Philip Rielly and Eric Hill give BioRx a shot in the arm to keep the company on a strong growth trajectory

Philip Rielly, Co-Founder and President, BioRx LLC

Philip Rielly, Co-Founder and President, BioRx LLC

For Philip Rielly and Eric Hill, the past five years have been a very different experience compared to most others in the business world during that time. While many companies were hunkering down, cutting back and fighting to stay in business, Rielly and Hill were nurturing the healthy growth of a young company.

In fact, in just the past three years they have seen their company’s employment and revenue double. Rielly and Hill are co-founders of BioRx LLC, a more than 200-employee national provider and distributor of specialty pharmaceuticals they started in 2004.

Hill, who is vice president, is located in North Carolina, while Rielly, who is president, is in Cincinnati where BioRx is headquartered. The company, now nine years old, has been exceeding expectations, and there are no signs of it slowing down anytime soon.

“Since 2010 we have continued our strong growth trajectory as we hoped that we would,” Rielly says. “We finished this past year north of $100 million in sales. We’ve been fortunate to launch a number of new semi-exclusive products with some of the different manufacturers.”

Eric Hill, Co-Founder and Vice President, BioRx LLC

Eric Hill, Co-Founder and Vice President, BioRx LLC

Since 2010, BioRx has become a prominent player in the Hereditary Angioedema space and a major player in the Alpha-1 antitrypsin deficiencies space.

“Some of the other changes since 2010 are we announced that we were going to be a semi-exclusive distribution partner for a firm out of New Jersey called NPS Pharmaceuticals and we opened three new regional pharmacy and distribution centers,” Hill says. “Those are in Boston, Scottsdale, Ariz., and San Diego, Calif. Those are three large investments for us.”

Needless to say BioRx has been doing the right things to remain on a growth track. Now Rielly and Hill have to keep it going.

Here’s how they have grown the company through strategic planning and developing the right partnerships.

Take advantage of growth drivers

When Rielly and Hill first started BioRx, they had a different idea behind specialty pharmaceuticals than most other national companies. While others were switching to a less personalized mail order model, Rielly and Hill saw an opportunity to offer a higher care model and focus on the patient.

Since seeing that opportunity they have been aggressively pushing the company forward.

“We’ve taken a bullish approach from day one when we set the company up, and we’ve been very aggressive with respect to adding new geographies and new regions,” Rielly says. “We’ve certainly added quite a few new account managers in the field, so we really focus our market on the four P’s in the pharmaceutical space with respect to customers.

“In the physician marketplace, we’ve expanded the number of representatives calling on the physicians across the country to open new geographies to where we’re now truly a national company.”

The biggest driver for BioRx at this point has been developing relationships with the different biotech companies and manufacturers.

“They’ve entrusted us with some of their new therapies,” he says. “In many cases we are just one of a handful of companies in the world who has access to selling these drugs. We’ve been very fortunate to be able to get those relationships.”

When a company is growing at the rate BioRx has, it is often easy to focus on one big area of growth and forget about other areas. That has not been the case with BioRx.

“This hasn’t been a one-trick growth pony,” Hill says. “We’ve purposefully and carefully invested in multiple strategies that have the opportunity to provide us growth. We’ve executed pretty well on all of them, but the key thing to take away is that we haven’t put all of our eggs in one basket in terms of our strategy to provide continued and sustainable growth for the company. It’s been a measured approach across many fronts.”

Over the course of the business as it has scaled, Rielly and Hill have continued to reinvest in it.

“We’ve taken every dime of free cash that we can find and judiciously invested that into both infrastructure to allow us to grow, but most importantly into infrastructure that provides that growth such as opening new markets, hiring sales people, adding new product lines and adding infrastructure,” Hill says.

“At the same time, we have to ensure that we’re not getting ahead of the company’s ability to finance it so we can maintain a robust and strong balance sheet, which is a business killer for a lot of small companies.”

