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People / Jerome Peloquin | ||
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Burgess COMMENTARY Dear Jerry I just read your Pulse essay on Boeing which I found very very thought provoking. The issues you raise are very important and I am wondering to what extent your comments are based on veriifiable information. The reason I ask this is that my opinion is that these practices are very widespread in the corporate world, but I am concerned that the push back from the 'bosses' could well be very vicious and I think it is smart to be a little careful. You may or may not be aware that I am working with TrueValueMetrics.org toward the idea of radical accountability ... making the accounting profession a whole lot more relevant to the functioning of the socio-enviro-economic system that it has been over the past many decades. Your recent essay, gives some very important 'color' to the picture that I already have ... so better understanding your connection with this particular issue would be most interesting. All the best PeterB Peter Burgess | ||
A Cancer Grows at Boeing ... and the software problem is not the first time. Corruption in The Hierarchy The Boeing Aircraft Company, a staple of American global dominance in the aerospace industry for close to a century, is one of the most powerful elements of the fabled Defense/Industrial Complex. A Boeing airliner takes off once every 30 seconds around the world. Unfortunately, this paradigm of American industry has fallen prey to a pervasive failure of moral and ethical practice seen all too recently at large corporations like Wells-Fargo and Volkswagen: Organizational Corruption evidenced by a callous disregard for customers, employees, and human life, the suppression of voices of caution, and the callous persecution of anyone who will not drink the cool-aid. Boeing is today's poster child for global corporate endemic corruption. My name is Jerome Peloquin. I am an Organizational Psychologist. My field of interest is the forensic analysis of human and organizational work behavior. I have been employed for 30+ years in a consulting capacity for many large US Corporations. My opinion is derived from intense empirical experience and not idle conjecture. It is my firm conviction and belief that a competent grand jury level investigation of any large corporation in America (… and likely the world) conducted by an incorruptible prosecutor would uncover substantive evidence of greed, dishonesty, collusion, conspiracy, and intent to defraud employees, stockholders, customers, as well as, local, state, and federal laws. I can write this now only because the statute of limitations has long ago tolled. The Final Stage of All Organizations is Corruption - Whether it's the US Congress, the Catholic (and other) Churches, or Volkswagen and Boeing Aircraft Company, as organizations grow they accrue both wealth and power. This, then creates a sense of entitlement and identification with themselves as arbiters of social and business ethics ( ... what's good for General Motors is good for America - remember?) Now if one can add Patriotism to this heady brew? Is there anything not justified in the name of God and country? Boeing and - The Path to Corruption It is one of Amerca/s most respected and trusted commercial institutions. The Company has longtime relationships within all elements of the power elite: the US Congress, The Administration, financial institutions, transportation, military, and it is a bulwark of the FAA (Federal Aeronautics Administration) - Resultingly, there exists little agency oversight - The company is mostly self-inspecting. When profits and integrity collide, the outcome is in doubt. Boeing performs inspections for the FAA on its own Airplanes It is America's flag carrier in global commercial aviation, in space technology, and in military might and prowess. It is very much a closed society, a family with its own culture and values. Scenario - A crisis arises The EU Aircraft Industry begins to introduce new innovative and cost limiting technologies, materials, and processes their new commercial and military aircraft are taking market share away from Boeing. All of a sudden Boeing's position and profits (including stock options and bonuses) may be threatened. C level management circles the wagons. Broad edicts, policies, and objectives are established that are challenging to the point of nearly impossible to put into practice. Remember, Boeing is a military contractor. One does not challenge a superiors decisions period. Boeing Responds First The 'C' level Corporate Executives and Division managers draft broad plans leaving strategy and implementation to lower level engineering and production managers who have been intimidated into accepting the unrealistic goals of their superiors. Because these are some of the most experienced and competent engineering production people on the planet, a path to success is finally identified and integrated into the Boeing production processes. However, it is a radical solution and everything needs to go perfectly for it to succeed - everyone's job is riding on this. The delusion moves forward (nothing in manufacturing EVER goes