Boeing 2010 Annual Report Download - page 8

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leadership
leadership
win an even larger share of international
sales and services opportunities. Third,
strengthen our capabilities in the afore-
mentioned, higher-growth new spending
areas — through both internal investment
and targeted acquisitions. And fourth,
continue our affordability initiatives in
support of the Pentagon’s drive to reduce
costs and improve efficiencies in defense
spending. We made good progress in
each of these areas in 2010, but our
competitors are not standing still, and
that means that we must accelerate
our own actions.
One-Company Momentum
Leveraging the scope and scale of our
enterprise functions in support of our
businesses has proven to be the com-
petitive advantage we first envisioned —
delivering both top-line revenue growth
and bottom-line productivity benefits.
For instance, through Boeing International,
we have strengthened customer, supplier
and other stakeholder relationships — and
made our global operations more effec-
tive and efficient. Collaboration across our
commercial and defense services busi-
nesses has reduced infrastructure costs,
and improved the quality and diversity of
our offerings. Centralization and stream-
lining of critical elements of our research,
development, testing and information
technology organizations has yielded
hundreds of millions of dollars in synergy
and savings, made us more flexible and
responsive to internal work requirements,
and unlocked the depth and breadth
of our technical talent for application all
across this company.
While much has been gained already
by more tightly integrating these and
other functional organizations across the
company, the momentum behind these
initiatives is accelerating, and we expect
to capture substantial ongoing benefits.
The Environment and
Our Communities
Concern for the environment continues to
be an important factor in our business —
and that of our customers as well. Over
the past 50 years, fuel-efficiency and
design improvements have reduced
carbon dioxide emissions by Boeing air-
liners approximately 70 percent, while also
limiting noise emissions by 90 percent.
Working with our customers and other
partners, we have extensively researched
and tested the development of advanced
biofuels, which could provide a sus-
tainable alternative for jet fuel without
adversely affecting world food or water
supplies or impeding valuable land use.
During 2010, for example, we supported
the first supersonic biofuel test flight in a
U.S. Navy F/A-18E/F Super Hornet and
the first biofuel blend rotorcraft flights with
the Royal Netherlands Apache. We are
also helping to improve the efficiency of
the global air traffic management system,
keeping airplanes from wasting fuel on
the ground and in the air.
Internally, conserving energy, water and
natural resources reduces our overhead
costs while benefitting the environment.
We remain on track to achieve our five-
year target for a 25 percent reduction in
greenhouse gas emissions, energy use,
hazardous waste generation and water
consumption — on a revenue-adjusted
basis — by the end of 2012.
Charitable contributions and community
engagement also demonstrate our
values. In 2010, Boeing, our employees,
retirees and our charitable trust invested
$160 million in communities around the
globe, up nearly 12 percent compared to
2009. And our employees reinforced that
commitment with nearly 400,000 hours
of volunteered time and expertise.
Toward a Rarely Achieved Milestone
In just five more years, Boeing will mark
its 100th year in operation — a milestone
few companies achieve. With our rich
history serving as a foundational strength,
we approach our centennial with a re-
newed competitiveness honed through
the execution of strategies that have
expanded our capabilities while making
us faster, leaner and more efficient than
we’ve ever been.
It is my honor to lead this team as we
prepare to take this company into its
second century of aerospace and techno-
logical leadership. We know we are not
entitled to this position. We are committed
to earning it—day in and day out—as
we work to fulfill our promises to cus-
tomers, attract and retain the best and
brightest employees, act with the utmost
integrity in everything we do, deliver
healthy returns to our shareholders, and
strengthen our communities.
All the pieces are in place for sustained
growth and continued innovation as we
realize the full potential of this company
and its employees.
Jim McNerney
Chairman, President and
Chief Executive Officer