Видео

You should do more company analysis videos. Start with the UK telecoms company BT which went from a cash rich giant to the current debt ridden disaster we seen today. All at the hands of successive "Rock Star CEOs"

Where I worked in the building industry we were taken over. The company that took us over was absolutely horrified that our staff were all experienced and had risen up through the company. All the experienced managers were got rid of because they didnt have degrees. The staff were let go at every opportunity to be replaced by people who knew nothing but had qualifications. Its now a poor shadow of its former glory. Dont bother asking questions about the product all they care about is profit.

You need to do some EQ to your video, like lowering the mids a little. I can't hear very clearly because your voice is somewhat nasal.

Boeing lost a great man to Ford. What a shame.

Classic example of where greed eventually leads to. Look at what deregulation did to the aviation industry. The loss of TWA, Eastern airlines. Fast buck and goodbye.

I’ll never understand why the successful Boeing takes one the failing McDonald Douglas’s management approach. It makes zero sense.

Every great company is driven by a strong culture. That is a major contributor to longevity. Any Welch acolyte can screw a bit more out of the game for a short period, but then .... Where is Welch now? Selling his same old same old - you nailed it.

I had read somewhere that the federal government had set the price for passenger air fares. That this helped airlines to purchase better made, but more expensive commercial airplanes. When this federal policy ended (deregulation ), aircraft companies had to increase their attention to cost savings.

Thank you for two really outstanding videos! Having worked for two of worlds biggest food companies from 1998 until now I see a certain pattern shining through. When I started you had to be a good food technician or engineer and had to work within quality and factory floor to get to the upper achelons. Later all lawyers and Controller. Really good quality and good processes only stood on the paper in reality it’s all about quarterly results and how to fake them. Maybe it’s a generational thing. At least no method with which we could bring someone reliable and safe to the moon and back…

John Oliver covered this well on an episode of Last Week Tonight, fixing the blame on the merger and the including of McDonnell Douglas "cost-cutting" management into the existing "quality-conscious" Boeing management...

Letting Mullaly walk was the biggest single mistake Boeing ever made.

This is what happens when you start to see what you do as a company/means to just make money when it's an inherently dangerous task that you are doing. We think of flight as normal now, but it's like sailing in that no matter what you do (aside from having an aircraft carrier I guess?, it is a dangerous activity and always will be. Cutting corners simply cannot be done. This is why it is great fun to watch SpaceX launch those huge rockets, but I'd never get on one. Elon is just too fast and loose with the rules and corporate culture in his companies. And here we are with Boeing in the same situation, now... It really makes me sad as I don't think they will recover from all of this in time.

McDonnell Douglas might not have brought new stuff to market, but their r&d was second to none. The DCX rocket in the 1980s is the basis for everything SpaceX does now.

Why not choose a pilot for CEO? ;-)

19:14 weird flex but NOT ok

Greed, Individualism, and Overconsumption are highly ingrained into American culture. We are very a hard-working and ambitious society but our short-sighted mentality will and is currently leading to our downfall as a country

America's real problem is talented white boys aren't going to college and into engineering because of all the so-called liberal ideas and globalisation. It's easier and cheaper to import the "top" Chinese and Indian graduates who performed well (probably outperform many American boys) academically. But if you look at the most engineering achievements and scientific discoveries in human history, you will see the freaking Chinese and Indians are not the real innovators and hard workers. All they are good at is repeatedly doing exam questions all day every day during their youth to score higher marks in school and college. But it comes to real life engineering problems they are simply average. Their presence alone is affecting the prospect of many potential great minds from entering the field.

"more with less." Very crude. Wow.

