Gaurav Gupta’s Post

Gaurav Gupta the point is well made. As ever the trade-off between safety versus shareholder returns in a safety-critical environment or industry is likely to be a losing one. When a culture evolves to put shareholder returns and renumeration ahead of core values and safety, the result can be catastrophic. The 737 Max Lionair and Ethiopian crashes killed 346 people. The cost to the manufacturer was both reputational and financial - estimated at $20BN in costs, and $60Bn in cancelled orders. For the 346 and their families the cost is incalculable. What were the root causes? A "race to market" versus the A320 Neo, rushed assembly practices, or the more deeply rooted, post 1997-acquisition, culture, that is reported to have focussed on shareholder returns? The market cap cost, post the Alaska Airlines' incident, was $30Bn. Prior to 1997 Boeing aircraft commanded a "quality" price premium. What now? In a safety critical industry and organisation, the key priority is SAFETY and that comes through culture and quality control. R Edward Freeman makes the point that the aim is to "harmonise" org and stakeholder interests. Shareholders ARE stakeholders, and so are passengers. A cultural realignment is overdue.

“There is change at Boeing. But over the past five years we are only seeing the result of two and a half decades of mismanagement. To come back and rebuild a culture… is a long process." What is this mythical thing called culture, which most executives and company Boards willfully avoid because it’s ‘soft’ and ‘unmeasurable’? You know the tired, lazy old trope “what gets measured gets done”? Culture is part of what I call the 90% of the iceberg hidden below the waterline, which will sink you like the Titanic if you ignore it. Most managers obsess about the 10% visible above the waterline - I call this the “cult of managerialism”. Once you understand some basic neuroscience and anthropology it becomes obvious why culture is far more important than processes, rules, structures, strategy, measurement and KPIs. Not to say these things are not important. They are. They’re crucially important, but they’re the visible 10% and will only be safe and effective if you’ve properly got your arms round the hidden 90%. I’ve spent the last 30-odd years dealing with these so-called ‘wicked problems’, in other words complex human systems that don’t lend themselves to being treated like inanimate machines. If you have such challenges in your organisation it may be worth a conversation.

The problems at Boeing are concerning but give those of us with an interest in corporate culture a live case study. We can also answer one question - how long does it take to change a culture? My thoughts on Boeing's dramatic culture change, and what it took to change the culture. https://lnkd.in/e36-TBXp #strategy #culture #change

🚨 Boeing has faced major challenges in recent years, from safety concerns to production delays. But at the core of these issues lies a deeper problem: workplace culture. In my latest article, I explore how Boeing's internal culture has contributed to its struggles and offer actionable recommendations for change. 👉 Read the full article to learn how a culture shift can lead Boeing back to its engineering roots, foster transparency, and improve overall business outcomes. Plus, find out how Nicole L. Turner Consulting can help drive this transformation. https://lnkd.in/eRa58Kpp #Boeing #WorkplaceCulture #LeadershipMatters #Innovation #CorporateTransformation #SafetyFirst #AerospaceLeadership #EngineeringExcellence #TransparencyMatters #CultureShift #EmployeeEngagement #OrganizationalHealth #AerospaceInnovation #Boeing737MAX #businesstransformation #theculturepro

It’s a start … In the end each journey begins with the first step - though there is probably a long way to go for Boeing. To extend my rather short comment a little bit: I don’t have any insides into what is going on in Boeing. My evaluation from the outside would simply be that the general culture is broken down. Focus on short term shareholder value instead of a focus on quality and standards which – by nature – only pay off in the long term. The bad thing here: building aircrafts is a very long term business, again by nature. Building cars in comparison for example is probably like fast food. That means it will take time to see changes, in case there are any changes at all. There was no way to simply shut everything down, review everything and make changes and adjustments where necessary. A company which such a long term perspective would go bust doing this. Anyhow, changing top management is a good opportunity to get on the right track again. As written above, from my point of view the culture is the biggest problem. I would be very surprised if a company like Boeing wasn’t equipped with all the highly capable engineers required for this kind of business. Culture always (!) starts with setting the tone from the top. So let’s hope the next CEO takes this serious and does not consider being cheap as an option. For Boeing as well as for those flying in their aircrafts.

