Minnesota VC Conference Investors Registered To Date
Speakers (To Date)
Mike Berman, Angel Investor/Entrepreneur (MN)
Mary Campbell, General Partner, EDF Ventures (MI)
Chris Coburn, Executive Director, Cleveland Clinic Foundation Innovations (OH)  
Richard Fade, Venture Partner, Ignition Partners (WA)
David Goldschmidt, Managing Partner, Mofet Technology Fund Management (Israel)
Robb Hiller, CEO, Performance Solutions (MN)

Marianne Hudson, Director, Ewing Marion Kauffman Foundation (KS)

Brad Lehrman, President, Portage Capital (MN)
Dan Loague, Executive Director, National Association of Seed and Venture Funds (OK)
Monika Vnuk, PhD - Associate, Oxford Bioscience Partners (MA)
Investors (To Date)
Dennis Anderson, Founder and Principal, Andcor (MN)
Josh Baltzell, Principal, St. Paul Venture Capital (MN)
Amit Bhargava, Principal, ECentury Capital (VA)
Mary Campbell, General Partner, EDF Ventures (MI)
David F. Dalvey, Partner, Brightstone Capital (MN)
Erik Dykema, Principal, Metapoint Partners (MA
Richard Fade, Venture Partner, Ignition Partners (WA)
Greg Fluet, Analyst, Sapient Capital (WY)
Allison Gage, VP, LFE Capital (MN
David Goldschmidt, Managing Partner, Mofet Technology Fund Management (Israel)
Charles Gorman, Managing Director, Cherry Tree Investments (MN)
John Gustafson, Principal, Odin Capital Group (NE)
David Hanson, Managing Director, Lynwood Capital (CO)
Cathy Harms, Manager, St. Paul Capital Fund (MN)
John Hayes, Principal, Cherry Tree (MN)
Rob Heimann, Associate, River Cities Capital Funds (OH)
Jason Henrichs, Principal, Rock Maple Ventures (MA)
Tom Hiatt, Managing Director, Centerfield Capital Partners (IN)
Jeff Hinck, General Partner, Crescendo Ventures (MN)
Harlan Jacobs, President, Genesis Business Centers (MN)
David Kim, MD, Associate, MPM Capital (CA)
Brian Kirkbride, Associate, Highland Capital Partners (MA)
Timothy Kraskey, Managing Director, YankeeTek Ventures (MN)
Rick Larson, Managing Director, SJF Ventures (NC)
Beau Laskey, Partner, EDF Ventures (MI)
Brad Lehrman, President, Portage Capital (MN)
Michael Leidesdorff, Principal, Questmark Partners (MD)
Kevin (J.G.) Lim, Managing Partner, STIC Ventures (CA, Korea)
Shawn Malleus, Director, Commerce Capital (TN)
Sandra Mayasich, Partner, Prism Capital & Prism Mezzanine Fund (MN, IL)
Steven Mercil, CEO, Minnesota Investment Network (MN)
Mohamed Nouri, Angel Investor, AMEX, Inc. (MN)
Todd Ortberg, Managing Director, Coral Capital Management (MN)
Franklin Pass, MD, Managing Director, Cherry Tree Investments (MN)
Manish Patel, Associate, JMI Equity (MD)
Kurt Riegger, Venture Partner, North Coast Technology Investors (MI)
Adam Schatz, Managing Director, TeknoSeed AB (Sweden)
Roy Scruggs, Associate, GRP Partners (CA
Bipin Shah, Managing Partner, INC3 Ventures (CA)
Jerry Spencer, Associate Director, AltosBanCorp (MT)

