The Cost of a Toxic Culture

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A culture is a reflection of an organization’s leadership, current and to some extent, historical. What does Boeing’s culture say about its leadership today?

I lived in Seattle for almost 30 years, and was with the consulting firm that took many of Boeing's aircraft senior leadership to Japan in the late 80’s to study total quality and world class manufacturing. Boeing, of course, already had a legendary reputation for engineering. However, it also recognized that then emerging Japanese powerhouses like Toyota and Mitsubishi had much to teach them about quality and production. So they dug in, learned and embraced much of the principles underlying total quality management.

It may be helpful to remind folks that one of Boeing’s key execs in the 80’s and 90’s was Alan Mulally. He served as the CEO of Boeing Commercial Airplanes from 1998 to 2006, and later as president and chief executive officer of the Ford Motor Company from 2006 to 2014. What did Mulally do at Ford? Mulally's leadership was appreciated for many things, but arguably his most practical ethos was teaching the Ford culture to better understand the problem, how it came about, and then determining what to do about it. That is the fundamental principle underlying total quality! He came to that way of thinking and leading while being a core leader at Boeing .

The Boeing community in Seattle has been vocal in attributing their quality slide to the acquisition of McDonnell Douglas. Many leaders took over Boeing’s top jobs and reshaped the culture around cost control. Plenty of insiders believe that this “cost over quality” Boeing, tried to dump costs and speed production, without ensuring that safety and quality remained a cultural core and a competitive advantage.

Thoughtful and experienced leaders know that a commitment to quality does not have to negatively impact cost. In fact, total quality reduces total cost, and employees know that if they’re supported, building the safest possible aircraft as opposed to the cheapest, the end product will benefit all stakeholders.

In a recent financial filing, Boeing reported having paid $400 million to 737 Max customers in 2023, after paying $1 billion in 2022. The two crashes and the grounding of the Max 8 for nearly two years cost Boeing about $20 billion. And that financial estimate is light. Even worse, of course, was the loss of lives due to 737 Max crashes.

Boeing leaders, the current situation is on you. It will take three to five years to reinvent the culture. That’s why, as they say, you get the big bucks. Friggin’ do it. Your employees and customers deserve it.

Think Big, Start Small, Act Now,

- Lorne

One Millennial View: There’s an actual article in the New York Post with a headline reading, “Why Airplane Crashes are Now Safer than Ever.” Pictured, of course, is a charred carcass of an aircraft that seems unsurvivable. Why are we blatantly lying about things, or normalizing poor workmanship? We know an Alaska Airlines Boeing made aircraft recently had a structural integrity failure while airborne, and it’s lucky no one perished as a result. So what? It’s not acceptable to shrug our shoulders and say “whoops, I guess someone forgot screws, and the emergency door just fell off.” If we have to dress formally and smoke cigarettes on planes again, so be it. At least that golden age of flying on a Boeing aircraft was seemingly a more reliable experience. Boeing, your people know how to make a safe aircraft. Let them do that!

- Garrett

Edited and published by Garrett Rubis.

The Cost of a Toxic Culture

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