Excellence in Spinal Technology
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- Norah West
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1 Excellence in Spinal Technology
2 Dear Colleague: For companies bold enough to be a leader in this age of technological innovation, the challenges are immense. Our world is a new world and virtually everything we have known is in the midst of profound transformation. 20 years ago, today s advances in spinal technology could only have been foreseen by those leading companies that sustain effectiveness in the face of constant pressure; and those companies who inspire through clarity of vision, optimism, and a profound belief in their people s ability to turn dreams into reality. Great companies know that it is not enough to focus on the mechanics of business planning, organizing, and controlling resources and people. Great companies know they must attend to their employees whole being. Leaders who pay attention to the whole self mind, heart, and spirit are more effective than those who focus too narrowly on short-term success. Great leaders are passionate and unequivocal about values. They know that values have the power to inspire, unite and sustain. Values are constant and enduring and precede business plans, policies, procedures, practices, performance and outcomes. At Alphatec Spine, our values include: Our Credo our guiding principle. Our Purpose our philosophy and reason for being. Our Beliefs our five most significant characteristics in relationships with our constituents surgeons, distributors, investors, patients and one another. Mastering our values will take time and a dedicated, conscious effort. The evolutionary process of developing and instilling values depends on the individual commitments of each one of us. We have worked hard, accomplished much and built a business about which we have a great deal of pride and spirit. Now, the challenge is our future which is dependent upon the effort we make to understand and live our values each day. Sincerely, John H. Foster Chairman
3 V A L U E S C R E D O Excellence in Spinal Technology P U R P O S E To be a values-based leader in the spinal market by providing unmatched service to and taking scientific direction from the physician. B E L I E F S Respect for the Individual Service to Our Constituents Pursuit of Excellence Commitment to Personal Integrity Focus Upon Efficiency and Growth
4 C R E D O Our Credo is Excellence in Spinal Technology. It is our guiding principle. It underlies and unifies everything we do. It is by upholding our Credo that we are empowered to provide unmatched service to and take scientific direction from the physician. In addition to our surgeons and those with whom we interact each day, our Credo defines our ultimate objective with all our constituents surgeons, distributors, investors, patients, employees and healthcare institutions. We aspire and commit to this guiding principle because by striving for and achieving Excellence in Spinal Technology, we have built the foundation of our Surgeon s Culture. The Surgeon s Culture is an Alphatec philosophy that gives credence to Excellence in Spinal Technology and product innovation. For our surgeons, we form collaborative partnerships that are integral to achieving Excellence in Spinal Technology as the surgeon s needs are foremost through every step of Alphatec s product development process from initial concept through design, engineering and manufacturing. For our patients, we deliver excellence in state-of-the-art spinal technology that helps achieve the best possible quality of life for each individual. For our shareholders, we generate positive investment return and the future of innovative technology. For one another, we consider each deed each day as an opportunity to demonstrate a personal commitment to best possible relationships.
5 P U R P O S E Our Purpose is to be a values-based leader in the spinal market by providing unmatched service to and taking scientific direction from the physician. The Purpose states our philosophy. It indicates that our focus is the surgeon and our orientation is to form collaborative partnerships with the surgeon which will produce Excellence in Spinal Technology. It also reflects the primacy of the surgeon in the organization, the inverted nature of our organization, our participative management style, and our willingness to be accountable. The principle reason that we are in business is to serve surgeons. The entire organization is in place to support the moment when any employee is providing unmatched service to and taking scientific direction from the physician. The innovation happens when a collaborative partnership with a surgeon produces Excellence in Spinal Technology. Surgeon leadership means that Alphatec Spine is a surgeon oriented company. Some companies are marketing oriented, some are financially oriented, some are technologically oriented...alphatec Spine is surgeon oriented. The surgeon s needs define our services and complete measurable satisfaction must always be the end result of these needs. This is accomplished by listening, anticipating their concerns, learning their expectations, and then aligning our product attributes to this knowledge. Only when these factors are in sync can we provide the highest level of service, which will yield maximum success. Therefore, the surgeon is the most important person. Alphatec Spine exists to meet the needs of the surgeon and their patients, which does not suggest that the support provided by the rest of us is any less critical to the company s success. What makes Alphatec Spine special and unique is our surgeon orientation. Embedded in our philosophy is the fundamental importance of the needs of the surgeon, hence surgeon leadership is a primary element of our Purpose. If we are the best at serving the needs of the surgeon, then all other success factors may follow.
