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How Boeing Lost Its Way

Bloomberg Originals · 2.2M views · 2020-03-12 · 21:23

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Overview

A Bloomberg documentary on how Boeing's failures around the 737 Max crashes followed a shift in company culture and cost-cutting. It covers the grounding, the stock drop and questions about the company's future.

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Cited as a source for Boeing's post-merger cultural decline and the undermining of its engineers.

Recommended by 1 HN people across 1 months · HN mentions 2020–2021

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What people said

Bayart · 2021-06 · Recommendation

Bloomberg Quicktake (which is one of the few news outlet Youtube channels I recommend) did a good 20 minutes piece on Boeing's internal cultural demise [1]. [1] [VIDEO]

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tovej · 2021-02 · Reference

I've written about this before, in relation to the 737 MAX, I'll just post it verbatim: --- In 1997, Boeing merged with McDonnel Douglas. This led to some changes in management, and as a result, culture[1, 8:20]. McDonnel Douglas CEO, Harry Stonecipher, became the COO of Boeing. Stonecipher brought with him a cost-cutting sensibility, which was at odds with the engineering culture at the company [1, 9:00]. The culture change is best conveyed through two actions made by Boeing top management: • Pierson being told ”The military isn’t a profit making organization” by Program Manager Scott Campbell after raising the point that the conditions at the Renton factory would not be acceptable in the military [2] • Boeing CEO Dennis Muilenburg calling Donald Trump, the president of the United States, two days after the second crash to assure him that the plane is safe, apparently trying to persuade him to pull some strings Here is a longer timeline of disruptive events, bad fortune, and questionable behavior: • In 1998, Boeing committed corporate espionage against Lockheed Martin • Relocation of Boeing headquarters from Seattle to Chicago in 2001 • Multiple canceled projects: e.g. The Sonic Cruiser • Boeing lost its market leader position to Airbus in 2003 • An espionage/insider agent scandal in 2003 caused CEO Phil Condit to resign. Harry Stonecipher stepped in as CEO • Stonecipher was soon forced to resign due to a relationship with another executive • In the 2010’s, thousands of high

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anshumankmr · 2021-01 · Reference

Boeing has been repeatedly undermining its engineers and has been finding way to cut costs, that has killed hundreds so far. They just settled in a court case a few days ago. And you wonder why I don't want to fly Boeing? Source: [VIDEO] [LINK] And the cars are in my control. I can choose the best possible car I can afford, I can drive responsibly. I can use public transport whenever I can. Planes may be statistically safer, but when companies cut costs to undermine people's lives, they deserve to pay for it.

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Sources

Video by Bloomberg Originals, played through YouTube.

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