While maintaining a strong balance sheet is one challenge of a growing company, there are many other obstacles that come along with growth. One challenge is hiring.

“Even with the unemployment rate at what it is, I would say that we still have a challenge finding and recruiting some of the very best people,” Rielly says. “We set a very high bar for the quality of folks that we hire. We’ve really had very little turnover, but with the continuous growth we’ve enjoyed, it is a challenge to continue to grab those folks.”

One strategy that BioRx has implemented is hiring people for an associate-level sales position and having them train with more senior employees to learn the ropes.

“It eliminates some of the risk down the road of having a bad hire,” he says. “We’re also working closely with some of the local universities. That way we have an in on recruiting down the road, and it’s a good way for us to give back.”

Another way the company stays on top of hiring challenges is to be on the lookout for great candidates all the time.

“It may not be today, but it may be three months or six months from now that we’ll need talent,” Hill says. “When the opportunity to hire somebody comes along, we need to already have a portfolio of folks we’ve been talking to. That dialogue helps gets those jobs filled quicker and with better talent.”

Develop strategies

Most of BioRx’s growth to this point has been organic growth. However, Rielly and Hill are always looking for the next partnership that will benefit the company and its patients. Last year the company made an acquisition to help it reach new customers.

“Coagulife Pharmacy is the only acquisition that we have done to date,” Rielly says. “Our strategy from day one has always been through internal growth and continuing to reinvest in new talent and organic growth. But Coagulife presented itself. That situation was a unique opportunity for us to add a different skill set.”

Coagulife deals specifically in the hemophilia space. Many hemophilia patients have target joint bleeds and what ends up happening is many of them require an orthopedic procedure down the road. Many of those can be avoided or helped with some type of aggressive physical therapy, which is what Coagulife offers.

“So we’re rolling out a national program that is very specific to physical therapy and exercise regimens,” he says.

A large part of BioRx’s ability to find strategic partners and develop those relationships is because the company makes it a priority to plan for those kinds of things.

“You have to have a plan, but also the wherewithal to follow through on a plan without respect to different challenges that come up,” Rielly says. “Whatever the long-term plan is you have to stick with it and keep going forward even when it doesn’t feel comfortable from time to time.”

BioRx thinks of strategic planning in the two-to-five-year range.

“The easiest thing for us to plan is organic, new market openings and sales infrastructure growth by prioritizing the markets we believe have opportunity in each of our business units,” Hill says. “Then it’s just budgeting out the velocity with which we can deploy capital and money to put those people in place to enter and burst into new markets for us.”

Rielly and Hill constantly talk about the next five markets the company is going to crack into with a new therapy or a sales rep to put an operating unit in place.

“We’ve done a good job of sticking to that,” he says. “We kind of know where our next five, six, seven, or eight investments are going to be and in which business units we want to be plunking those bets down.”

During the strategic planning process you have to be willing to think about some far-fetched goals while also being reasonable about what can be achieved in your plan’s window of time.

“Dream big and shoot for the stars, but be realistic with respect to what it’s going to take to achieve those goals,” Rielly says. “Be realistic with how much capital it’s going to require to get from point A to point B. But don’t be afraid to dream big and swing for the fences.”

The key to achieving goals set forth in a strategic plan is having a great team around you.

“If we have done anything, we have hired a fantastic management team and our bench strength is pretty deep,” Hill says. “I think either one of us could get hit by a bus tomorrow and the company wouldn’t have a whole lot of issues. We have managers and operators that we turn loose to let them earn their stripes. Those guys know where our next bets need to be.”

How to reach: BioRx LLC, (866) 442-4679 or www.biorx.net

Takeaways

Determine your growth factors.

Develop strategic partnerships to help expand.

Have a planning process for the future.

