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
References: Palmer, I., Dunford, R., & Akin, G. (2009). Managing Organizational Change. New York, NY: McGraw-Hill/Irvine.