Boeing's current struggles can be traced back to its prioritization of financial returns over its people and suppliers. In the 2010s, the company weakened its workforce's power, reduced labor's negotiating power, and terminated pension plans. Non-technical executives were promoted, and suppliers were pressured to reduce prices and increase payment terms. This approach led to a short-term boost in shareholder returns but ultimately resulted in an under-resourced supply chain, an alienated workforce, and a tarnished brand.
The consequences are evident: missed production targets, program delays, failed safety audits, and shoddy workmanship. Airlines are frustrated with delivery delays, and regulatory scrutiny is increasing. Even Boeing's stock price has begun to suffer.
To recover, Boeing needs a new approach to management. It must treat suppliers and workers as partners, engage directly with them, and prioritize its core business. Senior executives should spend time in factories, talking with engineers, machinists, and suppliers. Instead of denying the need for new products, they should explore new opportunities to restore the company to industry leadership.
Boeing still has good people, technologies, and jetliners, but it needs to learn from its mistakes. By valuing its workforce and suppliers, the company can restore its reputation and regain its position in the market. It's time for a change in management approach to ensure a successful future for Boeing.
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