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FOR IMMEDIATE RELEASE
Contact: Carolyn Hickey
Phone: 703-243-9262

Arlington, VA (October 23, 2003) - Founder and CEO of Organizational Dynamics, Inc. George Labovitz, Ph.D. told the Health Industry Group Purchasing Association's (HIGPA) 2003 International EXPO attendees that the "greatest challenge facing their health care businesses today is achieving organizational alignment so that day-to-day business practices run more effectively".

Dr. Labovitz told attendees that the process of bringing their business into alignment is not a natural act, and that the traditional organizational design used by businesses breeds inefficiency. He defined organizational alignment as, "the degree to which all elements of an organization's infrastructure are tightly integrated and working in concert to drive growth and profit." Dr. Labovitz identified the criteria for becoming a well-run business as money, stable employment and happy customers, as well as the ability to produce results in all areas at the same time. According to Dr. Labovitz, the production of such results requires a process to make quality work through the following stages: awakening, activity, breakthrough and then achievement of world-class status. He emphasized that the ongoing passion of senior management for quality is what drives organizations to reach the breakthrough stage and become world-class organizations. He told attendees that world-class organizations "are constantly in touch with all of the internal and external factors that impact their business; have high-level capabilities throughout the organization to rapidly adjust to ever-changing marketplace demands; and build and maintain first-class, superior infrastructures that repeatedly deliver intended results."

As their health care organizations strive to achieve a competitive edge, Dr. Labovitz encouraged attendees not to lose sight of the customer. He stressed the need for participative management in order to execute quality in business practices and keep suppliers and customers working together.

In conclusion, Dr. Labovitz said that successful alignment depends on the organization's ability to make "the main thing" for the organization as a whole into a common and unifying concept to which every unit can contribute. "Each department and team must be able to see a direct relationship between what it does and this overarching goal-'the main thing,'" according to Dr. Labovitz. "'The main thing' must be clear, easy to understand, consistent with the strategy of the organization, and actionable by every group and individual."

Dr. Labovitz spoke on October 14, during the Third General Session.

HIGPA's annual International EXPO was held this year in Phoenix, Arizona. Over 700 executives and senior managers from health care related companies attended this three-day educational and networking event, including leading Silver Sponsor Bayer Corporation.

Bayer Corporation, EXPO Silver Sponsor. Bayer Corporation is a research-based company with major business in health care and life sciences, and chemicals. Headquartered in Pittsburgh, Pennsylvania, Bayer Corp. operates 50 manufacturing operations and 50 sales offices nationwide and employs approximately 22,000 people in the United States. For more information, visit Bayer Corporation on the Internet at www.bayerus.com.

HIGPA is a chartered trade association of over 175 health care purchasing and supply chain organizations. HIGPA's Industry Members include purchasing groups, associations, and health care provider alliances. HIGPA's Trading Partner members include many of the world's leading health care product manufacturers, distributors, wholesalers and related suppliers. According to a recent study conducted by a former principal analyst at the Congressional Budget Office, hospitals save patients over $30 billion each year by purchasing products through group contracts.

To learn more about HIGPA or the group purchasing industry, visit www.higpa.org or call 703-243-9262.

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