From the outside, the 1997 merger of Boeing and McDonnell Douglas (MDC) appears to have gone more smoothly than other aerospace industry consolidations. "The merging of cultures is a success story," says Laurette Koellner, chief people and administration officer. She credits Phil Condit's "inclusiveness" in immediately mixing the leadership teams of both companies. "The other piece is the [Boeing] Leadership Center. Without it, there would be no natural way of meeting and sharing ideas."
Representing a $30 million-a-year investment, the recently expanded St Louis, Missouri-based centre runs training courses for employees ranging from first-line managers to senior executives. Courses deliberately mix employees from different divisions and locations. "The cornerstone of our strategy is the merging of people and cultures," says Koellner. Training is now being extended to include the company's overseas employees and its suppliers.
Koellner says a key to integrating company cultures has been the succession planning process, which requires executives to look across Boeing for potential successors. Succession plans for vice-presidents and above are reviewed twice a year, the charts displayed in the "green room" at Boeing's Chicago headquarters. "It used to look like a stove pipe, now there is a nice array from all over the company," she says.
Koellner's focus is now on establishing a "premier work environment" to attract and retain skilled employees. Voluntary turnover is well below industry average, she says. "But the skills shortage is about to get worse. We want to be the employer of choice." Among US companies voted the 10 best to work for, 50% of the reasons are "softer" things, says Koellner. "We want to create an environment where ideas flow, and create jobs where people feel they have something to say."
Source: Flight International
