* https://www.goodreads.com/book/show/55994102-flying-blind
* https://www.penguinrandomhouse.com/books/646497/flying-blind...
* https://www.goodreads.com/book/show/55994102-flying-blind
* https://www.penguinrandomhouse.com/books/646497/flying-blind...
I have a hard time imagining how Boeing could survive in the long run with this level of bureaucracy.
Edit: Saw the summary of the book Flying Blind: "A fast-paced look at the corporate dysfunction--the ruthless cost-cutting, toxic workplaces, and cutthroat management--that contributed to one of the worst tragedies in modern aviation". One has to ask: where did the cost cutting go? What's cutting throat? It looks to me that the management of Boeing is grossly incompetent.
At many big corporations these "management" hires are just political. To fill in the certain quotas and tick the boxes.
Problems starts if they put their egos first. Then talented staff quit and projects go down the pan.
Small teams don’t have the margin for non technical folk. It often falls on people like me to become, temporarily, the admin or become the GIS department as such things are needed.
Stock buy-backs, executive compensation, and lobbying. That's where the cost cutting goes.
I went to a large "AI" conference this year and was surprised to see some talks being given by the "VP of ML" at the company I work at. I'd never heard of him or the position before, and when I looked him up in our company directory he appeared to sit somewhere in Pharmacy data science. But it's a massive company, so who knows?
When I attended his first talk wearing our company swag he seemed visibly uncomfortable and...grumpy(?) after he noticed me. His talk was a very non-technical, superficial fly-over of how ML can be used to profile and predict customer spending habits on our company e-commerce domains. Nothing even to do with pharma! At another table session in the day he dropped that his PhD is from MIT. Our company is big -name brand in its field- but by no means does it attract "MIT level" talent; not in pay, problems, or prestige. But again, it's a massive company, so who know? Yet at this point I'm entertaining my own little conference conspiracy theory that this guy is just a corporate cutout.
The next day I ran into him at the conference lunch line and gave him a: "Hey, how's it going! I'm at {our company} too, over in {line-of-business}". He nodded, chuckled to himself, and without even looking up said "oh yeah, you here to call me on my bullshit"? I was so confused that this would be the first thing out of his mouth with no context between us, even as a seeming joke, that I didn't know what to say. He politely excused himself to run to another table session before I could figure out how to respond.
Since then I've tried to track his team and any work/product/output they might provide but for the life of me cannot find anything other than some Jira tickets that get pushed around. But it's a massive company, so who knows?
Not disregarding your point, I think we all agree Boeing sounds like bureaucracy hell, but could it be that the 8 who are "managing projects" are in fact managing contractors or outsourced employees who are writing code?
I worked with a large multi-national fashion company, and they had an app development team that consisted of a product manager, scrum master, and senior technical advisor. You could look at them and say that 2/3 being non-technical was a problem, or you could look past that team to the several developers in India who weren't exposed to the rest of the company or clients/collaborators, and who actually got the work done.
If this is the case I wonder if it could be reversible.
* https://www.theatlantic.com/ideas/archive/2019/11/how-boeing...
* https://qz.com/1776080/how-the-mcdonnell-douglas-boeing-merg...
* https://simpleflying.com/mcdonnel-douglas-boeing-merger/
B was pressured to buy McD for 'national security' reasons. What would have been a better idea would have been, instead of doing an 'total' acquisition, is to wait for McD to go bankrupt, and then buy the parts that didn't suck.
When they did the acquisition, they also got the management folks… who ran McD into the ground in the first place.
At the very least, anyone in a management position.
But god damn, when you buy a company that can no longer afford to support its own weight, don't let those fuckers convince you that they somehow know how to run your business too when they can't run theirs.
There's a long list of companies that died by being acquired into a bad culture. OP is talking about the opposite: an acquisition so toxic it rots the parent company.
Netscape died because Microsoft bundled their browser with the operating system and made it free for commercial use, what essentially led to the huge antitrust case.
Only after that did browsers become utilities in the OS, with open source engines like Konqueror's KHTML (which later became WebKit, which later became Blink) and Netscape/Mozilla's Gecko
The problem was specifically DoubleClick management, who then got inserted in high levels within the Ads organization, forcing out the very technically & economically savvy people who were there before.
