Boeing’s new CEO touts transparency, plans to walk factory floor

Boeing Co. Chief Executive Officer Kelly Ortberg said he’ll walk the main factory floor near Seattle on his first day and relocate to the city that forms the nucleus of the planemaker’s activities to renew the bond with workers stung by crisis. 

“While we clearly have a lot of work to do in restoring trust, I’m confident that working together, we will return the company to be the industry leader we all expect,” Ortberg said in a memo sent to Boeing employees on his first day in the new position. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better.”

Ortberg’s commitment to Seattle carries both practical and symbolic weight. His predecessor, Dave Calhoun, preferred to work on the go from a corporate jet or his homes in New Hampshire or South Carolina, and Boeing has moved its corporate headquarters first to Chicago and more recently to Arlington, Virginia. 

That geographic separation between operations and manufacturing was increasingly called into question in the wake of the Jan. 5 accident aboard an almost-new 737 Max 9 aircraft that resulted from clumsy workmanship on the final assembly line. Calhoun announced in March that he’d leave, part of a major shakeup of management and production processes as Boeing tries to dig itself out of the crisis that’s consumed the company for seven months. 

Ortberg, 64, is an engineer by training who rose through the ranks at Rockwell Collins, an aviation supplier that’s now part of RTX Corp. He’s taking over with a mandate to fix Boeing’s reputation, manufacturing and finances. The company burned through $4.33 billion in cash during the second quarter. That’s after a similar outflow in the first three months, as Boeing slowed down output of its commercial jet factories.

“We need to get closer to the production lines and development programs across the company,” the new CEO said in his memo to employees. He also struck an optimistic note, saying that “everyone wants us to succeed. In many cases, they NEED us to succeed. This is a great foundation for us to build upon.”

A two-day hearing by the National Transportation Safety Board this week put Ortberg’s task ahead into sharp focus. Worker representatives criticized Boeing’s manufacturing processes as needlessly complex and difficult to follow. Boeing has said it’s made strides to address quality lapses at its factories, including by simplifying instructions for workers.

NTSB Chair Jennifer Homendy said that the company should brace for more surprise audits and inspections as safety inspectors seek to assess progress on the shop floor. Since the Jan. 5 accident, Boeing has been subject to whistleblower accounts recounting years of unauthorized work and defects that allege the company prioritized production targets and financial goals over diligence and sound workmanship.

Ortberg will work closely with Stephanie Pope, who was selected in the March management shakeup to lead Boeing’s commercial aircraft business. Pope also spends most of her time in the Seattle area, another sign that the company’s power center is shifting back to the original home where Boeing was founded more than 100 years ago.