 

The Rielly and Hill File

 

Philip Rielly

President and Co-founder

BioRx LLC

 

Eric Hill

Vice President and Co-founder

BioRx LLC

 

Rielly: Born in Cincinnati

Rielly: Education: Graduated from Spring Hill College in Mobile, Ala., with a BS in business communications.

Hill: Born in Bassett, Va.

Hill: Education: Graduated from Wake Forest University with a degree in psychology.

How did you first meet each other? And why did you start BioRx?

We both met working for another national company. We saw the trend of many national companies going to a mail order model with less personalized care, and we felt that we could create a market by going with a higher care model.

What has been your favorite thing about growing BioRx?

Rielly: The most rewarding part is building a team and watching the team grow. We’re making a very positive impact on the lives of each of the patients in which we touch and there’s not a week that goes by that we don’t get a patient testimonial about the ways our team members went above and beyond. I find that extraordinarily rewarding.

Hill: It is awfully refreshing to wake up every day knowing that we get to set the direction. It’s a lot of fun being in an entrepreneurial environment and getting to spread that spirit around the organization.

What excites you both about the future of BioRx?

Hill: I’m excited about the fact that sooner than later we are going to be a $200 million company. We also have a new drug launch happening and it has the opportunity to be a significant sea change in both the lives of the patients that we’re treating and the marketplace for one of our operating units in a way that’s transformative.

Rielly: In the last few months, we’ve aggressively hired and opened new geographical territories and I’m excited to see the initial successes. We have the best team in place that we’ve ever had and I’m excited for them to achieve their personal goals.

Paul Witkay: Building breakthroughs

Paul Witkay, founder and CEO, Alliance of Chief Executives

Paul Witkay, founder and CEO, Alliance of Chief Executives

When thinking about innovation, most people immediately think about new products like the next iPhone or electric vehicle. I, however, have always believed that business innovation comes in many different flavors. For example, Dell re-engineered the way we buy computers, Apple revolutionized the way we buy music and Zappos.com provided a service never before seen online.

I recently read “Ten Types of Innovation: The Discipline of Building Breakthroughs” by Larry Keeley and found it to be a great way to think about all the ways we might innovate within our own companies. All companies must continually improve or they will eventually die. According to Keeley, the most powerful strategies typically consist of several of the following types of innovation:

Profit Model — Gillette pioneered one of the classic business model innovations by creating the razor/razor blade system. The company taught consumers that razor blades could be discarded rather than sharpened for reuse.

Network — Network innovations enable companies to focus on their core strengths while leveraging the strengths of partners. Franchisors license their proprietary systems to franchisees to achieve much faster growth than they could do on their own capital.

Structure — Southwest Airlines was able to achieve faster turnarounds, lower maintenance costs and achieve more efficient operations by standardizing its fleet of Boeing 737s. The company’s unique structure resulted in much lower costs than its full-service competitors and increased profits.

Process — Toyota became the leading car company in the 1980s by creating the lean production system, which reduced waste, improved quality and lowered costs.

Product Performance — Before the launch of the iPhone, Corning Glass created Gorilla Glass at the request of Steve Jobs. This tough, scratch-resistant glass is now used in more than a billion devices worldwide.

Product System — Oscar Meyer wanted to do more than just sell cold cuts, so it created Lunchables — a lunch system that includes crackers, meats, cheese and dessert in a single fun package.

Service — Men’s Wearhouse promises free lifetime pressing of any purchased suit, sport coat or slacks at any of its stores, a service that is valued by business travelers who hate ironing.

Channel — Amazon created a closed wireless network that is free for Kindle customers so they can purchase and download e-books in less than 60 seconds.

Brand — Intel created the Intel Inside campaign to increase the perceived value of computers that use Intel processors.

Customer Engagement — Blizzard Entertainment created the most profitable online game in history, World of Warcraft, by designing the game to encourage and provide incentives to players to connect and collaborate, which increases their engagement and loyalty.

