Aerospace veteran Robert “Kelly” Ortberg becomes Boeing’s new CEO with a singular mission: restoring the reputation of a U.S. manufacturing icon.
Leading with Experience and Fresh Perspective
Robert “Kelly” Ortberg, an aerospace veteran with over three decades of experience, took the helm as Boeing’s CEO on Thursday. Ortberg’s vast industry experience, including his tenure at Rockwell Collins, positions him as a strong leader to steer Boeing back to stability. His journey begins on the factory floor, engaging directly with employees and reviewing safety and quality plans. “I can’t tell you how proud and excited I am to be a member of the Boeing team,” Ortberg expressed in a note to the staff.
Tackling Production Challenges
One of Ortberg’s immediate priorities is addressing Boeing’s production challenges, particularly with the 737 Max. The company has faced significant production defects and delays, contributing to an $8 billion cash burn this year and a 37% share drop. Boeing’s top safety executive recently discussed design fixes for a door plug blowout incident, highlighting the urgent need for stability in production.
Navigating Regulatory and Market Pressures
Ortberg’s engineering background and reputation as a good listener are crucial as Boeing navigates regulatory scrutiny and market pressures. Richard Aboulafia, managing director at AeroDynamic Advisory, praised Ortberg’s industry reputation: “He has a reputation for listening and for letting people push back.” This approach is essential as Boeing rebuild trust with regulators, airlines, and the public.
Addressing Broader Business Issues
Beyond commercial aviation, Ortberg faces challenges in Boeing’s defense sector, including delays with the next Air Force One aircraft and issues with the Starliner capsule. A recent NASA audit also criticized Boeing for ineffective quality management and cost overruns in the Space Launch System rocket program. The new CEO’s leadership will be critical in addressing these multifaceted issues.
Building a Collaborative Future
A key aspect of Ortberg’s strategy is fostering collaboration with Boeing’s workforce and stakeholders. Jon Holden, local president of the International Association of Machinists and Aerospace Workers, emphasized the importance of safety and quality alongside manufacturing rates. “This potential collaboration with the new CEO could be a prime opportunity for Boeing to prove its dedication to its workforce,” Holden stated.
A Crucial Start
The initial 100 days of Ortberg’s tenure are expected to set the tone for his leadership. Bank of America aerospace analyst Ron Epstein highlighted the importance of early decisions, noting, “The decisions made early in his tenure will have generational impacts on the company.” Ortberg’s efforts to ensure a well-trained workforce and improve relationships with customers and suppliers will be pivotal in Boeing’s recovery.
Ortberg’s appointment marks a significant leadership change for Boeing, focusing on restoring trust and stabilizing production. As he works from the Seattle area, close to Boeing’s commercial jetliner production, Ortberg aims to rebuild the company’s reputation and ensure its success. “In many cases, they NEED us to succeed. This is a great foundation for us to build upon,” Ortberg said in his Day 1 note to employees. Boeing’s path to recovery under Ortberg’s leadership is crucial for the company and the entire aerospace industry.
