Medrad, Inc.

Medrad, Inc. got its start in 1964, when Dr. M. Stephen

Heilman created the first angiographic injector in the kitchen

of his home near Pittsburgh. An emergency room physician,

Heilman realized that being able to precisely inject a liquid

contrast agent into blood vessels would make X-ray images

clearer, improving diagnosis of cardiovascular diseases. 

Today, Medrad is a worldwide leader in developing,

manufacturing, marketing, and servicing medical devices that

enhance imaging of the human body and enable therapy. 

A subsidiary of Schering, AG Germany, Medrad has a

headquarters and manufacturing facility in the United States

near Pittsburgh, Pa., and 14 locations around the world,

including Africa, Australia, Canada, France, Germany, Japan,

Norway, and Singapore. Led by President and CEO John P.

Friel, Medrad has 1,194 employees and realized $254 million

in sales in 2002. 

Medrad’s sustained success is based on three priorities

known as the Medrad Philosophy: To improve the quality of

health care, to ensure continued growth and profit, and to

provide an enjoyable and rewarding place to work.

The Power of 5

Medrad’s mission, “to be a worldwide market leader of

medical devices and services that enable or enhance

diagnostic and therapeutic imaging procedures,” is the

guiding principle for how the company operates. To achieve

its mission, five corporate scorecard goals guide decision

making at all levels: (1) exceed the financials, (2) grow the

company, (3) improve quality and productivity, (4) increase

customer satisfaction, and (5) improve employee growth and

satisfaction. 

Medrad’s Executive Committee uses a systematic strategic

planning process to review the company’s five goals, to set

one- and five-year targets, and to identify annual Top 12

Objectives to achieve those targets. A “Waterfalling Process”

is used to deploy the scorecard goals and Top 12 Objectives

throughout the organization. Managers create departmental

objectives and plans to support the corporate scorecard and

Top 12, and then work with employees to develop supporting

individual goals. This process results in the alignment of the

corporate scorecard goals to the individual employee.

In an industry that is heavily regulated, Medrad has

created an environment that fosters legal and ethical behavior

on the part of all its employees and suppliers both in the

United States and around the world. Training in the Code of

Conduct, which defines ethical behavior in all transactions

and interactions, is part of the company’s employee

orientation program and is reinforced through a quarterly

Code of Conduct Challenge distributed by e-mail to all

employees. In addition, Medrad has an anonymous ethics

hotline and e-mail address, a Business Ethics committee, and

a Legal Advisory Board.

Quality, Service, Availability Reap

Rewards

As a small company in an industry dominated by very large

scanner and contrast manufacturers, Medrad’s competitive

edge is its strong customer focus, which includes continuous

2003

Award Winner

National Institute of Standards and Technology ● Technology Administration ● Department of Commerce

Baldrige National Quality Program

Highlights

• Medrad has consistently achieved its balanced scorecard

goals since 1998, including an average annual revenue

growth rate of 15 percent.

• Medrad is the market leader in the United States and

Europe for its vascular injection systems and related

services, with market shares significantly greater than its

best competitor in many product lines and regions

around the world.

• Since 1999, overall employee satisfaction has exceeded

an industry best-in-class benchmark.

• In 2002, the company reimbursed employees 

$487,000 for tuition and budgeted $535,000 in tuition

reimbursement for 2003.

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direct contact with customers, high-quality products which

are compatible with customers’ imaging equipment, on-site

product training for customers, and responsive field service.

Medrad also makes it easy to purchase its products through

the customer’s preferred source, including its sales force in

major countries, authorized local dealers in smaller countries,

or through original equipment manufacturing partners and

others. 

In support of its corporate scorecard goal of increasing

customer satisfaction, Medrad uses a seven-step sales process

to build customer relationships, acquire customers and meet

their expectations, increase loyalty and repeat business, and

gain positive referrals. In addition, Medrad uses its Field

Force Automation system and InSITE database to capture

customer information and complaints, to share that

information throughout the organization, and to analyze and

improve customer satisfaction, product performance, and

sales. “Listening posts,” such as surveys, the Field Force

Automation system, customer visits by management, and

analysis of complaints, help Medrad listen to and learn from

current, former, potential, and competitors’ customers. 

