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It worked By the early 1980s, every store in the chain was hooked up to the Intercom system, connecting every store s pharmacy records to the central system and the central system to every store Intercom is clearly one of the biggest things we ve done, Jorndt said With Intercom, we ve got one central record of everyone s information, and I believe we re still the only retailer who has that You can walk into any Walgreens anywhere, and if you can remember your name, we can get your records Only the US government sends more data through satellites than we do That was a great thing that we did for our customers 50 It was miles ahead of the other drug stores, said Bill Shank That gave us a great advantage, and still does 51 Walgreens pressed its advantage when it launched Intercom s $150 million successor, Intercom Plus, in 1998, which expanded Intercom s original capability by organizing each store s workflow, allowing the pharmacist to focus less on his or her inventory and more on consulting with clients Once again, Walgreens high-stakes gamble paid off
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The most important work Walgreens management did during the Cork Era including instilling discipline, cleaning up the stores, eliminating extraneous businesses, and creating the Intercom system was done quietly with little publicity You would be hard-pressed to find Walgreens name in business books until the 1990s But the groundwork laid in the 1970s started drawing attention in the 1980s Walgreens started knocking off milestone after milestone: its 500 millionth prescription in 1980; the first drugstore chain to top $2 billion in 1981; ranking first in sales, earnings, and market penetration among drugstores in 1983; opening Walgreens 1,000th store in 1984 (with Illinois Governor Jim Thompson and Cary Grant doing the honors); and breaking $3 billion in sales in 1985 just four years after topping $2
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billion By the middle 1980s, word had gotten out on the Walgreens secret In 1985, Dun s Business Month named Walgreens one of the nation s five best-managed companies, and the Wall Street Transcript crowned Walgreen and Canning the country s best retail drug chain executives, the first of seven times they d receive it that decade52 They worked so well together, Bill Shank said, and the results reflect the fact that both of them know the drugstore business inside and out 53 Watching those two work together was like watching FDR and Patton, Jorndt added They put together an outstanding management team, the equal of any team in retailing, and supported them for an amazing 20-year run 54
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algreens hit the last decade of the twentieth century its tenth decade at full speed It could boast 1,564 stores, 48,500 employees, 100 million prescriptions, $605 billion in gross revenue, and $175 million in profits Instead of becoming complacent, however, Walgreens set its course for the best decade of its now 103-year history That it occurred on the heels of Fred Canning s departure makes it all
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the more impressive When Canning stepped down in 1990 after a 12-year run as president, few thought such a dynamic, demanding, and ambitious leader could be replaced; and they may well have been right It would be hard to overstate Canning s importance to Walgreens rise in the 1970s, 1980s, and even the 1990s, after he had left the company set up for continued success When you look back over Walgreens long history, it s easy to see that there have always been very talented people in the front offices, but it s the combination of soft and hard skills at the very top that have sparked the company s greatest eras Charles Sr seemed to embody both sides himself his engaging, warm personality coupled with his iron will and unequaled ambition Chuck and Justin Dart seem to have the combination covered between them; but when Dart s ego became too much to deal with, Chuck lost a vital element of intensity in the front office Cork reestablished the formula when he promoted Fred Canning, and the combination might have been the most successful in Walgreens history Fred Canning had all the energy, talent, and charisma of Justin Dart, but without the overwhelming personal ambition that negated many of Dart s virtues Dart would have been happy to see Chuck and the family pushed aside for his own benefit, while Canning was the most loyal soldier Cork could have ever wished for The man Cork picked to replace Canning was just as talented, and just as loyal But the challenges facing Canning s successor in 1990 were very different from the ones Canning confronted when he became president in 1978 The next Walgreens president would not have to bring discipline, order, and confidence to a sagging company Cork, Canning, and crew had already seen to all that The turnaround had been completed No, the seventh Walgreens president would have to bring determination, to avoid the pitfalls of self-satisfaction; imagination, to take advantage of Walgreens new place in the world; and a killer instinct, to make tough decisions with a single-minded focus The Walgreens board, led by Cork, decided Dan Jorndt was that man This one decision alone, wrote Jim Collins, in his best seller, Good to
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