Quest Diagnostics 2015 Annual Report Download - page 8

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transactional phone calls. We also deployed new automation and technology platforms in revenue services, laboratory
operations and logistics services, improving the customer experience and reducing labor costs.
Our cost excellence program, Invigorate, includes structured plans to drive savings and improve performance across
the end-to-end value chain. We believe that many of these efforts also strengthen our foundation for growth. For example, in
2015 we improved reagent utilization and enhanced our approach to service and maintenance, in each case improving
efficiency and reducing cost.
Table 6 - Invigorate Cost Excellence Program
Flagship Programs
Revenue services Organizational design
Information technology Procurement
Laboratory Field and customer service
Additional Key Opportunities Identified in November 2014
Standardize our processes, information technology systems and business platforms
Delivering services electronically
Enhancing cash collection
The following chart provides information regarding Invigorate program savings.
Table 7 - Invigorate Cost Excellence Program - Savings
2012 Goal for run-rate savings exiting 2014 $600 Million
2013 Revised goal for run-rate savings exiting 2014 $700 Million
2014 Year-end run-rate savings Over $700 million
2014 Goal for additional run-rate savings exiting 2017 $600 million (cumulative savings total: $1.3 billion)
2015 Realized savings Over $200 million
3. Simplify and strengthen the organization to enable growth and productivity. Starting in 2012, we revised our senior
management team and restructured our organization to eliminate silos in our core business, provide leadership in defined
geographies and eliminate three unnecessary management layers. Our organization is designed to align around future growth
opportunities, to coordinate upstream and downstream units in our business for seamless execution and to leverage our
company-wide infrastructure to gain more capability, value and efficiency. We continue to enhance our structure and
capabilities to support our strategy.
We adopted the Quest Management System to manage our Company. This system provides a foundation for day-to-
day management, and includes best-in-class business performance tools to help us develop new capabilities to improve our
Company. The system, which enables us to run the Company with a common language, approach and philosophy, supports our
efforts as we build a high-performance culture, with employees focused on behaviors to make us more agile, transparent,
customer-focused, collaborative and performance oriented.
In 2015, we launched our new brand - Action from Insight - recommitting to a superior customer experience. We also
introduced our Everyday Excellence program, which includes guiding principles to support a superior customer experience, to
inspire our employees to be their best every day, with every person and with every customer interaction. We continue to
simplify and strengthen the organization, and our processes, to better focus on our customers, speed decision-making and to
empower employees.
4. Refocus on diagnostic information services. We have a sharp focus on diagnostic information services. In 2015, we
contributed our business of central laboratory testing for clinical trials to a joint venture, Q2 Solutions. Since 2012, we also
have sold our OralDNA salivary diagnostics business, our HemoCue and Enterix diagnostic products businesses and ibrutinib
royalty rights, generating approximately $800 million of proceeds.
5. Deliver disciplined capital deployment and strategically aligned accretive acquisitions. We are focused on
increasing shareholder returns and returns on invested capital (“ROIC”) through a framework that encompasses improving
operating performance and disciplined capital deployment.
QUEST DIAGNOSTICS 2015 ANNUAL REPORT ON FORM 10-K