Bart Stuck, Managing Director, Signal Lake Venture Fund (CT)
James Thorp, Managing Executive Director, AAvin Venture Capital (IA)
Jonathan Tsou, Principal, Cargill Ventures (MN)
Joel Uchenick, General Partner, Sherbrooke Capital (MA
Monika Vnuk, PhD - Associate, Oxford Bioscience Partners (MA
Christopher Volker, Principal, The Mercanti Group (MN)
Tom Von Kuster, Angel Investor, AMEX, Inc. (MN)
Donna Walsh, Partner, Odin Capital Group (NE
Larry Wechter, Managing Director & CEO, Monument Capital Partners (IN)
Joan Wurzer, Investment Manager, Minnesota Investment Network (MN)
Robert Zieserl, Managing Director, KB Partners (IL)

Reach the largest Tech Audience in the State
 
Want to advertise?

matt@netsuds.com
 


Email Ad Rates
 

Small ads are $75/ad. Large ads are $125/ad. That's the range. Buying 5 ads at a time cost $50/ad (small) or $90/ad (large). Buying 15 ads at a time cost $35/ad (small) or $60/ad (large).

The email lists reach 5100+ people; mostly in the Twin Cities metro area, mostly in the tech business. The MedSuds email list reaches 2200+ in the Twin Cities.
 

 



Lake Cabin For Rent

1 Acre, very private, premier west Central MN lake (Pelican Lake in Otter Tail County).  Close to many golf courses, fine and casual dining.  Cabin is fully-furnished, cable, phone, central air, dock, excellent swimming. $1500 per week, available June, July and August, 2004.  Also available now for hunting, snowmobiling and cross-country skiing at $500/week.
 

Contact Matt Noah, matt@medicalsuds.com 

 

June 7-8, Minneapolis

The MedSuds™ Report ©

The April 1, 2004 Issue: 

June 9, Minneapolis

Re-sending of this newsletter to any number of colleagues is encouraged provided you also cc: report@medsuds.com.  In return, we will invite recipients to subscribe.  Any other unauthorized re-distribution is a violation of copyright law.

Subscribe to the MedSuds Report at http://www.netsuds.net/mail.htm. You can get the web versions of these reports at http://www.medsuds.com/report/.


In this Issue:

        1.0   Heard on the Net
        2.0   Jobs in the Medtech, Biotech and Life Sciences Market
        3.0   Schedule of Events
        4.0   Tidbits
               4.1    MedSuds on Tour
               4.2   
Email Advertising
               4.3    MedSuds Executive Search - www.medsuds.com/search/
               4.4    MedSuds CEO Roundtable - www.medsuds.com/ceo/
               4.5    MedSuds CTO Roundtable - www.medsuds.com/cto/
               4.6   
BioSciences & Medical Career Connections Expo
              
4.7    Capital City Bioscience Corporation Seeks Permanent Director
        5.0   Why Won’t My Doctors Use My Product? 
        6.0   Contract Employee---An Old Concept Whose Time Has Come
        7.0   Providing Affordable, Convenient Healthcare –
                       A Discussion with Linda Hall Whitman of MinuteClinic
        8.0   Guest Writers for this Report

Sponsors
For more information on our sponsors' offers, click on their ads.

 

1.0  People And Companies On The Move:

CLICK HERE FOR PEOPLE AND COMPANIES ON THE MOVE

In the past, we've published information about people and companies on the move in our monthly report.  Now you can publish and view that information instantly on our web log (blog)!  To view, click on http://medicalsudsannounce.blogspot.com/.

You can report a change in your job status if you are moving from or to a company in the medtech, biotech or life sciences markets.  Include your new work contact information, not just your personal contact information.  If you don't want to use the BLOG, send me an email at onthemove@medsuds.com.  I'll publish the information for you.  If you are with a 'company on the move', email onthemove@medsuds.com to report (1) the formation of a new start-up, (2) momentum change at an existing start-up, (3) addition of key hires, or (4) a funding event at a start-up.  We do not accept press releases from third parties.  We must hear directly from a company that is ‘on the move’.  You can include a 80 x 100 pixel (width x height) photo in JPG or GIF format.

