Boeing Co. is committed to driving “transformational change” into its factories and culture. This commitment is based on feedback from customers, regulators, and significantly, employees. Stephanie Pope, the head of Boeing’s commercial aircraft business, acknowledged that this overhaul would take years to take root and would require support from customers who have been affected by Boeing’s delays and quality lapses.
Improvements and Challenges
Boeing is witnessing an improvement in the factory flow for its 737, which will aid a “meaningful” increase in production rates of its most crucial airliner after months of slowed output. However, the company is still grappling with the aftermath of a near-catastrophic accident on an airborne 737 Max in January. Pope has been actively engaging with customers, showing them real-time key production indicators in Boeing’s Renton factory. Despite the positive engagement, Pope admits that the company has disappointed its customers and impacted their businesses.
Regulatory Hurdles and Future Leadership
Regulators and airlines will remain skeptical until Boeing stabilizes its factories and supply chain, and customers receive their aircraft as scheduled. The first step in this process would be convincing US regulators to approve an increase in the 737 production rate above the current limit of 38-jets per month. On the leadership front, Pope, who was seen as a potential successor to CEO Dave Calhoun, stated that the company is undergoing a “robust” search for the next company leader. She emphasized that leadership is about meeting the moment, engaging with people, providing accountability, and creating a plan that drives transformational change.
Looking Ahead
Boeing’s transformational journey is not a short-term plan. It’s a long-term commitment to change, driven by the need to improve production rates, quality, and regain the trust of customers and regulators. As the company moves forward, it will continue to face challenges, but it is committed to meeting these head-on and driving meaningful change in its operations and culture.
