An interview with Tone Strnad, recipient of the Lifetime Achievement Award in Management, founder and long-standing Director of Medis, Director of Medis Group and Chairman of the Management Board at Medis. Interview was published in MQ Magazine, a professional publication in the field of management.
As the committee members noted at the award ceremony, Tone Strnad is a leader with a rare combination of vision, empathy and determination. “His life’s work goes beyond business success and is rooted in the understanding that responsibility towards people, culture and nature lies at the heart of leadership. As the founder of Medis, he built an international company from the ground up in 1989 and set a clear standard for success: growth is sustainable only if it benefits patients, employees and the wider community,” their statement adds. Medis, which now operates in 19 countries and employs more than 400 experts, provides patients in the region with access to over 200 innovative medicines. Medicines which, without their help, we—in our relatively small and therefore often unattractive market—would not have at all. And Tone Strnad says he has always found this rather unfair.
In 37 years, you have built a company that now operates in 19 countries. In your opinion, what moments were crucial in ensuring the company survived and grew over the years?
I started out alone, with the help of my wife, who was my moral and HR support. I have always taken responsibility for everything I have done. My father was a sort of social worker; perhaps that is where my sense of empathy comes from. I have always been responsible towards others too: working in a way that helps others, asking yourself what you can give or show to society, not just to yourself. I think this is where we differed quite a bit from similar companies that were founded around the same time. We grew, while others remained at the level of just a few employees, which is of course not a bad thing in itself.
The key is having employees who are happy in our company. Practically the only people who leave us are those who either cannot progress here because their desired roles are already filled, or those for whom Medis is their first job and who would like to try their hand elsewhere. Many of them then return. We have a good relationship with our employees and the directors’ offices are always open; anyone who wants to can come in and talk to me or other directors, provided we have the time. As a team, we are friendly—to ourselves and to others. Our logo features a butterfly (joy and lightness) and a heart (empathy and care).
You say that you have always viewed growth as a means to promote the well-being of patients, employees and the wider community. When did you realise that a company could also be a lever for doing good?
Right from the very start. After all, that is one of the fundamental economic principles. Companies must contribute something to society if they want to operate and secure income. I found my calling in a field I know well. I am a pharmacist and began working in a pharmacy, then I joined Lek, a Slovenian pharmaceutical company, where I was invited to work in foreign trade. I have always had a knack for sales, so at Lek I worked more in the commercial operations, quickly becoming head of sales for various countries.
Early in your career, you left the ‘safe’ environment of a large pharmaceutical company and set out on your own path. What motivated you to make that decision?
Well, I worked in a large company for ten years, gained experience and gave it a lot. Looking back, it seems a bold move to me as well. But at a certain point during a meeting in Moscow, I realised I no longer wanted to be part of the team. When I got back to the hotel, I called my wife—though this was a bit complicated back then—and told her, “I can’t do this anymore. I’m going to start my own business.” Of course, she was not thrilled; we had three children. Then I gave her some pointers on what to do until I returned. That was at the end of February 1989; I resigned and by 1 April I was already working in my own herbal pharmacy.
You entered foreign markets very early with Medis. What was the hardest part of the internationalisation process? Would you do anything differently today?
When I was working at Lek, we had a CEO who always said, “Yugoslavia is too small for us.” I started with Medis in Yugoslavia, then it shrunk to Slovenia. We very quickly started looking beyond our borders again—first we went to Croatia, then to Bosnia and Herzegovina, then to Serbia, Hungary, Austria, and so on. What would I have done differently? We would probably have entered other countries more quickly. But it is easy to be wise after the event; back then there was a war in Yugoslavia and we were not sure we would succeed everywhere. I am the cautious sort and cannot just dive headfirst into a pool without checking how much water is in it. Still, after 2000, we could have started setting up companies in other countries a bit sooner and we would be much bigger now. Perhaps.
From today’s perspective, with a bit of hindsight, the view is magnificent. But when you are setting up a business, things are different: you do not have the money for salaries, you do not know how to organise people, what the priorities are, etc. Most of the time, you are more or less on your own. Times are different today; you can learn a lot from reading, whereas back then we mostly learned from experience or from books.
As you have already mentioned, you have a great deal of empathy. What helped you maintain that empathy, even when you had to make difficult decisions?
I know that now. I did not realise back then that it was called empathy. I have always been more sensitive, more attuned to other people’s problems, but I was not even aware of it. I simply thought everyone was like that. I always believed that people would do what they said they would, cooperate when they said they would, and it was terribly upsetting to me when someone did not do something. But then I also realised that my fundamental task as an entrepreneur is to learn how to deal with different people. I do my best to be understanding.