Why email only to your small email list of associates when you can post this information on the blog and have 2500+ MedSudsers view it.  To publish to the blog send me an email requesting permission.  After you have an account, you can post to the blog as much as you want.  You need only follow some common sense guidelines, e.g. don't post every press release, don't post sales information, don't post defamatory statements, etc.  If you "spam" the blog, you will be removed.

Sponsors
For more information on our sponsors' offers, click on their ads.

 

2.0 Jobs in the "medtech, biotech and life sciences" Market

Please email:  matt@medicalsuds.com to report job openings in the medtech, biotech and life sciences market.  In the body of the message, provide the name of the company and a URL link to the job postings. 

*          Diversified Medical - http://www.diversifiedmedicalcorp.com/Careers.htm
**      
  Transoma Medical - http://www.transomamedical.com/jobs
**         Vital Images -
http://www.vitalimages.com/about/jobs.php
**      
  St. Croix Medical, Inc. - http://www.stcroixmedical.com/_private/cgi-bin/positions_list.htx
*
*         Sinex Aviation Technologies - http://www.sinex.com/about/openings.htm

***        AppTec Laboratory Services - http://www.apptecls.com/employment.htm
***        MR Instruments - http://www.mrinstruments.com/company/careers_index.cfm

***        Velocimed - http://www.velocimed.com/careers.htm
***       
HEII – http://www.heii.com/corp/hr/default.asp
*
**        CHF Solutions -
http://www.chfsolutions.com/about_careers.html

Thank you for the support many of you have shown to the MedSuds recruiting association with the American Consulting Company.  We have developed a quality and impressive MedSuds candidate database.  We always appreciate the opportunity to discuss how we might help in locating candidates for your open positions.   

If you are a hiring manager, you are invited to review our process, our commitment to ethical standards and diversity recruiting, and other areas of interest at: www.americanconsultingcompany.com.  When you identify yourself as a member of the MedSuds association, we will offer you a discounted rate to assist in locating candidates for your company.  And remember, you never pay a fee unless you hire one of our candidates. 

If you are a candidate, visit the ‘Candidate Kit’ at www.americanconsultingcompany.com.  You will find valuable tools to help in your job search.  When you send us your resume, be sure and mention your association with MedSuds.

Renowned entrepreneur and local resume-writing expert Kevin Donlin - www.gresumes.com - is available to assist you in writing a powerful, effective resume.  Kevin can also help you with cover letters and job search coaching.  Contact Kevin at guaranteed.resumes@netsuds.com and tell him Matt Noah referred you.
Read about the new MedSuds Executive Search - www.medsuds.com/search/ - in section 4.3
How did one out-of-work Design Engineer from Ohio get hired -- right over the phone -- after making a simple telephone call to his old manager?  Discover the answer -- and learn about 50 other job search secrets -- in a controversial report ... Click here
Hi Matt -

Thanks for posting our job opening in the NetSuds monthly.  The number of "good" people we had respond to our position is a direct reflection of the exposure received thru NetSuds.  I do not have a quantitative measurement but having posted the same job just 45 days earlier thru the 'normal' means provides a pretty accurate comparison.  The only thing we did differently was use the NetSuds site. 

We have filled the position so the posting can be removed.  Thanks again -

Bradd Strelow
Director of Technology and Innovation. Dakota County Technical College



3.0  Schedule of Events

You can also try our online calendar by clicking here for NetSuds and here for MedSuds.

The web calendars for NetSuds and MedSuds continue to grow in popularity as more and more people use them for the definitive place to find high-tech events in the Twin Cities.  The calendars are free to use for both tracking events and for posting your own events.  To post events, login as "guest" with a password of "guest".  The Calendars are accessed at

NetSuds - http://www.netsuds.net/cgi-bin/calweb/calweb.pl?cal=default
MedSuds - http://www.netsuds.net/cgi-bin/calweb/calweb.pl?cal=MedicalSuds

Non-Minnesota companies conducting events in Minnesota will not be allowed to post events for free.  Events posted to either of these calendars are not immediately available for viewing.  All events will be marked "pending" and will be reviewed for content prior to public viewing.

