Case Study Analysis: Boeing and Perrier
Galbraith’s Star model, as described by Palmer et al (2009), identifies five key components of organizational change that must be in alignment for success. The Star model notes that strategy, structure, processes and lateral capability, reward systems, and people practices are the five necessary elements to ensure an organization can adapt and thrive during implementation of change. In the case of Boeing, they could have benefited by having a set strategy in place that specifically focused on process and people.
Strategy, according to the Star model, is the vision, direction and competitive advantage an organization has in their respective industry. Vision must be bought off on at the highest level and must be explained and pushed down throughout the organization. The direction of the organization during and after the change must be clearly defined as well. In order to maintain success in the business environment, the organization must also maintain their competitive advantage, executing strategies to continue to grow and remain viable in their business.
The structure of a business, when examined under the Star model, establishes the organization’s power and authority, reporting relationships and roles within the organization. The chain of command is the power and authority, granting the decision makers ability to determine what is best for the company and allows for the reporting relationships, or hierarchy, within the business to be defined. Clearly defined roles within an organization encourage accountability and establish a framework for teamwork and collaboration across departments.
The Star model explains processes and lateral capability as the internal and external networks, processes, teams, integrative roles and matrix structures. All of these elements directly contribute to the formal and informal activities within the organization, or the flow of information. A horizontal flow of information directly impacts the workflow and relationships within an organization, while a vertical flow of information would be more inclined to affect budgeting or planning.
In the Star model the reward system and people practices are very closely related. Rewards systems influence the motivation of an organization’s members to make employees’ goals in line with the organization’s strategic objectives. People practices influence and define employee mindsets through training and development, rotation and promotions within the organization. These two aspects of the Star model contribute to the morale of the workforce and directly impact the productivity of the organization. By investing in their team of people, a company will ensure their success is shared and appreciated by the entire organization.
The five elements that make up the Star model, clearly define the steps to setting up a strategy to prepare for and embrace organizational change. Defining the roles of each element of the organization allow for communication throughout the organization and encourage employee buy-in, thus promoting the success of the organizations need for change. Boeing definitely needed to undergo some changes to remain viable in their industry and had they had a strategy in place to counter the fears, their transition period could have been much simpler and easier to digest by the workforce.
Numerous studies have been conducted on how implementation of organizational change impacts a business. One of these noted by Palmer et al. (2009) is the Boeing study of the change in leadership and the internal and external influences that affected the change in this organization (p. 153-54). After reviewing the Boeing case, it appears the Star model may be best suited to help identify and rectify the issues that caused turmoil at Boeing approximately ten year ago. The Star model is described as a framework that guides the evaluation, planning...
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