Podcast Summary: Second in Command: The Chief Behind the Chief with Cameron Herold
Episode: Ep. 481 - Empower Pharmacy COO, Jonathan Abrarpour
Release Date: June 5, 2025
Introduction
In Episode 481 of the "Second in Command" podcast, host Cameron Herold engages in an insightful conversation with Jonathan Abrarpour, the Chief Operating Officer (COO) of Empower Pharmacy. Jonathan, a long-standing member of the COO Alliance, shares his extensive experience in scaling Empower Pharmacy from a modest team of 35 employees to a robust workforce of approximately 1,200 across multiple states. This episode delves into Jonathan's journey, the intricacies of the compounding pharmacy industry, growth strategies, leadership development, and the challenges of maintaining a cohesive culture during rapid expansion.
Background of Jonathan Abrarpour
Jonathan Abrarpour holds a Bachelor of Science in Mechanical Engineering from Texas Tech University. He began his career as a completion engineer in the oil and gas industry before transitioning to the compounding pharmacy sector in 2015. At the time of his joining, Empower Pharmacy was a small company with 35 employees. Over the past decade, under Jonathan's operational leadership, the company has experienced exponential growth, expanding its facilities and workforce significantly.
Notable Quote:
“Empower Pharmacy really supports integrative health and wellness areas. So we really focus on life, more health span than lifespan medication.”
— Jonathan Abrarpour [03:04]
Understanding Compounding Pharmacy vs. Traditional Pharmacy
A significant portion of the discussion centers around the distinction between compounding pharmacies and traditional pharmacies. Jonathan explains that compounding involves the personalized mixing of two or more ingredients to create medications tailored to individual patient needs, unlike the one-size-fits-all approach of big pharmaceutical companies.
Key Points:
- Compounding Pharmacists: Create customized medication dosages and forms based on specific prescriptions.
- Traditional Pharmacies: Dispense commercially available medications with standardized dosages.
- Regulatory Framework: Compounding pharmacies operate under different regulations (503A and 503B) that allow for tailored medication solutions, especially useful in addressing shortages and specific patient requirements.
Notable Quote:
“Compounding is the mix of two drugs, which, you know, big Pharma technically does, and every other pharmaceutical company... compounding pharmacies are different as we make those drugs to be uniquely dosed to what a provider may want, what a patient may need.”
— Jonathan Abrarpour [05:44]
Business Model and Market Focus
Empower Pharmacy primarily operates on a Business-to-Business (B2B) model, supplying compounded medications to clinics, institutions, and increasingly to other pharmacies following FDA clarifications. The end customer remains the patient, though their direct engagement is minimal, with prescribers playing a crucial intermediary role.
Key Points:
- 503A: Compounds medications based on individual patient prescriptions.
- 503B: Functions as a Centralized Compounding Pharmacy (CEL), supplying larger quantities and addressing broader medical needs.
- Market Expansion: Recent FDA clarifications have opened avenues to supply other pharmacies, expanding Empower Pharmacy's customer base.
Navigating Rapid Growth: Challenges and Strategies
Jonathan candidly discusses the challenges associated with scaling a company from 32 to 1,200 employees. These include maintaining operational efficiency, developing robust systems, and preserving company culture amid hypergrowth.
Growth Challenges Highlighted:
- System Development: Early stages lacked structured systems, leading to operational inefficiencies (e.g., limited restroom facilities for employees).
- Scalability: Transitioning from a small team to multiple large facilities required significant adjustments in management and operational processes.
- Cultural Integrity: Ensuring that the company’s core values and behaviors remain intact despite rapid expansion.
Notable Quote:
“Growth challenges are stretch marks for sure. We were all really focused on the future, but with that came problems because... systems aren't there.”
— Jonathan Abrarpour [14:12]
Hiring and Talent Acquisition
Jonathan elaborates on Empower Pharmacy's evolving hiring strategies as the company scaled. Initially, the focus was on hiring highly technical and capable individuals who could wear multiple hats. As the company grew, there was a shift towards emphasizing behavioral competencies and creating specialized roles.
