The Challenge

A North American manufacturer of single engine piston airplanes was acquired out of bankruptcy by European investors. After two years of management by aviation industry executives, the investors wanted a non-aviation manager to assess the company's prospects, and if positive, develop a business plan and recruit a management team while providing day-to-day direction.

The investors chose TEG based on their experience with TEG's business-like approach to strategy and operations management, as demonstrated in the investors' telecom companies.

The Solution

TEG brought in experts in strategy, engineering and production, and process improvement. Within one month the management and TEG agreed on a common vision of products, sales, production and other improvements, key performance indicators, and priority projects. Within two months a three-year strategy and business plan was developed, approved, and funded by the investors. Implementation of the business plan is underway.

The Results

One year after the start of the turnaround,

• A new management team incorporating a blend of aviation and general business experience is in place with a new CEO.
• The brand has been re-launched and new orders are more than double the previous year.
• Production is on target to nearly triple over 2003.
• Key investments have been made and production cost reductions are tracking with the plan.
• Processes have been redesigned. Quality is part of every operation.
• Customer support is revitalized.
• Vendor terms and responsiveness are much improved.
• Facilities have been upgraded and a new ERP system is being installed.
• Governance and working capital management are completely revamped.
• A culture of teamwork, accountability and continuous improvement is supported by a common vision, sense of purpose and key performance measures.