Did Boeing Pay Too Much Attention To Wall Street? Are Other Companies Making The Same Mistake?

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A Swedish chemist with pacifist leanings, Alfred Nobel invented dynamite and other explosives for use in engineering but got rich selling bombs and bullets. And Frankenstein, as originally written by Mary Shelley, was responding to his mother’s death from scarlet fever by conducting an extreme experiment on restoring life to the dead.

It was, by all business reckoning, the right decision for Boeing to make. Designing, testing and building a whole new aircraft, and getting it certified would take nearly 10 years and perhaps $10 billion to $12 billion in cash vs. the six or seven years and $2 billion-$3 billion that Boeing eventually spent on developing it and its new CFM International LEAP1B engines .

For that matter, McNerney, the only non-engineer to head up Boeing in its 104 years of existence, does not deserve ALL of the blame for the subtle changes that took place within the Boeing organization over the last 25 years. McNerney shares that with his two predecessors. First there was Phil Condit, who moved Boeing headquarters from Seattle to Chicago to emphasize that the company was no longer completely beholden to its Seattle engineers.

Is any of that true? Probably, if for no other reason such claims are now being so widely and openly talked about within and around the Boeing community. But even if we assume that half – maybe more – of such talk is exaggerated or embellished, Boeing has changed, largely as a result of senior management’s responses over the last 25 years to the financial community’s keen interest in the company.

By the same token, Boeing likely would not have made huge profits for itself - and we likely would not be flying around in 737s, 777s, 787s, or perhaps even 767s and 747s – without all that investment in the company. But that’s why CEOs and the small armies of senior executives they employ to assist them in making such tough decisions bring home very handsome paychecks.

It is all about profits and share price. The Consumer is paying for this in quality control which jeopardizes their Health & Safety.

Wall Street is irrelevant to just about everyone.

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