ICS Strategy LRPC Working Draft Version 1.0

1. ICS StrategyLRPC Working Draft Version 1.0 Not Approved – Discussion Only

2. LRPC Membership • Lawrence Paratz (Chair) GMT +11 • Monica Reichelt (Secretary) • Mark Pfeiffer • Shirley Nelson • Bill Harris • Karl Hipp (Pres. ICS. Ex Officio) GMT

3. Deliverables from the Committee • Definitive Plan for the Products & Services that ICS will provide going forward • Definitive Plan for ICS “Corporate” activities • Definitive Marketing Plan for ICS • Definitive Plan for how members and non-members contact ICS and what happens when they do • Recommendations for implementation of this plan with emphasis on initial steps • Definitive recommendations on fees policy • Recommendations on Communication of the strategy to ICS members

4. This Pack proposes a coordinated set of strategies and initiatives, which taken together will • Ensure the long term financial viability of the ICS • Create a value proposition which will be attractive to existing and new members • And in doing so, add to the long term value of Comanche aircraft

5. Pack Contents • Organisational & Financial Plans & Recommendations • Product Plans & Recommendations

6. Organisational Issues & Recommendations

7. The “Headquarters Issue” • Fact: The cost of headquarters per member has now risen to unacceptable levels • Fact: The functions can be done more cheaply and effectively in other ways • Fact: This does not mean a loss of service. Correctly executed, we will free up resources to increase and improve member services

8. The “Headquarters Issue” • What does headquarters currently do for members? • Maintains membership records • Collects subscriptions • Provides a first phone in & email in point • Runs a basic merchandise shop • Stores historical material • Does basic book-keeping

9. The “Headquarters Issue” • It is proposed to • Simplify and rationalise the activities undertaken at HQ • Thoughtfully allocate responsibility for these to a combination of contractors and volunteers • Extract ourselves from the fixed costs being incurred in OKC

10. The “Headquarters Issue” • We do not propose to just “close headquarters”. • We do propose to do things better and cheaper while improving member service by releasing our OKC operation

11. The “Headquarters Issue” • The ICS has before it a proposal developed and negotiated by the Communications Committee for a contractor to undertake certain of the current HQ activities. • The LRPC supports this approach on strategic grounds. • The LRPC has had the opportunity to examine this proposal, and the draft agreement. • The LRPC recommends adoption of this proposal • The Board’s attention is drawn to the other recommendations of the LRPC which must be adopted alongside this proposal

12. Transitional Actions (1) • The LRPC has identified transition actions which must be undertaken before release of the OKC operation to ensure no disruption to ICS • Assure and capture a unique and definitive member records database in suitable form. Ghost to selected admin contractor. Work up processes and scripts with selected admin contractor. • Move as many members as possible to standing authorities • Discard stored trash while identifying and relocating wanted historical items. • Transfer the tool loan program to Matt Kurke

13. Transitional Actions (2) • Identify definitive technical articles in past Flyers, scan them, and load them onto the website • Undertake a stocktake of sale items. Adjust accounts as necessary. Select a fulfilment contractor. Transfer stock to the fulfilment contractor • Identify all ICS assets at headquarters. Agree dispersal plan – sale to members, ebay, junk, retention etc. • Give necessary notice under our lease • Undertake effective communication to members

14. Key Messages to Members (1) • ICS has returned to good financial shape after almost 15 years of living off its savings • The Board is moving to increase services, and to eliminate costs which are not value for members • These changes will result in an enhanced, not a diminished ICS • At the same time as these changes we have announced new services to members • On-line access to key technical articles from the Flyer including past issues • Appointment of a new Technical Director • Development of Prospective Buyer Packs • Development of New Owner Packs

15. Key Messages to Members (2) • These changes will free up cash to undertake things we cannot do right now, and allow your Board to focus on delivering more, not just assessing the dues as crises develop. • The ICS respects and values the loyal service of Gaynor over many years and she is being treated with dignity and respect. In fact Gaynor is actively assisting in making sure that all goes smoothly. • We will be retaining Gaynor to assist for a short time after the transition

