Friday, January 25, 2013

The Boeing debacle: Seven lessons every CEO must learn

This article by Steve Denning published by Forbes is doing the rounds at present. It's highlighting the mechanical problems faced by the 787s that is costing Boeing more money on a project that was already over budget. But it's not specifically a Boeing bashing piece.

It highlights the 787 project as one example as part of the broader issue of offshoring.

  1. Use the right metrics to evaluate offshoring
  2. Review whether earlier outsourcing decisions made sense
  3. Don't outsource mission-critical components
  4. Bring some manufacturing back
  5. Adequately assess the risk factors of off-shoring
  6. Adequately value the role of innovation
  7. Get to the root of the problem: maximising shareholder value

You can read the whole article here and while I believe it provides a good rationale for approaching the question of offshoring for enterprises, it also provides some good foundations for an industry policy.

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