Boeing’s New Bonus Plan is all PR, we hope

Until now 75% of Boeing’s bonus score was based on financial metrics…and we wondered why their planes crashed and burned.  Now, their Commercial Airplane division has elevated safety and quality metrics to 60% of their annual incentive score.

What are we, the flying public, to make of this change?  We don’t have any details, but for a start, how about, “It’s about #$^g time!”

Speaking as a quality professional, now comes the hard part for Boeing.  Again, no details, but the term ‘annual’ does not bode well.  How many safety/quality improvements are started and completed within a year?  Especially with complex products like passenger jets?!  Anyone who’s been around for more than six months knows the answer.

My hope is that Boeing knows this and is rolling out their real plan under cover.  What might that plan be?  We can only guess.  Of course, it should be based on safety/quality metrics.  But the devil’s in the details.  Will it be number of reported defects?  Really??  And what happens when someone sees that defect that throws the department’s bonus down the drain?  Does anyone think it will get reported?

Here is the most important question.  It’s addressed to both passengers and investors.  Q.  How will we know if Boeing truly becomes committed to building safer airplanes?

A.  The whole culture of the company has to be rebuilt from top to bottom:

• The bonus plan will be restructured to recognize the fact that safety/quality improvements take years to bear fruit.
• Safety/quality metrics will not be based on negative measurements, like reported defects.  Instead, they will be based on positive improvements that can be made within the span of authority of employees being measured, like:
  • Reducing variability in the processes, C_pK for you afficionados.
  • Number of improvement projects completed.
• Top management will recognize that some people will not be able to transition to the New World Order. 
  • Managers whose only talent was squeezing the P&L will be replaced by those who actually understand the science of building passenger jets.  It will start with the Board of Directors.
  • Management by fear of not meeting financial goals will be replaced by fanaticism for true quality.  One symptom of that will be a devotion to Demings Point #8:  Drive out fear, so that everyone may work effectively for the company.

When these changes are made, it will be safe to fly in Boeing jets and invest in the company.

How about you?  Do you have a similar story?  Comment below.