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Insulating CEOs and executive from failure is a good way to push them to take more risks, if that's what the board/shareholders want. The issue with the 737MAX
by Xixi 7y ago
Insulating CEOs and executive from failure is a good way to push them to take more risks, if that's what the board/shareholders want.
The issue with the 737MAX is that Boeing was too risk-averse: they should have made a brand new plane, but went with what they thought was the low-risk route with the 737 re-engine. The 787 disastrous development ($36B of deferred production costs I think) was certainly a huge cause of this.
- somurzakov 7y agoit is unbelievable that the was MAX considered a low-risk in terms of selling planes, but ended up huge risk in technical perspective. if they just stuck to evaluating technical risk first, and only then the risk of selling the plane - perhaps that route would have led them to developing a new completely plane.