DMS, Danaher’s secret weapon. How can you replicate it for success?

Danaher Corporation, a global science and technology company, has evolved significantly over the years. Founded in 1969, Danaher began as a manufacturer of professional tools and instruments. Over time, the company has expanded into a diverse range of industries, including healthcare, industrial technologies, and environmental and applied solutions.

One key factor in Danaher's evolution has been its focus on innovation and operational excellence. The company has a long history of investing in research and development and has consistently brought new, innovative products and services to market. In addition, Danaher has implemented a number of tools and practices to drive continuous improvement and operational excellence, such as the Danaher Management System (DMS), Six Sigma, and Lean manufacturing. These efforts have helped Danaher achieve consistent, long-term growth and success.

DMS is based on the principles of continuous improvement and operational excellence, and it emphasizes the importance of decentralization, accountability, and employee empowerment. For example, in the healthcare industry, Danaher has used the DMS to drive innovation and improve efficiency at its medical diagnostic and life sciences businesses. In the industrial technologies sector, the DMS has been used to drive continuous improvement and operational excellence at Danaher's manufacturing and infrastructure businesses. And in the environmental and applied solutions division, the DMS has helped Danaher develop and bring to market innovative products and services that address some of the world's most pressing environmental challenges.

The DMS has a long history at Danaher. It was developed in the 1980s by Steven Rales, co-founder and executive chairman of Danaher, who was inspired by the teachings of W. Edwards Deming, a pioneer in the field of quality management. Since then, the DMS has been consistently refined and improved, and it has played a key role in Danaher's long-term growth and success. In addition to driving innovation and operational excellence, the DMS has also been instrumental in attracting and retaining top talent at Danaher, as employees are empowered to take ownership of their work and drive change within the organization.

The DMS is at the core of Danaher's operations and drives the company's long-term growth and success. Key performance indicators (KPIs) are a key aspect of the DMS, and Danaher uses a range of KPIs to measure and track the performance of each business unit within the company. These KPIs include financial metrics such as revenue growth and profitability, as well as operational metrics such as customer satisfaction and employee engagement. By continuously monitoring and improving upon these KPIs, Danaher is able to identify areas for improvement and implement changes quickly in order to drive continuous growth.

Another factor in Danaher's evolution has been its strategy of acquiring and integrating complementary businesses. Over the years, Danaher has made a number of strategic acquisitions that have expanded its capabilities and broadened its reach. For example, in 2012, Danaher acquired Kiva Systems, a robotics company that has helped drive efficiency and productivity at Amazon's fulfillment centers worldwide.

Danaher has consistently outperformed its peers and has been recognized as one of the world's most admired companies. In terms of profitability, Danaher's return on assets has consistently been among the highest in its peer group, averaging around 20% over the past decade. Danaher's share price has also outperformed the broader market, with a total shareholder return of 20%+ per year since 1990. These strong financial results have helped Danaher create significant value for its shareholders.

Overall, Danaher has evolved from a small, specialized manufacturer into a diverse, global science and technology company that is recognized as a leader in a number of industries. The company's focus on innovation, operational excellence, and strategic acquisitions has helped drive its long-term growth and success.

I encourage you to learn more about Danaher’s business practices to turbocharge your company’s playbook