Hiring Phases:
- 30 to 100 Employees:
- Prioritized technical skills and adaptability.
- Hired "jack of all trades" who could handle diverse responsibilities.
- 100 to 300 Employees:
- Introduced management systems and weekly reporting structures.
- Emphasized behavioral traits such as adaptability, resourcefulness, and customer focus.
- 300 to 1,200 Employees:
- Developed "empowered behaviors" based on core competencies identified with the help of Korn Ferry.
- Implemented a structured performance management system aligned with these behaviors.
Notable Quote:
“We surveyed the senior leadership team on what are the eight defining behaviors... that's what we now do performance management on.”
— Jonathan Abrarpour [20:38]
Managing Remote Work and Performance
The COVID-19 pandemic necessitated a shift to remote work for certain roles within Empower Pharmacy. Jonathan discusses how the company adapted by maintaining performance standards without resorting to invasive monitoring measures.
Key Strategies:
- Performance-Based Monitoring: Emphasized weekly and daily performance metrics rather than screen tracking.
- Role Specificity: Identified which roles could effectively operate remotely and which required on-site presence.
- Team Alignment: Ensured that both individual and team performances aligned with the company's quality, delivery, and cost goals.
Notable Quote:
“Everything is a function of performance. There's individual and team-based assessments.”
— Jonathan Abrarpour [29:50]
Leadership Development and Organizational Structure
Jonathan reflects on his personal growth as a leader and the importance of building a strong, structured organization. He highlights the transition from handling diverse tasks personally to overseeing a well-defined leadership team.
Leadership Insights:
- Skill Set Focus: Initially concentrated on acquiring the right talent to build the company’s foundation.
- Delegation: Gradually shifted focus from hands-on tasks to strategic leadership and team development.
- Continuous Learning: Emphasized the need for ongoing professional development to stay relevant as the organization scales.
Notable Quote:
“I realized my calendar needed to be booked with trying to find the right people. So pretty much for years, 20% of my time was all around trying to find the right people.”
— Jonathan Abrarpour [37:55]
Strategic Decision-Making: Saying Yes or No
Jonathan discusses Empower Pharmacy's approach to managing growth opportunities and avoiding distractions. The company employs a structured goal-setting method to ensure alignment with overarching objectives.
Decision-Making Framework:
- Sets of Threes: Breaking down company goals into top three priorities, departmental goals, and individual actions to maintain focus.
- Approval Processes: Centralized evaluation for capital-intensive projects, while allowing decentralized decision-making for smaller initiatives.
- Leadership Oversight: Regular reviews and a clear hierarchy ensure that new projects align with strategic goals.
Notable Quote:
“Once we got the goals clear, we broke that up into sets of threes... top three tasks, top three things within your department aligned with the company’s top three.”
— Jonathan Abrarpour [34:21]
Advice to Younger Self
Towards the end of the episode, Jonathan offers reflective advice to his younger self, emphasizing the importance of embracing responsibilities and enjoying the present moments amid professional challenges.
Key Advice:
- Embrace Responsibility: Acknowledge that increasing responsibilities are part of professional growth.
- Enjoy the Present: Appreciate current achievements and experiences without being overly burdened by future pressures.
- Mindset Matters: Cultivate a positive and resilient mindset to navigate the complexities of leadership and growth.
Notable Quote:
“Enjoy what you have right now because it is probably the least amount of responsibility that you have.”
— Jonathan Abrarpour [40:03]
Conclusion
Cameron Herold concludes the episode by thanking Jonathan for his valuable insights into managing substantial organizational growth, maintaining a strong company culture, and effective leadership strategies. Jonathan's experiences at Empower Pharmacy provide a compelling blueprint for COOs and second-in-commands aiming to drive exponential growth while preserving core values and operational excellence.
Listen to the full episode on YouTube or your preferred podcast platform. For more insights from industry-leading COOs, visit COOAlliance.com.