We very rarely let anyone go. If someone in the team is not performing well, we have an open conversation with them, explaining that the team has assessed that they are not contributing as much as they should. They tend to understand this if that is the team’s view. Then we find them a role that suits them, one in which they can be successful, satisfied, and where others are happy with them, and so on. We can also try this several times, but if it still does not work out, we conclude that we are not a good fit. Clearly, both decisions were wrong: ours to hire this person, and theirs to accept the job. We give them time—even months—to find another job. It seems to me that you can maintain empathy even when you have to tell someone something unpleasant.
What do you think about the new mandatory year-end bonus for everyone?
Our employees have received a Christmas bonus for at least 25 years, long before it was made mandatory by our government in December 2025. We calculated the amount based on each individual’s attendance and performance. I did not think it was right for everyone to receive it.
Now the government has decided that everyone should receive a year-end bonus, explaining that it is not intended solely for the employee, but for their family. Even if that employee is on sick leave the whole time, their family deserves a decent celebration. I understood this and now support this kind of year-end bonus. If a company really cannot afford to pay out this bonus, it is unfortunate for everyone, and the company needs to reconsider its business model. Of course, I know this is by no means easy. The same applies to the minimum wage.
Through Medis, you provide patients in the region with access to over 200 innovative medicines. How high up on your list of values is health?
I chose to study pharmacy for several reasons; one is that medicines are something people always need. It follows naturally, then, to say that you will provide medicines to people who do not have them. And so Medis supplies medicines that would otherwise arrive in Slovenia and all these 20 countries rather late.
Small and complex Eastern and Central European countries are simply not an attractive market for large pharmaceutical companies. And I have always found this rather unfair. So we began persuading multinational companies that we were prepared to take all the necessary steps, starting with the Yugoslav region. Then, over time, in Central Europe and the whole of Eastern Europe.
As a company, we are no longer very small, but often we simply cannot get through to the management of a major manufacturer. So we look for every possible way to do so.Similar Swiss or British companies have a significant advantage over us. Slovenia is now in a slightly better position since Novartis has established a development and logistics centre here. This is a major development for the world, and particularly for the pharmaceutical industry, and it enhances our reputation. Krka, another Slovenian pharmaceutical company, also traditionally plays a positive role.
It is probably also easier for a pharmaceutical giant to have you handle the registration of their medicines, etc.?
To register medicines in a particular market, they need to have the human and financial resources, yet the costs are very similar to those in large markets, while sales are ultimately significantly lower. That is also why they cover the large markets first. If we do the bulk of the work, it makes things easier for them in smaller markets. Nevertheless, they still have to prepare some basic documentation for us themselves.
You established the International Medis Awards for Medical Research. In your opinion, what role do companies play in promoting science, research and professional collaboration?
When our company turned 25, we said we had to thank society with something special, preferably not just in Slovenia. There were many suggestions, from the best doctor to the best pharmacist. We then decided to do something that would contribute to the progress of society and, in particular, medicine. This is how the international Medis Awards for Medical Research came into being. Today, 12 countries participate across nine medical fields. The condition for participation is that they submit works published in the best international medical journals, and that the doctors submitting them are also practising clinicians. Our aim to popularise research findings so that even people who do not otherwise follow medicine can see that a great deal is happening in our field—both professionally and geographically.
Your daughter, Maja Strnad Cestar, has already successfully taken over the running of the family business. How challenging was the succession process from your perspective?
You would have to ask others about that (laugh). I always look to see what will happen in 10 years’ time. Tomorrow will bring what it will, and if we set things right some time ago, everything will be fine tomorrow. After just a few years in business, I knew this would have to happen one day. Back then, the potential successors were still children.
In the 1990s, succession was not even discussed in our country. I went abroad to attend a few seminars on the subject, once with almost the whole family. Elsewhere, family businesses are over 100 years old, and in theory, the handover is not difficult at all; it is the little things that complicate matters.
We started by holding regular family meetings to discuss the business. I told my daughters, “Look, one day the business will be yours, so that you have at least a rough idea of what’s going on.” Then they finished their studies and two of them joined Medis.
A few years ago, I decided I would not be so involved in day-to-day operations anymore, and at that time we chose my then-assistant, Martina Perharič, PhD, as CEO. After a few years in the role, she wanted to work again in her expert field, and my eldest daughter, Maja, took over her role. She has proven that she is good at it and that people follow her lead.
But is it hard to let go of the reins—you say the company is your fourth child?
