TSO Network Update - August 2017

Vol. 6, Issue 8 August 2017 We have commenced the new board of director’s year with a meeting that included a brain storming exercise. The exercise allowed us to review our core purpose and core values, and included a brainstorming exercise that allowed us to formulate some ideas. These ideas will translate to a five year plan to move our company forward and help ensure success for our members. We will take these ideas to the Networks shareholders in a series of town hall style meetings. These meetings will help to expound on these ideas, which in turn will help formulate the path we will take as a Network to ensure our success and viability in this rapidly changing industry. There are many changes, like the acquisition of Vision Source by Essilor, that are happening across our profession. These mega companies, private equity, and vision care plans are purchasing both small vision groups and private practices. Part of the board’s job is to ensure that our Network member’s practices are insulated from this threat. We need to positon ourselves to ensure the viability of our members practices. “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” --Charles Darwin Let us not become what pharmacy has become. Within the last 20 years, CVS and Walgreens combined have grown to control over half of the market share in almost every major US city. Independent pharmacists have decreased by almost half the same time period. I also use the example of Blockbuster and Netflix to demonstrate the importance of keeping pace with changes in our society. In 2004 Blockbuster was worth an estimated 6 billion dollars. Netflix was valued at a mere 50 million. Over the next five years, Netflix refined its DVD shipping and made it more efficient. Netflix also started its streaming service by negotiating the purchase of the Chairman’s CORNER — Benny Peña, OD Changes Ahead entire library of the Stars network. Blockbuster did not change with the times and filed for bankruptcy in 2011. Today Netflix is wort 70 billion dollars. We need to ensure our Network is able to compete with the changes that are going on in our industry. We need to be the innovators and solidify our reputation as Texans’ first choice in eye care. We had a great first meeting and are bringing some great ideas to the Network. Please look at the schedule and plan to attend a town hall meeting and share your thoughts. We need everyone onboard to help move us forward and help keep us ahead of our competitors. See you there. “Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers, and business.” --Mark Sanborn