Boeing has shuffled its top team and strengthened the authority of executive vice president Greg Smith to prepare for life after the coronavirus crisis.
Smith will head up a newly formed group, enterprise operations, finance and strategy, which will consolidate key areas, bringing together teams responsible for manufacturing, supply chain and operations, finance, enterprise performance, strategy, enterprise services and administration.
Boeing president and chief executive David Calhoun said, “I am confident these changes will drive greater alignment among our functions; better equip our commercial, defence and space, and services businesses to deliver on customer commitments in a changing marketplace; and support our continuous efforts to develop talent through challenging leadership assignments.”
In a time when the global market for jet airliners is dropping significantly, Boeing is likely to face a need to cut production. Managing what may be a massive restructuring on a day-to-day basis, both inside Boeing and in its supply chain, now falls to Smith.
“This new global organisation will embed operational excellence and consistent lean principles across Boeing and its supply chain and restore production and supply chain health as Boeing and the broader aerospace industry recover from the COVID-19 pandemic,” Boeing’s statement reads.
The company also is combining its legal and core compliance programs, including global trade controls, ethics, and business conduct, into a single organisation led by Brett Gerry, chief legal officer and executive vice president of global compliance.
Boeing soon will name a chief compliance officer who will be responsible for leading the company’s compliance, ethics, and trade control activities.
Boeing faces considerable new regulatory challenges ahead. It must win approval from disparate aviation authorities worldwide to return the 737 MAX to service. And it must navigate the trade barriers and government tensions that have been exacerbated during the Trump administration between the US and both China and Europe.
Finally, Boeing Government Operations, led by executive vice president Tim Keating, will assume responsibility for the company’s global spectrum management activities, which ensure the safe, efficient, and compliant use of radio frequency spectrum in Boeing products and operations.