According to Keeley, the “heart of innovation is understanding when a broad shift is called for and driving it forward with courage and conviction.” Low-risk innovations improve existing products or systems by providing higher quality, improving speed or creating better service. The next level of innovation is to “change the boundaries” by bringing new products or services to an adjacent market.

The highest level of innovation is the rare occasion when you attempt to radically change an entire industry structure. Keeley says, “Transformational innovations erase the boundaries between once distinct markets and irrevocably change what is expected from competitors and consumers alike.”

So how can you decide which type of innovation will work for you? Opportunities are often discovered when observing how customers are either delighted or disappointed by current offerings. Keeley discusses how most innovation strategies focus on changes in three primary areas: 1) business models 2) platforms 3) customer experience.

The most radical and transformational strategies employ more than just one strategy at a time. It’s the CEO’s responsibility to determine when the opportunity for strategic innovation exists, and whether the organization is capable of making the necessary changes to succeed.

 

Paul Witkay is the founder and CEO of the Alliance of Chief Executives. The Alliance of CEOs is the most strategically valuable and innovative organization for leaders anywhere. The Alliance strives to provide the creative environments where breakthrough ideas happen. Paul can be reached at [email protected]

How talent, experience and family ties can combine in the investment search

Joe Kanfer

Joe Kanfer

Find a company. Buy a company. Grow a company. You can’t define that particular mission of an investment-minded entrepreneur any simpler.

And to get to that point, experience and talent are mandatory requirements. If you add a relationship such as family ties, it’s a bonus.

It’s a route that is being taken by KBZ Partners LLC of Akron, formed and funded by two families with deep roots in the Northeast Ohio business scene.

The partnership includes Joe Kanfer, Marcella Kanfer Rolnick, Todd Bendis and Don Zigdon. Three have roles or have had roles at GOJO Industries Inc., known best as the inventors of Purell Hand Sanitizer.

Kanfer is CEO and chairman of GOJO Industries and his daughter Marcella is vice chair. Zigdon, Kanfer’s son-in-law, has worked in the operational excellence department of the company, and Bendis has worked for General Electric in the GE Capital Division and at Greif, an industrial packaging manufacturer.

Marcella Kanfer

Marcella Kanfer

Smart Business discussed with KBZ Partners what goes into becoming a team of investment-minded entrepreneurs.

Q: What was the impetus behind KBZ Partners?

Kanfer: We’ve always been interested and active in Northeast Ohio. Our core business, GOJO, has been here since my uncle founded it in 1946. When Don, Todd and Marcella were talking about their interests, the idea clicked that this was a good opportunity for us to expand our interests here at home with talented folks who want to take an entrepreneurial approach in Northeast Ohio.

Q. Did the timing feel right for this type of initiative here?

Kanfer: Northeast Ohio has a lot of good things going for it. We know it and we like it. You can never predict when times are going to get better or worse, so the larger economy has not played a role in our decision. This is really a people-based choice — we have confidence in Don, Todd and in Northeast Ohio.

akr_cle_ftr_DonZigdon_0813Q: Where does KBZ see the best opportunities?

Bendis: In the industrial B2B space. It’s a good fit with the strengths of the region, as well as the strengths of our expertise. The ideal situation would be to find a manufacturing company that has a differentiated product serving a niche valuable to its customer supply chain. Our goal is threefold: Find a company. Buy a company. And then grow the company. We feel we can take a business that has been successful and get it to the next level of growth.

Kanfer: We’ve talked about family-owned businesses, but we are not limiting our search to them. We have a lot of respect for family-owned businesses because you often have a very solid culture and very solid relationships with people. Think about it, when you walk into a new business, you are really not acquiring the product line for the business line — you are really joining with people. That’s what this is about: Can you bring a freshness of perspective, perhaps some new capital, perhaps relational or strategic assets?

Todd Bendis

Todd Bendis

But that has to build upon the people. What we have seen is that privately owned businesses have strong relationships with talented and committed people, and they tend to make investments with a longer perspective in mind than publicly held businesses. It’s a good base to build from.

