Leadership and Organizational Design Overview (ERAU/3:03)
Throughout this class, we'll be using a fictitious but realistic electric aircraft company as our context for organizational structure and design. That company is Eagle Aviation Industries which you'll read a bit about below.
During the simulation, you'll act as a leader of Eagle Aviation Industries in the individual assignments. The entire class will be a part of the Advisory Board and in the discussion assignments, you will act as an Advisory Board Member. Refer to the details on the Advisory Board Meetings to understand the difference between your leader role and role as an Advisory Board Member.
We'll start our simulation in Module 3 as Eagle Aviation Industries is just launching as a new or start-up company. From there on, we'll work with Eagle Aviation Industries as it evolves through the organizational life cycle. We will leverage our experience and analytical skills to infer what the organization's architecture must look like at each stage of the life cycle.
In doing so, we'll make logical inferences about the processes, systems, and infrastructures that must be behind the scenes to make Eagle Aviation Industries business units, its systems research and development, its logistics operations, and other company functions as it evolves and changes through the life cycle.
As a scenario, we'll look at current events, at the time you're taking this course. There may be significant events happening in the world that affect the company, the aviation and aerospace industry as a whole, or the markets that Eagle Aviation Industries serves. These may be opportunities for growth or other strategic, tactical, or operational challenges that the company needs to recognize and embrace - or distance itself from. As a course-long business simulation, let the real here-and-now provide your context and your scenario!
Please read through all sections before proceeding to the next page, and refer back whenever necessary.
You will begin your leadership at Eagle Aviation Industries in Module 3 as the company launches. In Modules 3 through 7, Eagle Aviation Industries will be faced with challenges as it moves through the organizational life cycle. Your job as a leader is to design, implement, and lead strategies for the organizational structure and design to evolve as the company does. This work will be done with the individual assignments in each of those modules.
Please proceed to the Your Advisory Board Role: Provide Expert Advice for Eagle Aviation Industries Leaders section.
Leaders, especially CEOs, quickly learn how lonely it can be at the top. In many cases, you may be the sole employee when your venture is first created. When it grows and you have a more complex organization with a sizeable staff, accountability for success still rests mainly on your shoulders.
As a leader, employees look to you for guidance and vision. Investors expect you to successfully manage the company and provide them with an excellent return on their investment. When dealing with a difficult situation or approaching uncharted territory, the leader may often feel isolated.
It is for these reasons that leaders often form a Board of Advisors to give them guidance or expertise. An increasing number of organizations are forming Advisory Boards. A strong Advisory Board is made up of subject matter specialists that can help with gaps in knowledge. They are not responsible for the governance of the company or represent its shareholders. Rather, the Board of Advisors exists to deliver advice to the key leaders of the organization.
In the discussion assignments, you will act as an Advisory Board member for Eagle Aviation Industries. The discussion assignments will be formatted as Advisory Board Meetings, where you and your fellow Advisory Board Members (your classmates) will provide guidance and expertise for Eagle Aviation Industries.
...which you accepted by coming on board this course, is to develop the skills and outlooks, the mindsets, and the perspectives necessary to assist your company in dealing with changes and restructuring as it evolves through its life cycle.
This course places you into a business simulation in which each student is a leader at Eagle Aviation Industries, which begins as a start-up firm and follows the organizational life-cycle as it grows and develops. For the discussion activities, all students are part of the Advisory Board for Eagle Aviation Industries where you will be tasked with providing guidance for Eagle Aviation Industries as they face various structural and design challenges for the organization. The Advisory Board Meetings, which are the discussion activities, provide you opportunities for ideas and collaborations on your leadership strategies for Eagle Aviation Industries. Thus, you will be taking on two different roles with Eagle Aviation Industries in this course—as an Advisory Board Member and as a leader within the organization. This simulation - this course - therefore brings a unique set of conditions and processes into play, which we will use to support your learning journey as a student and for your leadership development.
Instead of "discussions," we'll be using the Canvas Discussion tools to host and conduct Advisory Board Meetings. In these activities, you will adopt the role of an Advisory Board Member for Eagle Aviation Industries. An Advisory Board is a group of experts who provide the organization and its leaders with expert advice. Advisory Boards have no formal authority and responsibility, and their members are not company directors. Advisory Boards do not take part in corporate governance but only provide advice.