This is a recurring problem in large organizations. People who spend their time learning to be politically savvy will be...politically savvy, and be at an advantage when playing power politics that determines who is in charge. The effort needed to become politically savvy usually comes at the expense of domain/technical/economic knowledge required to actually get the job done. Eventually the organization becomes very good at playing political games and very bad at getting stuff done, until it collapses.
YouTube has obviously done well, but look at everything they’ve done since the ad sales mentality dominated their thinking. Stuff like Google+ happens when you are thinking “we need X to keep Facebook from cutting into our ad revenue, therefore our users will use X” rather than asking “what will our users like more than Facebook?”.
The other side is what we saw with things like Stadia, GCP, or G-Suite where executives used to the ad model have trouble with other business models. The problem there again isn’t that ads are evil but rather that you need to understand your users and what they want so you can think about the product the right way.
Creating monopolies and reducing suppliers actually harms "national security." Our braindead managerial class in action.
We massively drew down defence spending at the end of the Cold War.
https://www.macrotrends.net/countries/USA/united-states/mili...
Incidentally, however, as a factor of gdp, it had gone down 50% since the Korean War before that too.
I think all this means is that military spending isn’t outpacing gdp growth (a good thing) rather than we’re actually cutting spending.
https://en.wikipedia.org/wiki/Military_budget_of_the_United_...
But it is - obviously - on the rise right now.
https://www.macrotrends.net/countries/USA/united-states/mili...
Late 1989 was the fall of the Berlin Wall and the end of communism in most of Eastern Europe and 1991 was the end of the Soviet Union itself. There’s a drop between 1990 and 1991, a slight increase in 1992 (replenishment after Desert Storm?) and then a gradual decline in nominal dollars throughout the 1990’s. Also remember that federal budgets were usually passed ahead of time; this was before the government normalized all the government shutdowns and other monkeyshines we have grown accustomed to today, so budget changes might be a year behind current events. Adjusting for inflation the drop in spending would be even more.
Spending does start to increase after 1998. I’m not exactly sure why, but a lot of things started happening in 1998 and 1999, ranging from Bin Laden’s attacks on American embassies, the Kosovo conflict, Saddam Hussein ejecting UN weapons inspectors from Iraq, the discovery of Chinese interference in the 1996 elections and China stealing nuclear secrets.
Also, at the end of the Cold War, there were a number of systems that were in the late stages of design and development that were either radically cut back or canceled outright. These included the F-22, B-2, and Seawolf class submarine, just to name a few big ticket items. This saved a lot of money and made sense at the time since these were all designed specifically for Cold War missions that no longer seemed relevant. But eventually the older hardware still needs to be replaced; instead of replacing the Los Angeles class submarines with the Seawolf class starting in the 90’s, you end up replacing them with the Virginia class starting in the 00’s.
Other cutbacks during the post-Cold War period included closing military bases (which was fraught with political difficulty; no congressman wants the base in his district to be closed!) and reducing the number of US forces permanently stationed in countries like Germany.
Dollars aren’t the only measure, either. One of Reagan’s goals was a 600 ship navy. It takes time to build ships so it wasn’t until 1987 that the US Navy reached a peak size of 594 ships. Currently the US Navy has 238 ships. Sometimes a higher defense budget means you’re building a larger military but sometimes it means health care has gotten more expensive or you need to buy more fuel and ammunition to support operations. This also explains the drop after Korea.
Now whether doing a full blown merger vs an asset deal would have been more advisable can be debated.
If it’s a national security issue, that’s the governments problem to fix, surely?
Are we seeing similar things right now? Will companies like OpenAI or Nvidia be forced to merge or buy other players in the space?
Nvidia already has to work around export restrictions. https://www.theverge.com/2023/10/17/23921131/us-china-restri...
