No PhD in Economics Needed

The New York Times recently published a piece on Boeing’s “War on Defects”. It’s all about how the company is making an effort to improve its production process and standards in the wake of the tragic events caused by shoddy workmanship on its planes. 

But what I really want to bring to your attention isn’t the article, but the comments. 

All it takes is a quick read to see that Boeing’s problem – and yes, all of its disasters have the same root cause – is obvious to anyone and everyone. 

“When the engineers that ran Boeing were replaced by Wall Street savvy management executives, planes crashed as quality and commitment to safety vanished. Quality was the life blood of the company until it was drained away by focusing on the stock price.”

“So 10 years ago someone with an MBA and a spreadsheet said look at all the money we can save if we didn't do these inspections. He/she probably fought a few engineers along the way but prevailed. Ultimately though the company suffered, and it will take more than 10 years to claw back its reputation, if ever. It's a failing seen time and again in companies who get lured by the savings offered by spreadsheets and lose sight of what the company's purpose is.”

“The searing truth is that Boeing’s crisis is self-inflicted. Years of prioritizing speed, profit, and shareholder appeasement over engineering discipline hollowed out the company’s culture. The result: shortcuts disguised as efficiency, oversight treated as optional, and passengers left to gamble with their lives. “

“They squandered a golden reputation and an engineer led culture, seeking to maximize profits and inflate their stock price.”

The public gets it

Customers, many of whom now filter their flight options to exclude Boeing planes from their travel plans, understand exactly why they no longer feel safe on Boeing planes. When companies break bad, prioritizing shareholder value over everything – and everyone – else is always a factor. 

The research I’ve been working on

Boeing is just one of the stories I explored while working on this newsletter and The Eric Ries Show podcast – part of an inspiring mix of academic research and the history of remarkable businesses with longevity and outsized returns. 

Perhaps the most surprising thing about what I’ve discovered is that all of this positive data and success isn’t talked about in the business world, and isn’t widely taught.

I want to start changing that. And I want to start now by sharing some of it with you.

In case you missed my invitation last month…

If you're interested in early access to the ideas born of all this work, I'll include you in a dedicated email series over the next few weeks to bring you into the loop. 

Choose an option below if you haven’t weighed in yet. ⬇️

Thanks,

Eric

P.S. If you choose yes, check your inbox for the first email.