6 The primacy of the surgeon, and the patients under his or her care, suggests the structural nature of our organization. That structure is described by the inverted triangle with the surgeon and patient on the top and with all other members of the organization underlying and supporting that moment when a collaborative partnership with a surgeon produces excellence in spinal technology. The idea is that starting at the bottom of the inverted triangle we are each serving our direct reports in order that they may be successful in serving others. The measure of success is whether your direct reports surgeons and patients recognize you to be producing Excellence in Spinal Technology. The inverted organization also suggests our participative management style. Ideas need to emanate from the top of the inverted triangle, be developed and supported by those below and returned to the top in the form of corporate program or policy. Our participative management style creates an organization in constant dialogue. It establishes a culture of good listeners, always asking what does the surgeon need? Finally, our Purpose incorporates the need for accountability through the words unmatched service. Here we recognize that we are accountable for exceptional service to our surgeons, ourselves, our community and our stockholders. The spinal market is changing and the company is changing, thus we must constantly change and adapt to the needs of our constituents. This is where we take responsibility for our actions. In summary, our philosophy reflects our lives as professionals. It is dynamic. It has and will continue to evolve and change. Each one of us, each day, learns from and adds to the depth and richness of our Purpose.
7 B E L I E F S Respect for the Individual Service to Our Constituents Pursuit of Excellence Commitment to Personal Integrity Focus Upon Efficiency and Growth Our Beliefs explain how we approach our daily work. In all of our relationships with our surgeons, distributors, shareholders and one another, we strive to achieve the highest degrees of respect, service, excellence and integrity. By doing so, we harness tremendous organizational energy to achieve a high standard for quality, service and product innovation within the spinal industry.
8 R E S P E C T F O R T H E I N D I V I D U A L Respect for the Individual is the means by which Alphatec Spine expresses long-term interest in its employees and indicates that every employee counts. It is the handshake between the company and each individual employee. It is about each individual within the organization being a vital link in a collective effort. We realize that the spinal device industry, our company and individual job responsibility are dynamic. Our goal is measurable employee satisfaction. Alphatec Spine aims to set the highest standards within the spinal device industry and recognizes that this can only be accomplished through a sensitive approach to our most valuable resource our people. Respect for the Individual is a basic value that is embraced by all employees and creates a strong sense of identity and purpose for everyone. It ensures that regardless of race, religion, lifestyle or position within the company each individual is heard, acknowledged and valued for the contribution he or see makes to the Company. Recognizing employees as a vital asset attracts a special kind of employee, one who is willing to grow, change and contribute to the success of the Company. One who is willing to dedicate one s self to product innovation through surgeon partnerships. We strive to motivate employees and make every effort to recognize and reward good performance. This belief provides the foundation for our practice. It is supported day-to-day by a variety of policies and programs. Alphatec Spine provides competitive compensation, excellent benefits, incentives and continuous education. We develop management training and other unique programs to assist individuals in enhancing and expanding their careers. Employees are encouraged to realize professional potential by taking advantage of new career opportunities, increasing expertise in their own fields and developing skills in other areas.
9 In addition, we support our employees by utilizing state-of-the-art information systems and technologies which empowers them in their Pursuit of Excellence. We also recognize the importance of ensuring communication between managers and employees and setting clear performance objectives. Therefore, we have implemented the Performance Planning and Review Process. Performance is measured against realistic and measurable objectives. Our review process is designed to challenge and support employees in achieving maximum personal potential. To measure the successful practice of Alphatec s core belief, Respect for the Individual, the Company annually surveys all employees to carefully review the quality of the handshake.
10 S E R V I C E T O O U R C O N S T I T U E N T S Service to Our Constituents creates our employment opportunity. Alphatec Spine is a service organization which is justified only by filling the needs of its constituents. Our focus is the constituent. The needs of the constituent define our services. In the spinal device market, there are a variety of constituents including the surgeon, distributor, investor, patient, employee and healthcare institution. Our goal is measurable constituent satisfaction. We work hard to align the Alphatec Spine success factors with those of our constituents. Only when these factors are in sync can we provide the highest level of service and maximize our own success. The key is listening to the constituent s needs; learning their business; forming strong personal relationships; implementing good programs and timely execution; being responsive to changes and then aligning or realigning our business accordingly. Given the high rate of change in the spine industry, this process is a constant challenge and one that is essential to long-term success. Ultimately, Alphatec Spine creates value to the constituent by providing unmatched service to and taking scientific direction from the physician which results in Excellence in Spinal Technology and product innovation. But even those employees with less direct contact with the constituents still demonstrate support by upholding the company values. Constituent satisfaction is measured by the following means: Surgeon satisfaction is measured through surgeon surveys, volume of sales of Alphatec products, surgeon fulfillment surveys, and sales trending analyses. Surgeon consultant/partner satisfaction is measured by the surgeon s satisfaction with customized implant or instrument. Distributor satisfaction is measured by growth of distributorships. Shareholder satisfaction is measured by positive investment return. Patient satisfaction is measured by improved quality of life for each individual. Employee satisfaction is measured by employee retention.