16. Key Messages (3)What we need from you – our Members • Your recognition of the importance of this and your ongoing support of ICS • Your additional ideas • For you to take an active role in ensuring that every Comanche owner is a member • Don’t sell your Comanche without a new member pack going with it. • Tell your fellow Comanche owners about the value you get, and the fact that Comanches will hold their value long after others are pushed into the weeds because of ICS

17. Post OKC Release Actions • Termination Arrangements for current staff member • Vacating premises • Adjustment of Insurances

18. Board Working Arrangements • The LRPC recommends that the Executive meet formally on a regular, scheduled basis. This will be particularly important when the ICS is using a number of suppliers for service delivery as proposed. • The LRPC recommends • Quarterly Whole of Board Meetings • Interspersed by Monthly Executive Meetings by Phone Conference

19. Standing Agenda – Monthly Executive Meetings • Treasurer’s Report – Month Past and YTD • Contractor reports • Magazine Production • Membership Admin • Technical Support program • Fulfilment and Sales • Member Issues • Committee Activity • Actions - Review • General Business

20. Membership Renewals • To reduce transactional load, and secure cash flow, US members are to renew by Standing Authorities as far as possible • Objective 80% conversion at next renewal • From 1 Jan 2007, $5 per annum transaction surcharge for year by year renewals • Transition all members to common billing date • Non-US Tribes to continue to collect and remit subscriptions in bulk as at present

21. Membership Database • We need a single definitive Member and Subscription Database • There may be three separate databases at the moment which we are paying to cross-correlate • Embedded in the website • In a standalone database on Gaynor’s PC • In the accounting system

22. ICS Product Plans

23. Tips Technical Advice Operational Advice Bookshop Merchandise Info for people thinking about buying Social Activities Fly-Ins Training Discounts Tool Library Parts leads Rare Parts History and experience of the type Magazine Contact with other Local and Global owners Full archive of all maintenance and operational data Representation with Regulatory Bodies International events LRPC - ICS Products & Value- A plan for each

24. Flyer • Current Outsourcing to VP to continue • Current Cost per member $1.35 per issue per member (Payments to VP less Advertising Revenue divided by ICS membership) considered satisfactory • This is to be managed so as to not escalate faster than US inflation rate

25. Operational Assistance • Channels to be • Proficiency Programs • Operational Section of Forum on ICS Website • Archived manufacturer’s materials on website • Seminars at Annual Conventions • Networking opportunities at Fly-Ins and Convention

26. New Buyer’s Pack • Aim is to make it easier and less risky to buy a Comanche than anything else • Pack to include • Why owners love their Comanches • History and overview of the variants • Basic performance information • What you should check when looking at a Comanche • Listing of ADs, or details of where to find them • The first 25 hours as a Comanche Owner • Where can I get parts? • Where can I get training? • An introduction to ICS • ICS application form • Pack to be sent free by email, or $5 by post • Admin contractor to call back all receivers of pack to check status, and sell membership

27. Tips • Where is the Master File?

28. Bookshop/CFF Merchandise • Stock to be held in a Fulfilment Centre • ICS to receive appropriate commission on sales • CFF to be responsible for ensuring inventory available, and new items are developed

29. Conventions • ICS Conventions to be held yearly • Tribes to host on a rotating basis • Tribes to have two options • Fund themselves • Profit/Loss falls to Tribe • Funding from ICS • Profit/Loss falls 1/3 Tribe. 2/3 ICS

30. Tool Loan Program • Tools to be held, and program administered by nominated party • Matt Kurke is currently nominated party • Member charge per tool per loan is • Two way shipping cost, plus • $10 handling ($5 to nominated party, $5 to ICS) • Deposit of 150% of tool value to be held • Loan to be limited to 3 weeks [US members], (assessed shipping to receipt back in library, based on 1½ weeks for both way shipping, and 1½ weeks in member’s use) and 4 weeks [non-US members] • Excess time charge of 10% of tool value per week • Tool damage, other than normal wear and tear, to be made good by member

31. Technical Help Resources • Resources available to be • Access to technical director • On-line searchable reference material covering aircraft, engines, turbos etc • Searchable archives of technical forum discussions • Technical Forum accessible to members • On-line archive of key Technical Articles from Flyer

32. Marketing • Market Share Objective • ICS paid memberships to be equal to 60% of the number of serviceable Comanches worldwide • ICS to work with insurers to secure preferential rates for ICS members who have undertaken ICS programs