top of page

Boeing's Decision-Making Crisis: A Company in Need of Change

Oct 17, 2024

3 min read


Boeing is one of these companies that needs Wizer most but is least likely to use it, a decision making platform that could help their cultural woes.


Boeing, once a paragon of aerospace engineering, finds itself in the midst of a profound crisis. Recent incidents, including the Alaska Airlines door plug blowout and the 737 MAX crisis, have brought the company's decision-making processes and safety culture under intense scrutiny. At the heart of Boeing's troubles lies a fundamental shift in leadership philosophy and corporate culture that has eroded its commitment to engineering excellence.


The Decline of Engineering Culture

As Gautam Mukunda points out in his Forbes article, Boeing's primary issue is not just a series of technical failures, but a deeper "leadership and culture problem." The company that once prided itself on engineering prowess has, over the years, moved away from its roots. This shift is exemplified by the company's leadership, which has increasingly favored financial expertise over engineering acumen.

Mukunda argues that "what Boeing needs is engineers—not financiers—to lead it into the future." This sentiment echoes a growing concern that the company's focus has shifted too far towards financial metrics at the expense of its core competency in aerospace engineering.


The Impact of Financial Focus

The Air Current's report highlights how decades of corporate decision-making have eroded Boeing's safety culture. A key factor in this erosion has been the adoption of a "Jack Welch-style obsession with Return on Net Assets" (RONA). This financial-first approach has had far-reaching consequences:

  1. Pressure on suppliers to reduce costs, potentially compromising quality

  2. Rushed production schedules to meet financial targets

  3. Reduced investment in research and development

  4. Diminished voice of engineers in key decision-making processes

At its peak, Boeing was led by individuals like Bill Allen, a lawyer who understood the importance of empowering engineers to lead. Today, however, Boeing's engineers have been sidelined, replaced by executives with a Wall Street mindset. The result has been a drift away from the company's legacy of technical innovation and safety toward a model driven by short-term financial returns.




Speed vs. Quality: A Dangerous Trade-off

The New York Times article by Natalie Kitroeff sheds light on the dangerous trade-off between speed and quality at Boeing. The company's push for faster production to compete with Airbus has led to a situation where "quality problems have piled up." This rush has resulted in:

  • Increased safety incidents and quality issues

  • Strain on employees and suppliers

  • Compromised oversight and quality control processes

These challenges were compounded by a relentless push for speed and efficiency without appropriate internal expertise. For example, rushing production processes resulted in significant quality control failures, eroding trust in Boeing's ability to deliver safe and reliable aircraft.

The Importance of Decision Culture

The current state of Boeing underscores the critical importance of having the right people in the room when making crucial decisions. A strong decision culture, rooted in engineering excellence and safety, could have prevented many of the issues Boeing now faces.

Key elements of a robust decision culture include:

  1. Valuing expertise over financial metrics in safety-critical decisions

  2. Encouraging open communication and dissenting opinions

  3. Prioritizing long-term safety and quality over short-term financial gains

  4. Maintaining a balance between innovation and proven engineering practices

Boeing's decision-making breakdowns have resulted in safety compromises and delays. The shift away from engineering input has led to decades of erosion in Boeing's safety culture. Decisions that once required input from engineers are now influenced primarily by financial considerations, contributing to the 737 MAX crisis and persistent quality issues.

Looking Forward

As Boeing works to regain trust and rebuild its reputation, it must critically examine its decision-making processes, leadership structure, and corporate culture. Only by recommitting to the engineering excellence that once defined the company can Boeing hope to navigate out of its current troubles and secure its future in the aerospace industry. While Boeing may never turn to a platform like Wizer, their current struggles demonstrate the importance of having systems that ensure the right mix of expertise in decision-making. Organizations that align their decisions with both financial and operational goals—and engage the right stakeholders—are better positioned to avoid costly errors.


The Boeing case serves as a stark reminder to all companies in safety-critical industries: when engineering excellence takes a backseat to financial considerations, the consequences can be dire. A strong decision culture, with the right expertise in the room, is not just good business—it's a matter of public safety.



References:

bottom of page