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Running Head: INNOVATION
8-2 Benchmark Study: Skunk Works
MBA 580
SNHU
Introduction
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INNOVATION
An organization can play a pivotal role to support and nurture innovation. In the report,
an in-depth comparison between the organizational structure and innovative structure of the
luxurious automobile company and Skunk Works has been presented. The objective is to identify
the methods that could be adopted for improving the firm’s organizational structure and culture
to support innovation.
Organizational Structure
The organizational structure of the automobile business is highly complex as there exist
several levels of hierarchy. The tall matrixed structure design is adopted in the business entity,
which makes it difficult to have an accurate count of the exact number of hierarchy levels. Tall
structures are considered to be cumbersome as they increase the gap between the decision-
makers and the customers. In the case of the Skunk Works organization, there did not exist any
hierarchy in the organizational structure. Small teams were responsible for carrying out their
respective roles and responsibilities in the organizational setting. There is a major contrast
between the structure of both the firms. In the automobile business, the tall structure increases
the complexity by restricting communication and collaboration and thus hinders innovation. The
flat structure in Skunk Works acts as a major factor that boosts the level of innovative and
creative ideas.
Shared Vision
