[DHT]Osiris
Lifer
- Dec 15, 2015
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There's a pervasive belief within corporate culture that infinite growth is like communism; possible, just never implemented properly.As I understand it, the thing about Boeing is that it seems to have undergone a significant change of character, and every discussion I see of it traces it back to that merger. Its earlier record is actually slightly surprising to me, insofar as it really did seem to put pride in engineering quality far ahead of maximising profits. Hence its safety record was really very good.
Maybe it's just coincidental, and an accidental consequence of what just, by sheer chance, was the nature of its early management vs the corporate culture of McDonnel-Douglas, but also in that respect its previous nature seems very much a product of the post-war boom years, when such an attitude was possible, and the shift seems of-a-piece with the way _everything_ has gone downhill since the end of the boom.
Much of the rest of the corporate world seems to have abandoned that conscientious, pride-in-one's-work approach long ago, but it seems that because aircraft development is such a long-drawn out process (and aircraft purchases such a long-term investment), it's taken longer for that shift towards short-termism and profit maximisation and 'shareholder value' to have filtered through in the aeronautical sector.
Seems that in recent years Boeing has started behaving much more in the way I'd (cartoonishly?) imagined corporations to behave, whereas up till quite recently my expected image of them would have been unfair.
Realistically speaking, certain companies have substantial growth until they reach a limit of growth potential, at which point perceived 'cost centers' get stripped away, artificially inflating perceived growth even further, until the hollowed out house of cards collapses into something else that may or may not survive, like a star. Meanwhile they get surpassed by another company doing the same thing with improvements that wouldn't have been deemed 'profitable' by the other company, which is naturally wildly profitable. The same cycle usually eventually repeats, with an almost exclusive exception going to privately held companies (Valve, SpaceX, I'm looking at you two).