8-2 Benchmark Study: Skunk Works Southern New Hampshire University MBA 580: Innovation and Strategy for High-Performance Organization Introduction: This report aims to compare the organizational structure and innovation culture of a luxury automobile company, as described in the Organization Ov...
MBA 580: Innovation and Strategy for High-Performance Organization
Introduction:
This report aims to compare the organizational structure and innovation culture of a
luxury automobile company, as described in the Organization Overview text, with that of Skunk
Works, a renowned innovation team at Lockheed. By exploring key aspects such as
organizational structure, shared vision, creative climate, and effectiveness of teamwork, insights
can be gained to identify potential areas for improvement in the company's structure and culture
to better support innovation.
Organizational Structure:
There are both structural differences and similarities between the luxury car company and
Lockheed's innovation unit, Skunk Works. Skunk Works, in contrast, emphasizes small,
autonomous teams and adopts a flat organizational structure. Although both companies bring in
experts from different divisions for certain projects, the luxury car company's matrixed structure
, might impede innovation by slowing down communication and decision-making. Skunk Works'
flat organizational style encourages prompt decision-making, independence, and
experimentation, creating an atmosphere that is more favorable for invention.
The luxury car manufacturer battles with the prospect of developing a brand-new unique
product or making little, gradual improvements to an already-existing vehicle. On the other hand,
the Skunk Works crew is deeply committed to creating a product that is unmatched.
Additionally, the Skunk Works team embraces trial and error and works independently of
traditional organizational procedures—a flexibility not granted to the team in the case study.
Finally, while the Skunk Works team functions autonomously, cut off from Lockheed's central
oversight, the
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