4/13   NetSuds Entrepreneurs Breakfast
          http://www.netsuds.com/eb/2004/april/

4/22   MedSuds Entrepreneurs Breakfast
          http://www.medicalsuds.com/eb/2004/april/

4/29   On Call Clinicians Medical Career Fair
        
http://www.medsuds.com/docs/oncall.pdf Co-sponsored by
MedSuds.

5/5     NetSuds Winning Investment Presentation Skills Workshop
          http://www.netsuds.com/workshop/investment/

5/19   MedSuds Monopolize Your Marketplace Workshop
          http://www.medicalsuds.com/workshop/mym/

6/7-8  Minnesota Venture Capital Conference
          http://www.mnvcc.com/

6/9     Minnesota M&A Conference
          http://www.mnmac.com/

Become a More Confident Speaker
8AM - 4PM, 4/16/2004


More Creative Sales Presentations
7AM - 9AM, 5/7/2004

 

4.0   Tidbits
 
4.1 MedSuds on Tour

MedSuds welcomes tours of your facility!  Email us if you want to show off your company.  Contact Janet Rebman Lillevold at janet@medsuds.com.

4.1.1  InterTek

I visited InterTek this past month at their facility in Oakdale.  I was hosted by Mike Johnson, mike.johnson@intertek.com, 651.730.1188.  InterTek is a 10,000-person product and system testing and approval firm with headquarters in England.  The compete with Underwriters Laboratory, TUV and CSA.  They have 30 employees in Minnesota and have been here for 6 years.  Some of their corporate clients in Minnesota include Medtronic and Guidant.  Globally, they test for 50% of the top 20 medtech device manufacturers.  See www.etlsemko.com for details. They the exclusive test/approval company for Home Depot.

Their testing facilities space in Minnesota includes about 25% dedicated to medtech products.  They have a 3-meter anechoic chamber and a smaller test chamber.  The chambers are EM-sealed.  Customers can rent time in the chambers or in similar testing pods at InterTek.  They have a large number of other test set-ups for a variety of consumer, tech and medtech testing.  Most of the testing is environmental testing.  There are limited functional test set-ups in the facility.

4.2  Email Advertising

The NetSuds (5500+) and MedSuds (2500+) email lists reach 8000+.  The NetSuds email lists are double-opt-in and concentrated on professionals in the communications, IT and Internet markets.  The MedSuds email lists are double-opt-in and concentrated on professionals in the medtech, biotech and life sciences markets.  So, rather than spend your advertising dollars on any other email lists in the Twin Cities, consider the NetSuds and MedSuds lists.  Contact matt@medsuds.com or 612.605.5252.  For current ad rates, visit www.netsuds.com/adrates.htm.

4.3  MedSuds Executive Search

See the following URL for more information on our executive search service - www.medicalsuds.com/search/.  

4.4  MedSuds CEO Roundtable - Next Roundtables starting in June 2004

MedSuds is opening up another group of CEO Roundtables in June 2004.  If you are tech or medtech CEO and want to join us, (the first session is free), contact matt@medsuds.com.  A synopsis of the CEO Roundtable can be found at www.medsuds.com/ceo/  It is repeated here as well.

MedSuds CEO Roundtable

Membership  Only CEOs of tech and medtech companies are allowed to join the MedSuds CEO Roundtable.  If you are a VP, CxO or President, you are not welcome unless you also hold the CEO title.  If you are interested in becoming a member, contact matt@medsuds.com.  Membership is not automatic.  There must be an available spot open in the roundtable.  You must have employees.  Your company must be incorporated.  Your company must be a tech (communications, IT, software, Internet) or medtech (medtech, biotech, life sciences) company.  You must pay a yearly fee of $1200 in advance.  You may not send substitutes to the Roundtable. 

