HVTDC Helps Medical Publication
Organize Itself for the Future
“Brown (of HVTDC) helped the organization put together a new method of processing orders. By changing the workflow in this area, we were able to increase our efficiency. In addition, with the help of Mr. Brown we have written a detailed Sales and Marketing Plan that has helped keep our efforts in line with our long and short-term goals.”
Doris Peter, Ph.D.,
Publisher
The Medical Letter
The Medical Letter
is a non-profit organization founded in 1958 by Arthur Kallet, the co-founder
and former director of Consumers Union, and Dr. Harold Aaron, a former
medical advisor to Consumers Union. The Medical Letter, through its newsletters,
handbooks and software, publishes critical appraisals of drugs and therapeutics
for health care professionals. Its editorial process produces a consensus
of expert opinions, without the influence of the pharmaceutical industry.
The Medical Letter is completely independent; it is supported solely by
subscription fees and accepts no advertising, grants or donations.
Ralph Brown, a business consultant for the Hudson Valley Technology Development
Center, had spoken to several staff members at The Medical Letter who
suggested he call the publisher, Doris Peter, Ph.D. Initially reluctant,
she finally met with him to discuss the operation in the spring of 2001.
“We met and spoke about the organization, its structure, reporting
relationships, and human resources,” says Brown. “However,
we both realized that our priority would be in the financial area, due
to declines in subscriptions and revenue for its flagship publication.
We examined current profit-and-loss statements as well as projections
for three years out. It became obvious that if the organization were to
grow, it would have to focus on launching new products and/or publications.”
“We then looked at how The Medical Letter was organized. There was
no concrete infrastructure; the organization chart was unclear relating
to chain-of-command and reporting relationships. For many years, the marketing
department relied solely on direct mail, and employee benefits and salaries
were escalating at a rate higher than revenue and sales growth.”
Brown began working intensively with Dr. Peter, who arranged for him to
meet with key employees, one at a time, so that he could keep his focus
and understand how the organization really worked. He examined the reporting
structure, studied the costs and overhead situation, and made specific
recommendations in all operating areas.
Brown suggested that Dr. Peter hire a new marketing director who would
report directly to her. They developed a profile, criteria, and a job
description for the prospective candidates. Dr. Peter and Brown further
discussed how the Internet and securing site licenses could be part of
the business model for developing additional revenue, and Brown assisted
in hiring a sales director to address site license initiatives. Brown
also suggested several improvements in customer service that were successfully
implemented. These improvements included extending call center hours,
as well as initiating both outbound sales calls and inbound upselling/cross
selling programs. In addition, Brown worked with Dr. Peter to create a
formal structure for developing new products, resulting in the development
of several new products/publications that were recently launched. On the
cost-control side, Brown developed a salary grid that Dr. Peter instituted
for both performance reviews and wage administration.
In September 2002 the organization introduced its first new newsletter,
Treatment Guidelines from The Medical Letter, a monthly publication. This
new publication offers review articles of drug classes for treatment of
common disorders, such as diabetes, asthma, and hypertension, as well
as bacterial and viral infections. Revenue from this new publication has
permitted The Medical Letter to improve existing products, develop additional
new products and hire key personnel to facilitate the improvements and
additions.
Dr. Peter notes other changes as well. “Brown helped the organization
put together a new method of processing orders. By changing the workflow
in this area, we were able to increase our efficiency. In addition, with
the help of Mr. Brown we have written a detailed Sales and Marketing Plan
that has helped keep our efforts in line with our long and short-term
goals.”
Brown says, “The changes at The Medical Letter did two things: they
stemmed a decline in sales and revenue, and positioned the organization
for steady growth. They are on track to remain independent, without any
outside funding, in today’s competitive environment.”
For additional information, call 845-896-6934.