Boeing Company’s Functional Strategy and Control

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Marketing

The issues associated with the time of the production process needs to be listed among the primary concerns of Boeing Company at present. According to recent reports, the organization has been suffering losses because of the inability to meet the set deadlines (Montgomery, 2012). Therefore, it is crucial to handle the associated problems.

Among the marketing goals that Boeing will have to meet, one will have to mention the following objectives;

  • Gaining an impressive competitive advantage;
  • Using the company’s strengths to attract more customers;
  • Designing an elaborate marketing approach that will help gain new customers;
  • Introducing a new brand image and branding strategy that will help boost the firm’s popularity levels in the environment go the global economy.

Particularly, a more sensible time management framework must be introduced into the company’s environment. The first and most obvious, detailed guidelines and time standards must be set and provided to every single staff member. A rigid control over the production processes must be established so that the associated processes (e.g., transportation, information management, etc.) should be carried out in a timely and efficient manner. Otherwise, the quality of the end product and the services will suffer significantly, and customer satisfaction levels will drop steeply.

To measure the success of the changes to be made to the company’s marketing framework, one will have to consider the changes in the number of customers and orders. Thus, the general tendency can be identified. For this purpose, the use of histograms should be viewed as a legitimate measurement approach (Montgomery, 2012).

Operational

Product quality is another reason for concern at Boeing. Needless to say, the identified characteristic of the services defines the success of the company in the environment of the global economy (Montgomery, 2012). With a drop in quality levels, Boeing will inevitably suffer impressive damages by losing a huge number of its customers to the competitors. Among the current operational objectives of the organization, the following goals will need to be listed:

  • Increasing the output by 10%;
  • Reducing the number of defects made in the production process by 25%.

To improve the quality rates, Boeing leaders will have to reconsider the current corporate standards. Furthermore, the related values, such as Corporate Social Responsibility, must be promoted to the staff members so that they could be enthusiastic about meeting the existing quality demands. Finally, a rigid framework for consistent quality improvement, such as DMAIC, must be incorporated into the company’s design (Pyzdek & Keller, 2014). As soon as the framework is set in motion, the employees will engage in an unceasing cycle of quality improvement. Consequently, the product quality will grow exponentially. The principles of Total Quality Management (TQM) must also be included in the new quality system so that the required standards could be met.

In order to control the staff’s compliance with the identified rules, the managers will have to use regular assessments. Reports will have to be submitted so that the changes in the performance levels could be identified and that possible issues could be addressed at the earliest stages of their development. Furthermore, tools such as the Pareto chart and the Design of Experiment (DOE) framework will have to be included in the assessment strategies so that the current tendencies could be identified. Measuring the repeatability and reproducibility levels, in turn, will help determine the efficacy of the improvement tools (Montgomery, 2012).

Strategic Intent and Strategy Implementation

At present, the strategic intent of Boeing goes beyond improving the quality of the end product. Apart from working on the means of attracting new customers and compelling the staff members to excel in their performance, the organization will also strive to introduce the concept of consistent and unceasing change and improvement as the foundation for its operations. In other words, a redesign of the corporate values system should be viewed as the primary strategic intent that will have to be implemented.

The significance of the strategic intent for Boeing can hardly be underrated. A detailed and well-thought-out strategy will allow making the leadership approach more efficient. As a result, the goals of the organization, particularly, the ones concerning the improvement of the products and services will be attained within a relatively short amount of time. Indeed, according to Montgomery (2012), there is a direct link between leadership and strategy: “Good strategies are never frozen – signed, sealed, and delivered” (Montgomery, 2012, p. 14). Therefore, it is imperative that strategic intent should be set clearly.

The strategy will be implemented by focusing on changing the organization’s values and mission, making it more people-oriented. As soon as the needs of all stakeholders are taken into account, it will be easier to shape the approaches required to motivate the staff members and, therefore, improve the current quality levels. Furthermore, the introduction of principles such as Corporate Social Responsibility, the Total Quality Management model, and the DMAIC framework, will have to be considered.

In order to implement the suggested framework and produce the expected changes, one will have to consider the assistance of managers, as well as the leader of the organization. While managers will set the standards that the staff is expected to follow and observe the outcomes, the leader will represent the model behavior that the employees will have to follow. Thus, the foundation for a consistent improvement can be created.

In order to implement the suggested strategic recommendations, one will have to consider the adoption of Kotter’s 8 Step Change Model. Particularly, the urgency for the change will have to be built by raising awareness among the staff members about the need to meet new quality standards and improve in the areas of communication, product quality, and time management. Afterward, the levels of engagement and motivation must be increased among the personnel. The identified goal can be achieved by providing the employees with incentives and benefits that will encourage them to excel in their performance. For instance, financial rewards for the delivery of outstanding results should be viewed as an example of a financial incentive. As far as benefits are concerned, the current package must be expanded by introducing the benefits for a diverse population. Specifically, the options for parental leave and the improvement of the retirement benefits will have to be viewed as an option.

As soon as the foundation for the change is created, a new vision must be designed. To be more accurate, Boeing will have to focus on the idea of consistent quality improvement as the new corporate philosophy. In addition, the significance of catering to the needs of all stakeholders involved must be viewed as an integral part of the corporate philosophy.

