Henry Schein Multi-Stakeholder Focus Builds Sustainable Business Value
By Gwen Gulick
Leaders from the Center for Higher Ambition Leadership’s (CHL) member companies came together in October for a two-day Learning Visit with Henry Schein. A highlight of the visit was a tour of the company’s busy Indianapolis Distribution Center, where CHL members talked with Team Schein in action.
In the competitive field of health care products and services distribution, Henry Schein stands out. With more than one million customers, 22,000 employees and $11.6 billion in sales in 2016, the company is known for consistent, outstanding performance – and for “doing well by doing good.” Henry Schein has delivered nearly twice the returns for investors since its 1995 IPO that Warren Buffet’s Berkshire Hathaway produced during that same timeframe.
Henry’s Schein’s Multi-Stakeholder Model
The centerpiece of the discussions at this CHL Learning Visit was Henry Schein’s five constituency model. Building strong relationships with a broad set of stakeholders is a core Higher Ambition practice, and Henry Schein demonstrates high levels of commitment to all its stakeholder groups and views them as integral to the company’s long-term success.
Building high-trust relationships with these five constituencies means that Henry Schein can more effectively:
- Sustain the Team Schein culture for employees in the context of global growth and acquisitions, including strategies for acquisition integration and identifying and retaining key talent.
- Serve as a partner and advisor to drive customer success and deepen loyalty.
- Build strategic and values-based partnerships with suppliers so they can work together proactively to find solutions for customers.
- Set and meet investor expectations for superior long-term value while delivering on quarterly results.
- Create community value and do good for society.
According to Bergman, “We firmly believe that Henry Schein has been successful because we have built relationships based on trust. This has enabled us to lead during periods of great change in our businesses. Our Higher Ambition model lies at the heart of our ability to earn and preserve that trust through the alignment and balance between all of our key constituents.”
To learn more about Henry Schein’s five constituency model and leading higher ambition practices, read our CHL Learning Visit Highlights Report. Download PDF