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Nearly two decades before Boeingâs MCAS system crashed two of the plane-makerâs brand-new 737 MAX jets, Stan Sorscher knew his companyâs increasingly toxic mode of operating would create a disaster of some kind. A long and proud âsafety cultureâ was rapidly being replaced, he argued, with âa culture of financial bullshit, a culture of groupthink.ââ©
Sorscher, a physicist whoâd worked at Boeing more than two decades and had led negotiations there for the engineersâ union, had become obsessed with management culture. He said he didnât previously imagine Boeingâs brave new managerial caste creating a problem as dumb and glaringly obvious as MCAS (or the Maneuvering Characteristics Augmentation System, as a handful of software wizards had dubbed it). Mostly he worried about shriveling market share driving sales and head count into the ground, the things that keep post-industrial American labor leaders up at night. On some level, though, he saw it all coming; he even demonstrated how the costs of a grounded plane would dwarf the short-term savings achieved from the latest outsourcing binge in one of his reports that no one read back in 2002.*
Sorscher had spent the early aughts campaigning to preserve the companyâs estimable engineering legacy. He had mountains of evidence to support his position, mostly acquired via Boeingâs 1997 acquisition of McDonnell Douglas, a dysfunctional firm with a dilapidated aircraft plant in Long Beach and a CEO who liked to use what he called the âHollywood modelâ for dealing with engineers: Hire them for a few months when project deadlines are nigh, fire them when you need to make numbers. In 2000, Boeingâs engineers staged a 40-day strike over the McDonnell dealâs fallout; while they won major material concessions from management, they lost the culture war. They also inherited a notoriously dysfunctional product line from the corner-cutting market gurus at McDonnell.â©
And while Boeingâs engineers toiled to get McDonnellâs lemon planes into the sky, their own hopes of designing a new plane to compete with Airbus, Boeingâs only global market rival, were shriveling. Under the sway of all the naysayers who had called out the folly of the McDonnell deal, the board had adopted a hard-line ânever againâ posture toward ambitious new planes. Boeingâs leaders began crying âcrocodile tears,â Sorscher claimed, about the development costs of 1995âs 777, even though some industry insiders estimate that it became the most profitable plane of all time. The premise behind this complaining was silly, Sorscher contended in PowerPoint presentations and a Harvard Business School-style case study on the topic. A return to the âproblem-solvingâ culture and managerial structure of yore, he explained over and over again to anyone who would listen, was the only sensible way to generate shareholder value. But when he brought that message on the road, he rarely elicited much more than an eye roll. âIâm not buying it,â was a common response. Occasionally, though, someone in the audience was outright mean, like the Wall Street analyst who cut him off mid-sentence:â©
âLook, I get it. What youâre telling me is that your business is different. That youâre special. Well, listen: Everybody thinks his business is different, because everybody is the same. Nobody. Is. Different.ââ©
And indeed, that would appear to be the real moral of this story: Airplane manufacturing is no different from mortgage lending or insulin distribution or make-believe blood analyzing softwareâanother cash cow for the one percent, bound inexorably for the slaughterhouse. In the now infamous debacle of the Boeing 737 MAX, the company produced a plane outfitted with a half-assed bit of software programmed to override all pilot input and nosedive when a little vane on the side of the fuselage told it the nose was pitching up. The vane was also not terribly reliable, possibly due to assembly line lapses reported by a whistle-blower, and when the plane processed the bad data it received, it promptly dove into the sea.
Continue reading here cause it gets worse:Sorscher, a physicist whoâd worked at Boeing more than two decades and had led negotiations there for the engineersâ union, had become obsessed with management culture. He said he didnât previously imagine Boeingâs brave new managerial caste creating a problem as dumb and glaringly obvious as MCAS (or the Maneuvering Characteristics Augmentation System, as a handful of software wizards had dubbed it). Mostly he worried about shriveling market share driving sales and head count into the ground, the things that keep post-industrial American labor leaders up at night. On some level, though, he saw it all coming; he even demonstrated how the costs of a grounded plane would dwarf the short-term savings achieved from the latest outsourcing binge in one of his reports that no one read back in 2002.*
Sorscher had spent the early aughts campaigning to preserve the companyâs estimable engineering legacy. He had mountains of evidence to support his position, mostly acquired via Boeingâs 1997 acquisition of McDonnell Douglas, a dysfunctional firm with a dilapidated aircraft plant in Long Beach and a CEO who liked to use what he called the âHollywood modelâ for dealing with engineers: Hire them for a few months when project deadlines are nigh, fire them when you need to make numbers. In 2000, Boeingâs engineers staged a 40-day strike over the McDonnell dealâs fallout; while they won major material concessions from management, they lost the culture war. They also inherited a notoriously dysfunctional product line from the corner-cutting market gurus at McDonnell.â©
And while Boeingâs engineers toiled to get McDonnellâs lemon planes into the sky, their own hopes of designing a new plane to compete with Airbus, Boeingâs only global market rival, were shriveling. Under the sway of all the naysayers who had called out the folly of the McDonnell deal, the board had adopted a hard-line ânever againâ posture toward ambitious new planes. Boeingâs leaders began crying âcrocodile tears,â Sorscher claimed, about the development costs of 1995âs 777, even though some industry insiders estimate that it became the most profitable plane of all time. The premise behind this complaining was silly, Sorscher contended in PowerPoint presentations and a Harvard Business School-style case study on the topic. A return to the âproblem-solvingâ culture and managerial structure of yore, he explained over and over again to anyone who would listen, was the only sensible way to generate shareholder value. But when he brought that message on the road, he rarely elicited much more than an eye roll. âIâm not buying it,â was a common response. Occasionally, though, someone in the audience was outright mean, like the Wall Street analyst who cut him off mid-sentence:â©
âLook, I get it. What youâre telling me is that your business is different. That youâre special. Well, listen: Everybody thinks his business is different, because everybody is the same. Nobody. Is. Different.ââ©
And indeed, that would appear to be the real moral of this story: Airplane manufacturing is no different from mortgage lending or insulin distribution or make-believe blood analyzing softwareâanother cash cow for the one percent, bound inexorably for the slaughterhouse. In the now infamous debacle of the Boeing 737 MAX, the company produced a plane outfitted with a half-assed bit of software programmed to override all pilot input and nosedive when a little vane on the side of the fuselage told it the nose was pitching up. The vane was also not terribly reliable, possibly due to assembly line lapses reported by a whistle-blower, and when the plane processed the bad data it received, it promptly dove into the sea.
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