acquired Altiva Corporation to gain a bigger share in the spinal products market.

Exactech listens to patients and surgeons needs. In 2006, Exactech hosted more than 200 surgeons at the company’s headquarters in Gainesville, Fla. Exactech actively solicits feedback from surgeons, storing input in high-tech CRM software to ensure that all areas of the company understand surgeons’ needs.

“We facilitate collaboration on a daily basis,” Bennett says. “We host meetings throughout the year to collect surgeon input which drives our product development process.”

Vision & growth

Exactech is relatively small compared to industry giants like Johnson & Johnson and Stryker, but has outperformed most of its competitors with 20-25 percent growth.

“It’s a David and Goliath story,” says Bennett. Exactech has exceeded its projections for the past six quarters, and surpassed $100 million in sales for the first time in 2006. Revenues increased for the fourth quarter of 2007 to $33.1 million, an increase of 27 percent over the same quarter in 2006. “We like to think we’re a darling of Wall Street,” Bennett says.

Within a decade, Bennett says, the company could approach a billion dollars in sales. The company expects top line revenues of $146 million to $158 million in 2008, with diluted earnings per share targets to increase to between $0.88 and $0.94.

“To achieve these sales levels in such a highly competitive industry is rewarding, and it goes back to that customer-centric culture,” Bennett says. “Surgeons that want to make a difference want to work with a company they know is out for the best for their patients.” Exactech now boasts a presence in more than 27 countries around the world and international sales increased 30 percent to $7 million in the last quarter.

Winning Workplace

In 2007, the Wall Street Journal named Exactech among an elite list of “Top Small Workplaces.” Exactech makes values like integrity, compassion, teamwork, excellence and innovation an integral part of everything the company does.

Employees have quarterly discussions with their team leaders to review their individual and team goals. Leaders are trained in “emotional intelligence,” to improve communication skills and decision-making. “It’s really become a lifestyle around here, and it’s made for a cohesive workplace,” Pelc says. Exactech pays close attention to internal details, and has embarked upon several systemic changes to bring the company’s vision and values to reality.

Exactech recently moved into a new state-of-the-art customer operations center and the company has plans to build a larger manufacturing space within the next three years. ”I’ve worked in satellite manufacturing plants before that were separated from the headquarters, and you really lose a lot of customer focus when you’re not all in one group,” Pelc says.

Exactech implemented a new product development “Gateway Process” that focuses on systematic milestone completion to bring new products to the market on time. A cross-functional customer solutions team convenes each week, to continuously improve its supply chain processes and to “ensure we are listening to the voice of the customer”.

“It’s unusual for most companies to plan for big growth of 25, 30 or 40 percent, which makes it difficult to respond if growth like that comes their way,” Pelc says. But as Exactech adapts to its own bright future, it will do so based on the critical foundations that will never change: a customer-centric culture, a devotion to its employees, and a commitment to make every day “A Great Day in the O.R.”

Click to view the corporate brochure on exactech