Running Head: INNOVATION
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8-2 Benchmark Study: Skunk Works
MBA 580
SNHU
INNOVATION
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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
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existence of diverse functional areas such as engineering, strategy, safety, etc., does not
enable the members to focus on a single 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.
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Effectiveness of Teamwork
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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.
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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.
