The initial steps
Soon after taking the reins, Thiry identified four areas he needed to concentrate on to save DaVita, which posted $1.45 billion in net operating revenue in 1999.
“It’s relatively clear what you have to do in the beginning,” Thiry says. “First is to collect cash. Second is to build a new leadership team. Third is to share a vision of the future. Fourth
is to build credibility on the first three.”
Thiry created a “maniacal focus” on the fundamentals of executing the day-to-day operations of the business by driving home to the employees that the basics are the foundation upon
which everything else is built.
“We became more tenacious and timely with our bill collecting,” he says. “We needed to start billing on a more timely and accurate basis.”
With the foundation stabilized, Thiry set about rebuilding the top of the company by forming a new executive team.
Thiry began pulling from every resource he had, relying on in-house recruiting, past connections and personnel services to rebuild DaVita’s front office.
Thiry wasn’t grasping at straws, however. He was seeking out executives he believed could withstand the upheaval of a rebuilding project and emerge stronger leaders for it.
He was looking for three primary characteristics. He wanted managers who fit the company’s mission and values, had sharp conceptualizing and analytical skills — which he terms
“intellectual horsepower” — and had a no-nonsense attitude about getting to work.
“We call them ‘GSD,’ or ‘Get Stuff Done’ workers,” he says.
Those three criteria were essential because, after a certain point, those characteristics can’t be taught.
“A person’s values are pretty ingrained by the time someone is 35, 40 years old,” he says. “Intellectual horsepower is also pretty ingrained, as is whether or not you are a GSD-type of
person. But other areas — management skills, leadership and functional skills — they can still be taught.”
Refocusing on the financials and rebuilding the front office helped stabilize the company. Then it was time to start mapping the future.
But, at the time, DaVita’s work force was far from confident in the company’s leadership. Thiry had a massive job ahead of him to win the support of his employees and sell them on
the company’s future.