Roles  Unlike the days of knights, kings and Camelot, there is no king of the MedSuds CEO Roundtable; only a facilitator; Matt Noah, CEO of NetSuds.com, Inc.  Knights are replaced by CEOs and the table won't be quite round.

Schedule  The Roundtable will meet at least 10 times per calendar year.  We meet the last Tuesday of every month.  Each meeting lasts between 2 hours starting at 7 am.  A facility convenient to the majority of Roundtable members is used.  A continental breakfast is served.

Our next introductory session (free) has been scheduled for June 2004.  Attendance will be limited to just CEOs.  Contact matt@medsuds.com if you want an invitation.

Purpose  CEOs need resources to assist them in executing their duties and leading their companies.  Boards of Directors and upper management are not always the best or most independent resources upon which to draw.  The CEO Roundtable exists to provide CEOs with an independent resource of wisdom and shared experience.  Your key 'take-aways' from the Roundtable will be accelerated learning - so as to avoid common and uncommon pitfalls -, an expanded network of advisors and colleagues and tools to enhance the productivity and value of your enterprise.

Content  First, networking among the CEO members of a Roundtable is the best and richest content.  Second, the Roundtable facilitator will schedule subject matter experts of interest to the CEOs.  Examples include intellectual property, branding, sales, engineering, marketing, finance, compensation, human resources, M&A, etc. 

Format  Meetings consist primarily of 2 elements.  First, "content" will be presented and discussed.  Second, "discussion" of common problems and solutions will take place.  The facilitator will lead both elements or assign elements to certain CEOs.

Confidentiality  Roundtable meetings are completely confidential.  Nothing said in a roundtable discussion, short of illegal activity, leaves the meeting.  This allows each CEO to feel comfortable discussing issues and subjects he may not feel comfortable speaking about with others.

Sponsors
For more information on our sponsors' offers, click on their ads.

 
 
 
 


Hiring Manager/Company

Looking for the perfect candidate? 

Contact MedSuds

You never pay a fee unless you hire a candidate we refer.  All placements are 100% guaranteed! 

www.medicalsuds.com/search/

4.5  MedSuds CTO Roundtable - www.medsuds.com/cto/

Check out the website for more information.  The CTO Roundtable is currently FREE.

4.6   BioSciences & Medical Career Connections Expo

Looking for employees?  Looking for a new job or career?  Check out On Call Clinicians Career Fair on April 29.  Click on the following link for more information:  http://www.medsuds.com/docs/oncall.pdf

4.7  Capital City Bioscience Corporation Seeks Permanent Director

The Capital City Bioscience Corporation is pleased to announce the appointment of Jeremy Lenz as interim director. Jeremy is an experienced economic development manager with the City of Saint Paul's Department of Planning and Economic Development and has been coordinating the City's participation in the state of Minnesota's life science tax credit program. Jeremy can be reached at jeremy.lenz@ci.stpaul.mn.us.

The Capital City Bioscience Corporation (CCBC) is a public-private partnership formed to catalyze and coordinate economic development in the life sciences in Saint Paul. CCBC offers one-stop service to life science companies seeking real estate, trained workforce, public assistance such as state tax credits or city development incentives, intellectual property protection, access to capital, business planning, partnerships with other life science companies or trade associations, connections to specialized researchers or equipment, or other needs.

CCBC is currently accepting applications from qualified individuals to be permanent director. Please send inquiries or resumes to howard.orenstein@ci.stpaul.mn.us.
 



5.0  
 Why Won’t My Doctors Use My Product? 

By MedSudser Michael Kessler, MD.  Michael Kessler, MD is President and CEO of the Medical Communications Center. Dr. Kessler works with pharmaceutical, medical product, device and service industries to help them increase sales to Doctors. Feel free to send your comments to Dr. Kessler at MKessler@RepSuccess.net or call 404-257-1251.