Q: How do you intend to apply the lessons you have learned at GOJO to this new partnership?

Kanfer: Marcella and I will act as sounding boards while the business will be run and operated by Todd and Don, and potentially the folks whose business we acquire. But clarity is the real critical element. Clarity provides a focus to everyone — people want to know what they are responsible for.

Q: How important will a company’s culture be in this venture?

Bendis: It will be a blending of cultures. The key is taking the best of both and moving forward. Hopefully, that results in a company that puts itself on a new trajectory to growth by leveraging a superior culture.

How to reach: KBZ Partners, (630) 423-6347 or www.kbzpartners.com.

Common misconceptions that could derail would-be entrepreneurs

Mark Hauserman, director of The Muldoon Center for Entrepreneurship

Mark Hauserman, director of The Muldoon Center for Entrepreneurship

Without question, entrepreneurship is the hottest thing going today. Rarely will you pick up a paper or magazine that does not either feature a fabulously successful entrepreneur or talk about some of the literally hundreds of programs or courses being offered to help you become that entrepreneur.

But, what is it really? In part the interest is a reaction to today’s younger generation – 75 percent of high school seniors do not want to work for a large organization. This is a reaction to the re-engineering of American business that has taken place during the past 20 years. These young people have seen the impact on their immediate families and they want to do something that will afford them more control of their lives.

Educational institutions, ever mindful of changing demographics, have jumped on the band wagon. The Internet revolution and the many successful IPOs of Web-based entrepreneurial firms have heightened the visibility of entrepreneurship. There is an increasing interest in entrepreneurship among the general population, but particularly among younger adults. As a result, colleges with formal Entrepreneurship centers have grown from a handful in 1990 to more than 200 today.

Smart Business spoke with Mark Hauserman, director of The Muldoon Center for Entrepreneurship, about common myths about entrepreneurship and what traits are common in successful entrepreneurs.

Are entrepreneurs necessarily young men and women?

You may be surprised to learn that a recent Kauffman Foundation research study revealed that the average age of the founders of technology companies in the U.S. is a surprisingly high 39 — with twice as many over age 50 as under age 25. With the average life span increasing and more ‘necessity entrepreneurs,’ those who start businesses because of the scarcity of job availability at existing companies, being created every day, this number will probably increase.

When you gain experience, you probably know a lot about a lot of things. If youth is the answer, why are so many venture capitalists over 50? And most of the better ones are over 60. Don’t short change your experience. Investors get a lot more comfortable if they know you have been around the block a couple of times.

How is entrepreneurship learned?

The best start for an entrepreneur is to gain experience. This often means working for a company that may not have the biggest buildings on the block, but has an entrepreneurial attitude and will challenge you to spread your wings and continually take on new tasks.

While all jobs consist of ‘things you must do,’ the better businesses are also continually looking for better ways to serve their customers and markets. Every business owner responds to ideas that will make the company more money. You may not think you are an important cog, but the owner will sit up and take notice when you offer better solutions to the existing business strategy.

Don’t be afraid to make mistakes. I have heard Edward Crawford, Chairman of Park Ohio and self-made entrepreneur, say that the common denominator in entrepreneurship is failure. Not every idea you have will be a winner, but people will respect you if you get up after being knocked down and get back in the game.

The younger entrepreneurs get it. A healthy 44 percent of young entrepreneurs feel that business failure is perceived as a learning opportunity.

How will you know when you have arrived?

In most cases, there was no ‘grand plan.’ The entrepreneur just started working and as they solved more and more problems, work became fun. The classic sign of an entrepreneur is they cannot let it go. Unlike the idea in the popular culture that they are looking for the big score, they love what they do.

I played golf with a guy a couple of years ago who had just been offered $8 million in cash for his company. I am afraid I jinxed the deal when I asked him what he was going to do in a month after a long vacation and a shopping spree; no answer and ultimately no deal. He was only 42 at the time, so he will eventually sell, but it was way early and he was having too much fun.

