Boeing Mission Statement | Vision | Values | Strategy (2024 Analysis)

Company: The Boeing Company
CEO: David L. Calhoun
Founder: William E. Boeing
Year founded: 1916
Headquarter: Chicago, Illinois
Employees (May 2021): 141,000
Type: Public
Ticker Symbol: BA
Annual Revenue (2020): US$58.16 Billion
Profit | Net income (2020): US$-11.9 Billion

Fun Fact:

Did you know that it takes about 50 gallons of paint to paint the Boeing 737 Max?

Table of Contents

Overview

Boeing is a U.S.-based aircraft, rotorcraft, and aerospace manufacturer founded in 1916. This multinational corporation manufactures and sells commercial airplanes to airlines, such as 737, 787, and 777.

In 2018, Boeing delivered 806 jets and planes to customers globally and accumulated over $100 million in annual revenues. After two fatal 737 MAX crashes, Boeing experienced a sharp decline. It delivered only 69 units in 2019, resulting in a net loss of US$636 million. [1]

The challenges in 2020 worsened the situation further, leading to a record loss of nearly $12 billion. To regain its reputation and public trust, Boeing increased R&D expenditure to $3.2 billion in 2019.

It has emerged stronger in 2021, thanks to its innovative products and leadership.

“I’m sure and glad 2020 is in the rearview mirror,” CEO Dave Calhoun said in an interview with CNBC. [2]

To understand why Boeing has dominated the industry for over 100 years, you have to analyze its mission and values.

Here is an in-depth analysis of Boeing’s mission statement and values.

Boeing’s Mission Statement

Boeing’s mission statement is:

“To connect, protect, explore, and inspire the world through aerospace innovation.”

What Boeing’s mission statement means:

The mission statement affirms Boeing’s commitment to leverage its innovativeness to help connect the world. Here are five components of Boeing’s mission statement:

Connect

For over 100 years, Boeing has been rapidly growing its influence and creating new connections globally. From 2014 to 2018, Boeing delivered between 600 and 800 airplanes per year to airlines globally.

It has over 10,000 jetliners in operation worldwide. Boeing airplanes connect millions of professionals, families, and tourists to their destinations every year. [3]

Protect

Boeing strives to protect communities, the environment, all passengers, its legacy, and market leadership. For example, Southwest has been flying only Boeing airplanes for over 50 years and has operated more than 1050 Boeing 737s.

In 2021, Southwest plans to acquire the Airbus A220-300 to replace Boeing 737-700 in its fleet. Protecting public trust and confidence is crucial now more than ever. [4]

Explore

Since its founding, Boeing has explored innovative strategies and technologies to take the aerospace industry to the next level. It proactively explores strategic alliances and collaboration with the best globally.

For example, Boeing entered into a $117-million partnership with Saab to manufacture T-7A Red Hawk for the US military. Saab delivered Red Hawk’s first aft fuselage section, allowing Boeing to begin production work on time. [5]

Inspire

Boeing strives to minimize barriers to help more minority students work in the aerospace sector. It is the beacon of hope for Black and Hispanic students taking engineering courses.

In 2021, the company celebrated more than 50 Boeing honorees during BEYA Awards. Boeing also deepened its relationship with Black colleges and universities with a $6 million partnership to inspire more students. [6]

Aerospace Innovation

Boeing is one of the most innovative companies in the world. It invests and partners with universities to build a robust talent pipeline to drive the future of aerospace.

In 2021, the company deepened its partnership with Virginia Tech with a $50 million investment. “Virginia Tech has a bold vision to solve the world’s most pressing problems through technology,” said David Calhoun, Boeing CEO and Virginia Tech alumnus, “We are proud to help.” [7]

Boeing’s Values

Boeing’s values serve as the guiding principles for all its operations. These values are in two categories, how we operate and how we act. [8]

How We Operate

The principles advanced by Boeing’s values under this category guide the company’s operations and innovations to help make the world better.

Start with engineering excellence

Boeing acknowledges that a strong engineering foundation is essential for the company to build and maintain product quality.

The company works “Together as a One Boeing team” with an unwavering commitment to quality engineering and technical excellence. As a company of innovators, Boeing seeks to change the future of aerospace. [9]

Be accountable

Boeing oversees every stage of every program in its manufacturing process. It is responsible for positive and negative outcomes.

The company took responsibility for the 737 MAX crashes and agreed to pay over $2.5 billion for negligence, compensate customers and victims’ beneficiaries. [10]

Apply Lean principles

The aerospace giant is committed to lean principles and relies on Toyota-inspired lean production methods to improve efficiency. The company shifted toward Advanced Manufacturing by incorporating principles used in the car industry deeper into its plants.

“I think they will amount to quite significant improvements,” said Walter Odisho, former Boeing VP of manufacturing and safety. [11]

Eliminate traveled work

Boeing acknowledges the far-reaching consequences of reworks and strives to do things right the first time, every time. The 737 Max crashes and the grounding of all 737-8 and 737-9 models for 20 months cost the company over $19 billion.

To avoid costly reworks and fatal crashes, Boeing is more focused and committed to its core values. [12]

Reward predictability and stability

Boeing focuses on planning and executing for success every day instead of reacting to obstacles. To achieve this, Boeing institutes predictability to support its priorities.

This approach also ensures that the company is prepared to face the unexpected. “We need to make production more repeatable and predictable,” Odisho said. [13]

How We Act

These values guide Boeing’s actions in different situations and events. They also guide employees’ interactions in the workplace and with individuals, communities, and the world.

Lead on safety, quality, and integrity

Boeing strives for first-time quality and prioritizes safety. This commitment was tainted in 2018 by two fatal Boeing 737 MAX crashes due to software error.

“These events have reshaped our company and further focused our attention on our core values of safety, quality, and integrity,” said David Calhoun, Boeing CEO. [14]

Collaborate with humility, inclusion, and transparency

Boeing seeks respectful partnerships and other players’ perspectives regardless of their size and industry. In 2021, Boeing entered into a strategic collaboration with India’s Air Works Group for its Poseidon 8I. [15]

Import best leadership practices

Boeing hired Walt Odisho, a former Toyota executive, to improve production efficiency. “We’ve been on a continuous journey to evolve our production system and make it even stronger,” Odisho said. [16]

Earn stakeholder trust and preference

Boeing is committed to attaining transparent operations and delivering results with excellence.

This value was vital in the aftermath of the Boeing 737 Max crashes. “Our opportunity is simply to restore the faith and trust in the 737 family,” said Boeing CEO Dave Calhoun. [17]

Respect one another

Boeing values individual differences as assets, builds diverse teams, and strives to eradicate discriminative policies and norms. In March 2020, Boeing announced a $10.6 million grant to fund 20 nonprofit organizations addressing racial equity and social justice.

“Together, we can begin to make real advances in the pursuit of equality,” said CEO David Calhoun. [18]

References & more information