Boeing's Crisis Response

At a shareholder’s meeting, Boeing CEO Dennis Muilenburg addressed 737 Max safety concerns following two fatal crashes. He started, as predicted, with an apology and sympathy for the “loss of life,” acknowledging the “devastation.” He contrasted these losses with the many Boeing flights that run safely—”roughly every 1.5 seconds.”

Muilenburg didn’t explicitly address issues raised in the past couple of days, particularly a Wall Street Journal article the previous day accusing Boeing of failing to report the safety feature shut-off to airlines (including pilots) and the FAA.

When asked during the Q&A about accountability, Muilenburg spoke mostly about plans going forward. When asked whether he would resign, he talked about his and his employees’ commitment to safety.

At about 9:00 on the video, a reporter asks about whistle-blowers at Boeing, referring to recent reports that employees tried to alert senior management and the Federal Aviation Administration (FAA). Muilenburg says the question is “fair” but doesn’t quite respond to the accountability issue. At about 14:15, a reporter asks, “Can you admit that the design was flawed?” This is after Muilenburg skirts the previous question, blaming a “chain of events.” Still, he would not admit to a design flaw.

And then he ends the news conference, as a reporter shouts, “Sir, 346 died. Can you answer a few questions here about that?” Earlier, another reporter noted that this was the first time they had a chance to meet with him to ask questions.

Discussion:

• Assess Muilenburg’s delivery skills. What does he do well, and what suggestions would you have for his future news conferences?

• How well did Muilenburg address reporters’ questions? What, if anything, could he have said differently?

• What leadership character dimensions are illustrated by this story? How well did Muilenburg demonstrate them?