Boeing used organizational design strategy to turn around its business in the manufacture of airplanes. This resulted in the company attaining superior business financial performance. The process involved the following issues. They include reshaping the organization structures, leadership, behaviors, functions and customer relationships. Boeing engaged in an intensive process of changing the business structure that hindered innovation and efficiency amongst workers. Therefore, the leadership structure changed from bureaucratic leadership to transformation leadership where members contributed to the development and growth of the company as a whole. Aligning the company’s vision to the goals and structure enables higher productivity and efficiency while reducing cost of operation. Moreover, it involved carrying out SWOT analysis to determine the strength and weaknesses of the organization (Hill and Jones 32). This helped come up with attainable goals both in the short run period and in the long run period.
Managerial functions were devolved in the sense that they embraced the delegation style of leadership where workers would make crucial decisions that enhances efficient operation. Strategy managers have ample time to concentrate on the structuring and learning of strategic goals and vision of the company hence able to advice the workers accordingly (Kesler and Kates 34). Lastly, organization design covered employee-customer relationship, which was deteriorating. The reason behind this is that competition in the market was intensifying and customer satisfaction was going down due to the delays in the supply of airplanes. Working closely with the customers aided Boeing capture and maintain its clients especially through the personalized services rendered, increasing customer satisfaction. The end result was increased profit for the organization. This is how the company managed to avert the operating inefficiency experienced before, due to structural limitations (Hill and Jones 23). Thus, the firm identified its competitive performance in the market.
Hill, Charles W. L, and Gareth R. Jones. Essentials of Strategic Management. 2nd ed. Boston: South Western, 2008. Print.
Kesler, Gregory, and Amy Kates. Leading Organization Design: How to Make Organization Design Decisions to Drive the Results You Want. San Francisco: Jossey-Bass, 2011. Print.