8-2 benchmark study skunk works

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Southern New Hampshire University *

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Feb 20, 2024

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8-2 Benchmark Study: A Comparison Study Between Skunk Works and SNHU Motors Nick Roy Southern New Hampshire University MBA-580-Q2734 Innovation/Strategy High-Performance Organizations 23TW2 Author Note In partial fulfillment for the course requirements MBA 580 Innovation and Strategy in High Performance Organizations.

BENCHMARK STUDY 2 Abstract As a middle manager for SNHU Motors, one of the leading U.S. producers of luxury and mass-market automobiles and trucks, I previously presented a strategic plan for the IoT innovation project in Milestone Two of the MBA 580 Innovation and Strategy course. Now that my recommendations have been approved by senior management, my next task is to propose actionable strategies to enhance innovation within the organization. In this module 8 paper, we will delve into a comparative analysis of our course scenario organization's structure and innovation culture with that of the esteemed Skunk Works team. By conducting this case study, we aim to identify opportunities for improving the current organizational structure and fostering a culture of innovation. Join us as we explore the path towards enhanced support for innovation within the organization.

BENCHMARK STUDY 3 Table of Contents A Comparison Study Between Skunk Works and SNHU Motors ..................................................... 4 Organizational Structure ................................................................................................................. 6 Shared Vision ................................................................................................................................. 6 Creative Climate ............................................................................................................................. 7 Effectiveness of Teamwork ............................................................................................................ 7 References ...................................................................................................................................... 9

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BENCHMARK STUDY 4 A Comparison Study Between Skunk Works and SNHU Motors During World War II, the United States faced a serious challenge: designing and producing aircraft that could match those being used by Axis forces. To meet this challenge, Lockheed Aircraft Corporation created a highly specialized innovation team known as the Skunk Works. This team would go on to produce some of the most infamous and innovative aircraft in United States history, but what made them unique? What were some of the guiding principles they followed? Did they continue to have success even after the war ended? The Skunk Works team was unique in that it was given an unprecedented level of autonomy and freedom to pursue their goals. They were made up of a small group of elite engineers and designers who were given carte blanche to pursue their own ideas and innovations. Unlike other teams at Lockheed, they were not bogged down by bureaucratic red tape or overly prescriptive design constraints. This allowed them to develop and build highly innovative aircraft in a fraction of the time it took other teams to do the same (Bessant, Skunk Works Case ). Another thing that made the Skunk Works team unique was their focus on operational efficiency. As the name suggests, the team operated in secrecy, separated from the rest of the company in an isolated location. They were also given the resources they needed to rapidly prototype and modify aircraft designs as needed. This allowed them to quickly iterate on their designs and continuously improve their products, leading to a reputation for high-quality, cutting-edge aircraft (Bessant, Skunk Works Case ). One of the most famous sayings that came out of the Skunk Works team was "Speed is life." This phrase captures the urgency and importance of innovation in the context of the fast-

BENCHMARK STUDY 5 paced wartime environment. It reflects the team's focus on being nimble, adaptable, and quick to respond to changing conditions. This emphasis on speed was not only a practical necessity for winning battles, but also a guiding principle that drove the team to constantly push the boundaries of what was possible (Bessant, Skunk Works Case ). So, did the Skunk Works team have continued success after the war ended? The answer is an unequivocal "yes." The innovations and processes developed by the team during the war became part of the DNA of Lockheed as a company. The Skunk Works ethos of operational efficiency and nimble innovation was carried forward into future projects, including the development of the U-2 spy plane, the SR-71 Blackbird, and the F-35 Lightning II Joint Strike Fighter. These aircraft are still among the most advanced and innovative in the world today (Bessant, Skunk Works Case ). Innovation is never easy, but the Skunk Works team showed that with the right combination of people, resources, and guiding principles, it is possible to achieve breakthrough results in even the most challenging circumstances. They demonstrated the power of autonomous teams, rapid prototyping, and continuous improvement to drive operational efficiency and cutting-edge innovation. Their legacy lives on in many of the most advanced aircraft in the world today, and their story is a reminder of what is possible when we give brilliant minds the freedom to pursue their ideas (Bessant, Skunk Works Case ). Throughout the rest of this paper, our evaluation will encompass areas of similarity and difference between our organizational structure and our ability to innovate. We will also scrutinize the alignment of our vision with that of Skunk Works, as well as the comparison of our creative climate. Finally, we will assess the effectiveness of teamwork within our organization,

