Masters of Improvisation

GTI's success did not go unnoticed. On December 27, 1996, the Wall Street Journal ran a prominently placed story on the company, titled "New Breed of Travel Agents Scares Old Breed." Filled with examples of small-business owners who had signed on as GTI agents to save money on company travel, the article gave GTI credibility as a bona fide travel agency. It was an important stamp of approval, since the company had been unjustly compared with "card mills," businesses that sell agent credentials but that don't actually book travel.

Ironically, the Journal story also very nearly put the company out of business. "I thought, 'It's right after Christmas--who's going to read this?" Warren recalls. He went out for a run that day while the more prudent Gross decided to check in at the office. To his horror, Gross discovered that GTI's skeleton staff had been inundated with calls. "We went into crisis mode," says Warren. "We called people back who were on vacation, and we took 2,000 calls that day. That story gave us tremendous success, but it put us on the brink of disaster."

Call volume increased sixfold, hold times became unbearably long, and Warren pinch-hit on the phones, taking on a double identity as "Jay in reservations." A crisis, sure. But Warren and Gross saw the flip side as well. Determined not to squander the interest among small-business owners that the article had piqued, they began running regular ads in the Journal seeking yet more independent agents. By the end of 1997, the company had 12,031 agents, 60% of them corporate members.

Be Ready for the Unknown
Warren and Gross are now faced with their biggest challenge: they must prepare GTI for a future that is all but impossible to imagine. Anticipating more exponential growth, they've put into place an intensive seven-week program that will train neophyte internal agents, so the company won't have to rely upon the dwindling local pool of experienced agents. They've got a telephone system that's capable of handling 10 times their current call volume and a proprietary computer network that can accommodate additional airline-reservations systems without adding more hardware. "It will allow us to do things we haven't even thought of yet," says Warren.

In the past Warren and Gross struggled to keep up with the growth they had put in motion but that always seemed on the verge of consuming them. Now they're older, wiser, and better prepared. But not complacent, not predictable.

As Gross stands before his team leaders, he tells a few cautionary tales. He's been reading about problems at Starbucks and disappointing profits at Disney. "Michael Eisner has been my hero," he says. "How did he stumble?" GTI, now 22,000 members strong, has never had a bad year, a bad quarter, or a bad month. But if giants falter, Gross cautions, so can they. He doesn't want his staff to take success for granted; he doesn't ever want them to think that they can afford to slow down.

"Eisner says all companies need to reinvent themselves every few years," he continues. "Well, I disagree. We don't need to reinvent, we need to evolve." It is an important distinction for all entrepreneurs. Companies that evolve, that constantly modify and change in response to the marketplace, don't need to reinvent themselves. They stay ahead of the curve naturally. And they put themselves just a little bit closer to the top of the food chain.

Donna Fenn is a contributing editor at Inc.

Masters of improvisation need masters of systems
Along with their business, Warren and Gross also developed their staff on the fly. Most of their key managers came on board when the company was young, so they've grown into their current roles.

MARILEE GALINDO
HIRED AS: Bookkeeper in 1995
MAJOR RESPONSIBILITY TODAY: Director of operations; oversees five departments
SALARY INCREASE: 140%

MELISSA WARD
HIRED AS: Travel manager in 1995
MAJOR RESPONSIBILITY TODAY: Director of air-travel operations; supervises 45 employees
SALARY INCREASE: 100%

KATHERINE DEMING
HIRED AS: Receptionist in 1996
MAJOR RESPONSIBILITY TODAY: Human-resources team leader; handles all aspects of employee benefits
SALARY INCREASE: 63%

MAUREEN MCHALE
HIRED AS: Administrative assistant in 1996
MAJOR RESPONSIBILITY TODAY: Director of marketing; supervises a staff of 13
SALARY INCREASE: 105%

On the way to being a big fish in a big pond