I'm not sure where the idea of Boeing as a pure engineering led company led astray by the evil McDonnell Douglas comes from? Bill Allen, the president of Boeing during its 'Golden Age' was a Harvard trained lawyer. The B747 development, as described came close to bankrupting Boeing. There's no mention of the Boeing reluctance to accept there were issues with the B737 rudder in the late 80s/early 90s, when it was still 'pure Boeing' rather than the 'evil Boeing' post merger. As the costs of developing a new aircraft increased, the consequences of getting it wrong also multiplied, & business decisions cannot be 'left to the engineers'. Some of the greatest engineering companies have been effectively led / managed by non-engineers. Some serious business failures have been led/managed by engineers Was the Boeing / McDD deal a buyout or a merger? On the civil side , it was clearly a Boeing buyout as the MD-11 & MD-90 programmes were axed almost immediately, with the MD-95 surviving briefly as the B-717, in other words, Douglas (Long Beach) was no more. On the military side, it was more clearly a merger, with the McDonnell side of the business (St Louis) bringing major programmes, F-15, F-18, C-17, AV-8B & T-45 into the portfolio. So was moving the corporate HQ of a company with 2 engineering centres (St Louis & Seattle) with both serious historical & cultural baggage, to a neutral location such a bad idea? I'm not denying that the business models identified in the 80s & 90s & employed in numerous companies across different countries & different industries are now proving to be flawed. However, whether it is the models themselves or the implementation of them that was faulty will be a contentious, subjective, discussion. Arguably those models are guilty of focusing on cost & price over value. There is nothing wrong with a target-driven when effort is taken to select the correct targets. Sadly, that effort is usually lacking. Decisions get taken at a moment in time with the information & plans & intentions available at the time. That some of those decisions turn out to be wrong 10, 15 or 20 years later should not be surprising

Airbus now dominiates. Boeing has went the way of Tupolev and Il

It's so interesting how broadly people are beginning to recognise how problematic wallstreet and the MBA class are becomming.

“Yes the company got destroyed, but for a beautiful moment in time, we created a lot of value for Shareholders” Boeing.

Harry Stonecipher, John McDonnell, Phil Condit...are all engineers. Jack Welch was not only an engineer, he also had a Ph.D. in chemical engineering. Boeing also subcontracted 100 percent of the 747 fuselages ever built, since the beginning of the program, long before the McDonnell merger. Nobody has pointed to any issues with this supplier relationship. Those who reduce the problems to engineers vs. "business" people, or subcontracting vs. building structures in-house, understand neither engineering nor business.

WOW, overseeing the two of the most dangerous modern airlines: 787 and 737MAX is an achievement.

I can't wait for the next installment. It is more than high time that the top tier management are held responsible for deaths caused due to management policies that prioritise cost over quality. Jack Welch has been virtually been worshipped, but indirectly he has damaged many American companies irreparably.

Airbus now has a solid business case to establish a brand new final assembly line for the A320 family in India, considering the sheer volume of orders they received from the subcontinent (~700 airplanes as of now).

I had A.I. summarize this video's transcript and then summarize its summary (who has time to listen to all this?). Here's is the result: "The transcript outlines Boeing's history post-merger with McDonald Douglas, detailing shifts in management style and company culture towards financial priorities over engineering excellence. It highlights key CEOs and their approaches, such as Phil Condit's attempt to balance both aspects and Jim McNerney's focus on cost-cutting and shareholder returns. The departure of Alan Mulally, who later found success at Ford, signifies a loss of Boeing's engineering-focused ethos." But even that is too wordy and risks missing the point: Boeing's management put stock buybacks above the health and safety of employees and customers. To prevent that, stock buybacks should be made against the law, like they used to be.

Boeing today is a microcosm of what the United States has become. Tragic.

This story sadly exemplifies the broader American corporate culture. There is no respect for the process of creation, only short term profits, which is why American manufacturing is rapidly declining. This works great short term, but inevitably kills the goose that lays the golden eggs. This trend is unlikely to change with the power of Wall St. and the investment giants like Blackrock.

btw with Mulally Ford was the only US automaker to not ask for bailouts from the government iirc, plus somehow surviving Detroit, man must be a beast

Having worked at a company which started a downward spiral soon after being acquired by Jack Welch’s GE, I can attest to the toxic effects his business style had. “Neutron Jack” and his acolytes accomplishments did much to ruin America’s businesses . Effects of which we are still suffering, as shown by your excellent video.

Oooh look weekly boeing video is up :)

If you pay peanuts you get monkeys. Making the people that does the actual work that earns the company money your enemy must be one of the dumbest moves an executive can make. Accountants have neither the education nor the brains to run a company.

When a high tech company focus on the stock values instead of the engineers, the fall of the company is near.