BENCHMARK STUDY 6 drawing insights from the practices of Skunk Works. Through this rigorous evaluation, we aim to enhance our organizational performance and foster a culture of innovation. Organizational Structure Skunk Works, Lockheed Martin's legendary division, has become synonymous with stealth, agility, and radical innovation. Their flat organizational hierarchy is designed to propel decision-making velocity and embolden direct communication channels—traits considerably distinct from the labyrinthine structure of SNHU Motors (Bessant, Skunk Works Case ). The tall matrix configuration of SNHU Motors, characterized by numerous hierarchical levels and a complex web of reporting lines, starkly contrasts the lean and nimble framework of Skunk Works. While SNHU Motors' structure allows for deep specialized expertise through its centers of excellence, it simultaneously poses the risk of creating silos and stifling the rapid-fire exchange of ideas essential for spontaneous innovation. The dual allegiance to both project and functional managers can lead to conflicting priorities, diluted accountability, and an overall lag in decision-making—a potential roadblock for on-the-fly innovative endeavors (SNHU, MBA 580 Organization Overview ). Shared Vision A unified vision is the compass that steers the ship of innovation. Skunk Works thrived under a shared vision of engineering marvels that often-defied conventional boundaries (Bessant, Skunk Works Case ). This singular focus galvanized a culture of innovation that permeated every aspect of their work.

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BENCHMARK STUDY 7 On the other hand, the centralized and standardized ethos of SNHU Motors may do well for consistent policies but does not necessarily nurture an environment where a maverick vision can take root (SNHU, MBA 580 Organization Overview ). Decisions made from the top down may overlook the intuitive insights often generated at the consumer-level, which are indispensable for revolutionary innovation. Creative Climate The culture within Skunk Works was organically inclined towards fostering a creative climate, driven by a passion for pioneering technologies and a survival ethos dictated by the demanding nature of their projects. This contrasts with the more rigid and controlled environment at SNHU Motors where structure, governance, and process efficiencies are prioritized, potentially at the expense of flexible, creative thinking (Bessant, Skunk Works Case ). The specialist COEs at SNHU Motors, while creating economies of scale, might inadvertently hinder cross-pollination of ideas, thus dampening the organization's creative dynamism compared to the more integrative and interdisciplinary approach at Skunk Works (SNHU, MBA 580 Organization Overview ). Effectiveness of Teamwork Finally, the effectiveness of teamwork—imperative to innovation—is manifested differently within the two contrasting structures. The strong, project-focused collaboration at Skunk Works fosters a sense of camaraderie and collective purpose, which is essential for breakthrough innovations (Bessant, Skunk Works Case ). Alternatively, SNHU Motors' matrix

BENCHMARK STUDY 8 structure, though capable of project-centric team formulation, carries the inherent risk of specialists' divided focus and loyalties, thus potentially undermining the team's unity and drive. In essence, while SNHU Motors may excel in systematic resource optimization and standardization, the essence of vibrant teamwork that propels innovation might run the risk of being diluted within its intricate structural and communicational matrix. The dichotomy between Skunk Works' agility and SNHU Motors' organized complexity raises an intriguing dialogue about the architecture of innovation. The vertebrae of a successful innovation engine are found in a structure that encourages swift decision-making, cohesive vision, a pro-creative climate, and teamwork efficacy. As organizations evolve and reconsider their strategies to foster innovation, the blueprint offered by Skunk Works serves as a testament to the power of structural efficiency, fluid communication, and shared purpose. It is a reminder that sometimes, breaking barriers requires breaking away from traditional hierarchical constraints in favor of leaner, more responsive organizational designs. Both paradigms carry intrinsic merits and limitations, and perhaps the secret sauce lies in striking the right balance between the discipline of a tall matrix and the insurgent spirit of a Skunk Works team—where the spark of creativity meets the engine of execution.

BENCHMARK STUDY 9 References Bessant, J. (n.d.). Skunk Works Case. https://www.johnbessant.org/_files/ugd/6ba33a_cd007fa1b6184e0481cfd54b992d6ab1.pdf SNHU. (2023). MBA 580 Module Eight Benchmark Study Guidelines and Rubric. Retrieved from SNHU: https://learn.snhu.edu/d2l/le/content/1445105/viewContent/28444444/View Southern New Hampshire University. (2023.). MBA 580 Organization Overview. https://learn.snhu.edu/content/enforced/1445105-MBA-580-Q2734-OL-TRAD- GR.23TW2/Course%20Documents/MBA%20580%20Organization%20Overview.pdf? ou=1445105

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