Key failures
– Focus on shareholder value instead of instead of making decisions that build long term value and brand strength
– Separating leadership from engineering and production
– Managing the company with people who are not experienced in the industry
– Outsourcing production of components and choosing the “cheapest bidder” for components instead of vendors with strong cultures and institutional knowledge
– Wringing all the profits out of old technology instead of making investments in new products and designs
– Silencing employees who attempt to speak out about design flaws and production quality
– Continuously implementing unrealistic deadlines
I’m sure that Boeing will survive, but their reputation will forever be tarnished. The billions of dollars spent on this issue will no longer be available for the production of new designs.
I’d love to say these problems only exist in aviation, but they don’t. Many of our Powersports, Marine, and RV manufacturers suffer from the same issues.
As an industry, what can we do to make our suppliers take a long term view of their businesses instead of focusing on the stock price ticker up on the wall?
#business #failures #oems