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Cold Call

What Went Wrong with the Boeing 737 Max?

Apr 20, 2021
Harvard Business School professor Bill George discusses the role of cost cutting, regulatory pressure, and CEO succession in the two tragic plane crashes of the Boeing 737 Max. He examines the cultural shifts at Boeing, the role of the FAA, and the importance of leadership during a crisis.
19:58

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Podcast summary created with Snipd AI

Quick takeaways

  • Boeing's decision to modify the 737 instead of designing a new aircraft, driven by competition and cost-cutting, led to fatal accidents and highlighted the danger of compromising safety for short-term gains.
  • The failures in the testing and certification process, including conflicts of interest and inadequate communication, emphasize the importance of rigorous testing, independent certification, and transparent communication to ensure aircraft safety.

Deep dives

The Boeing 737 MAX crisis: Leadership in a time of crisis

The Boeing 737 MAX crisis serves as a case study for leadership in times of crisis. The case highlights the cultural issues at Boeing and the pressures faced by CEOs in handling such situations. The root cause of the problem was Boeing's decision to modify the 737 rather than design a completely new aircraft, driven by short-term competition and cost-cutting. The modifications, including the MCAS system, were made without adequately informing and training the pilots, leading to fatal accidents. The role of the CEO in a crisis is crucial, requiring them to be proactive, empathetic, and publicly accountable.

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