W. James McNerney, Jr. and Leadership Ethics at
Boeing: Changing the Culture Starts with
Leadership Development
Stephen A. Kluckowski
Dowling College
Abstract
W. James McNerney, Jr. became CEO of Boeing in 2005 at a time when Boeing was embroiled in numerous scandals, including one which involved his predecessor related to an inappropriate relationship with a subordinate in violation of Boeing’s Code of Conduct. The choice of Mr. McNerney at that time was a good one given his well-deserved reputation as an ethical leader with strong beliefs in instilling values into a company’s culture, and his previous success at 3M where he was able to successfully modify 3M’s culture while improving its profitability and market value. Mr. McNerney focused on Boeing’s leadership development programs to instill an ethics-centric culture at Boeing, and tying compensation to compliance. He also made a business case for ethics at Boeing: integrity in business dealings can be seen as a differentiator to potential customers.
W.James McNerney, Jr. and Leadership Ethics at Boeing: Changing the Culture Starts with Leadership Development
Since becoming CEO of Boeing in 2005, W. James McNerney has sought to change the culture at Boeing in the face of numerous scandals involving the company. This paper will examine: the causes of the ethical shortcomings at Boeing in recent years; how Mr. McNerney is responding to the challenge of overcoming a corporate culture which had taken a win-at-any-cost approach in doing business prior to his arrival; and whether Mr. McNerney possesses the necessary characteristics to be an effective leader at Boeing in successfully transforming the company’s culture. In determining whether he possesses the necessary characteristics to be an effective leader, I will evaluate Mr. McNerney in terms of “The Five Temptations of a