To Bounce Back Boeing Must Employ Transparency and Smart Communication

After months of criticism and a torrent of bad press, Boeing has finally announced a replacement for CEO Dennis Muilenburg. His time atop one of the world’s leading aerospace corporations will be remembered mostly for two tragic plane crashes and the world-wide grounding of the company’s 737 Max fleet resulting from those accidents. 

The sudden shakeup speaks to the company’s past failures to effectively communicate during a time of crisis, but it also sets the stage for Boeing to recover its reputation along with billions in lost revenue.

  Some see Boeing’s move to replace Muilenburg as too little, too late. After all, the twilight of his tenure was marred by the loss of 346 passenger lives, the misleading of pilots who operated the 737 Max aircraft, and dishonest communication that at best was inept and at worst has been characterized as dishonest. 

 And while forcing out the CEO may seem like a good step it certainly does not guarantee a clean slate for his successor David Calhoun. To get Boeing back on track, Calhoun must work hard to employ effective communications in order to rebuild Boeing’s reputation and earn back the trust of the public.

 That trust was tarnished by the first Boeing 737 Max crash in October 2018. Just five months later, a second 737 Max fell from the sky killing everyone on board. The CEO sought to quell fears about the plane’s safety with public statements issued in March and April. But it wasn’t until May that CEO Muilenburg said that Boeing made a “mistake” by failing to communicate openly about the problems it was having with on-board software, admitting that its communications were “not consistent” and its approach “unacceptable.”

Only months after the events did the company issue a full-throated apology to the families of the victims. Sadly, this a perfect example of corporate communications done wrong, failing to address the situation with transparency and jeopardizing trust.

 Failing to act expeditiously in response to a deadly crisis of this magnitude harmed the public’s confidence in Boeing. The apparent lack of a robust crisis management plan, or the competent implementation of smart and strategic communications in the wake of a major crisis, ultimately led to the loss of billions of dollars in revenue and global disruption in the air travel industry, not to mention additional suffering for hundreds of families whose loved ones perished aboard Boeing’s planes.

 Delayed and underwhelming apologies, coupled with a much broader failure overall to communicate effectively, played key roles in the downfall of Muilenberg. Had he communicated more effectively from day one, and personified accountability, he could have lessened the impact of the tragedy, rather than exacerbating it. 

 The tumult at Boeing illustrates that now, more than ever, CEOs must understand the importance of public accountability. When mistakes are inevitably made, it is crucial to take responsibility - especially in a sector such as air travel where millions of people literally entrust you with their lives. 

 David Calhoun, just named as the replacement CEO, is in a position to turn things around. In a statement circulated widely in the media, Boeing says that its “new leadership…will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers."

 Communication is at the heart of all crises, and skillfully delivering Boeing’s renewed commitment to excellence and honesty will be an essential message for Calhoun to deliver. His admirable resume and long track record of success clearly make him qualified, but he will need to couple his business acumen with first-class communication skills that position him and Boeing for long-term success.