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I think the MD merge gets the blame by many, however, it seems as though the shift in the market that started around the same time to optimize shareholder value
by AaronM 3y ago
I think the MD merge gets the blame by many, however, it seems as though the shift in the market that started around the same time to optimize shareholder value at all costs is really to blame.
- kelnos 3y agoI think it's both in a sort of chicken and egg sort of situation. The MD execs taking over Boeing had a terrible effect on safety culture, but the reason the MD execs took over in the first place was because of this shift in the market that you describe. If the pre-MD Boeing management had managed to retain control of the company things may have been ok from a quality and safety perspective... but the stock would have declined because they would have refused to chase short-term quarterly success at the expense of the long term.
- p_l 3y agoPhil Condit was a Boeing engineering lifer who spearheaded the first steps that led to things described as "MD takeover". And was still in charge of 7E7 (today's Dreamliner) when the excessive outsourcing and cost targets began.