Boeing Company is an America international corporation that operates in the aerospace industry. It was formed in July 1916 by William Boeing, and its headquarters are in Chicago. It is currently among the largest and best performing company in the industry (Paul, 12). Basically, it operates in 5 segments namely; Network & Space Systems (N&SS), Boeing Capital Corporation (BCC), Commercial Airplanes, Global Services & Support (GS&S) and Commercial Airplanes. EO&T (engineering, operations and technology) provides the company with functional and technical capabilities that include test and evaluation, Research and development, ecological remediation management, information technology and rational property administration. Its current CEO and chairman James McNerney (Paul, 32). Its performance in 2013 was particularly amazing when it recorded $86.623 billion in sales, and this made it to be recognized and nominated for the Baldrige Award where it won. Its overwhelming performance can solely be attributed to it leadership and management styles.
Boeing main leadership approach that led to the exemplary performance of the Company is the management’s decision to streamline processes while improving quality, becoming nimble while responding quickly to customer demand. Additionally, it endows its employees while increasing proceeds. The notion of “enter lean” is massively practiced. This concept enables the organization to design, manufacture, and distribute its products more proficiently and at the lowest costs possible (Drucker, 97). It has enabled the company to systematically identify and eliminate any wastes in the production process, and in the entire life cycle of its products. Additionally, it employs a JIT (just-in-time) system that allows it to meet the needs, tastes and preferences of its consumers. Its internal and external customers are in a position to obtain what they want, when they want and at affordable prices. This management strategy has enabled the company to deliver the best services thus creating a strong customer base.
Additionally, Boeing leaders embrace Process-Based Management (PBM) which has helped the company to perform as per the plan (Gubisch, 01). Through extensive and comprehensive research and development (R&D), the company has leaders have established a seven-step method for outlining, handling, stabilizing, and refining processes. Moreover, the PBM is used in setting performance metrics that are the key indicators of the efficiency and effectiveness of the business. This has been utilized as a driver of customer contentment. Mark Calkins, a senior manager in the company, acknowledges how important the PBM practice has been helpful in the company’s success.
Through PBM, the company has been able to zero in on development of opportunities, and this has been of utter importance in the typical performance of the company (Gubisch, 01). The management effectively manages its resources responsibly to meet cost, technical, quality and schedule costs. Additionally, it allows customer participation thus helping in maintaining emphasis on preeminence necessities for excellence and performance (Drucker, 106). The PBM has enabled the company to work towards its goals and objectives while fulfilling the expectations and demands of the customers.
Effective communication, innovation and invention are other important methods that Boeing’s management holds. By creation of social systems that allow interaction and cooperation of all people within and without the organization, the company has been able to ensure that there exists an effective information system. Effective communication and one-on-one awareness programs are clearly connected towards backing the overall business objectives. Additionally, Boeing is known for having the best brains in its management team. This has made Boeing to be a notch above its competitors as far as innovation and invention are concerned (Gubisch, 01). For instance, it recently discovered one of the best greasing systems that would ensure that their flights performance is higher than that of other flights. Moreover, modern, efficient technology is used in research and development. This has enabled Boeing to be effective in terms of market research, designing of new products and also innovation of the existing products.
Additionally, Boeing’s management greatly practices outsourcing as one of the best strategies to survive the rapidly changing and challenging business environment (Drucker, 126). Boeing’s Chief of Commercial Airplanes, Jim Albaugh, outsourced in a bid to reduce costs and quicken development. This was particularly meant to reduce Boeing 787′s improvement cost from $10 to $6 billion and its improvement time from 6 years to 4 years (Paul, 56). This was a strategy that enabled Boeing to regain its position in the world market. Additionally, through the reduction of cost, the company was able to provide a comfortable environment for passengers and provided a significant enhancement to the flying experience.
It is evident that Boeing’s management “leads by best seller”. The management has used the best practices that have enabled it to design and deliver quality, effective products that meet the needs of the market. It is their strategies that have enabled them to win the confidence of clients and eventually recording huge sales revenues to be among the top companies in the world. Its practices have enabled it to be dynamic, commit excellently to employee and customer satisfaction, and lead in innovativeness. Additionally, the company has been able to make sound financial decisions that have ultimately contributed positively to the prodigious performance of Boeing.
Works Cited
Drucker, Peter F. Management: Tasks, Responsibilities, Practices. New York: Harper & Row, 1974. Print.
Gubisch, Michael. "Fixing Strategies. Flight International. 184.5408 (2013) N.p., 4-30. Print.
Paul V. Arnold. "Boeing: Taking flight." Reliable Plant and Lean Manufacturing Journal. N.p., n.d. Web. 11 Feb. 2014.