11 P U R S U I T O F E X C E L L E N C E Pursuit of Excellence is striving for the highest standards and achieving superiority or exceptional results. This is a common personal goal shared by all our employees. Our commitment to excellence unifies and strengthens us. It differentiates Alphatec Spine from other organizations and it is our edge to product innovation. Our goal, individually and collectively, is to be the best. It has been said that a shared personal goal is essential to the success of any organization. In our case, that goal is the Pursuit of Excellence. It is a common denominator throughout the company. Although individually we may pursue a variety of skills in many different locations, the Pursuit of Excellence is that intangible substance that binds us together in a single culture. We pursue excellence and innovation in spinal technology. Paths we follow include partnering with the surgeon, listening to the surgeon s needs, and taking scientific direction from the surgeon. Our strategy has also been to develop a corporate platform and infrastructure capable of substantial growth which includes on-site manufacturing and a research & development facility. Through the purchase of material licenses and integration with other companies, we are broadening our product offerings, expanding our sales and distribution channels, and enriching our employee talent. We also pursue excellence by investing in extensive training for our employees, and offering clinical education to our surgeons. Lastly, another path for excellence is the surgeon expertise channeled through the Alphatec Scientific Advisory Board. As leaders, we know that the greatest gift to another person is the opportunity to meet a challenge which requires stretching beyond previous limits. This is the dynamic of personal growth. The Pursuit of Excellence is at the root of our growth culture. The success of each individual s Pursuit of Excellence is measured by his or her ability to serve their direct report which is the surgeon and ultimately the patient.
12 It is measured by his or her ability to listen, anticipate concerns, learn expectations and then take the initiative to go beyond those expectations to achieve exceptional results. This individual would be constantly changing and adapting to the needs of the dynamic Alphatec environment. Alphatec recognizes employee excellence through reward and recognition. In addition to monetary bonuses, each month an employee is elected to be the Employee of the Month and is honored for being a role model of excellence... for being the best.
13 C O M M I T M E N T T O P E R S O N A L I N T E G R I T Y Integrity is the quality of sound moral principle, uprightness and honesty. Our Commitment to Personal Integrity compels us to always do the right thing. We recognize that organizations with the highest integrity are the most respected and produce the best results. Our goal is to maintain and enhance our respect and reputation. We treat our fellow employees, surgeons, distributors, investors with truthfulness, respect and dignity even with the pressures of our daily work. This is the quality that underlies our leadership position. Integrity is reflected in our actions and our service to the surgeon and ultimately the patient. It is demonstrated reliability through personal conduct. It is keeping promises and commitments. It is doing what is right. It is living our values which culminate in Excellence in Spinal Technology. Personal integrity recognizes the confidence of fellow employees, the sensitivity of corporate information and the propriety of certain documentation. Personal integrity extends to upholding health care ethics and the laws of the community. The company provides support for these standards through a policy of open communication and explicit expectations. We have in writing our values, corporate policies and corporate ethics. On an annual basis, we each review these statements and sign a reaffirmation of our personal commitment. Also, the company regularly audits for compliance. In these ways, we guard our hard-earned corporate respect and reputation which are the primary means for measuring our Commitment to Personal Integrity. If our reputation fails and we lose respect, we have only to blame our individual actions. Conversely, if a stellar reputation precedes us, we must be indebted to those who personally made a commitment to integrity and honor that reputation and those who worked so hard to create it, by working hard ourselves to uphold our Commitment to Personal Integrity.
14 F O C U S U P O N E F F I C I E N C Y A N D G R O W T H Focus Upon Efficiency and Growth is essential to the Alphatec Spine Credo, Excellence in Spinal Technology. By their nature, Alphatec employees intrinsically understand and habitually embrace the challenge of continuously striving for efficiency and growth. It is what makes common sense. And, it is an investment in professional growth for the employee and fiscal growth for the company. Our goal is to continuously examine the performance of our systems, procedures and technology and adapt them to be the most efficient which will, in turn, generate product innovation and corporate growth. To Focus Upon Efficiency and Growth is to focus upon how to be the best. It is not just about the bottom line. It is about the skills and ideas, the passion that is evoked, to orchestrate the bottom line. It is about the masterpiece that is created when we provide unmatched service to the physician and produce Excellence in Spinal Technology. Most significantly how to be the best makes it possible for the achievement of our mission statement because our mission is not simply to be a leader, but to be a values-based leader in the spinal market. We accomplish this efficiency through bringing together our individual expertise and collective knowledge and sharing in the responsibility of looking for new, innovative and better ideas that can translate into greater efficiency of efforts. Again, individually and collectively, we must stay abreast of state-of-the-art technology and the most current thinking, ideas, procedures, methods, etc. Furthermore, we must each continue training and education in our field and job. For corporate growth, we must have competitive analysis. We must continuously gather intelligence on Alphatec s competitors (including complementary competitors) and analyze their products, structure, and positioning, etc., to identify new competitors, channels, markets and partnerships. Most importantly, we must be ready for change. Any efficiency or growth strategy we implement must be designed with imminent change in mind.
15 Moreover, we must mentally be prepared for and open to constant change. We must be ready to listen and adapt to the ideas of our surgeon partners and others. We will measure our ability to Focus Upon Efficiency and Growth through quarterly reviews of procedures and systems and by the rate of return on investment that we provide for our shareholders.
16
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