1998 Speeches

Phil Condit

The Boeing Company

"Vision 2016"

Boeing Huntington Beach Management Assn.

Huntington Beach, California

January 21, 1998

Thank you, Gale.

I want you to be knowledgeable and informed, so I am going to talk for 15 minutes, with the goal of 30 minutes for questions, and so you might think about that and jot down some notes in preparation.

First, it's great to be back in Southern California. I will never ever forget your warm, "enthusiastic" welcome when Harry and I came last August. Now we are only 11 days shy of six months of being a single company. For me, that's been really exciting.

Tonight, I want to talk to you about what will make Boeing a successful company, and your role in that success. To a few people in the audience, you may have heard this before, but I am going to repeat my expectations a number of times.

I have very strong expectations for the people of our company. That is the reason you will find a copy of our Vision 2016 statement at your place. And there's a pencil too. So you might want to write some notes, look at it again, talk it over with your work friends, and ask questions.

I want to spend most of the time answering your questions tonight because I find that I learn a lot more by listening and the questions tell me a lot. What are your worries?

What are your issues? What's on your mind? Every once in awhile, you'll get a free answer. And I will tell you, "It's a free answer," and you are allowed to say GREAT answer!

To begin, I want to share "how" each of you can contribute to the success of our new Boeing. First, 2016.

In 1996, we asked, "What do we want The Boeing Company to be?" Boeing will be 100 years old in the year 2016. We, then, asked, "What do we want to be when we are 100 years old?" And we wrote down a number of things, including geographically diverse. It was a good goal. In a year-and-a-half, we were in 27 states.

Harry and I went back through what statements had been written for McDonnell Douglas, Rockwell and Boeing and asked, "Can we bring these together in a single vision?" And we did. I would now like to walk through our expectations.

FIRST, I expect each of you to understand, and act in accordance, with the 2016 Vision Statement, values and core competencies.

I expect each of you to understand, and act in accordance, with the 2016 Vision Statement, values and core competencies.

Let me quickly take the vision statement first. "People Working Together as One Global Company for Aerospace Leadership."

People - A company, any company, is nothing more or less than the people who make it up.

Working - This is about effort. Work. We all have a task to do. We are here to provide value to our shareholders, to Boeing people, and to communities where we work.

Together - Every organization has forces that try to divide and reduce the impact of the total. Lockheed Martin does. Airbus does. And Boeing does. The more we can pull together, share knowledge, the stronger we will be.

One - We have a shared destiny. We will succeed or fail together. There is one Boeing stock price. This is a powerful concept. It can make us more efficient and competitive.

For example, having a leak in a boat and not helping each other bail out the water is not a successful strategy. Looking for common solutions to problems, sharing facilities, sharing services, are all part of being "One."

Global - If we are to compete effectively in next century, we will be a global company. Our team will reflect global backgrounds and global experience.

Company - A company is a cohesive, inclusive institution. The dictionary uses words like "assemblage," "fellowship."

Aerospace - We are an aerospace company. We are not going to build railcars or boats. We are going to build aerospace products: airplanes, launch vehicles, satellites.

Leadership - We are not here to be also-rans. We are here to lead, to be the best, nothing less.

So, my first major expectation is that you will understand, and act in accordance, with our 2016 Vision Statement, values and core competencies.

SECOND, I expect you to understand the business and the financial measures, which we will use in measuring our performance, and I expect you to help run the business at world-class levels.

It is what guarantees our future. We want to be here 20 years from now.

That means that you will need to understand what is meant by: Shareholder Value,

Return on Sales, Return on Net Assets, Return on Investment, Cash Flow, and Discounted Cash Flow. When I say, "understand," I do not mean superficially. Or being able to use them in a sentence. I mean really understand them. How they apply to and affect your part of the business.

You will need to learn to look at other businesses; find benchmarks; understand the data that drives your business unit. You will need to embrace the actions necessary to reach world-class performance.

If we do that, Boeing will consistently produce increases in shareholder values that are greater than those produced by the S&P 500. If we do that, Boeing will consistently produce a return on sales of 7%. That is a level that few companies have reached. But it is possible, with good, consistent performance from every program. If we do that, Boeing will produce a return on net assets that improves each year. This will be the result of improving returns, and reduced assets employed.

My second major expectation is for all of you to understand the business and the financial measures, which we will use in measuring our performance.

And, in short, I expect Boeing to be run like a world-class business at world-class levels.

THIRD, I expect you, as a Boeing person, to take an active interest in your own development through lifelong learning.

I believe one way we will maintain our leadership position in the global aerospace industry is by having people who are always learning.

This means spending time working on improving yourself. This means spending time making sure that you are well-trained, well-educated, taking advantage of our "Learning Together" effort.

Our new program, "Learning Together," provides an opportunity to enhance your career growth and realize your full potential through lifelong education. This program recognizes the need to learn new technologies and skills and keep pace in a rapidly changing world.

This program encourages you to pursue education, throughout your career, at accredited colleges, universities or trade schools. We will pay your tuition and expenses, including application fees, entrance exams, books. And we are lifting restrictions on types of courses the company will fund. We are also offering you rewards if you earn a college degree with Boeing stock.

So my third major expectation is that you take an active interest in your own development through lifelong learning.

Tonight, we near six-months of being a single company. Tonight, we have Vision 2016.
Tonight, we have an opportunity of a lifetime.

We are a company with lots of history, heritage, and the sum of several components.
We are a company with great people in one of the most exciting industries in the world.
We are a company positioned to be the best in the world.

And with your help, we can be the best in the world.

Thank you.