015: David Morris, CFO, Guardian Pharmacy on Developing a Consulting Approach for Finance

What were the financial processes that propelled the rise of the third largest long-term-care pharmacy company in the U.S.? Join us as David explains how Guardian’s business model is based on the simple premise that local management teams empowered to make decisions at the local level could be far more impactful than a centralized management function.

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Finance Philosophy

“Our philosophy is really one of a consultant. If you look at the teams that we are supporting most of the team members are healthcare professionals that have not studied business in a formal setting so we’re really working with our partners and teaching them MBA type subject matter. So we have supplied our partners the basic financials and working capital, but in light of the long term care market we have also supplied some more complex analytical tools. And I would say we come from not just a financial standpoint, but a financial and operational stand point.”

Key Metrics

“We focus heavily on product margins. We look at gross-margin dollars and operating profit and we also look at operating profit as a percent of revenue. From a working capital standpoint  we keep our arms around account receivables and keep a close eye on DSO.”

Mentoring Round

“You can have an “A-level” business plan with “C-level” execution, and you will probably fail. But you can have a “C-level” business plan with “A-level” or “B-level” execution and succeed very well.”

Business Book Pick

Start with the Answer: And Other Wisdom for Aspiring Leaders Bob Seelert

The Five Dysfunctions of a Team: A Leadership Fable By Patrick Lencione

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Interview Links

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