Start Up to Successful Exit Lee Benson, CEO A B L E A E R O S P A C E S E R V I C E S
Able History ▪ Aerospace unit founded in 1982 ▪ Purchased by CEO in 1993 with 3 employees ▪ Able Engineering and Component Services Inc.: Established 1995 ▪ Able Aerospace Inc.: Established 1999 ▪ PMA (Production Approval Holder) & FAA Repair Station ▪ Prior to acquisition grew to 450 employees and 1,400 customers in 60 countries ▪ Both companies purchased by Textron in January 2016 – Combined and changed name to Able Aerospace Services ▪ Opportunity: Capture over $400M in Bell CR&O aftermarket A B L E A E R O S P A C E S E R V I C E S
What Able Does Repair, overhaul, design and manufacture aircraft parts to support aircraft maintenance worldwide Our Mission is to safely reduce aircraft operating costs by providing resourceful component repair, overhaul and approved replacement parts solutions In most cases we work with aircraft operators directly We work with helicopter operators including PHI, Air Methods, AMGH and Bristow We work with large airlines including United Airlines, American Airlines, Southwest Airlines and UPS The reason customers send us work is because we safely reduce their maintenance costs over their next best value alternative
2006
2010
2013
Able Today Up 23% in first year of acquisition Up 26% YTD in second year of acquisition Positioned to double in the next 3 years Occupy 4 buildings in and around the PMG-Airport A B L E A E R O S P A C E S E R V I C E S
Steps in the Evolution to Acquisition Initial value proposition Understanding the competition Process for setting strategy Process and technology for executing on strategy Management Operating System Intentional culture Leadership development Be in a position where not selling is an equally great option! A B L E A E R O S P A C E S E R V I C E S
Creating and Building on Value Proposition Mission: “To safely reduce aircraft operating costs by providing resourceful component repair, overhaul and approved replacement parts solutions” Product evolution: Repair individual parts Manufacture individual PMA parts Repair and overhaul assemblies Repair and overhaul groups of assemblies and subsystems Work on entire aircraft Saved our customers about $200M in the year prior to the acquisition A B L E A E R O S P A C E S E R V I C E S
Setting Strategy and Beating the Competition 5 foundational questions to building Able’s strategy prior to acquisition: What is the macro view of the industry by segments served? What have our strongest competitors done in the past year to change the game and how did it work out for them? What have we done in the past year to change the game, how did it work out for us, and what could we have done better? What keeps you up at night? What are we going to do in the next year to take as much business away from the competition as we can by being the best value alternative for our customers? A B L E A E R O S P A C E S E R V I C E S
Management Operation System (MOS) What every leader in the organization does daily, weekly, monthly, etc., to achieve extraordinary results Some MOS elements include: Daily huddles Team meetings (large and small) 1-to-1’s Foundational Readiness assessment (building process, capability, systems and people) Continuous improvement cadence Continuous strategy and goal review Competitor profile/progress updates Execution system with real time updates A B L E A E R O S P A C E S E R V I C E S
Execution in an Organizational Alignment Challenge ▪ All employees aligned and connected to strategy – Outcome based, actionable performance goals – Team scoreboards so everyone knows what winning and losing looks like – Every team member knows where they stand and what’s expected 100% of the time ▪ All employees aligned and connected to an intentional high-performance culture – Mission – Vision – Quality Policy – Behaviors – Leadership Traits A B L E A E R O S P A C E S E R V I C E S
We Manage Strategy In One Place Distilled out into a Living Breathing Execution Plan ▪ Informed and timely decisions ▪ Risks are quickly identified ▪ All efforts are focused on getting results ▪ Clear accountability ▪ Agility to take action A B L E A E R O S P A C E S E R V I C E S
Drill Down to Take Action ▪ KPI is behind plan ▪ Major Objective is at Risk ▪ Supporting Requirement is at Risk ▪ Identify Gaps in Results ▪ Understand the issue ▪ Make informed decision ▪ Take action A B L E A E R O S P A C E S E R V I C E S
