Accelerating Growth: A Blueprint for Strategic Transformation

By Vern Davenport

Transform Your Company and Achieve Phenomenal Growth

How did Azurity Pharmaceuticals grow from $30 million of revenue and $5 million of EBITDA to over $500 million of revenue and $200 million of EBITDA in just five years? How did Catalyst Clinical Research transform itself from a startup with eighteen employees and $12 million of revenue into an industry powerhouse with nine hundred employees and $150 million of revenue in just four years? The answer is: they partnered with growth investment private equity firm QHP Capital and deployed The Management System, QHP’s phenomenally successful framework for transforming companies that are at a growth inflection point.

Is your company at an inflection point? Do you see great potential for transformation and growth but don’t know how to make it happen? Transformation is possible. Rapid, significant growth is possible. But you need a blueprint for getting there.

Finding financial investors is not enough. Money is only the starting point. Any investments in your company must be used intelligently and purposefully, or it will just be money down the drain. What you need is a proven methodology for getting your company from where it is now to where you dream of it being. Accelerating Growth describes how The Management System makes that possible.

• Language: English
• Publisher: Forbes Books
• Release date: Jun 4, 2024
• ISBN: 9798887503448

Vern Davenport

VERN DAVENPORT was the CEO at several companies before cofounding QHP Capital. He developed The Management System, with help from colleagues, as CEO of Misys Healthcare, a company that had lost its way but had immense potential. The Management System was highly successful at Mysis, and when he founded QHP, he made the system the cornerstone of QHP’s work with its portfolio companies. Davenport and QHP have helped more than twenty companies implement this system, leading those companies to astounding transformation and growth. QHP is headquartered in Raleigh, North Carolina, and Davenport makes his home in Wake Forest.

Book preview

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Is your company at an inflection point? Do you see great potential for transformation and growth but don’t know how to make it happen? Transformation is possible. Rapid, significant growth is possible. But you need a blueprint for getting there. To show you just how much potential there can be, let’s look at two companies that my growth-oriented private equity firm, QHP Capital, partnered with to grow swiftly and dramatically: Azurity Pharmaceuticals and Catalyst Clinical Research. Azurity grew from $30 million in revenue and $5 million in EBITDA to over $500 million in revenue and $200 million in EBITDA in just five years. Likewise, Catalyst grew from a start-up with eighteen employees and $12 million in revenue into a leading oncology-focused clinical research organization with nine hundred employees and $150 million in revenue in just four years. Your potential for transformation and growth is real, and you can make it happen.

What is the blueprint for this kind of success? How does QHP Capital achieve tremendous growth with the companies we work with? How can you do the same thing? The answer is not simply by securing financial investment. Money is only the starting point. Any investments in your company must be used intelligently and purposefully, or it will just be money down the drain. What you need is a proven methodology for getting your company from where it is now to where you dream of it being. At QHP, we call that methodology The Management System. Effective use of this system has driven the amazing growth I described above—and many other dramatic business transformations.

I first developed The Management System when I became CEO of Misys Healthcare. Misys had lost its way but had great potential. About a month into my tenure, I came into my office to find twelve thick white binders piled up on my conference table. I asked my assistant what they were, and she told me that they were my board books, the monthly reports from each of the company’s business units. I picked up the first one and was greeted by seventy-five pages of dense narrative. Discouraged, I picked up the next one: a raft of spreadsheets. The twelve binders contained hundreds of pages of graphics and narratives—more than anyone could process in a year, let alone every month! I was astounded that anyone could run a company based on this tidal wave of information.

I asked my business unit leaders what they expected me to do with this mountain of information and how I could use it in any kind of practical way. I thought I’d gotten my message across, but the next month twelve more big white binders showed up in my office! At that point, I informed those leaders that if they felt the urge to give me another one of those binders next month, they might as well leave their letters of resignation on top of it.

But, of course, knowing what not to do is not the same as knowing what to do. I was fortunate to have worked for three great process-oriented, results-driven companies: IBM, Siemens Medical Solutions, and Kodak Health, where I learned Lean Six Sigma, Total Quality Management, and other process and transformation management approaches that provided a great foundation. But I didn’t have specific tools that I could apply to developing the kind of system I felt was needed at Misys. What I was looking for was a system that would ensure that the organization was aligned and focused on the most important work that needed to be done—the work that was required to exceed our objectives for the year. And I needed a way to see if we were on track or not on track to accomplish those objectives along the way so that we could adjust accordingly. This all sounds simple enough, but if you’re reading this book, you already know how hard it is to accomplish.

I asked my managers at Misys if anyone had experience with Lean Six Sigma. We worked with the Six Sigma core concepts—the powerful, practical ideas in Pascal Dennis’s excellent book Getting the Right Things Done—and my own experience with company transformations to build a new management framework and deploy it. We called our new framework simply The Management System. I also hired Ron Scarboro (now CFO of Azurity Pharmaceuticals) as my CFO, and Ron was instrumental in filling out The Management System and operationalizing it. Using The Management System, Misys turned itself around in just twelve months, growing into an enterprise with $600 million in revenue and $92 million in operation profit.

That was the beginning of The Management System, and over the years my colleagues and I have continued to refine the system. If you follow it faithfully—as we do when we partner with companies at QHP—and make the system your own, you can transform your company into the one you know it can be and want it to be.

One of the reasons that The Management System works is because it takes a revolutionary approach. I’m a revolutionary change kind of guy, not an evolutionary one. At Misys Healthcare I felt I had to be revolutionary, because the need for change was so great. And that mindset is appropriate for companies that find themselves at an inflection point. Decision-making is hard. Being accountable for those decisions is even harder. Enabling others in your organization to make consequential decisions may be the hardest of all. But this approach demands all three of those things. In order for a company to grow, decision-making has to cascade down into the organization or the company will continue to grow slowly—or cease to grow at all.

Does The Management System really do what I’m claiming it does here? I’ll let others who have worked with the system speak for it.

Richard Blackburn, CEO of Azurity, recognizes the way The Management System aligns a company’s business and purpose:

In order to grow, everyone in your organization needs clarity. We spent time as a leadership team to find a new clarity about our purpose, about what we do and don’t do as a business. Inspired by Patrick Lencioni’s book The Advantage, we also defined strategic anchors for the company—the critical factors that define business success for us. We asked ourselves Lencioni’s key questions, including: Why do we exist? What do we actually do? How will we succeed? How will we behave? When you’ve got those things clear and everybody is aligned on the strategy, then you can have a very productive conversation about: What are the most important things we need to do right now? and Who needs to do what? That’s where The Management System comes in and proves invaluable—it gets people aligned on direction, priorities, and roles, and enables you to set the right metrics for