Texas Air Composites, Inc. is an award-winning “overhaul” facility that repairs the sheet-metal, composite, and welded structures of airplanes for commercial and regional air carriers. Its clients include Southwest Airlines, Delta Airlines, Comair, SkyWest, Air Wisconsin, America West, Frontier Air, Cathay Pacific, Mesa Airlines, and WestJet. The five-year-old company has 72 employees (largely in sales, operations, engineering, purchasing, information technology, quality, and administration) and generates annual sales of $10 million.
Great Game Solutions
But in 2004, TAC ended its lengthy pre-season of monthly financial reviews and informal training sessions, and hired Great Game Coaching to help the leadership team identify its critical number (profit before tax), develop a motivational bonus plan with a 10% -20%-30%-40% payout schedule, and set up a P&L-style scoreboard with critical drivers such as warranties, turn times, and inventory levels. During half-hour huddles on Thursdays, employees forecast their line items, while others follow the action, taking notes in their binders. They discuss overhead costs, the P&L, and key operational metrics.
- Revenue: Has increased an average of 89% each year since 2001. Projected revenue for ‘05: $13M.
- Profit: In 2001, $55K, which was 3.6% of sales. In 2004, $1.3M, which was 12.4% of sales.