Skunk Works Case Study – A Comparative Analysis of Organizational Structures and Innovation Approaches

Skunk Works Case Study – A Comparative Analysis of Organizational Structures and Innovation Approaches

Organizational Structure

According to the Skunk Works case study, it is evident that the company has a divisional structure (Bessant, n.d). On the other hand, our organization has a tall matrixed structure. According to Turnnidge & Kelly (2021), a divisional structure includes grouping employees based on some niche before creating departments. A tall matrixed structure includes creating management layers where employees are at the bottom layer and rely on top management directives to complete the tasks within the organization. Another difference is that tall structures have several management levels while divisional structures have fewer. The only point of similarity is that the two structures involve dividing employees into teams expected to meet a shared goal. The divisional structure increases the organization’s overall ability to innovate because there are functions for every product that promote functional interaction. In contrast, the tall matrixed structure limits innovation ability because employees do not have the autonomy to make decisions and try new ideas.

Shared Vision

Skunk Works’ innovation team’s vision is to create a center of excellence that allows individuals to use their expertise, knowledge, and skills to develop innovative products (Bessant, n.d). Our organization’s vision is to establish a reputation for manufacturing innovative products with unique designs that meet customer needs and preferences. One of the main points of similarity between the two companies’ shared vision is that they focus on creating innovative products to create a competitive advantage within the shortest time possible. Both organizations also focus on using existing skills and capabilities within the organization to develop a creative culture. The main points of difference are that while the Skunk Works innovation team embraces new ideas from employees to achieve a shared vision, our organization emphasizes enterprise-wide initiatives and the directives given by top management.

Creative Climate

Skunk Works’ innovation team has a supportive environment that supports creativity by encouraging employees to make their own decisions and implement new ideas to promote innovation (Bessant, n.d). However, our organization does not have a supportive work environment, limiting creativity because employees do not have the autonomy to make decisions and implement new ideas without top management’s approval. The main difference between the two organizations’ environments is that while our organization controls employee creativity by dictating the ideas to be implemented and the availability of resources required to implement ideas, Skunk Works’ environment provides employees with the resources they need to implement their creative ideas and encourages them to try out new ideas to improve innovation.

Effectiveness of Teamwork

Our organization’s team is brought together by similarity in functions. Teamwork is limited to members within the same functional teams because there is no functional coordination, limiting the effectiveness of teamwork within all departments within the organization. Our organization also lacks teamwork effectiveness because there are no cross-functional teams or organizations working on specific product launches or projects. Therefore, every employee is working on a different thing hence eliminating the need to work together. Lack of teamwork effectiveness limits the organization’s overall ability to innovate because employees do not exchange ideas and brainstorm to try new things.

On the other hand, Skunk Works encourages teamwork among employees in all departments. It emphasizes coordination to exchange ideas and to meet a shared vision. Enhanced teamwork effectiveness promotes an organization’s ability to innovate because employees can exchange ideas and collaborate to implement ideas in the most effective way.

References

Bessant, J. (n.d). Skunk works case. Managing Innovation.

Turnnidge, J., & Kelly, A. L. (2021). Organizational structures. Birth Advantages and Relative Age Effects in Sport, 239-246. https://doi.org/10.4324/9781003163572-18

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Overview
In Milestone Two, you recommended a strategic plan for the organization from the course scenario for the IoT innovation project. Now that senior management of this company has approved your recommendation, your task is to recommend ways the organization can better support innovation. Remember that your perspective is still that of a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks.

In this assignment, you will read a case study and write a report that compares the course scenario organization’s structure and innovation culture with those of Skunk Works. This report may help you identify ways to improve your organizational structure and culture in an effort to better support innovation.

Prompt
Using the information about the company in the Organization Overview document and referring to the Skunk Works case study in this module’s resources, compare the organization from the course scenario with Skunk Works and identify differences in organizational structure and culture related to innovation. Your comparison should include the following points:

Organizational Structure: Compare the organization’s structure with that of the Skunk Works innovation team at Lockheed. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.
Shared Vision: Compare the shared vision of the organization and that of the Skunk Works innovation team. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.
Creative Climate: Compare the creative climate of the organization and that of the Skunk Works innovation team. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.
Effectiveness of Teamwork: Compare the effectiveness of teamwork in the organization and the Skunk Works innovation team. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.
Guidelines for Submission
Submit a 1- to 3-page Word document with double spacing, 12-point Times New Roman font, and one-inch margins. You are not required to use sources. However, if you choose to use sources, they should be cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.