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. With over nine years at the helm, Jonathan shares his journey in scaling the company from a modest 32-employee operation to a robust organization of 1,200 employees across multiple states.

Empower Pharmacy: From Humble Beginnings to Major Growth

Jonathan Abrarpour provides a comprehensive overview of Empower Pharmacy's evolution:

• Founding and Early Days: Empower Pharmacy was established in 2009 by CEO Sean in a back closet of a pharmacy. By the time Jonathan joined nine years ago, the company had grown to 32 employees and operated as a storefront pharmacy.
  "Empower pharmacy started in 2009... when I joined about nine years ago, the company was pretty small. It was a storefront pharmacy with 32 people." (03:04)

• Expansion: Under Jonathan's leadership, Empower Pharmacy expanded significantly, now boasting 1,200 employees across three facilities in Texas and New Jersey.
  "Today we sit at around 1200 employees. We're across three different facilities... We just acquired another one in New Jersey that's 170,000 square feet." (03:49)

• Mission and Focus: The company's core mission revolves around supporting integrative health and wellness, emphasizing life quality and health span over mere lifespan.
  "We really focus on life, more health span than lifespan medication... what makes you feel better every single day is kind of what we think." (05:29)

Understanding Compounding Pharmacies

Jonathan demystifies the concept of compounding pharmacies versus traditional pharmacies:

• Compounding Defined: Compounding involves mixing two or more ingredients to create bespoke medications tailored to individual patient needs, unlike mass-produced pharmaceuticals that follow a one-size-fits-all model.
  "Compounding is the act of mixing two ingredients... it's a customized form of medicine." (05:44)

• Regulatory Aspects: He explains the distinctions between 503A and 503B compounding pharmacies, highlighting regulatory frameworks and market opportunities, especially amidst drug shortages.
  "On our 503A side... every shipment is pursuant to a script... On the 503B side, it's a CEL business, and recently we've expanded to selling to pharmacies." (07:37)

Navigating Rapid Growth: Challenges and Strategies

Scaling from 32 to 1,200 employees presents numerous challenges, which Jonathan addresses candidly:

• Early Growth Hurdles: Initial issues included inadequate infrastructure, exemplified by having only one restroom for 40 employees, leading to inefficiencies and discomfort.
  "When I first joined, we had one restroom for 40 people. It really impacted our ability to function smoothly." (14:00)

• Cultural Shifts: Maintaining a strong company culture during hypergrowth was a significant focus. Jonathan emphasizes the importance of leadership in fostering adaptability and continuous improvement.
  "We're building a culture that emphasizes being adaptable and customer-focused... it's up to all of us to make that change." (20:38)

• Systems and Processes: Implementing structured management systems, such as weekly reports and company-wide goals, was pivotal in managing the complexities of a growing organization.
  "We introduced weekly staff meetings and set company goals to bring structure to our growing team." (17:35)

Hiring Practices and Leadership Development

Jonathan delves into Empower Pharmacy's approach to recruitment and leadership:

• Evolution of Hiring Criteria:

  • 30 to 100 Employees: Focused on hiring highly technical and adaptable individuals capable of wearing multiple hats.
    "We were looking for jack-of-all-trades capable people who are customer-focused and adaptable." (17:21)

  • 100 to 300 Employees: Shifted towards more behavior-based hiring, emphasizing adaptability, resourcefulness, and customer focus.
    "We started putting more emphasis on behavior, hiring experienced individuals who fit our core competencies." (17:35)

  • 300 to 1,200 Employees: Developed "empowered behaviors" through comprehensive surveys and consultations with Korn Ferry, establishing a standardized set of core competencies for performance management and hiring.
    "We identified eight defining behaviors that guide our performance management and interview processes." (20:38)

• Integrating Senior Leaders:

  • External Hires: Most senior positions were filled through external recruitment to bring fresh perspectives and expertise.
    "Seven out of eight VPs were hired from outside, bringing new insights to our leadership team." (22:55)

  • Internal Promotions: When promoting internally, transparency and mentorship are key. Jonathan describes a seamless transition where existing leaders support their peers' advancement.
    "We promote individuals by coaching them and involving them in the interview process to ensure smooth transitions." (22:04)

• Interview Process:

  • Emphasizes thorough interviewing, including presentations and interactions with peers, to assess candidates' alignment with company culture and capabilities.
    "Our interview process includes rigorous discussions and sometimes facility tours to gauge the candidate's fit." (26:27)

Managing Remote and Hybrid Teams

The COVID-19 pandemic necessitated a shift to remote work for certain functions within Empower Pharmacy:

• Adaptation to Remote Work: While production and fulfillment remained on-site, roles like call centers and data entry transitioned to remote or hybrid models.
  "About 400 of our roles are remote or hybrid, primarily in call centers and data entry." (27:56)

• Performance Monitoring: Instead of intrusive measures like screen tracking, Empower Pharmacy focuses on performance metrics, encompassing quality, delivery, and cost.
  "We don't use screen monitoring. We assess performance based on quality, delivery, and costs." (29:50)

Decision-Making and Prioritization

Jonathan outlines Empower Pharmacy's approach to strategic decision-making:

• Structured Goal Setting: Utilizing the "sets of threes" methodology, the company aligns departmental goals with overarching company objectives to ensure focus and coherence.
  "We break down our top goals into sets of threes, aligning department and individual objectives with company-wide priorities." (32:05)

• Approval Processes: For significant capital requests, a formal approval process involving weekly leadership meetings ensures that projects align with strategic goals and budgets.
  "Capital requests go through a structured approval process, reviewed and sanctioned by the leadership team." (34:07)

• Saying No to Distractions: Emphasizes the importance of disciplined prioritization to avoid organizational bloat and maintain focus on high-impact initiatives.
  "Once our goals are clear, we evaluate new opportunities against them to determine if they align or serve as distractions." (32:05)

Leadership Growth and Personal Development

Jonathan reflects on his personal growth journey alongside Empower Pharmacy's expansion:

• From Hands-On to Strategic Leadership: Transitioned from managing day-to-day operations to focusing on strategic initiatives and team development as the organization scaled.
  "Initially, I was involved in every small task, but now my focus is on strategic growth and leadership development." (37:54)

• Continuous Learning: Embraces principles from "Who" by Geoff Smart and Randy Street, emphasizing the importance of hiring the right people as the foundation for organizational success.
  "Hiring the right people is paramount; it's all about who you surround yourself with." (37:54)

• Future Goals: Aims to further streamline operations by delegating more responsibilities, allowing him to concentrate on high-level strategic planning.
  "The next stage of growth is doing less and focusing on strategic priorities." (39:39)

Advice to His Younger Self

In a moment of reflection, Jonathan offers heartfelt advice to his younger self:

"Enjoy what you have right now because it is probably the least amount of responsibility that you have. Don't let tough times weigh you down because it will get better." (40:02)

Conclusion

Jonathan Abrarpour’s journey with Empower Pharmacy underscores the critical role of strategic leadership, adaptable hiring practices, and robust performance management in scaling a company successfully. His insights provide valuable lessons for second-in-command leaders aiming to drive growth while maintaining a strong organizational culture.

You've read a detailed summary of Episode 481 with Jonathan Abrarpour, COO of Empower Pharmacy. For more in-depth discussions and insights from top COOs, subscribe to the Second in Command podcast.