Giant US aerospace and defence group Boeing has announced major changes in its organisation and associated leadership, which come into effect on May 1. The group, the biggest aerospace company in the world, says that these changes are intended to create greater integration within the company and permit “continuous improvement”, bring its enterprise services into alignment with the current business environment while also increasing value, streamlining senior leadership responsibilities and roles, and getting ready for the post-Covid-19 pandemic “industry footprint”.

The main organisational changes are the creation of the Enterprise Operations, Finance & Strategy group, and the merger of Boeing’s legal and core compliance activities into a single division. In addition, Boeing Government Operations will take over responsibility for the company’s Global Spectrum Management operations.

Enterprise Operations, Finance & Strategy will cover strategy, manufacturing, supply chain and operations, enterprise performance, finance, and enterprise services and administration. Its purpose will be to entrench operational excellence and lean principles across the whole of Boeing and its supply chain, “and restore production and supply chain health” as the corporation and wider industry re-emerge from the effects of the pandemic. Corporate Audit will also fall under the new group, but will still report directly to the Audit Committee of the Boeing board, maintaining its independence and objectivity. This new group will be headed by executive VP: enterprise operations and CFO Greg Smith.

The new legal and core compliance division will include business conduct, ethics and global trade controls. “This approach,” states the company in its press release, “will enhance Boeing’s already strong compliance and internal governance program through focused accountability for, and a more integrated approach to, Boeing compliance responsibilities.” It will also enable the company to meet new compliance and legal requirements. It will be led by executive VP: global compliance and chief legal officer Brett Gerry.

Global Spectrum Management Operations is responsible for ensuring that Boeing products and operations make safe, compliant and efficient use of the radio frequency spectrum. Boeing Government Operations, to which it will now be subordinated, is headed by executive VP Tim Keating.

Furthermore, senior VP: manufacturing, supply chain & operations Jenette Ramos, who has worked at Boeing for 34 years, will take up a special assignment, supporting both Boeing president and CEO David Calhoun and Smith. Boeing will also soon appoint a chief compliance officer who will report to Gerry but also have a direct line to Calhoun and to the board’s audit committee. Coinciding with these changes, senior VP: Office of Internal Governance and Administration Diana Sands has announced her retirement from Boeing, after 20 years with the company. She will leave after her responsibilities have been completely transferred.

“I am confident these changes will drive greater alignment among our functions; better equip our commercial, defence and space, and services businesses to deliver on customer commitments in a changing marketplace; and support our continuous efforts to develop talent through challenging leadership assignments,” affirmed Calhoun. “Special thanks to Greg, Brett, Tim and Jenette for taking on new leadership responsibilities. … The Boeing Board of Directors and I are deeply grateful for Diana’s leadership, integrity and dedicated service.”