Leadership Style of W James McNerney, Boeing Company CEO - Case Study Example

Running Header: Boeing CEO Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Introduction Boeing Company was founded in 1916. It has been able to achieve solid and sustained performance as well as profitability. The company aims to protect people by producing astounding services and products that describe aerospace. According to Boeing Company (2010), the company leadership provides its employees with the skills and knowledge that they require and this can be attributed to its success. Moreover, the company ability to manage its broad portfolio of products has been a major factor that has fueled its continued growth. However, the company faces challenges related to under development in space based traffic air management and worldwide mobile communications that can allow its customers to be connected to high bandwidth data. This research paper aims to explore Boeing CEO, W. James McNerney, Jr who has played an integral role towards the company success. McNerney, Jr Background James McNerney, Jr, was born on 22 August 1949 in Rhode Island. In 1967 he graduated from High school and then proceeded to Yale University where he received a Bachelor of Arts degree in 1971. He later attended Harvard Business School where in 1975 he was awarded with a Masters of Business Administration. Before going to Harvard he had worked for both G.D Searle & Company and British United Provident for one year. McNerney was appointed as the chairman, CEO and President of the Boeing Company on 30th June 2005. This was after the resignation of the former Boeing CEO Phil Condit in 2003 due to contracting scandals while his predecessor, Harry Stonecipher, was forced to leave the post because of engaging himself in an affair with a Boeing executive. Before his appointment as the CEO of Boeing, McNerney served as a member of the company board from 2001 (Boeing, 2012). Awards and Recognition According to Boeing (2012) McNerney was awarded with Inaugural Turning Point Award in 2012 from the United States Army War College Foundation for his efficient leadership that enabled Boeing to turn its strategic point. Moreover, he received Semper Fidelis Award in 2012 from Marine Corps Scholarship Foundation for his service to the U.S that illustrated the Marine Corps Motto which requires individuals to always remain faithful. Furthermore, the U.S Army Association awarded him the John W. Dixon award in 2011 for his wonderful contribution towards the nation’s defense. In 2009, Cranfield University awarded him with a Doctor of Science honorary degree due to his contribution towards the international aerospace industry. In addition, McNerney was awarded with the National Management Association’s Executive of the year award in 2008. McNerney Career Path According to Plunkett, Attner and Allen (2007) McNerney began his career in business in 1975 where he worked as a brand manager at Procter & Gamble. In 1978 he moved to McKinsey where he worked as a consultant in issues related to management. From 1982, McNerney moved to General Electric Company where he was able to hold top management positions which included CEO and president of the company lighting and engines. At GE, he also became the president of the company Asia Pacific branch as well as the CEO and president of GE Electrical Control and Distribution. Later he was appointed as the executive vice president of the company Capital. GE capital is one of the most successful companies in the world that provides financial services. McNerney then served as the CEO as well as the chairman of 3M from 2001-2005 when he joined Boeing. 3M is an international technology company which is based on $ 20 billion capital and it has taken a leading position in providing industrial, telecommunications, electronics, health care and office as well as consumer products. Boeing (2007) states that McNerney was appointed by president Barack Obama to chair the President’s Export Council which is an advisory committee which provides advisory services relating to international trade. Furthermore, McNerney also serves as a director in IBM and Procter & Gamble. He is a member of in the Northwestern Memorial Health Care Board and the Field Museum Board of Trustees. McNerney Leadership Style James McNerney adopts a participative leadership style (DurBrin, 2011). In participative leadership style leaders consult with their employees and seek their suggestions when making decisions. The leaders share the decision making process with the subordinates. Participative leadership style is based on teamwork approach and openness whereby the leader accepts and welcomes suggestions for managing the firm from the members of the organization. According to Plunkett, Attner and Allen (2007), McNerney established a reward system in order to encourage employees to provide suggestions aimed at promoting an innovative culture at Boeing. He aims to creating a culture that will assist the employees and the managers to work together towards accomplishing a common shared goal. In order to discourage holding of information by the subordinates and the executives, McNerney set a compensation scheme which is based on how well managers and employees share information with other departments within the company. Through his participative leadership style, he was able to overcome internal competition which was attributed to holding of information which affected the company decision making process. Boeing (2007) affirms that McNerney places a high value on participative leadership style in order to get the best output from the company employees. He encourages his subordinates to participate in the company decision making process in order to enhance growth in the company. McNersey holds the belief that if people in a company participate in its management then the company will be able to grow. In addition, McNersey has ensured that Boeing Leadership Center which is located in St. Louis assists employees in communicating and sharing their ideas to the company executives. What Employees think about McNersey Mcnerney is a manager who both cares and understands about his work as well as his employees (Mark, 2010). In addition, his employees see him as a change agent due to his efforts to change the culture of Boeing. McNerney has been able to change the unethical culture that existed in the company before his appointment. Moreover, he is regarded by his employees as a leader who aims to bring together all the members of the company. This is due to his efforts to unite the balk management team that has been characterized by internal infighting from the time Boeing merged with McDonnell Corporation. Additionally, he is viewed as an open leader due to his believe in dialogue as well as his ability to encourage employees and managers to talk more openly about the issues that they may have regarding the company. Furthermore, employees see McNersey as a person who leads by example. He pays attention to minor details, listens keenly to employee’s presentations, and likes remembering their names and he does not involve himself in unethical dealings in public. DurBrin (2011) notes that McNerney does not travel with big vehicles or spend a lot of time in the company jet and this affirms the employees view that he leads by example. Besides, Boeing employees think that McNerney is more concerned with the human side of the company as compared to the technical side. His aim is to create a tradition whereby the company employees take the risk and speak up in case something wrong occurs in the production line. Finally, he is seen as a leader who values conserving the company resources due to his efforts of taking advantage of Boeing economies of scale as well as his aim to narrow the company headquarters in order to reduce costs. My Opinion regarding McNersey leadership style I think that McNersey leadership is effective and successful. This is because he has been able to cut Boeings expenses and he has also restructured the company organizational structure. Moreover, his participative leadership style has ensured that the company remains innovative and this has increased its competitive advantage (Boeing, 2012). According to me, his leadership style has empowered the company employees hence this has played an important role in making Boeing to succeed in its operations. Moreover, I think his leadership has worked well in Boeing because he changed the culture of the company. He has done this by offering executives and employee with better pay and this has made them to act as the drivers in changing the tradition of Boeing. I also think that his leadership style has motivated the company employees. In my opinion, the company has also benefited from his leadership due to the improvement of its research and development operations and its performance. Conclusion McNersey has played an important role in improving the performance of Boeing and this has made him to be awarded with a number of awards. Through his participative management style, McNersey has been able to transform the culture of Boeing. Moreover, he has assisted the company in reducing its expenses through restructuring and by narrowing its corporate headquarters. The company employees think that he leads by example due to the fact that he does not involve himself in unethical practices. In my opinion, his leadership in Boeing has been successful. References Boeing .(2012). Executive Biographies. Retrieved November 20, 2012, from http://www.boeing.com/companyoffices/aboutus/execprofiles/mcnerney.html Plunket, W., Attner, R., & Allen, G.(2007). Management: Meeting and Exceeding Customer Expectation. Manson: Cengage Learning. DuBrin, A.(2011). Leadership: Research, Findings, Practice and Skills, Mason: Cengage Learning. Mark, M.(2010). Bloomberg Business Week Magazine: Cleaning Up. Retrieved November 20, 2012, from http://www.businessweek.com/stories/2010-03-12/cleaning-up-boeing. The Boeing Company.(2010). Annual Company Report. The Boeing Company Annual Report, 1-94. Read More