The following case study examines an organization that essentially eliminated
traditional functional groups and assigned all employees to cross-functional
product or process teams. Although the organizational and cultural change
occurred throughout the enterprise, this case will focus primarily on the structure of teams and the management of skills and capabilities within the integrated product development (IPD) core process. In the IPD area, multi-disciplinary teams were established with the expectation that individuals would both retain their own area of expertise and broaden their understanding of the functional expertise of their fellow team members. In essence, team members were expected to become “integrators,” as opposed to “generalists.” Although a major cultural change has occurred over a two-year time period, the change to date is considered as only the first step in an evolutionary process. The transition of this organization from a traditional matrix with strong functional hierarchies to a team-based structure highlights a number of human resource implications, including team selection, performance evaluation and rewards, and career paths. The study will conclude with a summary of lessons learned and the applicability of such an organization to the defense aircraft industry