perfectly) As big as Boeing is, it cannot have every up to date technology on hand, all the time, so when a special situation like this arises the company will often use specialty machine contractors to make key parts. The first mistake is about to be made. Overworked and behind schedule a procurement manager identifies and contracts with a reputable (CNC) (computerized numerical controlled) machines are essentially high speed highly accurate and dependable machine robots. Parts are designed, prototypes built and tested and the first run of production parts are ordered. All seems well, so far. Unfortunately, the CNC Machine sub-contractor runs into a software problem that causes his machines to become erratic - tools break, parts made of very, very, expensive alloys are destroyed and yet, the subcontractor is under the gun to deliver the parts on time. Instead of informing Boeing, the company tries to jury rig the process and use partially machined and partially hand corrected parts. Rejects start showing up on Boeings internal quality reports. In the press of production they are hidden by frightened managers (their kids are in college too) but finally, production inspectors uncover the statistics and report to their managers. Again, afraid for their jobs and future, these managers also try to repress the small errors and defects. It is unfortunate but not an uncommon problem in manufacturing. Act One - An Alarm Sounds A diligent parts procurement manager and her supervisor continue to find and resolve the parts defect problem. They find the actual reports, identify the offending contractor, and bring the problem forcibly to middle management and engineering. Reluctantly, an inspection trip to the plant in Texas is authorized and our two Boeing inspectors visit the contractor's facility. First, they are denied entrance, after that, they are treated with disrespect and disdain, told to mind their own business and that they would get in trouble with Boeing if they persisted. Still, these decent and diligent people persisted in what they believed was the overriding interest of their company. Needless to say, what the Boeing managers found was a manufacturing nightmare. Machine parts all over the floor, hand-hewn templates using manual grinders instead of computerized machines to drill and burnish structurally critical parts with extremely high tolerance requirements, lying exposed and covered with oil and dirt. It was a production managers nightmare! Act Two - What Problem? The two managers returned to Seattle extremely concerned about how this massive cover-up could have happened and the potential consequences to the flying public, the aircrews, and to Boeing Aircraft Company. They submitted their detailed and damming report and they waited ... and waited ... and waited. No response! At all! The complaints from the production workers on the floor continued but nothing happened. One of the inspector's supervisors, a respected engineer himself enraged by the treatment of his staff went with the two inspectors to a senior staff meeting. They were told specifically that this was above their pay grade and they should keep quiet about it. All three of them were shocked. With great reluctance some fear and a good bit of courage, they, finally decided that it was sufficiently important to take to the FAA in Washington DC. Incredibly the FAA rolled over and bowed to Boeing's assertion that this was NOT a problem. With all doors closed the three of them took the only option left to them, Justice. They then went to The US Justice Department to find Justice and avoid a potential catastrophic cabin failure. Act Three - Shoot The Messanger They were graciously and cordially received. The US Justice Department assured them that their identities would be protected under the 'whistleblowers act,' and that their names would never be divulged. Within thirty days all three were fired by Boeing and informed they may be sued. Conclusion - It would be a shot from the cheap seats for me to take the position that all of the hierarchy in these organizations: Boeing, The FAA, And The US Justice Department are evil trolls It is simply not so, most of them are average working Americans placed in an impossible position. They do have families to support, expectations of a happy prosperous life after years of sacrifice, long hours and missed family events. I am not making the moral point here. However, the very top 'C,' Level managers ARE expected to be responsible. They make factorially more than the average line worker or manager, for example, The VP for Commercial Aircrafts' compensation package last year was: $7,219,298 (seven million, two hundred and nineteen thousand, two hundred and ninety-eight dollars) an average employee makes $45,000 and a manager about $120,000. I wish I could say that such potentially horrendous scenarios are not common. Unfortunately, they are very common. Greed is not a deadly sin ... it is the driving force of capitalism and also, I fear of human nature.
Jerome Peloquin ... An Expert in Aquaponics and Sustainable Green Tech Development
| Published on March 25, 2019 The text being discussed is available at | https://www.linkedin.com/pulse/cancer-grows-boeing-jerome-peloquin/ and |