The process of communicating the necessity to change should be viewed as the next essential stage on the way to improvement. For this step to be carried out successfully, the leader of the organization must detail the new strategy, the expected outcomes, and, most importantly, the opportunities for personal and professional growth to the staff members. Detailing the way in which the change will occur will also be necessary. The emphasis on collaboration and information sharing should be placed as the basis for efficient data and time management. Next, by offering training and career opportunities, the company will empower the staff for the change. As soon as short-term goals are introduced, and the strategy for maintaining the new approach is integrated into the environment of the organization, Boeing will be ready to implement the change.

Naturally, it is expected that some of the employees will be unwilling to alter their organizational behavior and, therefore, will resist the change. Thus, it will be obligatory to introduce incentives that will boost the employees’ motivation and encourage them to accept the new corporate values, standards, and principles. For the staff members to collaborate successfully, one will have to consider the organizational structure known as the matrix structure. As a result, the distribution of roles and responsibilities, as well as the focus on product quality improvement, will become a possibility.

Evaluation and Control

To improve the company’s time management, one will have to consider reducing the amount of waste (i.e., defects) made in the course of the production process, as well as addressing the information management issue. Kaplan and Norton suggest that the vision and strategy of an organization must be based on carrying out financial stewardship, meeting stakeholders’ needs, managing internal business processes, and exploring the organizational capacity (see Fig. 1) (Montgomery, 2012).

As a result of implementing the suggested strategy at Boeing, a significant improvement in the financial perspective is expected since fewer resources will be wasted. The drop in the waste levels and, therefore, the number of expenses will serve as the foundation for reconsidering the current strategy for managing financial resources. Particularly, the enhancement of the R&D department’s work and the production of new and innovative decisions must be viewed as an option. Similarly, a more elaborate approach toward the assessment of the company’s performance can be designed by introducing new and improved tools for controlling and assessing the end products and services. The assessment of the financial progress can be conducted by comparing the performance of the company in different time slots.

Furthermore, the internal perspective will also win because of the rise in the quality levels. By addressing the issues associated with the quality management processes and compelling the staff to develop new skills, one will be able to reduce the number of defects produced in the process. In order to assess the identified aspect of the company’s operations, one may have to consider using a correlational analysis between the numbers of defects per 100 items. Thus, an objective evaluation will be possible.

The customer perspective will also be addressed since satisfaction levels will rise among buyers. As soon as the new principles of production process management are set, the speed of service delivery will rise exponentially. As a result, customers will have a more enjoyable experience. To measure the alterations in the customer perspective, one will have to consider comparing the changes in the number of customers, the frequency of purchases, etc.

Learning and growth will be achieved as well since the employees will acquire new knowledge and skills, thus, receiving a powerful impetus for further development. Therefore, the prerequisites for consistent knowledge acquisition and lifelong learning can be created. Learning can be assessed by evaluating the abilities of the staff.

Kaplan and Norton’s Model
Figure 1. Kaplan and Norton’s Model

The Strategist

One might assume that Boeing simply offers a chance for people to go to a specific state and reach the destination within a shorter amount of time than it would take if using a different mode of transportation. However, in reality, the opportunities that the organization brings are much more profound than that. My organization brings the opportunity for people to travel across the globe and, therefore, communicate efficiently. As a result, Boeing makes a difference in the way in which people converse. The identified change is crucial as it affects positively people’s personal growth and organizations’ economic success.

The identified difference allows for a significant improvement. Sharing experiences and understanding different cultures better serve as the foundation for gaining new knowledge and skills, as well as exploring new options. Thus, the premises for consistent development are built. The firm offers its staff members a chance to engage in the process of lifelong learning by prompting them to acquire new skills and knowledge on a regular basis. Furthermore, the incorporation of the latest technologies serves as the basis for further growth among the staff, allowing them to develop new competencies.

The extremely broad product line is, perhaps, the characteristic that is the most difficult to imitate. Boeing offers a vast variety of services and products. For instance, the organization has a vast number of plane families, each possessing a unique characteristic and aimed at meeting the needs of a particular set of customers. The fact that the company has been focusing extensively on the reduction of noise and negative environmental effects should also be brought up as one of the primary advantages of the organization. The same can be said about the services offered by Boeing; they are numerous and very efficient. For example, the support system provided by the firm is outstanding. Boeing strives to reach every customer and manage the emerging problems in a manner as efficient and expeditious as possible. Therefore, it has a powerful competitive advantage. With the emphasis on R&D and the active use of the latest technology, Boeing will be able to use its competitive advantage to reach the top of the global market. To be more specific, more options related to the enhancement of sustainability levels should be explored.

Even though the company has been showing perfect results, it needs to focus on innovation and improvement better. Thus, the opportunity to matter not only today but also tomorrow will open for Boeing. Herein lies the significance of redesigning the current system of values and improving corporate philosophy. Even though the competitive advantage of the organization is impressive at present, Boeing will have to explore innovative options so that it could remain relevant and maintain its position as one of the most influential airplane corporations in the world.

References

Montgomery, C. (2012). The strategist: Be the leader your business needs. New York City, NY: HarperBusiness.

Pyzdek, T., & Keller, P. (2014). The Six Sigma handbook (4th ed.). New York, NY: McGraw-Hill Education.

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