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Frontline: Boeing's Fatal Flaw, 737 MAX

ScottM

In the Clouds
Joined
Oct 2, 2019
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Complete episode about the 737MAX and its problems

 
Sounds like that may be deserved.
"That agreement with Boeing, while clearly laying out a case for charges against Forkner, was criticized for the way it explicitly exonerates Boeing’s leadership.

"The case was brought by the then U.S. Attorney in the northern district of Texas, Erin Nealy Cox.

"Cox left the Department of Justice after the agreement and in June joined Kirkland & Ellis, Boeing’s lead corporate criminal defense law firm. On Kirkland’s website, she was welcomed to the firm as a partner by Mark Filip, who had signed the Deferred Prosecution Agreement on behalf of Boeing."


This excerpt from the article is particularly troubling to me as a lawyer. Bill Campbell? David B? Other lawyers on the list?
 
"That agreement with Boeing, while clearly laying out a case for charges against Forkner, was criticized for the way it explicitly exonerates Boeing’s leadership.

"The case was brought by the then U.S. Attorney in the northern district of Texas, Erin Nealy Cox.

"Cox left the Department of Justice after the agreement and in June joined Kirkland & Ellis, Boeing’s lead corporate criminal defense law firm. On Kirkland’s website, she was welcomed to the firm as a partner by Mark Filip, who had signed the Deferred Prosecution Agreement on behalf of Boeing."


This excerpt from the article is particularly troubling to me as a lawyer. Bill Campbell? David B? Other lawyers on the list?
How do we say it? Oh yeah, "There is certainly the appearance of an impropriety."
 
Boeing's troubles are very sad but entirely predictable. It happened to a company where I worked, as it has for so many others -- The founders retire or die and eventually the professional MBA managers take over. Usually, they don't know or care anything about the company's technology, culture, or unique skills and attitudes necessary to produce the product, let alone the impact of their decisions on the employees, customers, or community -- they're interested only in quarterly profits and stock prices which determine their income. This is just about guaranteed for a public company -- after all, what the stockholders want is dividends and increasing stock prices, otherwise they'll bail out. The savvy managers know that if a company has an established reputation, they can start cutting corners on quality, quality control, employee benefits and other expenses but people will still keep buying the product due to that reputation. (Champion is a recent example most of us are familiar with.) This can continue for quite a long time before people catch on (Champion) or disaster strikes (Boeing). Eventually the company goes down in flames and the managers who orchestrated it move to the top of the hill with their buckets of money and live happily ever after. That's just how it works.

Roy
 
How do we say it? Oh yeah, "There is certainly the appearance of an impropriety."
And not just with the lawyer issue but even more so with some high ranking FAA officials and their cozy relationship with Boeing. Yet Boeing is still a world class company and industry leader and overall the FAA does a pretty good job with their oversight responsibilities. I would not go as far as to call this horrible event a one off, but it is definitely out of character for both organizations.
 
Boeing's troubles are very sad but entirely predictable. It happened to a company where I worked, as it has for so many others -- The founders retire or die and eventually the professional MBA managers take over. Usually, they don't know or care anything about the company's technology, culture, or unique skills and attitudes necessary to produce the product, let alone the impact of their decisions on the employees, customers, or community -- they're interested only in quarterly profits and stock prices which determine their income. This is just about guaranteed for a public company -- after all, what the stockholders want is dividends and increasing stock prices, otherwise they'll bail out. The savvy managers know that if a company has an established reputation, they can start cutting corners on quality, quality control, employee benefits and other expenses but people will still keep buying the product due to that reputation. (Champion is a recent example most of us are familiar with.) This can continue for quite a long time before people catch on (Champion) or disaster strikes (Boeing). Eventually the company goes down in flames and the managers who orchestrated it move to the top of the hill with their buckets of money and live happily ever after. That's just how it works.

Roy

I have seen that as well with companies including some I have worked for. However the fact that William Boeing died in 1956 and the company has done extremely well for a long period afterwards would seem to indicate that the founder's death was not a precipitating event for any downfall at Boeing. In fact, the 707 first flew in the year of his death. All other Boeing jets came after his death.
 

It certainly smells like the former Chief Technical Pilot has been made a scapegoat.
 
So am I the only one to have watched the Netflix Documentary on Boeing and the 737MAX aka Downfall?

Very good! Boeing does not come out looking good at all!
 
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