Diagnostic Essay 1

Diagnostic Essay on Boeing

Customer Name

University Name

Diagnostic Essay 2

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 1980’s 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 3

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 4

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

70’s 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, they’re 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 5

any lacking. Boeing’s 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 Airbus’s

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 industry’s 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 6

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.