CEO: Rick Riley's UNLIKELY path to SUCCESS
By Jet ParkerOriginally published in Tahoe Quarterly
He's an industry activist, product innovator, president of a million-dollar company, devoted Rotarian, dedicated husband, proud father of two … and an amputee. Meet Rick Riley, founder and owner of Specialty Prosthetic Systems in Carson City.
Following four years of college, apprentice training and real-life education, Riley opened Specialty Prosthetic Systems (SPS) in 1989 at age 35. It was a venture, however, that had begun 15 years earlier.
In 1974, Riley was 20 years old and juggling college classes and two jobs. While riding his motorcycle through a construction site, on his way from one job to another, he was clipped by the edge of a front-end loader and lost his right leg just below the knee. But as horrible as that loss was, Riley also gained something from the accident; it served as a catalyst for him to find his role in life and his place in the professional community.
Riley, like most amputees in the 1970s, suffered through the humiliation of rude comments from "normal" people, the indignities of industry representatives doing their job with compassionless indifference and the chronic pain of poor-fitting prosthetics. It would have destroyed the spirit of some; however, it simply ignited Riley's determination to affect change.
In the past eleven years, he has done just that with resounding results. SPS now generates over a million dollars in annual sales. The company's growth is due to it's most unique asset: a friendly, knowledgeable staff made up almost entirely of amputees.
Riley started his business largely because he didn't think it was fair that non-amputees were the only ones designing and fitting prosthetics. How can they really understand what it's like? Every employee of SPS, with one exception, is an amputee.
Riley also doesn't think it is fair that most amputees can't live an active, pain-free life. He and his employees work to design prosthetics that function like real limbs, with a surface that looks like real skin and a comfort level that allows the user to attach his or her prosthetic without anguish.
Riley's operational style is a distinctive combination: he promotes industry change like an evangelist, supervises his employees like a coach and kids around with his clients like a comedian. But don't underestimate him because of his fun-loving approach - Rick Riley is committed to running an efficient organization. The company's mission statement, written by his staff, is proudly displayed on the walls as a reminder of the team's priorities. Monday morning meetings are held to maintain the mission's momentum and sustain the company's service vision.
Part of the SPS difference involves the prosthetic fitting process. "Traditionally," says Riley, "the average prosthetic fitting process took two to four hours, start to finish. I use the word 'fitting' lightly because some prosthetic representatives simply measured the area, sent the measurement information to a manufacturer to produce the limb and then, on occasion, had the limb mailed to the client without scheduling a personal fitting."
SPS invests 40 to 60 hours of fitting per client. Riley is vocal about the difference in fit that a customer receives as a result … a difference that managed-care companies don't want to pay. "It's almost criminal," her says, "that companies providing the bare minimum time and effort to produce a prosthetic will get paid nearly the same fee as professionals like us." Such is the nature of managed care, which is all about managed budgets, the work going to the lowest bidder.
In some ways, Riley found it easier to deal with the loss of his leg than reconcile his values with the building of his business. "But training and mentoring from other business executives taught me," he says, "that people don't have to sacrifice the values they hold sacred to operate a business like a cutting edge CEO."
Riley's most cherished business values include family, honesty, fairness, quality and commitment. Riley reserves the last half of one Friday every month for his entire staff and their families to do something fun together. The recreational time is used to reinforce the importance of family ties for enriching everyone's personal lives.
"The values you define for yourself," he says, "are what eventually underlie the actions your employees perpetuate on your behalf. I know that they will do their tasks right because of the ideals behind the policies I've made."
Riley and his staff are adamant about creating products that will give their clients a normal life. "Everyone deserves that," says Riley. "You don't think about your real leg working all day or feeling good all day, and it's not fair that amputees should be any different." The company also has color "painting" process to match the skin of active customers with tans, as well as specialty materials to create ears that appear magically original.
SPS's diligence has paid off for others with even more sever handicaps. One client, who lost both arms and both legs to meningitis when she was three years old, now actively runs a home and is raising her own child.
Riley's personal history has also afforded him the opportunity to be absolutely candid, not only with his employees, but with other amputees who need a dose of straight-talk to get them back on track. For example, one elderly client was a chronic complainer about everything. She was difficult to serve as a customer, but more important, her attitude was hard on her family. One day, at a fitting for a new leg, she began to complain about the hassles of the process while her son looked on with frustration. "I wish I'd just died!" she exclaimed.
Riley was incredulous and responded, "Your should be ashamed of yourself! The Lord kept you alive. You've had the opportunity to witness your children's weddings, meet your first grandchildren and participate in so many things." She got very quiet, completed the fitting and left. A half-hour later her son called Riley to thank him for speaking up. What neither of them knew at the time was that Riley's words would have a profound impact; from that day forward she was a happier, experienced a greater zest for life and eagerly went to church every day until her death only two years later.