In your assignments, you then will adopt the role of a leader in Eagle Aviation Industries, where you can leverage the expert advice in the Advisory Board meetings to make your decisions for Eagle Aviation Industries.
You will each come and go in this conversation, as week by week the "Advisory Board" - the entire class - applies the concepts and ideas to the task of leading an organization through the various stages of the organizational life cycle. That's the purpose of these meetings.
This means that your success as a meeting participant requires that you:
Please proceed to the Good Meetings section.
Because businesses hate unproductive meetings almost as much as you do, conduct these discussions like an efficient business meeting that you'd feel good about taking part in.
Eagle Aviation Industries and the rest of the real world need you to make the meetings (the discussions) count. It takes everybody investing their time and effort in it to make something important take place. In the real world of business, discovery of the real issues behind the organization's strategy and direction can take time, as you ferret out the unspoken assumptions and turn educated guesses into testable hypotheses. Even so, meetings are expensive. They consume an organization's most important assets - the thought power and time of its people.
Each of us has the opportunity to set the conditions for that people power to rise up and shine. Making effective conversations happen is a powerful way to do that.
Good meetings have an agenda; that needs to happen here in this class as well. The agenda for the Advisory Board Meetings will be posted in each discussion's agenda section. A typical agenda will have some broad, far-ranging subjects or actions to deal with and may also have some very specific ones more tightly focused on the details of a technique or process.
Use the agenda to drive your investigation, inquiry, and preparation throughout the week. Let items on the agenda trigger you to respond with:
Please proceed to the Using Canvas Discussion section.
In Canvas terms, that means you'll post and reply as you see fit, a minimum of three times evenly spread throughout the week, to put your thoughts into words (or video contributions) as follows:
At least one POSITION statement, in which you present a draft solution or assessment of what the agenda raises. This position statement should be supported with evidence, assertions, conclusions, or other findings, which are drawn from credible, authoritative, and relevant sources.
"Professor, are you saying the discussion never ends?"
Yes.
Real-life shows us that we all go through multiple overlapping and concurrent OODA (Observe, Orient, Decide, and Act) loops every day; we join in conversations at various steps in that OODA cycle; our teams and organizations do as well. Solving a particular problem or dealing with an issue may mean that one thread of one set of such OODA loops comes to a close. For now. Murphy's law, though, reminds us that what we settled at last month's meeting probably won't stay "dealt with" for very long.
In many online classes, the discussion forum tends to focus on assigned readings or lines of inquiry by asking students to post a synopsis of what they've learned and what it might mean as if the instructor asked: "can anybody tell me what last night's readings said about X and Y?" That works in a lot of learning situations. It doesn't usually fit a problem-solving, team-based inquiry process.
"Professor, does that mean you don't care if we do the readings?"
To be blunt, that's correct. What we need to see is what you can do with what you've learned from the readings, and from everything else you've been doing so far in this course and in life in general.
The readings should enable you, inform you, and equip you to deal with the situations facing the team as it works together to meet the challenges of managing information risks facing the organization. Use the readings; use the other resources use the lessons you learn from the other activities.
But don't just parrot them back to the class or to your instructor. All that proves is that you can relate a piece of the question to a piece of the readings. That's a good start, but it's not enough to get work done.
Please proceed to the Grading section.
As you'll see in the Meetings Rubric, your work in this type of Canvas discussion is graded on three key elements:
Logically, thoughtfully addresses the agenda with course-related argument and evidence
It's also easy proof to see that the more interactions a conversation has, the greater the potential for both learning and enjoyment. Posting all of your contributions to the meeting (your discussion entries) late on the last night of the module week denies anyone else the opportunity to interact with and engage with your ideas; it's as counterproductive if you came to an important but routine meeting five minutes before its end time, made your pronouncements, and then left.
If you’re going to think about risk, you need to think in evidence-based cause-and-effect terms. That simply cannot be done if you don’t keep track of the pedigree of that evidence — where and how you found it, what transforms or cleanups you’ve done to it, and so on. To do that means more than just “citing sources in APA format.” It means thinking about what you use and how you use it while keeping a “chain of custody” for those germs of thought.