Among the most detailed, general/#businessnews length, commentaries & analyses of Boeing seen to date. *HIGHLY RECOMMEND* Written by Peter Robison , an award winning investigative reporter at Bloomberg News , Mr. Robison’s credits include nearly 3-decades covering Boeing & authored “Flying Blind: The 737 MAX Tragedy & The Fall Of Boeing,” which The Financial Times described as: “…the definitive account of the disasters that shocked the world; a chilling, behind-the-scenes look at the corporate dysfunction which contributed to one of the worst tragedies in modern aviation. It’s an exposé of a reckless culture where - in a race to beat the competition and reward top executives - Boeing skimped on testing, pressured employees to meet unrealistic deadlines and ultimately convinced regulators to put planes into the air without properly equipping them or their pilots for flight.” Key takeaways from the article: - Boeing’s capital expenditures (capex) reduced to <2% of sales by 2018, less than half of its duopolist rival, Airbus , at the time. Robison also notes Boeing spent $41.5 billion on share buybacks from 2013-2018 alone. [Side note: leading industry expert Scott Hamilton of Leeham Co LLC estimates Boeing spent >$60 billion on buybacks from 1997 (when McDonnell Douglas merger occurred) through 2019. For more, plz see “bonus link” in reader comments below.]; - And this ⬇️ excerpt from the article: “Last year, Joe Jacobsen [former FAA Safety Engineer, now an Independent Safety Advicate] advised the nonprofit Foundation for Aviation Safety on a report that drew on data in an FAA database to show that Alaska Airlines alone had experienced at least 1,230 issues involving safety-related systems such as engines, hydraulics, pressurization and flight management computers since it began flying the Max in 2021.”; - Highlights many conflicting statements made by departing (some might say “lame duck”) CEO, Dave Calhoun, & how he contradicted his own previously stated business philosophy regarding the importance & long term value to shareholders of innovation during his tenure at Boeing. All that & more in this compelling read! NOTE ⚠️: Free registration may be required to view the article for non-subscribers. #aerospaceengineering #airlines #airlineindustry #airtravel #business #aircraft #aircraftleasing #aircraftmanagement #assets #assetfinance #finance #investors #investing #pilots #avgeek #aviation

When you think about building a great culture do you think about parties and trustfalls? Our CEO, Tracy A. Eames explains why that could be hurting your organization and hindering your growth. When organizations reach out to us, we skip the trust falls, in favor of an organizational assessment that helps leaders understand where they may have misalignment, friction points, and opportunities for growth. Team members want their leaders to help them be successful. They want clear priorities, goals, and metrics. They want to know what success looks like and the support needed to get there. If you are not providing this alignment and consistency, you are adding frustration, confusion, and distrust for your teams. And this can trickle down to negatively impact your customer experience. Rather than a one-time celebration, leaders who are able to create alignment and consistency day in and day out, remove friction points for their teams. And this is what your teams will celebrate! Let us help you realign your organization...and then we can all celebrate together! #buildingteams #ceomindset #ceoinsights #csuiteleaders #csuiteimpact #teameffectiveness #teambuilding #customerexperience

Change focus from shareholder value back to engineering and quality.

Reading this article this morning is a disappointment, but unfortunately not a surprise. The lack of governance at Boeing is beyond me. Culture begins at the top, and new leadership needs to closely examine the cause of this lackadaisical attitude toward quality, accountability, and ethics. No excuses given the product they make requires commitment at the highest levels. #leadership #governance #boardgovernance #ethics #accountability #culture https://lnkd.in/gr9zNyJ8

This article, as with all other such articles, fail to mention fundamental actions for Boeing to take such as: 1. All senior leaders must demonstrate respect for employees through their actions, interactions, and decisions, especially for shop floor workers. 2. The entire leadership team must consistently lead in ways the result in the creation of a no-blame culture. 3. Executives should move from the office (metaphysical world) to the shop floor (material world). 4. Engage employees in developing poka-yoke ("mistake-proofing") devices. 5. Expanded use of andon lights to stop work when a problem arises. 6. Reduce the "Business-Technical Divide" (the gap between de jure, leading by rights, and de facto, leading by facts). Lead more by facts and less by rights (see image, below). 7. Correct the major misalignment of preconceptions between leaders and workers. Learn more here 👉 https://lnkd.in/e_tQ6UKs 8. Leaders at all levels must substantially reduce they errors they make that help generate product quality problems 👉 https://lnkd.in/dTj5sE_q 9. Boeing's “quality stand down” days must be matched one-for-one with "management stand down" days for senior leaders to engage in hansei: self-reflection to acknowledge their mistakes and identify concrete actions to improve their leadership and management. 10. Boeing has long suffered from "Big Company Disease," the major result of which is blocked information flows which hide problems. BCD is chronic, not acute, and is incurable. Therefore, leadership information processing must constantly be a focus for all leaders and continuously improved to assure information flows do not get blocked 👉 https://lnkd.in/eSTaSqU3 #lean #leanhealthcare #leanmanufacturing #leanleadership #leanthinking #leantransformation #CEO #management #leadership #business #leanmanagement #respectforpeople #leansixsigma #kaizen #tps #leanconstruction #agile #Toyota #TPS #leaders #classicalmanagement #change #reallean #fakelean #leadershipdevelopment #innovation #Boeing #Boeing737 https://lnkd.in/etkQA8vt