Do they really think this will help?  GFS


From Seattle P.I.  Aerospace Blog, Aubrey Cohen

January 7, 2010 11:28 a.m.

Boeing renames, reorganizes defense unit

Boeing has renamed its Integrated Defense Services unit “Boeing Defense, Space & Security” and reorganized the unit to focus on new and adjacent defense markets, the company announced Thursday.

“With these latest strategic moves, we can extend our core programs even as we enhance Boeing-wide capabilities designed to capture business in promising markets in the United States and around the world, including cyber-security, energy, intelligence, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, Reconnaissance) and logistics,” Space & Security President and Chief Executive Dennis Muilenburg said in a news release.

The announcement comes a day after Boeing announced changes aimed at refocusing the company’s engineering efforts.

The defense changes are part of an ongoing repositioning, Muilenburg noted.

“Boeing anticipated flattening defense budgets and shifting customer priorities for the past few years and has been taking aggressive steps to position the company for profitable growth in a challenging economy,” he said. “In the past 18 months alone, we have acquired seven companies to enhance existing capabilities, expanded Boeing’s services business, and created new divisions — like Unmanned Airborne Systems — to directly and rapidly respond to our customers’ emerging priorities.”

The new name “is a recognition that success in a highly competitive global arena will be determined by a company’s ability to offer and deliver new capabilities, products and services to meet complex customer demands,” the company said.

“As Boeing sustains and grows its core global defense business through solid execution, we are also playing a broader role in markets that go beyond Boeing’s traditional strengths,” Muilenburg said. “As we grow in these areas, it is important for us to send strong signals to our global customers that we are prepared to offer high-value Boeing solutions for all of their needs across defense, space and security domains.”

Analyst Richard Aboulafia, vice president of analysis at Teal Group, said the changes Boeing has announced in the past two days address important issues — particularly regarding engineering.

“They’ve had an issue with execution on a number of key programs, commercial and military,” he said. “They have received criticism from people who’ve said that engineering has taken a back seat to marketing and finance. This kind of message sends a clear signal that their intention is to address that concern.”

As for the defense changes, he said: “It’s tough to know what the right combination or the right organization is, but it’s pretty clear that the market is globally fragmenting, and pretty much all of the growth opportunities are out there internationally, rather than at home, so you have to organize to pursue those individual campaigns.”

Boeing Defense, Space & Security will keep its current operating units — Boeing Military Aircraft, Network and Space Systems and Global Services & Support. But is has consolidated some divisions, including combining the Combat Systems and Command, Control & Communications Networks divisions of Network and Space Systems into a new Network and Tactical Systems division.

Other structural changes include:

  • Making the Weapons business in Boeing Military Aircraft a division, rather than a subdivision of BMA Global Strike Systems;
  • Having the Heath, Ohio, and Ogden, Utah, Network and Space Systems facilities report to the Missile Defense Systems division, rather than the N&SS C3 Networks division;
  • Having Global Services & Support operations in Australia report to Jim O’Neill, vice president/general manager, Integrated Logistics division and Aviation Training International, a joint venture for Apache helicopter training with AgustaWestland in the United Kingdom, report to Mark McGraw, vice president, Training Systems and Services division. Both entities previously reported to International Support Systems.

Here are the leadership changes:

  • Rick Baily — vice president, Engineering and Mission Assurance; previously vice president/general manager of Combat Systems;
  • Nan Bouchard — vice president, Program Management; previously vice president/general manager, C3 Networks;
  • Dave Bowman — BMA vice president/general manager, Global Mobility Systems and International Tankers; previously vice president, Tanker Programs;
  • Jean Chamberlin — BMA vice president/general manager, U.S. Air Force Tanker Program; previously vice president, Global Mobility Systems;
  • Steve Goo — vice president, International Operations and Compliance;
  • John Van Gels — vice president, Strategic Planning for Operations and Supplier Management; previously was vice president, Operations and Supplier Management;
  • Bill Schnettgoecke — vice president, Operations and Supplier Management, succeeding Van Gels, for whom Schnettgoecke served as a deputy;
  • Torbjorn Sjogren — GS&S vice president of the Boeing International Support Systems and Alsalam Aircraft Co. subsidiaries in Saudi Arabia; previously GS&S vice president, International Support Systems;
  • Charles Toups — N&SS vice president/general manager of Network and Tactical Systems; previously vice president, Engineering and Mission Assurance.