Have you ever said this to yourself? “I am out there every day, driving from place to place, presenting my products and working hard. I don’t understand what’s going on.  What’s wrong with these doctors? What's their problem? Why won't they use my product?” 

You think to yourself: “I’m enthusiastic, work hard and put in a full day’s work. I believe my product is the best. I know all about my product’s features and benefits and the disease state. I have great sales and visual aids. So what's the problem?" 

In our recent survey of 108 representatives from 3 large and 3 midsize medical device/product companies, representatives said they used sales aids approximately 80% of the time. They also report that over 50% of doctors show a negative reaction when the sales aid was used and were skeptical of the information presented.  Why is this happening?  

The problem from your customers’ point of view is that many representatives tend to do a data dump with their sales aids. They spew out all this stuff from their 4-8 page long sales aid and hope that something sticks. Then they close with “will you use it?" So, as representatives have documented, over half the doctors get this glazed-over look when they do this and in the end the doctor doesn’t want to try their product.  

Could it be that representatives are missing something?  Yes they are. They need a better understanding of the mindset of their customer, the Doctor.  Key to this understanding is the fact that doctors are trained to solve problems. As a result, they are problem oriented, not product-oriented. They are in the problem solving business.   

Representatives on the other hand are product oriented not problem oriented. The issue becomes that what marketing and sales may consider useful and important is not always what the doctor needs or wants.  So, what many Doctors think when they hear a representative do a data-dump with their sales and visual aids is: "Why do I need another product? What problem is it going solve? I'm happy with what I'm using now!" 

Let’s examine the Doctor’s mindset. Doctors have been trained to and must go through what we call the Physician Problem Solving ProcessÔ (PPSP). This process is a methodical and analytical process that doctors are taught in medical school and use daily the rest of their lives.  

Doctors use this problem solving process to: 

1.      Diagnose, treat and manage patients

2.      Evaluate the clinical literature

3.      Evaluate new and existing products

The decision to use, convert to, or adopt a new product doesn't come until the end of this extensive, fact laden, and formal process.  How fast doctors make get through the PPSP and make a decision to use your product will depend on the how quickly and efficiently they get the information they need.  

Identifying a problem is the first step that doctors have been trained to do in the problem solving process. This is what doctors' key in on. Once you identify a problem, doctors will naturally want to know from you: "Do you have a solution to this problem?" Of course you do!

Specific problems demand specific information.  How quickly doctors  ‘move’ to try or use your product often depends on how accurately and quickly they get the information they need to go through the PPSP. Once representatives understand how doctors solve problems and how they make decisions, they will start to understand where the doctor is in the PPSP and what information they need to get them to make a decision. So, if you know what doctors are looking for and can give them what they want and need, you can accelerate the problem-solving process.  

Key to accelerating the process is for representatives to communicate the clinical information from their sales and visual aids in an organized manner. Representatives will be more effective if they can “walk the walk and talk the talk' of their customers. All doctors communicate and educate one another using a standardized template called S.O.A.P.  

S.O.A.Ping information makes it much easier and quicker for doctors to take in the information and arrive at a decision. Representatives can S.O.A.P. their sales and visual aids using what we call the S.O.A.P. Product PresentationÔ to sell their solutions to the problems identified. 

Therefore, if you understand the Physician Problem Solving Process, know where the doctor is in the PPSP, and can give them the specific information needed using the S.O.A.P. template, you can shorten the time it takes a doctor to try your product.  

But they don’t always get that information in a timely manner. Often, it is too late. Then you wonder why the doctor won't use your product. 


6.0    Contract Employee---An Old Concept Whose Time Has Come

Many MedTech companies are finding the experience they need at an affordable price.
by MedSudser Bud Horwath, Horwath Resource Group, bud@horwathrg.com

To hire or to contract?  That’s a question managers have debated over the years whenever the organization has had a need to accomplish work.  Or at least it should be considered, especially in today’s environment.  Money is tight for the smaller Medical Technology companies.  Product life cycles are increasingly shorter, putting pressure on new product development schedules.  For most MedTech companies there is no time to make mistakes.  Corporations need experienced, dedicated workers that get results without breaking the budget. 

