Boeing 2008 Annual Report Download - page 8

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consolidating our core technology development
activities, including advanced manufacturing, into
a single R&D organization that supports both our
defense and commercial businesses; the same is
true of our core test and evaluation capabilities.
In addition to collaboration that occurs in pro-
grams involving military derivatives of commercial
airplanes such as Airborne Laser, a directed-
energy weapon system carried aboard a modified
747-400F, and the P-8A Poseidon, a military
derivative of the Next-Generation 737, there are
many opportunities for sharing ideas, migrating
the best technical and leadership talent to where
it is most needed and apportioning work to the
best possible location — even if that cuts across
organizational lines.
For example, when the first commercial 787s
come out of flight test, they will be sent to an
IDS facility in San Antonio, Texas, to modify the
airplanes and incorporate final changes or
improvements prior to delivery to our commercial
customers. Why this facility? Because it has had
an outstanding record of success in doing this
same kind of work in several military programs.
And it also has become a shining example within
Boeing of a site that has achieved extraordinary
gains in productivity and quality through the
application of Lean principles, one of our four
enterprise initiatives aimed at accelerating growth
and productivity through the replication and shar-
ing of best ideas and practices. San Antonio has,
therefore, earned the opportunity to provide the
additional capacity we will need to meet the initial
delivery schedule on the 787.
Everyone who is a part of Boeing is aware of
leaders who have moved from one part of the
business to another — and some not once but
several times. The Boeing Leadership Center
has helped to make that an increasingly common
occurrence, serving both as the company busi-
ness-integration lab and a kind of in-house uni-
versity for teaching leadership skills. In addition,
the Leadership Center plays a critical role in the
cultivation in future leaders of our most important
values and principles, beginning with the over -
riding importance of ethics and compliance in
everything we do.
Difficult times such as those we are experiencing
today also accentuate the need for responsible
community engagement — for generosity of spirit
and concern for others outside the immediate
circle of one’s family, friends and teammates.
Within Boeing, we are very fortunate to have
people who are not only world-class in their
jobs, but exhibit an unrelenting generosity of
spirit and willingness to give their time and
money to helping others in need. Despite the
financial uncertainty that touched everyone in
2008, total employee contributions plus the com-
pany match through our Employees Community
Fund increased 17 percent. Our people also vol-
unteered many hours of their time and expertise
to organizations that strengthen education, health
and human services, the environment, arts and
culture and civic involvement.
In Closing
Over the course of its nearly 100-year history, the
people of Boeing have consistently defeated the
toughest challenges through innovation, determi-
nation and a relentless focus on execution. These
are the roots upon which we must rely given the
steady flow of tough business challenges and
market uncertainties we expect throughout 2009.
We know what we have to do to succeed. We
have to execute well — in all of our programs.
We must preserve our core financial and compet-
itive strengths. And we have to stay in lock-step
with our customers, anticipating their needs and
making sure those needs are met. These actions,
underpinned by our unrelenting commitment to
integrity in everything that we do, will enable
this company and its people to sow the seeds
of long-term prosperity through even the most
difficult of times.
Boeing stands on the brink of almost unprece-
dented opportunity in a moment of unprecedented
challenge. With our historic strengths and a col-
lective will to succeed, we will move forward to
fulfill our legacy as the global aerospace leader —
today, tomorrow and far into the future.
Jim McNerney
Chairman, President and
Chief Executive Officer
By increasing productivity,
positioning ourselves inter-
nationally and leveraging
new opportunities to en -
hance our products and
services, we are expanding
Boeing’s competitiveness
to provide ample opportu-
nity for future growth in
IDS market share.
$142
$261
$567
Boeing
Boeing Competitive
Less Competitive
IDS SERVED MARKETS
Total market value $970 billion