Running Head: INNOVATION
1
8-2 Benchmark Study: Skunk Works
MBA 580
SNHU
INNOVATION
2
Introduction
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
Shared vision can be defined as the common and clear image pertaining to the intended
future state that the personnel of a company can identify with. It acts as the chief component that
binds all the members together and enables them to work cohesively (Hoe, 2007). In the luxurious
automobile company, there is the absence of a shared vision. The existence of diverse functional
areas such as engineering, strategy, safety, etc., does not enable the members to focus on a single
INNOVATION
3
aspect. In fact, there are occasions in which employees might work on separate projects
simultaneously and report to different managers. In Skunk Works, a shared vision acts as a
catalyst and pushes the employees to help the organization move towards its desired goals and
objectives. Uniform principles are followed by the employees, which help them to proactively
contribute to business growth and performance. A shared vision can drive all the members
towards innovation and creativity.
Creative Climate
The creative climate in the business setting can be defined as the microenvironment in
which new kinds of ideas are generated as well as nurtured. In order to think in a unique way, the
existence of such an environment is considered a fundamental necessity (Dubina, 2013). In the
automobile company. There does not exist a creative climate. As the company adopts a
centralized and standardized approach, all the decisions are made at the enterprise-wide level.
Thus, there is little room for the personnel to think innovatively and creatively while working in
the organization. The rigid approach makes it difficult for different segments of the organization
to act in an independent manner and capitalize on specialization. In Skunk Works, a creative
climate exists which fosters creative ideas and innovation. The teams get the opportunity to
achieve the creative feat by carrying out their respective roles and responsibilities in a different
mode as compared to that of the overall organization. The employees get the opportunity to
challenge the existing principles and take a new path while working. The existence of a creative
climate is considered to be a fundamental necessity that can facilitate and promote innovation in
an organizational setting. e e e e
Effectiveness of Teamwork
INNOVATION
4
In the organizational setting, teamwork is seen as an important variable that makes every
member accountable. Instead of working at an individual level, they work in groups or teams and
contribute towards the team goals and objectives. In the automobile business, there does not exist
any permanent cross-functional teams that work on specific projects. The organization pulls
teams together from diverse functional departments to work on projects. In Skunk Works, teams
play an integral role and help the organization to accomplish its goals and objectives. The
necessary tasks are allocated to small teams that are responsible for accomplishing the intended
goals and objectives. The team members are given autonomy while working on a project which
enables them to explore their creative side. The effectiveness of teamwork plays a cardinal role in
the Skunk Works organization and drives its innovation. On the other hand, the poor effectiveness
of teamwork creates a major gap and restricts the members to take advantage of their
specialization and think in a creative and innovative manner.
Conclusion
The thorough comparison of the organizational structure and innovative structure of the
automobile business and Skunk Works has helped to identify the main areas that need to be
improved for facilitating innovation. The automobile firm must replace the tall matrixed structure
with a simpler and flatter structure, create a shared vision, establish a creative climate and
strengthen the effectiveness of teamwork to support innovation in a better way.
INNOVATION
5
References
Dubina, I. N. (2013). Measuring Organizational Climate for Creativity and Innovation. In
Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship (pp. 1238-1244).
Hoe, S. L. (2007). Shared vision: a development tool for organizational learning. Development
and Learning in Organizations: An International Journal.
