what boards can learn from boeing mistakes.pptx
- 1. Boards can learn from boeing
- 2. What Corporate Boards Can Learn from Boeings Mistakes by Sandra J. Sucher and Shalene Gupta June 02, 2021 Summary. HBR Staff/freestylephoto/ pidjoe/Getty Images Board members have an incredibly difficult job. On average they spend between 250 to 350 hours a year advising the company, and they must understand the manifold issues management is dealing with, as well as the industry and global context. When they fail... In February, Boeing shareholders filed a lawsuit against the companys board of directors. They argued that the board had neglected their oversight duty, failing to hold Boeing accountable for safety before and after the crashes of two 737 MAX airplanes more that killed 346 people in 2018 and 2019. Safety was no longer a subject of Board discussion, and there was no mechanism within Boeing by which safety concerns respecting the 737 MAX were elevated to the Board or to any Board committee, they wrote in the 120-page filing.
- 3. Boeings strategy to minimize training costs in order to keep the overall cost of the plane low was predicated on unrealistic expectations of 100% pilot effectiveness in correcting MCAS system malfunctions in four seconds. The cost was several hundred lives, billions of dollars in losses, reputational damage that Boeing is still trying to recover, and more. The shareholders suing Boeing argue the board could have prevented it. We argue that theres much other boards can learn from the Boeing shareholder suit. Boards are fiduciaries, which means that their duty is to protect other peoples interests, generally defined as consisting of a duty of care, a duty of loyalty, and, some legal scholars would argue, a duty of candor. In Back to the Drawing Board authors Colin B. Carter and Jay W. Lorsch, a professor at Harvard Business School, list the responsibilities of boards that include: approving a companys strategy, budgets and plans and monitoring progress
- 4. Boeings strategy to minimize training costs in order to keep the overall cost of the plane low was predicated on unrealistic expectations of 100% pilot effectiveness in correcting MCAS system malfunctions in four seconds. The cost was several hundred lives, billions of dollars in losses, reputational damage that Boeing is still trying to recover, and more. The shareholders suing Boeing argue the board could have prevented it. We argue that theres much other boards can learn from the Boeing shareholder suit. Boards are fiduciaries, which means that their duty is to protect other peoples interests, generally defined as consisting of a duty of care, a duty of loyalty, and, some legal scholars would argue, a duty of candor. In Back to the Drawing Board authors Colin B. Carter and Jay W. Lorsch, a professor at Harvard Business School, list the responsibilities of boards that include: approving a companys strategy, budgets and plans and monitoring progress
- 5. Boeings strategy to minimize training costs in order to keep the overall cost of the plane low was predicated on unrealistic expectations of 100% pilot effectiveness in correcting MCAS system malfunctions in four seconds. The cost was several hundred lives, billions of dollars in losses, reputational damage that Boeing is still trying to recover, and more. The shareholders suing Boeing argue the board could have prevented it. We argue that theres much other boards can learn from the Boeing shareholder suit. Boards are fiduciaries, which means that their duty is to protect other peoples interests, generally defined as consisting of a duty of care, a duty of loyalty, and, some legal scholars would argue, a duty of candor. In Back to the Drawing Board authors Colin B. Carter and Jay W. Lorsch, a professor at Harvard Business School, list the responsibilities of boards that include: approving a companys strategy, budgets and plans and monitoring progress
- 6. Boeings strategy to minimize training costs in order to keep the overall cost of the plane low was predicated on unrealistic expectations of 100% pilot effectiveness in correcting MCAS system malfunctions in four seconds. The cost was several hundred lives, billions of dollars in losses, reputational damage that Boeing is still trying to recover, and more. The shareholders suing Boeing argue the board could have prevented it. We argue that theres much other boards can learn from the Boeing shareholder suit. Boards are fiduciaries, which means that their duty is to protect other peoples interests, generally defined as consisting of a duty of care, a duty of loyalty, and, some legal scholars would argue, a duty of candor. In Back to the Drawing Board authors Colin B. Carter and Jay W. Lorsch, a professor at Harvard Business School, list the responsibilities of boards that include: approving a companys strategy, budgets and plans and monitoring progress
- 7. Boeings strategy to minimize training costs in order to keep the overall cost of the plane low was predicated on unrealistic expectations of 100% pilot effectiveness in correcting MCAS system malfunctions in four seconds. The cost was several hundred lives, billions of dollars in losses, reputational damage that Boeing is still trying to recover, and more. The shareholders suing Boeing argue the board could have prevented it. We argue that theres much other boards can learn from the Boeing shareholder suit. Boards are fiduciaries, which means that their duty is to protect other peoples interests, generally defined as consisting of a duty of care, a duty of loyalty, and, some legal scholars would argue, a duty of candor. In Back to the Drawing Board authors Colin B. Carter and Jay W. Lorsch, a professor at Harvard Business School, list the responsibilities of boards that include: approving a companys strategy, budgets and plans and monitoring progress
- 8. Boeings strategy to minimize training costs in order to keep the overall cost of the plane low was predicated on unrealistic expectations of 100% pilot effectiveness in correcting MCAS system malfunctions in four seconds. The cost was several hundred lives, billions of dollars in losses, reputational damage that Boeing is still trying to recover, and more. The shareholders suing Boeing argue the board could have prevented it. We argue that theres much other boards can learn from the Boeing shareholder suit. Boards are fiduciaries, which means that their duty is to protect other peoples interests, generally defined as consisting of a duty of care, a duty of loyalty, and, some legal scholars would argue, a duty of candor. In Back to the Drawing Board authors Colin B. Carter and Jay W. Lorsch, a professor at Harvard Business School, list the responsibilities of boards that include: approving a companys strategy, budgets and plans and monitoring progress