At his company’s national convention last year, founder and CEO Ed Kaloust was unsure of how to handle the announcement for Medi-Weightloss Clinics’ employee of the year. The problem wasn’t identifying a worthy candidate, but narrowing the success stories down to just one person.
“We just had three spectacular employees,” says Kaloust, who has grown the weight loss company from start-up to $16.5 million in revenue in 2011.
So he decided to announce three winners.
In today’s economic environment, having too many good people is hardly a problem a CEO is worried about. In fact, Kaloust says having the right people in the organization to grow its unique business model — a medically supervised and managed weight-loss program where physicians help clients lose weight through a combination of medication and diet – is why the Tampa-based business was one of Inc.’s fastest growing privately held companies in 2011.
“One thing that I believe in is what I call my ‘PLU’ method,” Kaloust says. “I believe that we need People Like Us. So we are very, very selective in the people that we choose to do this. By doing that, we can then be very supportive in helping them develop their program.”
From the time he started the company, Kaloust has been resolute in sticking to his PLU philosophy, carefully evaluating any business partner before he brings them into the enterprise, even if it means growing more slowly.
“People are really having a tough time out there,” Kaloust says. “I believe that it’s critical to keep that in front of us and to understand that growing through quality PLUs, people like us, is much better than trying to build 15 or 20 of these a month.”
Through deliberate organic growth, Kaloust has expanded the company from its initial three employees to 55 employees and 90 franchisees today. But in addition to having a company built with PLUs, he says, a leader needs to be able to support them effectively.
“My focus has changed from building the infrastructure to leading the infrastructure,” Kaloust says.
You need to let your people know that you are available to help them achieve their goals today, tomorrow and in the future, by “over-servicing” them. For example, Kaloust assigns a franchise field consultant to every 12 to 14 franchisees to help handle all of the marketing and compliance issues at each location so that they don’t need to worry about it.
“You need to do everything you can to protect the people who are investing in your program,” Kaloust says.
“That is one of the keys to not only growth, but it’s very key right now. Every time we turn around there is a new problem out there. So you’ve got to be there in front of them and keep reminding them, and you’ve got to be there to support them.”
It’s also important for leaders to demonstrate confidence and stability that people can look to and be inspired by.
“We have to protect the system and protect the clinics that aren’t doing well,” he says. … “We do whatever we can to help them get though the economy right now.”
Kaloust shows this by letting his people know that there is no problem too small for his involvement and no interference if an employee or franchisee calls him or comes to him with an issue.
“I’m not afraid to reach down to the smallest issue that we have in the company,” he says. “If I can help, I want to do that.”
In addition to having formal support systems in place for employees, an open-door policy lets them know you care about their wellbeing.
“I just make the time,” he says. “It doesn’t always happen and I don’t have that now as much as I used to because we have built such a strong company, but I would get involved.”
With the right team and support in place, Kaloust says, success is just a matter of letting people do what they do best.
“I believe that adage that you can take away everything I have and give me back the people, and I’ll do it again,” he says.
How to reach: Medi-Weightloss Clinics, www.mediweightlossclinics.com or (877) 633-5677
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Ed Kaloust spent 43 years in the securities and investments industry before founding Medi-Weightloss Clinics in 2004. He had never planned on being in the weight-loss business. In fact, he was set on retirement, soon to be heading off in a custom-built sailboat to fulfill his dreams of blue water sailing. But then he got hit with a market opportunity that he couldn’t say no to.
“I felt that we were in the perfect storm, because we had a country that had an overweight issue and had 70 percent of its population dealing with it,” says Kaloust, CEO of the company.
In addition to making sure you have a clear problem, a differentiating solution and the right people to execute it, Kaloust says having a partner can be a key factor in how well you capitalize on a new market opportunity.
In addition to being an asset through complementary talents, partnerships can be a mirror to help you reflect on and guide decisions about a company’s direction.
“It’s a lonely office when you are a CEO or a president,” Kaloust says. “Everybody is looking at you, and where do you look?”
By partnering with James Edlund, now president of the company, Kaloust was able to balance his financial background with Edlund’s pharmaceutical experience to grow Medi-Weightloss nationwide.
“There are a lot of people who say that partnerships don’t work,” Kaloust says. “That’s not true. Some partners don’t work, but other partners will help you go on to do bigger and better things than you can do on your own.”
How to reach: Medi-Weightloss Clinics, www.mediweightlossclinics.com or (877) 633-5677
