The Challenge: A Gap in Executive Succession
When Harry Stonecipher became CEO of McDonnell Douglas Company (MDC), he identified a critical weakness in the company's executive successor development process. The need to hire an outsider for the CEO role highlighted a systemic failure to cultivate internal leadership. Stonecipher, drawing on his experience at General Electric, envisioned a program to break down organizational silos and accelerate the development of high-potential leaders. This initiative was designed to foster a "one company" culture by moving executives horizontally across business units.
Following the 1997 merger between Boeing and MDC, leadership assessments of the top 200 executives revealed competency gaps in areas like attracting and developing talent, driving execution, and global thinking. MDC's Executive Development Program (EDP) was selected as a best practice to be expanded across the newly merged Boeing Company, providing a cost-effective strategy to address these developmental needs.
Program Design: Action Learning for Real-World Impact
The EDP is a full-time, 18-24 month development opportunity structured around action learning. Participants learn by doing, managing team-based projects that address real-time business challenges facing Boeing while simultaneously targeting their own development needs.
Target Audience and Structure
The program targets middle managers identified as near-term or "ready-now" successors to executive-level positions. Nominated by senior leadership, participants are expected to commit to a minimum of one year. The program is designed for a twofold benefit:
- Leadership Development: Provides participants with broad organizational and functional exposure, accelerating their growth.
- Process Analysis: Delivers solutions to critical business challenges by identifying and sharing best practices across the enterprise.
Participants work in cross-functional, cross-regional teams, requiring extensive travel and virtual collaboration. This structure immerses them in the company's geographic and business unit diversity.
Key Development Strategies
The redesigned EDP integrates several key strategies to foster comprehensive leadership growth.
Needs Assessment and Career Management
Upon entry, participants and their nominating sponsors define specific development needs based on Boeing's executive competencies. These needs guide project assignments, training, and coaching. A crucial element of the program is instilling a sense of personal ownership over career management. The post-merger environment, with its organizational shifts, underscored the need for leaders to proactively manage their own career paths. The EDP provides a mandatory curriculum, developed with an outplacement firm, to build these self-management skills.
Leadership Discovery and Coaching
- Leadership Development Intensive (LDI): Participants attend a deep, immersive offsite experience designed to build self-awareness, purpose, and a more flexible leadership style. The LDI goes beyond traditional assessments to integrate mind, body, and spirit, leading to what many participants describe as a "life-changing experience."
- Executive Exposures: Weekly breakfasts and luncheons with senior executives provide informal opportunities for participants to discuss business challenges and leadership philosophies.
- Development Coach: Within three months, each participant is assigned an external, confidential development coach to assist with behavior change, career management, and life planning, reinforcing learnings from the LDI.
Project-Based Learning
Projects are sponsored by senior executive leadership and focus on substantial, enterprise-wide business issues. Teams operate in a "boundary-free" environment to analyze issues and present data-backed recommendations to management. This process involves significant data collection, benchmarking, and coordination with executives. At the end of each project, an independent third party interviews stakeholders to assess team performance and impact.
Program Outcomes and Evaluation
The EDP has demonstrated significant success in developing leaders and delivering business value.
Placement and Career Mobility
Program graduates have shown remarkable career shifts, validating the program's goal of broadening leaders:
- 65% changed their job function or discipline.
- 44% changed their geographic location.
- 44% changed their business unit.
- 50% received a promotion.
Crucially, the program has successfully placed all graduates into new roles without senior leadership needing to direct assignments. This success is attributed to the skills participants gain in networking and career self-management.
Participant and Sponsor Satisfaction
Exit interviews and surveys show overwhelming satisfaction from participants, who praise the outstanding development opportunities and valuable peer relationships. Likewise, project sponsors report high satisfaction, citing the teams' collaborative approach, disciplined communication, and high-quality, actionable recommendations. The program is recognized as a premier development strategy that successfully cultivates future leaders while delivering tangible business results.