It is not particularly difficult for me. I trust people, especially my daughters, so I have completely stepped back from day-to-day operations. Over the years, I have simply lost the desire to do certain things. However, I do keep an eye on what is happening. Sometimes, when I feel something might go wrong, I say, ‘I don’t like this, think about it.’ I get angry as well. Otherwise, I do not get involved. In fact, I do not even go to Medis (author’s note: the separate Medis building). I am the Director of Medis Group, which covers finance, HR, IT and real estate. Medis, meanwhile, deals with medicines and medical supplies across numerous countries.
I think those who cling desperately to their leadership are making a mistake; they do not trust their people. It would be better if, within the scope of their work, they found something that interests them, something where they know they might still be able to develop something or help the company from another angle, and then focus on that.
How do you see yourself—as a leader, a manager, an entrepreneur or all three? Why?
It is only recently that I have realised I am actually an entrepreneur—that this is my core trait. I have done incredible things; the list is too long, really, ever since I was a child. I choose an idea that I bring to life, and I have a rare ability to lead people and provide them with interesting work and a livelihood. It is crucial for an entrepreneur to identify the weak points, what can go wrong. This is extremely important to me because I am responsible. Everyone is interested in success, but rarely does anyone think about the risks.
When I started out, I did not realise that running a small business is a special kind of challenge. I came from a large company where everything was organised; I did not have to worry about the company’s structure. But I worked and unconsciously picked up knowledge. When I launched my own business, I drew on what was happening around me and what I knew. At first, I put the stamps on the envelopes myself; then I started recruiting people and realised I had to be the director. What now? What responsibilities do I have? Am I responsible for everything or can I delegate some tasks to others? Back then, it was not as crystal clear as it might seem today.
At times I realised that I was also the owner. Of course, but that was not the primary thing for me. My primary role was to set the direction, come up with ideas, bring them to life, talk to the employees, understand them and encourage them when they were in trouble. It was only after 15 years that I realised ownership is very important. Especially at a time when Slovenian companies were being sold off, with the attitude that it does not matter who the owner is. But of course it matters!
If you were to give advice to younger professional peers today, what would you tell them?
That they should talk a lot with their colleagues. Because they know everything. That they should be understanding towards them and firm in their goals.
What advice would you give your younger self—from today’s perspective?
I do not know if anything. Let’s say, after the first 10 years, I might say, ‘You’re doing well. Be a bit more aggressive, a bit quicker.’
Culture has a special place in your life; Medis is considered one of the biggest supporters of culture in our country. Why culture?
My wife and I have always been involved in culture. We are fascinated by artists of all kinds, especially writers, painters and dancers.
My wife is an excellent singer, and our extended family is quite artistic—my late cousins include a well-known Slovenian painter, another a well-known Slovenian filmmaker, and a third a well-known architect. We clearly share some common genes.
I was part of the France Marolt folklore group for 10 years; at the same time, I also worked in a theatre library, organised concerts across Slovenia, and so on. I was mainly involved in this during my student years. We have been allocating some funds to the France Marolt folklore group for 35 years now, as well as to the Ljubljana City Theatre, the Črnuče Choir, the fire brigade, the Red Noses, the Red Cross, and so on. This is very important for these societies and organisations.
For my patronage of culture, I received the highest award from the Association of Cultural Organisations, the Ravnihar Award.
You read and learn a lot. What has recently sparked your interest?
I read a lot, really a lot. And I read a wide variety of things, including in different languages, magazines and books, fiction and non-fiction. You cannot really get much out of social media—they are just impulses that give you some inner satisfaction or anger. When I read 100 articles, I forget 90% of them anyway, but 10% get stored somewhere in my brain. When you have read 1,000 articles, you have already got 100 stored away somewhere and it all sort of comes together. Then, when you come across a problem, all that content suddenly connects and you get a certain idea. One article is not enough—1,000 or even 100,000 other people have read it too. And if there is just one idea in it, others have probably recognised it as well. But when you read a lot, that knowledge accumulates and comes together.
“It is crucial for an entrepreneur to identify the weak points, what can go wrong. This is extremely important to me because I am responsible. Everyone is interested in success, but rarely does anyone think about the risks.”
“I am the cautious sort and cannot just dive headfirst into a pool without checking how much water is in it. Still, after 2000, we could have started setting up companies in other countries a bit sooner and we would be much bigger now. Perhaps.”
“Those who cling desperately to their leadership are making a mistake; they do not trust their people. Perhaps it would be better if, within the scope of their work, they found something that interests them, something where they know they might still be able to develop something, and then focus on that.”
“I always look to see what will happen in 10 years’ time. Tomorrow will bring what it will, and if we set things right some time ago, everything will be fine tomorrow.”
