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    You Can’t Order Change

    Lessons From Jim McNerney’s Turnaround at Boeing

    By Peter S. Cohan

    Published 12/2008



    About the Author

    Peter S. Cohan is a seasoned management consultant, venture capitalist, and accomplished author. With an MBA from Wharton, Cohan has a robust background in strategic consulting, having worked with notable firms like CSC/Index and the Monitor Company, co-founded by Michael Porter. He currently teaches strategy at Babson College and edits The Cohan Letter, a successful investment newsletter. His expertise in management and strategic development is reflected in his seven published books.

    Main Idea

    You Can't Order Change delves into the transformative journey of Jim McNerney as he navigated Boeing through a tumultuous period marked by scandals, financial woes, and toxic workplace culture. McNerney's leadership at Boeing is characterized by his focus on people, process improvement, and ethical standards, which collectively fostered a culture of accountability, innovation, and long-term growth. The book offers valuable insights into leadership strategies that can be applied universally to drive organizational success.

    Table of Contents

    1. Introduction
    2. Who Is Jim McNerney?
    3. Help Your People Get 15 Percent Better
    4. Lead Groups to Higher Ground
    5. Link Pay to Profit and Process, Not Stock Price
    6. The Skills of a Politician
    7. Build Strategy on Customer Focus
    8. Invest in Your Strengths
    9. Grow Through People, Not Deals
    10. Tackle Challenging Situations Quickly and Effectively
    11. Tighten Operations with Process-Improvement Tools
    12. Partner with Global Suppliers to Reduce Risk and Accelerate Time to Market
    13. Make Ethics and Compliance a Clear Competitive Advantage
    14. Cut Your Company's Environmental Footprint

    Introduction

    Boeing, a legendary aerospace giant, faced a near-catastrophic downturn due to various scandals and financial missteps. Amidst this chaos, Jim McNerney was brought in as CEO to turn the company around. The book explores McNerney's approach to leadership, emphasizing his consensus-driven style and focus on unlocking individual achievement, fostering growth, and instilling a culture of ethics and compliance.

    Who Is Jim McNerney?

    Jim McNerney, a former top protégé of Jack Welch at General Electric, became CEO of Boeing after revitalizing 3M. Known for his ability to motivate people and craft strategies that promote growth and efficiency, McNerney's leadership at Boeing focused on making the right investments and developing the right people. His core Midwestern values and modest demeanor played a crucial role in his ability to lead effectively without drawing undue attention to himself.

    Help Your People Get 15 Percent Better

    McNerney set a goal to improve Boeing's workforce by 15 percent annually. This goal aimed to enhance both individual effectiveness and overall organizational synergy. By setting stretch goals and encouraging managers to be role models, McNerney fostered a culture where people were motivated to grow and unlock their creative potential.

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