book.chapter The craziest billion-dollar firm

In the dynamic commercial landscape of today, the ability to adapt and move swiftly is paramount. The market is unforgiving, with products becoming obsolete almost as quickly as they emerge. Consumers are capricious, always seeking the next best thing, and competition is fierce. The success of a company hinges on its speed to innovate and deliver the next generation of products. A company that excels in this environment is one that not only moves fast but operates at an even more accelerated pace—a faster company. Such a company consistently delivers added value to its customers, surpassing what was provided yesterday or what competitors can offer. It has the agility to detect shifts in the market and pivot accordingly without losing its customer base or diluting its vision. The workforce within a faster company is composed of self-motivated individuals who take initiative and strive for customer satisfaction without the need for constant oversight. These companies don't just aim for incremental improvements over their competitors; they strive for significant advancements, setting new standards in their industries. Faster companies have revolutionized various sectors, benefiting both astute investors and their employees. They are poised to become the blue-chip entities of tomorrow, unstoppable forces that leave competitors struggling to keep pace. An exemplary case of a faster company is PSS/World Medical Inc. (PSS), which has been the testing ground for these principles. Founded in 1983, PSS began by distributing medical supplies to doctors' offices and nursing homes. Starting with a single branch in Jacksonville, the company expanded to seven branches with $20 million in annual sales within five years. From 1988, PSS experienced explosive growth, with annual rates between 40 to 60 percent, adding an average of five to ten new branches each year. By 1998, PSS had surpassed $1 billion in sales, achieving this milestone in just 15 years. The company has been profitable in all but one of those years and went public on the Nasdaq in 1994. In fiscal 1997, PSS reported $15 million in profits from $700 million in revenue. PSS's growth has been driven by its business model and adherence to the principles of a faster company. It operates not at the forefront of high-tech innovation or through proprietary products but by distributing ordinary products in a conventional industry. Yet, there is still potential for growth, as PSS holds only a 15-percent market share in its primary industry. The success of companies like PSS is not an isolated phenomenon. Throughout history, businesses have been shaped by the times and market conditions they face. Henry Ford and Theodore Vail, for example, built companies that dominated their respective industries during their times. However, as technology, markets, and consumer preferences evolve, new businesses emerge, and yesterday's leaders must adapt or face competition from entities better attuned to the current marketplace. A fast company is often misconceived as one that merely adopts the latest technology, engages in aggressive business dealings, or follows management trends. However, a truly fast company—a faster company—is one that understands its purpose and direction. It is a company that consistently provides unparalleled value to its customers and can do so repeatedly.