Mark Hauserman is director of The Muldoon Center for Entrepreneurship. Reach him at (216) 397-4572 or [email protected]

To learn more about the Muldoon Center and our programs, visit: www.jcu.edu/Muldoon.

Insights Executive Education is brought to you by John Carroll University

How Brad Dannegger found his niche in ARCO/Murray National Construction Company

Brad-Dannegger-ARCO2

Services

FINALIST

At age 30, Bradley J. Dannegger approached the owners of ARCO/Murray National Construction Company and asked to open a Chicago office of the firm. He had already worked at the St. Louis and Florida offices, and the owners recognized that he was a rising star, so they support his plan.

The result was a substantial decrease in pay for Dannegger as well as an increase in risk.  But his hard work, perseverance and his top talent has grown the Chicago office into one of the most successful in the ARCO/Murray family.

He continued to grow ARCO through the recent recession by focusing on complicated, niche construction projects with Fortune 2000 companies – for example, clean-rooms and laundry services for hospitals and hotels. The market is large, the construction is complicated, and few competitors are in the market. Staying away from construction that only requires “four walls and a roof” has helped differentiate his company from the competition and drive repeat business.

Dannegger sets high expectations for himself and his team, but he leads with an inclusive style — realizing that less experienced employees need coaching and encouragement. He faced challenges in the first couple of years trying to find the right talent to build his team. Starting in 2005, he focused on hiring the brightest students from the best engineering schools. When interviewing, he began focusing more on a candidate’s potential rather than experience. These new hires came onboard with no bad working habits and an eagerness to learn every aspect of the construction business.

In client relationships, Dannegger has always strived to form a strong partnership. As a design/build firm, ARCO is present at the earliest stages of the project until the building is complete.

Subcontractors and vendor relationships are just as important. Each year, ARCO honors its top 10 vendors in an annual ceremony to celebrate the year and their hard work.

How to reach: ARCO/Murray National Construction Company, www.arcomurray.com

How Jim Sartori and Jeff Schwager invest in the quality of Sartori cheese

Jim Sartori, CEO and owner, Sartori Co.

Jim Sartori, CEO and owner, Sartori Co.

 

Jeff Schwager, president, Sartori Co.

Jeff Schwager, president, Sartori Co.

Family Business Award of Excellence

WINNER

When the recent recession came around, Jim Sartori and Jeff Schwager decided not to participate. Rather, at their company Sartori Co. they continued to emphasize customer focus, cheese quality and reinvestment, all of which have enabled Sartori to prosper.

Schwager considers the significant growth of Sartori, including its retail presence, to be one of the more significant future challenges as well. Devising and installing the infrastructure to match the company’s growth has been and will continue to be a challenge, but the pair has plans in place to invest in quality, team development, leadership training, and modernization and expansion of key facilities.

Sartori believes strongly in leading by example and in employee empowerment rather than the controlled direction of his team members. This enables him to work with his teams in pursuit of their mission to make the “best artisan cheese in the world.”

The concept of “family” permeates throughout and is the key driver of the core values maintained at the company – family, integrity, ingenuity, commitment, authenticity and humility.

Sartori encourages his team members to suggest and pursue opportunities, which has enabled the business to grow.

The retail segment is flourishing at Sartori. The cheese needs to be of a high quality, requiring an aging schedule anywhere from one to two years and a highly innovative team of master cheesemakers. In addition, there needs to be a strong marketing and branding campaign led by a top-notch sales team.

These efforts require a highly risky and significant capital outlay as the team tries to estimate retail cheese demand at least one year or more in the future.

When it comes to specialty cheeses, the risk is amplified by the lack of an outlet market that classic cheeses such as parmesan and asiago enjoy. Needless to say, the investment has proven to be the lucrative opportunity that Sartori and Schwager envisioned.