To develop new products or improve existing ones,

Medrad uses its Integrated Product Development Process to

collect ideas from employees, identify customer

requirements, prioritize product development initiatives, and

translate those initiatives into specifications. In addition, the

process proactively addresses regulatory compliance, product

safety, and environmental concerns, resulting in risk

mitigation plans that design safety, health, and environmental

factors into production and delivery processes.

Strong Performance 

The success of this approach is demonstrated by overall

customer satisfaction and Medrad’s strong financial

performance. In a 2003 industry survey, Medical Imaging

magazine asked readers to rate 57 medical imaging

companies, including Medrad, in 10 areas such as product

quality, service, support and price, ability to capitalize on new

and niche products, and company leadership. Medrad ranked

among the top 10 in eight of the performance areas

measured, including two first-place rankings. Medrad ranked

second out of 57 for overall satisfaction, and was in the top

two in price, quality of products, ease of integration, and

service and support. As a comparison, the company’s key

competitor did not finish in the top 10 in any of the

performance areas. 

Strong financial performance is evidenced by an increase

in operating income as a percent of revenue, which reflects

the overall profitability of the company, from 16 percent in

1999 to 20 percent in 2002. Revenue growth has exceeded

the average growth trend of comparable companies,

increasing from $35 million in 1988 to $254 million in 2002.

Medrad consistently has achieved its growth goal since 1998.

“Improving employee growth and satisfaction,” is the fifth

of Medrad’s five corporate goals; and it is essential to

achieving the other four. In 2002, the company spent

$487,000 on tuition reimbursement and budgeted $535,000

for 2003, an increase from $325,000 in 1999. Medrad’s total

training expenditure per employee of $2,233 in 2002 exceeds

the American Society for Training and Development’s

benchmark of $1,655.

The semiannual Employee Satisfaction Survey is the tool

Medrad uses to measure progress on its corporate scorecard

goal of increasing employee growth and satisfaction. Since

1999, overall employee satisfaction has exceeded an industry

best-in-class benchmark. Safety is part of this success; since

1994, Medrad has had a lower rate of injuries than the

medical device industry’s benchmark of five OSHA

reportable incidents per 100 employees. Confidence in the

company’s leadership, also important to employee

satisfaction, has improved from about 60 percent in 2000 to

70 percent in 2003, surpassing an industry survey benchmark.

Employee empowerment, innovation, and initiative are

pervasive in Medrad’s culture, as shown through the many

methods of capturing and capitalizing on diverse ideas and

thinking. For example, Medrad’s VIP process captures,

reviews, and acts upon cost-saving ideas generated by

individuals and teams. “The Rack” is a team-focused system

for identifying problems and issues related to quality, safety,

and efficiency. In addition, the Product Innovation and

Advanced Design (PIAD) process focuses on new technology

and product innovations, including developing an intellectual

property portfolio to support business growth.

Community Care 

For Medrad, being a good corporate neighbor is a way to

share its success, invest in the future, and give back to society.

President and CEO John Friel serves on the board of

directors for many Pittsburgh area organizations, including

the United Way of Allegheny County. Medrad matches 

70 percent of employee contributions to the United Way,

which have nearly tripled from just over $60,000 in 1994 to

$180,000 in 2002. Medrad’s Points of Light community

outreach organization plans approximately 20 events each

year, including the United Way Day of Caring, during which

the company suspends operations for a day to allow

employees to participate. In 2002, 750 employees

participated in the Day of Caring, up from 630 in 1998. In

recognition of Medrad’s support, the United Way presented

the company with the Gold Award in 2001 and the Balto

Award in 2002.

For more information, contact:

Rose Almon-Martin

Director, Performance Excellence & Marketing Services

Medrad, Inc.

One Medrad Drive

Indianola, PA 15052

Telephone: (412) 767-2400 ext. 4382

Fax: (412) 767-6635

E-mail: Baldrige@Medrad.com

Website: www.medrad.com

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