There are many ways to do this: you might be a Five Why’s kind of person, or you use Kipling’s Six Wise Men to help you evaluate. Or, you might see everything from an organizational development perspective (which always looks for proximate and root causes). How you do this doesn’t matter, what does matter is that you take everything you read or view or encounter and tear it apart with questions, questions, questions! Do this in discussion; do this as you take notes about sources; do this in every step of every assignment.
You’re encouraged to take risks as you develop answers to questions or solutions to problems that are posed to you in this course. Acclimate yourself to the resources the course provides; digest them, think about them, and get creative! Breaking the “quote and paraphrase habit” means you start thinking the moment you first start looking at a source. DO acknowledge sources as you use them. Stand on the shoulders of those who’ve worked hard to lay out some of this road before you. Give those sources the courtesy of a citation and a reference listing, but then move right into what you are going to say based in part on their work. You’re also encouraged to take a good first shot at an assignment and post or share your early thoughts, ideas, concerns, and questions. You would do this in the workplace as a member of a team or a work unit; you’re safe doing that here. But, just like at work - deadlines are deadlines, and most work has “success criteria” or hard and fast requirements set for it. Assignments here do as well. Read the assignments carefully. Identify all of the things each assignment is asking for. Analyze the task you’re given; break it down step by step, item by item, and use that list to make sure you answer all that you were asked. Suggestion: Do that at work, too. Make sure that your boss or your manager gains what they need from you.
Instead, apply what a source teaches you by putting it directly into action.
Think things through yourself. Business leaders don’t have time to be “lectured to” about what the sources say; they depend upon their lawyers to interpret the “letter of the law” for the decisions they have to make or the actions they have to take to lead the company. If they need to see the text of the regulation or see that opinion piece that you have started from and built your recommendations on, then let them ask for it.
Look for current events (preferably no older than the year prior to the current academic term) for sources to analyze current thinking and ideas. Yes, you may have to use “classic” sources to support or provide depth. That’s fine. But we need to focus on the now, more than on the recent past.
Historians and academics have observed that organizations, like living organisms, have life cycles. They are born (established or formed), they grow and develop, they reach maturity, they begin to decline and age, and finally, in many cases, they die. The study of the organizational life cycle (OLC) has resulted in various predictive models. These models, which have been a subject of considerable academic discussion, are linked to the study of organizational growth and development. Organizations at any stage of the life cycle are impacted by external environmental circumstances as well as internal factors. We're all aware of the rise and fall of organizations and entire industries. Products too have life cycles, a fact that has been long recognized by marketing and sales experts. It seems reasonable to conclude that organizations also have life cycles.
While many business and management theorists alluded to developmental stages in the early to mid-1900s, Mason Haire's (1959) work in Modern Organization Theory is generally recognized as one of the first studies that used a biological model for organizational growth and argued that organizational growth and development followed a regular sequence. The study of organizational life cycles intensified, and by the 1970s and 1980s, it was well-established as a key component of overall organizational growth.
The organizational life cycle is an important model because of its premise and its prescription. The model's premise is that requirements, opportunities, and threats both inside and outside the business firm will vary depending on the stage of development in which the firm finds itself. For example, threats in the start-up stage differ from those in the maturity stage. As the firm moves through the developmental stages, changes in the nature and number of requirements, opportunities, and threats exert pressure for change on the business.
Organizations move from one stage to another because the fit between the organization and its environment is so inadequate that either the organization's efficiency and/or effectiveness is seriously impaired or the organization's survival is threatened. The OLC model's prescription is that the firm's managers must change the goals, strategies, and strategy implementation devices to fit the new set of issues. Thus, different stages of the company's life cycle require alterations in the firm's objectives, strategies, managerial processes (planning, organizing, staffing, directing, controlling), technology, culture, and decision-making. Five growth stages are observable: birth, growth, maturity, decline, and revival. They traced changes in the organizational structure and managerial processes as the business proceeded through the growth stages. At birth, the firms exhibited a very simple organizational structure with authority centralized at the top of the hierarchy. As the firms grew, they adapted more sophisticated structures and decentralized authority to middle- and lower-level managers. At maturity, the firms demonstrated significantly more concern for internal efficiency and installed more control mechanisms and processes.
Please read through all sections before proceeding to the next page and refer back whenever necessary.