How to reach: Sartori Co., www.sartoricheese.com

How Todd Berger fought skepticism to innovate Transportation Solutions Enterprises

Todd Berger, president and CEO, Transportation Solutions Enterprises

Todd Berger, president and CEO, Transportation Solutions Enterprises

Industrial and Distribution

FINALIST

Todd Berger first got a taste for the transportation and logistics industry as an intern for American Backhaulers — and it didn’t go well. He vowed to never work in that industry again.

After all, it was a time when pioneer companies like Google and Apple were the leaders of innovation, and in Berger’s words, the transportation and logistics industry “just wasn’t ‘sexy’ and lacked innovation, and I wanted to change that.”

Fortunately, Berger thought it over and came up with a different goal. He re-entered the industry in 2001, working as a dispatcher at Transportation Solutions Group. Berger recognized the need to anti-commoditize the business and proposed opening a trucking company to ensure TSG’s competitive position in the industry.

While management was skeptical of his venture with Berger being only 26, he created and began to operate Freight Exchange, a full truckload carrier that subsequently turned a profit in its first year of operations.

From that point on, a curious situation occurred. The more initial pushback he received from management, the better the final outcome. In 2009, Berger proposed his idea of 3PLogic, a contract logistics management provider that included customized software.  He again received criticism from management because 3PLogic required a significant capital investment for software to be developed and key personnel to be hired.

Berger was unfazed. He presented the idea to a current client — and the customer decided to fund a significant portion of the venture. 3PLogic now provides logistics services, technology solutions and consulting services, and is considered the strongest arm of the group.

Berger’s style is a trial-by-fire leadership philosophy that he applied early in his career and still follows today, believing that a leader can learn something new the same day that it is put into practice.

He also is always cognizant of demonstrating a strong sense of humility not only within his demeanor but throughout the operation of the business.

How to reach: Transportation Solutions Enterprise, www.tse-llc.com

How Dominic Gallello turned around MSC Software to help the Mars Rover land on the red planet

Dominic Gallello, president and CEO, MSC Software Corp.

Dominic Gallello, president and CEO, MSC Software Corp.

Technology

FINALIST

In 2009, Dominic Gallello was tasked to turn around a company known for expensive and difficult-to-use software. The mismanaged and ailing MSC Software, founded in 1963 to assist with simulations for the space program, had not updated its products in far too long, customer churn rates were high, and there was no spark at the company.

Gallello set out to build and communicate to employees a comprehensive strategy framework that reduced general and administrative expenses from 19 to 11 percent in the first year. He cut $40 million from operating expenses in his first two years. Gallello expanded R&D by 40 percent, brought on more than 40 doctorate-degreed employees through hiring and acquisition, and initiated the development of a next generation computer aided engineering (CAE) system to be brought to market this year.

In less than five years as CEO and president, the company has embraced his vision, and his team is highly motivated to develop the solutions for existing and new customers. At MSC, he leveraged the synergy between the improved morale and the new technology to help customers change the world — which is precisely what the company is doing: The company was instrumental in simulations of the entry descent and landing for the Mars Rover Curiosity mission.

Gallello introduced a culture of “You never stop learning at MSC.” He encouraged managers and individual contributors to pursue professional development and funded their efforts.

He started a high-potential employee program (“Managing your Career”) to build future leaders and a management development program (“Managing by Influence”). Gallello believes that personal success should be celebrated, but must also come with responsibility.

He and his family have personally funded construction of five orphanages in Romania in the past five years and they call more than 100 children their own. Gallello also is funding the development of a farm in Romania for teenagers who cannot find jobs after high school.

