November 16, 2005
Luminex Finds Growth by Balancing Flexibility and Rigid
Goals
by Asher Garonzik
In May 2004, when Patrick Balthrop joined the biological testing
technology company Luminex, the company was unorganized,
inefficient, and sales were dropping. Balthrop, as an interim CEO,
was brought in to form a plan for solving the company’s problems.
But, as he told McCombs School students during his talk for the VIP
Distinguished Speakers Series Nov. 10, “planning is priceless, but
plans are useless.”
During his first-year whirlwind renovation of Luminex, this was
Balthrop’s credo.. According to him, there are two invaluable
elements that compose an effective company— a very well-thought out,
rigid set of policies and protocols, as well as a certain degree of
flexibility to creatively handle unexpected changes.
“You have to set things up in a way that is motivating, clear and
not tyrannical,” Balthrop said.
This is the idea upon which he hinged his strategy for improving the
company. His first action at Luminex was to engage the participation
and input of Luminex customers, partners, employees and managers.
Balthrop emphasized that his informal attitude in approaching his
associates was crucial to devising a plan that could work for
everyone. “I basically just showed up. I didn’t have a laptop,
PowerPoint presentation, or flip-chart,” he said. “Only a pad, a pen
and my own ears.”.
With their help, he invented a new framework for the company that
was highly standardized but also encouraged an environment where
workers felt free to think creatively.
Balthrop devised a set of objectives, which he called the Customers,
Accountability, Partnership, Profit (CAPP) goals, and he distributed
written copies of the goals to every employee. The CAPP goals
clearly identified Luminex’s expectations and established guidelines
for workers’ behavior. Within the guidelines, Balthrop urged
independent decision-making as well as productivity.
For example, one CAPP goal tells employees to “ask for forgiveness,
not permission.” In other words, in times of crisis, employees
should make decisions on their own and learn lessons from their
mistakes rather than waste time seeking validation from management.
Balthrop’s design has helped Luminex bounce back from a dwindling
company to a $34 million,growing corporation. Luminex now serves a
host of big-name clients in the life-sciences industry including
Merck, Abbott Biotechnology and Amgen.
Notable Soundbites
On managing after downsizing:
“If you had to work for a company that laid off your best
friend, you’d be a little gun-shy.”
On good business:
“No matter what action you’re taking, it’s most important to act
in such a way that produces results.”
On the importance of listening:
“You have two ears and one mouth. It’s important to remember
the ratio.”
For information on specific programs at the McCombs School, consult our contacts page. For media information, contact the Communications Director by phone at 512-471-3314 or by email at CommunicationsDirector@mccombs.utexas.edu.
