Diagnostic Essay

Diagnostic Essay on Boeing

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Diagnostic Essay

Diagnostic Essay on Boeing

Diagnostic models have been developed consultants and theorists to identify a variety of organizational elements and their interrelationship. Each model is predicated on a particular theory and each intends to bring into focus a wide range of data and experience for purposes of assessment and intervention. Most models suggest interaction between selected features, many features are focused in a diagnoses model such as strategy, goals, procedures, leadership and many others (Galbraith, 2007). The models are used to design and implement policies so that organizational decision making and behavior can be assessed and guided. For any organization looking to diagnose it self needs to have an idea about what information to collect and analyze, for this diagnostic models point out what areas to focus and what questions to be asked for an assessment of the organizations functioning (Noolan, 2004).

The Star Model Diagnoses

J Galbraith came up with the star model, this model focuses on strategy, processes, structure of the organization, reward system, and peoples policies (Proven Models). The strategy of an organization determines its goals, values and mission. The strategy also identifies the competitive advantage of the organization and how it will differentiate itself from others in the marketplace (Noolan, 2004). Boeing was long considered as a leading aircraft manufacturer, with sales volume the highest in US and with such innovations like 707, 727, 737, and 747 beating off competition of Airbus by miles (Travel Insider). The pace of development in 1980s slowed down when Airbus had more sales then Boeing, they panicked and doubled their production capability, but only one new plane was launched whereas airbus launched 4 new planes. Due to the lack of

Diagnostic Essay

communication within the organization it had no guided path and change did not pay off. The structure identifies the span of control of the organization, the leadership and departmentalization. For an organization to be successful the correct structured should be implemented, the flow of information should be without any barriers so that accurate information is gained by everyone at the organization (Galbraith, 2007). This again was a problem for Boeing as their structure did not promote flow of information without any barriers. The structure of Boeing was more bureaucratic, which meant there were standardized procedure which meant less flexibility for employees. The key part of the design process is identifying the responsibilities of each department and also focusing on how each are intended to support the organization. This model also focuses on processes, which is how each department is carrying out its duties and how barriers can be overcome. The process of Boeing was outdated, they employed 800 computer systems to manage engineering and manufacturing, this system was being used since World War II. The Boeing system was outdated, and there attempt to automate the assembly line and they also tried to facilitate communication between supplier and Boeing staff by introducing a web based procurement system , by which suppliers would be automatically alerted when supplies were needed. Such process change was difficult to implement because communication channels within the organization were not clear, mainly due to a poor structure employed. Boeings innovation process slowed down too, as new features were not easily introduced, like the glass cockpit all electronic display introduced by Airbus took Boeing ten years to copy and emulation of A320 took another five years (Shokralla, 1995). The star models other focus on designing a rewards system for the organization, this is the bases of employee motivation so that goals are met.

Diagnostic Essay Boeings decision to diversify into space industry and information service had affected employee motivation by a great deal, obviously when companies diversify employees

fear for their job or think they will have to be retrained to carry on with the job. As in the 70s 50000 workers were laid off, Boeing employees felt the same would happen again. The final point on a star model is people policies. This is a challenge in designing a successful organization is to create a system which will attract, harness and retain people whose individual and collective capabilities can support the direction of the company and achieve its long term and short term goals (Galbraith, 2007). Keeping this star model in mind some decisions made by Boeing were successful and some would be considered unsuccessful. The diversification with McDonnell Douglas can be viewed as a good decision as this killed off competition from within US for Boeing as Douglas was the only aircraft manufacturer in US which was able to compete with Boeing with its DC plane lines. This would also have helped with the technology issue being faced by Boeing, theyre ideas were considered innovative enough and their processes were outdated. McDonnell Douglas were producer of a number of famous commercial and military aircrafts. The Boeing Company which was now called had stock swap of $ 13 bn, which meant there were more funds for the company to invest. Failure of leadership and a concrete plan meant that Boeing did not pursue a number of promising plans such as the sonic cruiser, the sonic cruiser was subsonic aircraft which was distinguishingly faster then other conventional jet liners. After Boeing diversified their decision to relocate to Chicago also was seen as an unfavorable move, as critics thought Boeing had disturbed its culture with this move. Technology also played a huge role in Boeings failure, the star model insists that processes should be looked over to see if there were

Diagnostic Essay any lacking. Boeings inability to introduce high tech aircrafts gave Airbus advantage it was the first to introduce automated flight engineers function and also the first to introduce digital fly-by-wire controls into an airliner. Boeings diversification into space industry by merging with McDonnell Douglas was a move influenced by Airbuss advance technology, as Space industry employs the most advance technology, moreover

Douglas was known for its high tech procedures. This change in strategy is stressed in the star model where new strategies should be devised to adapt to the changing marketplace (Lawrence, 2005).

Conclusion
The star model best identifies the key issues of Boeing as it concentrates on the basic problems of lack of direction for Boeing. The star model encourages a clear strategy to dive organizational structure, if the industrys future looks gloomy the organization should optimize its low level process (Shokralla, 1995). Boeings inability to change quickly has brought about the downfall of the once great aircraft manufacturing company. Its low tech processes had given the opportunity to Airbus to dominate the industry. Also star models insistence on looking after employee motivation was also a factor which Boeing had ignored, as their relocation and diversification was not welcomed by the Boeing staff. The star model also encourages a clear line span of control with information flowing smoothly, something which the Boeing could not adapt to because of its bureaucratic culture (Lawrence, 2005).

Diagnostic Essay

References

Galbraith, J. Proven Models- Five Star Model. Proven Models. Available from http://www.provenmodels.com/43/five-star-model/jay-r.-galbraith/ date accessed August 5, 2010 Shokralla, Shad. 1995.The Boeing 777 Multimedia Case Study. Berkley edu. Available from http://bits.me.berkeley.edu/mmcs/b777/boeing.rtf. Date accessed August 5, 2010

The Travel Insider. 2003. Where is Boeing Going?.thetravelinsider available from http://thetravelinsider.info/2003/boeing1.htm . Date accessed August 5, 2010

Galbriath, J and Kates, Amy . 2007. Designing your organization: using the star model to solve 5 critical design challenges. John Wiley and Sons.

Noolan, Julie. 2004. Diagnostic Models: an introduction. Available from http://www.donblake.com/module3/DiagnosticModels.pdf Date accessed August 5, 2010

Lawrence, Philip and Thorton, David. 2005. Deep stall: the turbulent story of Boeing commercial airplanes. Ashgate Publishing, Ltd.