Boeing has named Robert “Kelly” Ortberg as its new CEO, marking a pivotal moment in the company’s history. Ortberg, the former head of Rockwell Collins, will be based here in Seattle, the nucleus of Boeing’s engineering and manufacturing vision for over 80 years. The decision signals a significant shift in Boeing’s leadership priorities, emphasizing production quality over financial performance—a change that many believe is long overdue.
A Return to Roots
Boeing’s decision to place its new CEO in Seattle is a notable departure from its previous strategy. The company moved its headquarters from Seattle to Chicago in 2001 and then to Arlington, Virginia, in 2022. Despite these moves, most of Boeing’s commercial aircraft continue to be manufactured in Washington state, with an additional facility in South Carolina. By basing Ortberg in Seattle, Boeing is reaffirming its commitment to its engineering and manufacturing heartland.
Ortberg’s Background and Vision
Ortberg’s background is a key factor in this strategic shift. As the former CEO of Rockwell Collins, a major supplier of avionics and other critical systems for aircraft, Ortberg has a deep understanding of the aerospace industry from a technical and production standpoint. His tenure at Rockwell Collins was marked by a focus on engineering excellence and product reliability, which are critical areas for Boeing as it seeks to rebuild its reputation following a series of high-profile setbacks.
This contrasts sharply with some of his predecessors, who were more focused on financial engineering and shareholder returns. For example, Dennis Muilenburg, who served as CEO from 2015 to 2019, was often criticized for prioritizing cost-cutting and stock buybacks over product quality and safety.
Challenges Ahead
Ortberg steps into his new role at a time when Boeing is facing multiple challenges. In February, a Federal Aviation Administration (FAA) investigation revealed a “disconnect between Boeing’s senior management and other members of the organization on safety culture.” This finding underscores the need for a leader who can bridge this gap and instill a strong safety culture throughout the company.
Moreover, The Seattle Times reported later that month that Boeing’s board had rejected a shareholder proposal to move its headquarters back to Seattle. This indicates ongoing tensions within the company regarding its strategic direction and operational priorities.
Production Quality Over Financial Performance
By focusing on production quality, Ortberg is expected to address critical issues such as supply-chain disruptions and certification delays for new jets like the 777X. These problems have plagued Boeing in recent years, leading to significant delays and financial losses. Ortberg’s hands-on, engineering-focused approach could be instrumental in resolving these issues and restoring confidence in Boeing’s products.
A New Era for Boeing
Ortberg’s appointment as CEO represents a new era for Boeing. His decision to be based in Seattle is more than symbolic; it is a clear indication that Boeing is returning to its roots and prioritizing what made it a global leader in aerospace—engineering excellence and high-quality manufacturing. This shift is expected to bring much-needed stability and focus to a company that has been through a turbulent period.
As Ortberg takes over this week, the industry will be watching closely to see how his leadership will steer Boeing through its current challenges and towards a brighter future. If successful, his tenure could mark the beginning of a renaissance for Boeing, where production quality and safety are at the forefront of the company’s mission. [24×7]
