Rocket growth: in2itive Business Solutions manages bumps in high-flying ride
by Aly Van Dyke, Staff Writer
Kansas City Business Journal
Friday, March 18, 2011
When Tracey Erbert came on as president of in2itive Business Solutions in 2005, she expected a roller coaster for the Nueterra Healthcare offshoot — not a rocket ship.
In its first year, the medical billing and coding company brought in $85,000. It spun off Nueterra in 2009, and revenue hit $2 million just a year later. Employment went from three to 35 in five years, and Erbert looks to hire six more this year. The rapid growth has caused some pangs for the Overland Park company — and its leader.
The in2itive staff can be an extension of a business office or completely replace it. They enter, track and monitor medical claims, primarily for ambulatory surgery centers and physician groups.
During in2itive's first few years, Erbert did it all: She went to five trade shows every year and handled all the marketing. She traveled to meet new clients, and scheduled and led all the monthly conference calls. She filed all the state reports and updated all the contracts. All of this came on top of her duties as CEO.
"I never want to turn anything down," she said. "I always want to have my hand in it."
But soon, it got to be too much, and Erbert faced the daunting reality of having to delegate some of that control.
"I wasn't doing anybody any favors," she said. "I didn’t have enough time for the employees. I was making time for the clients, but it became obvious to me that there weren’t enough hours in the day."
First, she promoted an experienced employee to run the conference calls and employee meetings — the two worked together to tailor the job. In January, she hired a manager to help with the calls.
Erbert hired someone to do the state reports and transferred some reporting to account representatives. Offloading these responsibilities has given Erbert more time to manage staff and address concerns with clients, she said.
That doesn't always make it any easier. This year, in2itive has signed a client with an operating system Erbert knows nothing about -- a fact that causes her angst just to vocalize, she said.
"I am 100 percent relying on my managers," Erbert said.
It's not that she doesn’t trust them, she said, but rather her personality of always wanting to be able to help someone -- a feat that has become impossible with in2itive's 28 clients.
To alleviate the unease of not knowing everything, Erbert has monthly meetings with managers to go over written reports about all facilities and current employees, and she opens her door to everyone.
Relinquishing control is a hard task for most entrepreneurs, but they have to do it for the clients, said Jack Schmid, founder of J. Schmid & Associates Inc.
Schmid started the magazine production consultant company in 1983. Although it wasn't easy to give up control, he said, hiring good people and delegating management allowed the company to reach different and larger clients.
"I was giving up some control, but I was also gaining some control by being able to manage the entire business better," Schmid said.
For Erbert, letting go has been tough but doable, thanks to her staff. She feels comfortable with the staff's commitment because she takes care of them. Erbert said she allows staff to work one day a week from home after a year of employment and offers flexible hours and a casual, fun atmosphere to show her appreciation for the hard work they put in.
"My philosophy has always been that I will give them as much flexibility as they need as long as they can put out a quality product and they're available when their facility needs them," Erbert said.
She also throws Halloween and Mardi Gras parties and twice a year has daylong retreats. Although it takes employees away from work, she said these activities are a team-building experience and an important breather -- "a chance to pick our heads up from our desks."
The parties and retreats must be working. in2itive's staff is always pleasant, even in a sometimes monotonous, frustrating job, said Jodi Spitalari, business office manager with Saint Luke's South. The hospital signed in2itive in the fall to manage patient accounts and submit claims to insurance carriers. She said she hasn't received a single complaint from patients about in2itive -- a rarity among outsourced billing agencies.
"They're very good about ... staff morale and doing the fun little things to keep their staff motivated," she said.
In addition to those fun days, Erbert also asks for staff feedback on new positions and ideas.
This flexibility and trust gives employees more ownership in the company, said Cindy Hastings, billing and collections manager with in2itive.
"It makes them better employees because their job is a reflection of them," Hastings said. "I really do believe that most of the employees here believe the communication is two-way."
The emphasis on two-way communication -- with clients and employees -- fuels the rocket ship, Hastings said.
"It shows our employees and our clients that we do care what they have to say," she said.
Once a month, in2itive has conference calls with clients and meetings with employees. And Erbert said that with her open-door policy, she almost always has someone sitting in her office.
"I don’t want to run a dictatorship," she said. "I need my employees to buy into this, and I need them to be happy. If they’re happy and they feel like they have some ownership, I think they’re going to do a better job, and their life is going to be a little more fulfilled."