Davd Calhoun, CEO of Boeing, announced he is resigning from the troubled airlines at the end of the year. This is inevitable and the right thing to do.
Just like in pro sports, an organization with major problems needs to defend itself and do so with a change at the top. Customers, workers and the market need to know solutions are coming.
Just like the New England Patriots jettisoned even the mostly revered Bill Belichick, Boeing needed a change. The Wall Street Journal reported in Boeing CEO Dave Calhoun to Step Down in Wake of 737 MAX Struggles that not only will Calhoun be gone but his exit is “part of a broader executive shake-up after a Jan. 5 midair blowout and sweeping production problemsthat have angered airlines and regulators.”
Calhoun came on in 2020 after fatal crashes the two years before he joined. But the Alaka Air door plug falling out midair and other recent problems have proved too much.
CNBC featured a story on who might replace Calhoun, looking to GE, Carrier, Spirit, and an executive inside Boeing. Ideally, they need someone from outside to come in with fresh eyes. They should be looking in manufacturing and airline industries. Folks already inside the company tend to be defensive.
This search goes to the need all companies have for a succession plan. Given that Calhoun is looking to leave in nine months, one can assume there was no such solid succession plan in place at Boeing. A succession plan is not a luxury, it is a necessity for companies that can face a crisis in which the top executives are immediately unavailable to continue service.
Where Boeing stands now, it needs to do three things. One, find experienced and fresh eyes to run the company. Two, the folks at the top must show all employees that they are taking this seriously and seeking to strengthen and fix things at Boeing. Three, show the market that the company is up for the reset it needs.