Shouldn’t been written on the 777, “Outsource Everything,” or “Zero competitive advantage.”

I've flown both Boeing and Airbus and oh boy... Airbus is like light-years ahead in the game.

greed😡😡😡

1:14 best logo ever

Jack Welch was a idiot.

With hindsight we realize now that Jack Welch was an incompetent idiot that almost drove GE into bankruptcy. Unfortunately Wall Streets entire model is now predicated on short term gains, over long term stability. That's how a company like Tesla, that makes no profits and never will, can be valued ten times what actual profitable car companies are. It's also how a great company like Boeing can become a laughing stock that makes dangerous decisions that kill passengers. The CEOs that caused this mess need to be charged criminally and put in prison. With the fear that their are actual consequences to reckless decisions, I guarantee more rational decisions will be made in the future. Also, we need to debunk this fantasy that a total moron like Jack Welch was anything more than useless charlatan that gamed the system, and retired before he could be blamed for the mess he created.

0:19 "Hunter killer assassins" meeting "Boy Scouts," where the "hunter killer assassins" used the "Boy Scouts’," own knives (money) to execute the deal!

OMG - Jack Welsh is one of the reasons why GE makes truly shit products these days.

I have a different take as a senior engineer from inside Jack Welch's organization, GE. I was getting pretty fed up with the 5:1 contributor to manager ratio and was going to leave when I was advised to hang on a few weeks more. Then Neutron Jack struck and the ratio was more like 20:1 to 50:1. Suddenly a new product cycle was 6 to 12 months (our electronics business) instead of 5 years and the senior contributors could manage their own work along guidelines. I stayed on another 5 years myself. Jack Welch's goal was to reward direct contributors, high level managers and stock holders (else no value increase you know and no big bonus for Jack...being honest here). So I liked working under Neutron Jack. (and yes there was a bonus) The mistake was a love affair with GE Finance that seemed to be reward without risk. I went to some of those retirement parties too. It's so wonderful to get an Exec blasted. "I should have fired more of you..." 🙂"Yes boss. Like me." "Especially you."

Its funny you make a video on this subject. I was just talking with my grandma about this subject two weeks ago. My grandpa was retired from Boeing by the time the merger happened and he predicted back then that it would destroy the company. He's probably rolling over in his grave having seen all of this unfold. I got into stock investing in 2022 and my grandma almost immediately told me about grandpas thoughts on why not to buy Boeing stock, how the corporate level would bring the entire company down, and how it was not the same after the merger.

AFTER THE MERGER, THEY SHOULD HAVE RE-NAMED THE COMPANY... McBoeing...

Jack Welch was a monster, destroying General Electric. I lived outside of the very city he rose in the ranks of GE, Pittsfield Massachusetts. There's nothing left of the huge operations that GE once had there. The company is small, now, having sold off its various divisions and people. Welch's philosophy is used by many companies and is one of the most destructive, anti-social ways to run a company - so much so, that when I look to change employers, if I see a company that has adopted his and HBS principles, I avoid working there. It is completely unsurprising that Welch's policies wrecked Boeing, leaving it with back-stabbing beancounter managers and dissatisfied workers. In order for the company to be fixed, they must throw out Stonecypher's remnants and going back to "Working Together".

The same GE / Jack Welsh tendencies rule the Continental European MBA world too, however their advance is slowed down by societal structures and traditions. The largest shareholders of Airbus are the governments of France, Germany and Spain, together holding 25.1% of shares. They're representing our votership quite well. Most Continental Europeans have slightly different ideas and preferences than most US Americans, and that's okay.

Jack Welch being a mentor to the upper management at MD explains absolutely everything.

Heroic report; thank you for this 👍

It's much easier, faster, and certain to make money from buying back a company's own stock than using the money to build a better company, especially when a) corporations bribed elected officials to make stock buybacks legal, and b) in today's increasingly complex world when any business can be destroyed overnight by a technological or environmental or political black swan, it's a fools errand "wasting" the money and much more work to try to build a stronger more competitive company. So of course, milk the company for every dime you can so you can use the money to buyback your own stock and screw everything else. Hey, you'd be nuts not to--your stockholders want you to, or they'll dump your stock and buy stock in a company that does it.