Organizational Size, Life Cycle, and Decline (ERAU/20:36)
You may think the modern era of competitive disruption has made traditional life cycles less relevant, but the opposite is true. Since most of today's industry disruptions are in technologies, life cycles and the conditions that shape them are even more critical because of the speed of change. Cycles that once lasted years or decades can now pass in months.
As you will see, if a business fails to take a proactive stance toward organizational life cycle changes, it is likely to fall into crisis and decline.
Organizational life cycles are the product of human behavior. In organizations, that behavior has predictable patterns that result in foreseeable crises. Preparing for those crises can determine whether an organization moves to the next stage of development or fails.
For example, in a stable, mature organization, people fall prey to the misconception that the "way we do things" is the way it will always be. The inevitable result is stagnation.
If leaders and the people understand the issues that can arise before they happen, the change to the next phase need not be a crisis.
Moving on at the right time
An organization can prepare for moving from one stage to another.
For example, when people hold on to policies and procedures to protect their fiefdoms, you have a sure sign that stagnation is taking hold and can take preventative measures by transitioning management before the crisis.
You can also take a proactive stance by seeking to constantly renew, with parts of the company experimenting with new ideas without disrupting the entire organization.
Organizational Life Cycle Models
From the 1960s to the 1990s, scholars and consultants proposed many models of life cycles. Although the models have many similarities, there are differences in the perspectives and the research methods
Review "Organizational Life Cycle and Life Cycle Models (PDF)" Download Organizational Life Cycle and Life Cycle Models for more details on these Life Cycle Models:
This course is different than many other graduate courses - including other OBLD courses.
It requires you to run your personal OODA Loop. You'll need to:
Embrace the differences that this course embodies by engaging with the following attitudes, mindsets, and skillsets.
Please read through all sections before proceeding to the next page and refer back whenever necessary.
This course is about organizations and how organizations need to cope with growth and change involving the organization's structure and design. Throughout the organizational life cycle, the organization must meet its ongoing obligations to its employees, customers, owners, investors, creditors, suppliers, partners, neighbors, and other stakeholders. Throughout this course, you will be a simulated leader of Eagle Aviation Industries. Every action you take must be from that perspective.
For example:
Please proceed to the Get Creative section.
This course is about using leading and designing organizations as they grow and change; from discussions through business writing, from diagrams to presentations, it requires you to think well and truly "outside the box:"
Strange as it may seem, getting wildly creative goes hand-in-hand with evidence-based reasoning. It's the heart of the scientific method, which takes "I wonder if" and follows as it leads to generating and testing hypotheses.
And, of course, this means that you refer to your sources as you use them. It's required by good manners as well as by academic and professional ethics to do so. And it adds weight to your argument (if you've picked and used good sources, of course).
Please proceed to the Do The Business By Being Part of a Team section.
Much of this course revolves around taking active roles in our simulated company, Eagle Aviation Industries, as a way of applying the various concepts, tools, and techniques of organizational structure and design. This is a team sport, one in which you "play" as a member of the leadership team at Eagle Aviation Industries, as part of this class, and as an Advisory Board Member. Share ideas, think together, and help each other create.
Participate in the discussion and activities early and often. Don't wait until the last night of the module week to try to do everything. PLAN AHEAD and engage early. It's the same amount of work - just start it earlier.
Own your own work; be responsible for your own successes and failures. Take your own risks.
Please proceed to the Get Current, Stay Current section.
Keeping your viewpoint and knowledge base current is important. You'll be assessing "time-honored, classic" frameworks in organization theory related to structure and design. At the same time, you'll need to be on the lookout for current evidence, case studies, examples, and arguments to inform your work, refute or support the author's points, and as jumping-off points for our explanations here.
The world keeps changing; the environment we operate in as individuals and as members of organizations keeps changing. You cannot let yourself or your company get "caught napping."
"The more things change, the more they continue to be the same." This aphorism by Jean-Baptiste Alphonse Karr applies to organization theory in many ways. On the one hand, some of the basic ideas have stood the test of time; that testing, of course, involves what's new and different in the ways organizations do business, as well as what's new about the nature of work and design of organizations. Each day's experiences with work design and organizational design is an opportunity for the leaders to learn something new, which may reinforce lessons already understood, invalidate prior assumptions and reasoning, or both.