Monthly Cycle for Managing Execution A B L E A E R O S P A C E S E R V I C E S
Monthly Cycle for Managing Execution A B L E A E R O S P A C E S E R V I C E S
Intentional Performance-based Culture Simple definition of Culture: What we agreed to do and how things get done • What we agreed to do: Mission • How things get done: Behaviors and Leadership Traits “Everything an organization does should be done with the intent of making the organization measurably better. Everything else is a waste of time and resources. Alignment Tools should pass that test.” A B L E A E R O S P A C E S E R V I C E S
Able’s Mission What we wanted our Mission to accomplish before we started drafting it: To tell customers in a compelling way why they should do business with us and tell every employee why they have a job. It needs to be what our team does every day to win! Our Mission “To safely reduce aircraft operating costs by providing resourceful component repair, overhaul and approved replacement parts solutions” A B L E A E R O S P A C E S E R V I C E S
Able’s Behaviors and Leadership Traits What we wanted our Behaviors and Leadership Traits to accomplish before we started drafting them: To create an environment where >50% of our employees are behaving, performing and leading as good or better than the top 10% at our strongest, most admired competitors. Our Behaviors: High performing employees throughout Able… • Treat company resources as their own • Do what they say they will • Present and pursue permanent solutions as opposed to dwelling on problems • Are fully engaged and participate within the team • Have a personal commitment to the end result • Are respectful, honest and straightforward A B L E A E R O S P A C E S E R V I C E S
Leadership Traits Able’s Leadership Traits: Energy: Positive energy in good times and especially bad times Energize: Ability to create an environment that releases the positive energy from the team Edge: Ability to make the tough calls and have difficult conversations Execute: Ability to get extraordinary team results Passion: For being a leader, your functional role in the business and for the industry you serve. Without Passion you can’t be great! Resiliency: Ability to bounce back quickly from setbacks Able’s Definition of Leadership: Eating and Dreaming at the same time - Every leader at Able maintains an individual and/or team Eating and Dreaming list (driving both short-term and long-term results) A B L E A E R O S P A C E S E R V I C E S
Organizational Alignment at Able A B L E A E R O S P A C E S E R V I C E S
Low Culture / Low Performance A B L E A E R O S P A C E S E R V I C E S
High Culture / Low Performance A B L E A E R O S P A C E S E R V I C E S
Low Culture / High Performance A B L E A E R O S P A C E S E R V I C E S
Team View A B L E A E R O S P A C E S E R V I C E S
Assessing Able’s Leaders ▪ General Leadership – Leadership Traits – Strategic thinking, information gathering and acting ▪ Foundational Readiness – Ability to stand up and sustain the capability to achieve extraordinary results ▪ Management Operating System – Ability to stand up and sustain a business management operating system – Ability to systemically execute on strategy and scale – What every Leader does daily, weekly, monthly, etc., to achieve extraordinary results in customer experience and profitability A B L E A E R O S P A C E S E R V I C E S
Practical Things Leaders Do to Achieve Extraordinary Results ▪ Hire the right people ▪ Develop strong leaders ▪ Develop strong SME’s ▪ Don’t protect poor performance ▪ Can convey an idea and be convincing ▪ Don’t confuse efforts with results ▪ Don’t confuse enthusiasm for capability A B L E A E R O S P A C E S E R V I C E S
Leadership Audit Checklist A B L E A E R O S P A C E S E R V I C E S
Leadership Audit Checklist A B L E A E R O S P A C E S E R V I C E S
Not Selling is a Great Option = Best Price! ▪ What buyers are looking for: – Strong leadership team – Sustainable, scalable management operating system – To leverage combined strengths and value proposition – Significant performance history – Significant opportunity going forward A B L E A E R O S P A C E S E R V I C E S
Questions A B L E A E R O S P A C E S E R V I C E S
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