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Vitalia also provided a detailed information package produced by its medical team for any outpatient referral. This was well received by the medical sector, which viewed this valuable information as a critical aid in diagnosis.

Vitalia Franchise Business Strategy

Vitalia’s strategy was built on four pillars. (See Exhibit 6 for the headquarters organizational structure.)

The first pillar, supervised by Quality Control and Inspection, ensured the implementation of the Hoffmann Method at the same level of care quality in all centers. To achieve this, Vitalia developed user-friendly therapy management software whose implementation was obligatory at each facility (see later section on Technology for more details). There were also performance protocols for each professional at the center and user guides. Training was seen as the greatest tool for learning the Hoffmann Method, and adherence to, and compliance with, the method was monitored through annual inspections and periodic meetings.

The second pillar, managed by Cathy Hoffmann, was innovation in treatments and operations and monitoring their results. Similarly, Vitalia was using new technologies to optimize operations: Enterprise Resource Planning (ERP) to implement the same system of costs and management in each center, and Personal Digital Assistants (PDA) to monitor the transport of the users. Suppliers were viewed as part of a long-term relationship so that they too would propose and assist in new developments: new materials, innovative medical equipment, and so on.

The third pillar, supervised by the CFO, was the central organization’s supporting the network of franchised centers to ensure their continued profitability. This was done though economies of scale gained from centralizing purchases and prior approval of vendors, products, and services to ensure uniformity of care quality and brand image in each center. Furthermore, each center received a 10-year business plan tailored to its specific characteristics.

The fourth and last pillar, managed by strategic marketing and human resources, was the creation of brand image externally and internally through initiatives from central management and its communications to staff. Center managers were carefully evaluated for fit with the ethos of the company, and the staff of all centers was centrally trained.

Values and Operational Rules

Right at the outset, with the first small center, Vitalia defined its values and operational rules. Each staff member carried a small card with Vitalia’s values and operational rules, and management used these to spot any inconsistencies and as guidelines for the proper delivery of service.

Vitalia’s core values were honesty (in Vitalia things are said clearly, while maintaining respect for people), enthusiasm and faith in the project (those who do not believe, do not belong), transparency (information is available to everyone), and searching for the common good (a basic premise is to always put oneself in the other person’s shoes).

Staff at the central organization must also comply with, and rely on, Vitalia’s philosophy as well as having specific knowledge in each area to support each franchisee and provide them with a service appropriate to their needs. Because she believed that Vitalia’s essence was based on these values, Cathy visited each center and spent time with the entire staff, sharing with them these values and rules. When members came to the Madrid headquarters for his or her two days training period, Cathy shared Vitalia´s ideals and how to unleash their potential. After their first month, she spent a day in the new centre sharing values, beliefs, and the Hoffmann method and revisited them every six months.

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