Why Aerospace and Defense Companies Need to Change How They Hire Executives

Great aerospace and defense projects depend on leaders who see around corners. Industry giants have often learned this lesson the hard way. 

In the United States, NASA’s Mars Climate Orbiter mission failed when teams used disparate measurement systems. And Boeing’s 737 MAX faced serious issues under Dennis Muilenburg’s leadership after he was accused of downplaying problems.  

In Europe, Airbus faced significant delays with its A400M military transport aircraft due to management disconnects that led to a $1.36 billion USD fine in 2018 (and it has, since then, said that a dearth of orders has caused it to reconsider the future of the aircraft). 

In Japan, the H3 rocket suffered back-to-back launch failures in 2023 before finally succeeding on its third attempt in 2024. The Japan Aerospace Exploration Agency and Mitsubishi Heavy Industries butted heads over responsibility until leadership changes and a revised workflow fixed their coordination problems. 

These cases, though some happened years ago, show patterns in leadership and leadership selection that still affect parts of the industry today. Each situation teaches us something valuable about picking aerospace and defense executives. 

In each case, the chosen leaders looked perfect on paper. They had technical expertise, the necessary experience, and decades in the industry. What they lacked were the soft skills that are often overlooked when it comes to aerospace and defense leadership: the ability to build bridges between different teams, the courage to surface bad news early, and the humility to question assumptions. 

The Aerospace and Defense Sector Is Booming… With Both Challenges and Opportunities 

Today’s global defense spending has reached $2.46 trillion. The U.S. Department of Defense wants $849.8 billion for 2025. With commercial aviation revenues passing $744 billion and the space economy set to hit $1.8 trillion this decade, aerospace and defense companies are set for continued growth. 

And this growth extends far beyond the U.S. In Europe, the defense industry is expanding and working to scale up production. EU member states spent €326 billion on defense in 2024—about 1.9% of EU GDP—with spending rising more than 30% between 2021 and 2024. European A&D companies are moving from making prototypes to full-scale production—something not seen in decades. As a result, the European defense industry generated a turnover of €158.8 billion in 2023, a 16.9% increase from the previous year, and supported 581,000 jobs.  

At the same time, private companies in the space sector are gaining ground, with SpaceX leading the way. Founded in 2002 with Elon Musk’s personal investment of $100 million, the company transformed the industry by landing reusable first-stage boosters and developing the Starship program—achievements that NASA and traditional contractors couldn’t match. Originally built with a focus on low launch costs and tight vertical integration, SpaceX succeeded by combining flat hierarchy, iterative development methods, and integrated teams where engineers and executives work directly together. This approach allowed the company to overcome early failures, including three unsuccessful Falcon 1 launches, to eventually become the world’s most prolific private launch provider. 

The leadership approach used at SpaceX addresses many common industry pain points. But being able to make the most of this sector’s challenges and opportunities takes more than just the ideal leaders or management structure. One of the biggest threats to this industry’s success is its talent drain – and it’s not just at the leadership level. It’s happening across the board. Last year, 13% of A&D workers walked away. One in four of this sector’s most experienced people—often those with 20+ years of know-how—will retire soon. Knowledge is leaving faster than we can replace it. 

The Disconnect Between Aerospace and Defense Executives and Employees 

Ask any A&D CEO what skills matter most right now. Half say basic cognitive skills top the list. Ask their employees? Only 32% agree. Look at tech skills and the gap widens—44% of employees rate them as highly important, while just 24% of employers think so. 

These numbers show how differently top executives and workers see the industry’s future. Workers on the ground know which way the wind blows. They see AI and automation coming. Eight in ten A&D companies now use or plan to use AI and machine learning. Yet only half the workforce knows how these tools will change their daily tasks. 

This split between what leaders and workers think explains why new technology alone won’t solve the talent shortage either. Walk into any A&D facility today and you’ll find empty seats that AI can’t fill. While companies hurry to add automation, they’re losing experienced talent. McKinsey found companies lose $300-330 million yearly from unfilled jobs and people walking out the door. 

But the talent drain hits harder than just empty seats and lost dollars. Almost half of A&D employees say they lack the right tools for their jobs. For mid-career staff—the backbone of any operation—that number jumps to 60%. These aren’t just numbers. Each person who leaves takes with them years of problem-solving experience, knowledge, and relationships with suppliers and customers. 

What Hurts Aerospace and Defense Companies When Hiring Executive Leaders 

These workforce problems start with how A&D companies pick their leaders. Three hiring mistakes keep widening the gap between executives and workers: 

1. Only Looking at Specific Experience 

Defense contractors and aerospace companies often limit their executive searches to retired generals and admirals. But both failed and successful projects show military service alone doesn’t predict success running commercial operations. The Coast Guard’s failed Deepwater program shows how even respected military leaders can stumble when managing projects. 

2. Overlooking Supply Chain Knowledge 

A&D executives now manage networks of suppliers—often 8-9 tiers deep according to industry studies. Yet many companies still hire leaders based mainly on their program management or engineering backgrounds. The Mars Climate Orbiter crash traced back to poor supplier coordination, not technical problems. 

3. Making Culture an Afterthought 

Many A&D companies hire for technical knowledge first and treat cultural fit as secondary. But often the opposite works better—hire for adaptability and teach the technical side. Companies find executives who can bridge military or aerospace and commercial cultures get better results than pure technical experts. 

What Smart A&D Companies Do Instead 

While many A&D companies stumble with these hiring mistakes, some have found a better way. Leading companies have changed how they pick executives: 

1. Test Real-World Judgment 

Instead of focusing on past titles, top companies test how candidates handle actual situations. When screening executives, they present real problems from failed programs and assess how candidates would have handled them. 

2. Look for Bridge-Builders 

The best A&D executives link different worlds—government and commercial, engineering and business, old and new. A&D companies with leaders from varied backgrounds (commercial aviation plus defense, tech plus aerospace, or leaders from other manufacturing sectors) grow faster than those who only hire from within defense. European defense contractor Saab provides a good example—their mixed leadership team bringing engineering, science, business, and tech sector experience has helped them enter new markets faster than competitors. 

3. Value Transparency 

Analyzing preventable A&D project failures shows that successful executives share a common trait: the willingness to deliver bad news early. The Columbia disaster showed how hiding problems makes them worse. Leading companies now specifically look for candor and accountability. 

Getting Aerospace and Defense Executive Recruitment Right 

These patterns show why internal hiring teams often struggle. They face a tough job picking aerospace and defense executives. They might see impressive military careers or advanced degrees but miss the subtle signs that predict success or failure. Past performance reviews and interviews only tell part of the story. 

This is where outside help makes a difference. Executive search firms that focus on the A&D sector see hundreds of leaders across different companies. They spot patterns internal teams miss. They know which executives built lasting success and which ones just happened to be there when things went right. 

Their networks bring valuable insight too. Search firms hear the real stories about how candidates handle tough situations—not just what shows up in formal references. They learn who really listens to their teams and who just gives orders. Who admits mistakes and who covers them up. 

The wisest companies know when to bring in hiring help. Their teams understand technical requirements, but judging leadership ability takes different skills. Working with experienced search partners lowers the risk of picking the wrong person. 

About the Author

Adrian Czerny is a Partner at Stanton Chase Stuttgart and the Global Subsector Leader for Aerospace and Defense. He connects aerospace and defense companies with leaders who combine technical knowledge and management skill. His international background helps him find executives for A&D organizations worldwide.