Once he became CFO, what did Mike Sears do to consolidate his power base at Boeing? What sources of power was he trying to accumulate? What was he trying to do with this power?
The Correct Answer and Explanation is:
Correct Answer:
Once Mike Sears became CFO of Boeing, he began consolidating his power by increasing his influence over key decisions and building strategic alliances within and outside the company. He used both formal and informal sources of power, including positional authority, control over financial resources, and relationships with executives and government officials. Notably, Sears engaged in unethical behavior to secure a position for a former Pentagon official, Darleen Druyun, offering her employment while she was still overseeing contracts between Boeing and the U.S. Air Force. His goal was to enhance Boeing’s competitive advantage in defense contracting and solidify his standing as a powerful executive.
Explanation:
After being appointed Chief Financial Officer (CFO) of Boeing, Mike Sears actively sought to consolidate his power within the company. One of his key strategies was leveraging his position to gain influence over Boeing’s strategic direction, particularly in the lucrative defense and aerospace sectors. As CFO, Sears controlled the allocation of financial resources, giving him a critical role in shaping budgetary priorities and investment decisions. This positional power provided a strong foundation for broader influence.
However, Sears did not limit himself to formal channels. He sought to expand his informal power base by cultivating strategic relationships with influential stakeholders, including government officials. A major step in this direction was his involvement in securing the future employment of Darleen Druyun, a top U.S. Air Force procurement officer, while she was still overseeing contracts that directly affected Boeing. This action violated federal ethics rules and demonstrated how Sears was using personal inducements to gain favors and insider access, thereby attempting to position Boeing more favorably for defense contracts.
The sources of power Sears was trying to accumulate included legitimate power (from his formal role), expert power (from his financial expertise), referent power (through alliances and loyalty), and coercive/reward power (offering employment as a reward). His ultimate aim was to enhance Boeing’s competitive edge in defense contracting and secure his own career trajectory within the company by demonstrating strategic influence and delivering results. However, this unethical consolidation of power led to legal consequences, resulting in his termination and conviction—highlighting the dangers of misusing power for personal and corporate gain.