So what’s the answer?  When you need an employee, do you hire or contract?  Although the answer isn’t black and white, there are more reasons today to consider a contract employee than ever before. 

You Get What You Pay For: 

A talented employee base is a key asset for any company.  In fact, human resources are probably the most important asset for any successful company.  Without people, nothing gets done and there is no company. 

For most MedTech companies the cost of human resources, its employees, is by far its greatest operating expense.  Cost is certainly one reason companies are reluctant to bring new employees on board.  Salaries for experienced workers are high.  And then there is the additional cost of benefits (vacations, sick time, retirement, health care, etc.). 

Like with any asset, whether it be buildings, computers or employees, the company would be financially better off to get more for less.  But how can that be done with employees without degrading morale and productivity?  One way is to selectively use contract employees.  Contract employees are typically specialists, i.e. engineering, business development, marketing, regulatory.  They are experienced and often seasoned.  A growing number have left large MedTech companies where they were able to learn specialized skills.  To hire such a specialist would be very expensive.  But to contract with a specialist for a specific task, role, or project most times results in reduced cost and shortened time schedules.  There is no or little training, so start up time is short.  Contributions to results start almost immediately.  And unlike a hired employee, where the job often expands to fill the time available, with the contract employee you pay for what you get—specific results. 

MedTech is a very specialized industry.  No other industry implants devices into the human body.  Biocompatibility, hermetic sealing, and sterilization are among the many unique design criteria for MedTech products.   Regulatory oversight in all parts of the world is a major factor for MedTech.  Approvals are required to initiate clinical evaluation and to commercially market a new MedTech product; regulations are in place that impact the product development and manufacturing process; and there are rules on how you can and can’t label and market those products. 

Some of the knowledge required to design, develop, manufacture and market a MedTech product can be learned in college.  However, most of the state-of-the-art practice and processes used in the MedTech industry can only be learned through experience.  That’s why an experienced contractor can be so valuable.   

Another often-overlooked factor that reinforces the use of contractors is mentoring.  The contract specialist can have a positive influence on the employee base by mentoring and teaching the less experienced employee.  By sharing the knowledge gained through years of experience in MedTech, contract employees can increase the capabilities of the organization much faster than the normal trial and error learning curve.  

So What About Dedication? 

Everyone assumes hired employees are more dedicated to the job and to the company.  But are they?  Granted doing a good job and getting results may lead to a good performance review and that next pay raise in 12-18 months.  More often than not, however, the performance review is too superficial or too biased to be of value.  And that pay raise?  According to the budget, the manager must average 2-3% in annual salary increases.  So very good performers get maybe 4%, average 2% and the worst 0-1% but get to keep their jobs.  Big incentive. 

Are hired employees more loyal?  These days loyalty is a distant memory.  There have been too many corporate layoffs, down-sizings, right-sizings, productivity improvements, etc.  Employees have learned to look out for themselves.  Do what you’re told, don’t make waves, but keep an eye open for that advancement opportunity in the other division or at a different company.  Employees are typically free to leave their job with two weeks notice. 

Contract employees, however, are constantly selling themselves.  They must get good results to keep their contract or win an extension.  And when the assignment is complete, they need a good reference for the next prospect.  Satisfied clients are of utmost importance to the contract employee.  Without satisfied clients, the chances of getting new clients are minimal. 

Contracts are typically written for certain periods of time (3 months, 6 months, or 12 months) or for a particular task.  The employer can be confident that the contract employee is committed to him for that period of time.

But does it work? 

Here are a few examples that illustrate how the use of contract employees has helped MedTech companies get results quickly and co