The leadership at US aerospace company Boeing is navigating a high-stakes reckoning – and no less than the CEO himself, Kelly Ortberg, will appear before US lawmakers today.

His testimony to the Senate Commerce Committee will serve both as an acknowledgment of the company’s failures as well as a blueprint for a cultural and operational overhaul.

HR leaders across industries can draw valuable insights from this crisis, particularly in the areas of leadership accountability, organisational trust, and workforce engagement.

Crisis management: A leadership case study

Ortberg assumed the top role in August, stepping in after Dave Calhoun resigned in the wake of a mid-air panel blowout on an Alaska Airlines 737 MAX 9 – an incident that exposed severe manufacturing lapses, including something as fundamental as missing bolts.

The fallout led the US Federal Aviation Administration (FAA) to cap Boeing’s monthly production of the aircraft at 38 units, signalling regulatory concerns over safety and quality controls.

For HR professionals, the Boeing crisis underscores the role of leadership during turbulent times.

In his prepared remarks, Ortberg highlights the need for a cultural shift within the organisation, stating that leadership is now “spending more time listening and learning from our employees, working to restore trust, and holding leadership accountable”.

However, industry experts warn that embedding real cultural change requires sustained effort. And this goes beyond leadership rhetoric.

Rebuilding organisational trust: A long-term challenge

Boeing’s struggle is not just about fixing technical failures – it is fundamentally a crisis of trust.

US Transportation Secretary Sean Duffy recently stated that the company had “lost the trust of the American people,” reinforcing the broader reputational damage. The aerospace giant has been under intense scrutiny since two catastrophic 737 MAX crashes in 2018 and 2019, which claimed 346 lives and exposed flaws in its MCAS software.

For HR leaders, the lesson is clear: trust is hard-earned yet easily lost. Addressing deep-rooted cultural challenges requires more than compliance checklists. Rather, it demands authentic employee engagement, ethical leadership, and transparent communication.

The former head of the FAA has cautioned that meaningful cultural transformation could take years – an insight that applies across industries where trust deficits exist.

Accountability and legal headwinds

Beyond safety issues, Boeing’s leadership also faces legal and financial challenges. In July, the company agreed to plead guilty to a criminal fraud conspiracy charge and pay at least US$243.6 million in fines after violating a 2021 deferred prosecution agreement, Reuters reported.

Adding to its woes, a trial is set for 23 June amid reports that Boeing is seeking to withdraw from its plea agreement.

Financially, the company reported a staggering $3.9 billion loss in January, compounded by a seven-week labour strike that disrupted operations.

Labour relations and crisis management are now top priorities for Boeing, highlighting the importance of aligning leadership strategies with workforce morale and operational stability.

Turning the corner: HR insights from Boeing’s ordeal

Despite the turbulence, Ortberg remains optimistic about Boeing’s recovery, emphasising a renewed focus on safety and restructuring.

The company has implemented a new safety management system aimed at proactively identifying risks, and it is finalising its acquisition of Spirit AeroSystems to enhance manufacturing quality.

From an HR perspective, these moves reflect a broader industry shift toward proactive risk management and workforce-centric decision-making.

The emphasis on leadership accountability, cultural transformation, and operational excellence offers a playbook for HR executives managing large-scale change.

Boeing’s pledge for the future

Ortberg will conclude his testimony with a pledge: “to make the necessary changes so this never happens again”. With families of the crash victims expected at the hearing, the pressure to demonstrate real change has never been higher.

Boeing’s unfolding crisis serves as a powerful case study in leadership under fire.

Rebuilding an organisation’s reputation and internal culture is an arduous process – but one that starts with transparent leadership, genuine employee engagement, and a commitment to lasting change.