Boeing Streamlines Internal Structure, Introduces Individual Vertical Lift Entity
Boeing Defense Chief Leanne Caret said she is eliminating Boeing Military Aircraft, and Network and Space Systems in favor of smaller entities. With the smaller entities reporting directly Caret, Boeing aims to simplify and flattening the organization to speed decision-making and make the business more competitive.
Entities in the new organizational structure include:
- Vertical Lift, comprising all helicopter programs and the Bell-Boeing V-22. David Koopersmith, who currently serves as Boeing’s VP for Attack Helicopter Programs and Senior Mesa Site Executive, will handle all business in this unit.
- Autonomous Systems, comprising unmanned systems, as well as the Insitu and Liquid Robotics subsidiaries, and certain electronic and information systems. Chris Raymond, who currently serves as Boeiong’s VP and GM of Electronic and Information Solutions in Network and Space Systems, will oversee this unit.
- Space and Missile Systems, comprising satellites, the company’s share of the United Launch Alliance joint venture with Lockheed Martin, work on the Space Station, missile defense systems, and munitions and weapons systems. This unit will be led by Jim Chilton, who currently serves as Boeing’s president of Network and Space Systems.
- Strike, Surveillance and Mobility, comprising the F-15 and F/A-18 fighters, P-8 maritime patrol aircraft, fixed-wing aircraft upgrade work, and the bid for the new Air Force Joint Surveillance Target Attack Radar System aircraft. This unit will be managed by Shelley Lavender, who currently serves as Boeing’s president of Military Aircraft.
The reorganization and streamlining will also result in 50 executive positions being eliminated, eliminating a layer of executive oversight. Boeing informed Defense Daily and R&WI that the company does not anticipate any financial issues in general, or changes in the vertical business, due to this restructuring.
Changes go into effect July 1. The Global Services & Support sector remains in place. The development, global operations, and Phantom Works operations are largely unchanged and are to continue reporting to Caret.
“We need to be an agile organization that is more responsive to customers’ needs and committed to continually improving productivity,” said Caret, who became president and CEO of Boeing Defense, Space and Security in March 2016. “We are fundamentally addressing how we compete, win, and grow in Boeing’s second century.”
Last November, Caret announced the start of a four-year effort to consolidate Boeing’s defense operations to enhance competitiveness by shrinking the real estate footprint and eliminating 500 positions (Defense Daily, Nov. 15, 2016). That plan includes job relocations as well.
At the start of 2017 Boeing also moved the headquarters of the defense segment to the Washington, D.C. area.
This article is based on reporting originally published on Defense Daily.
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