How to reach: MSC Software Corp., www.mscsoftware.com

How Zachary Boca and Dan Ushman went from chat room buddies to partners and founded SingleHop

Daniel Ushman, co-founder, SingleHop

Daniel Ushman, co-founder, SingleHop

 

Zachary Boca, co-founder, SingleHop

Zachary Boca, co-founder, SingleHop

Private Equity/Venture Capital Backed

FINALIST

Zachary Boca and Dan Ushman were chat room buddies on AOL at age 13 — little did they know then that they would later collaborate on a cloud computing startup company, SingleHop.

They shared interests at that young age and continued to stay in touch as they worked toward developing their own businesses. Later as partners, they put their heart and soul into the success of SingleHop.

SingleHop is a leading global provider of hosted IT infrastructure and cloud computing. Over the last decade, clients all over the world have been choosing SingleHop for its speedy blend of automation and service.

As a result, both men have seen triple and double digit percentage revenue growth for SingleHop since inception. But maintaining these record-breaking benchmarks is no easy task. They are also cognizant of growing too quickly for their own good and have focused on sustainable growth going forward by expanding their customer base but staying true to their original concept of highly automated cloud computing services.

Hiring the right people for the right teams allows Boca and Ushman to let go of the reins a little when it comes to managing the company. They believe that they have allowed their employees to have a vested interest in the shared success of the company. They both have made an effort of employing highly qualified individuals that keep the hosting process at the forefront of changing technological advancements.

With teams that are a good mix and balance of seasoned professionals who bring insight from other experiences and new talent that has innovative vision and hunger for success, the recipe is bringing positive results.

Boca and Ushman construct a yearly plan for SingleHop, which is built from the bottom up and requires each department to contribute its own ideas for continued growth. This culture allows everyone to contribute to the entrepreneurial efforts and encourages ownership and transparency across all levels of the organization.

How to reach: SingleHop, www.singlehop.com

How the An family turned despair into opportunity with House of An

Helene An, executive chef

Helene An, executive chef, House of An

 

Elizabeth An, managing partner, House of An

Elizabeth An, managing partner, House of An

Hannah An, managing partner, House of An

Hannah An, managing partner, House of An

 

Catherine An, managing partner, House of An

Catherine An, managing partner, House of An

 

Monique An, managing partner, House of An

Monique An, managing partner, House of An

 

Jacqueline An, managing partner, House of An

Jacqueline An, managing partner, House of An

Family Business Award of Excellence

WINNER

When Helene An arrived in San Francisco in 1975 she had little more than memories to cling to. The fall of Saigon in her native Vietnam had forced An and her daughters to flee the country and come to the U.S.

Despite the hardships, they brought with them a strong spirit of determination to get back on their feet and find success. They would get their chance at an Italian deli that Helene’s mother-in-law Diana had purchased four years earlier while vacationing in San Francisco.

Most of the patrons to the deli had never experienced Vietnamese food, so Helene kept the Italian menu and slowly began to introduce patrons to Vietnamese cuisine. She would offer her favorite dishes for free, urging her patrons to “try this delicious food from my home country.”

Seeing how her customers loved pasta, she created her own version of Vietnamese spaghetti with garlic. It became one of her trademarks which she named An’s Famous Garlic Noodles.

Eventually, the deli became Thanh Long and is known as being the first Vietnamese restaurant in San Francisco. Today, the An family owns and operates five restaurants and a catering division. Each location offers a unique dining experience that complements the restaurant’s cuisine.

In 2007, the An family was inducted into the Vietnamese-American Wing of the Smithsonian Institute for being one of the first to bring Vietnamese cuisine to mainstream America.

While Helene serves as executive chef at House of An, her five daughters are managing partners. Catherine, Elizabeth, Hannah, Monique and Jacqueline each oversee part of the company’s operations. Catherine focuses specifically on the catering operations and is also the brainchild behind the An’s newest eco-chic concept, Tiato Kitchen Bar Garden + Venue.

As the great-grandchildren of Diana An now begin to learn the business, the future seems very bright for the House of An, and the fourth generation that will one day lead the way.

How to reach: House of An, www.houseofan.com