But it wasn't that at all. Boeing knew clearly what the dangers of MCAS system were, they went to great lengths to completely hide the presence of the system from the world before delivery of the planes. Within days of the first crash, they knew it was MCAS, and kept trying to blame uneducated "foreign" pilots, kept trying to go on and tell the world again and again it was safe to fly, until that second crash happened. I understand greed, we all have that, but I don't understand how a company-wide culture can get so toxic, how utterly devoid of humanity do you have to be that your first concern after that crash and knowing there might be more deaths coming, is keeping wall street happy.
And what the hell FAA? 1) they didn't regulate properly before the plane was delivered, 2) After first crash they knew how dangerous the plane is, but didn't ground it (TAMARA report), 3) After second crash, you had the transportation secratary basically saying 737 Max was "innocent untill proven guilty" so let it fly before China forced its hand, 4) No criminal proescution in the end for those fanatic executives, just a cash fine.
And today this happens.
Boeing is the US's largest exporter (defense + civilian), and also the 65th largest US stock overall. Any US regulator action against Boeing would affect all that, plus US stock markets. You have to wonder how independent the FAA head can afford to be from Congressional interference, in the current setup. In the US, the FAA head is appointed (or, in recent admins, left vacant) by the Senate.
Back in the 2018/9 first 737MAX scandal [0], it was the Canadian, EU and Chinese regulators which were more aggressive about investigating and grounding, meanwhile the US FAA dragged its feet on taking action against Boeing while its donees like Congressman Sam Graves (R-MO 6) [1] continued to blame foreign pilot training, which was dishonest and adding insult to injury.
PS consider also in 2020, Rep. Mike Garcia (R-CA 27) secretly sold $50K Boeing stock ahead of his committee's damning 737MAX report; then avoided election scrutiny by simply blowing the deadline to report the stock sale... When he finally did disclose the sale, it was two weeks after the 2020 general election votes were cast, and three days after Garcia declared victory. He won by 333 votes. [2]
There's some scrutiny of Congressmen insider-trading biotech/pharma stocks esp. which their own committees (gasp) regulate, but really not a lot of scrutiny on aerospace. [3] Compare to George Santos, who wasn't implicated in a coverup that actually killed hundreds of people.
[0]: https://en.wikipedia.org/wiki/Boeing_737_MAX_groundings#2019
[1]: https://www.opensecrets.org/members-of-congress/sam-graves/s...
[2]: https://www.thedailybeast.com/gop-rep-mike-garcia-secretly-s...
[3]: NYT 2022/09 : These 97 Members of Congress Reported Trades in Companies Influenced by Their Committees https://www.nytimes.com/interactive/2022/09/13/us/politics/c...
[0]: https://www.cbsnews.com/news/boeing-737-max-8-grounded-by-mo...
The most garbage human being I know personally is a project manager at Boeing. Unfortunately the only way to get this person completely out of my life would be to move to a different neighborhood.
Nowadays, to realistically restore competiveness in an industry, you'd have to coordinate a worldwide breakup of similarly-integrated competitors.
(and whilst you've got the scope to leave the airframe design/sales op alone and [further] vertically disintegrate the supply chain instead, that might actually make it worse, with the Spirit/Boeing relationship plausibly having a causal relationship with this incident)
Business school may say if your product never fails perhaps you are overspending on it and some known small failure rate is acceptable to control costs to have better profits. Boeing leadership may have took that logic and applied it to airplanes.
This is not a problem of "pointy haired MBA's", we can either fix this within the current regime by imposing heavy fines on this sort of reckless behavior, or we can tear down the current regime and replace it with communism/fascism/monarchy/whatever. In the system we are currently in, what happened at Boeing looks to be "correct", in the sense that it's what the system incentivizes.
PS: I realize you're not the person responding previously.
Part of this was because WWII subsidized an unsustainable and frankly absurd level of demand. For instance, Grumman almost exclusively built carrier-based fighters, and by the end of WWII they were producing planes so quickly that the Navy stopped doing periodic heavy maintenance of their aircraft in lieu of dumping them into the sea and replacing them with brand new planes. Obviously business for Grumman would never be quite that good ever again.
Well, I was going to say that calling them “business oriented” is laughable, but I guess that running a business in to the ground then laughing all the way to the bail out bank is just standard operating procedure now around the world.