Driving Excellence: How The Aggregate System Turned Microchip Technology from a Failing Company to a Market Leader
When Steve Sanghi took over as CEO of Microchip Technology in 1990, the com?pany was in dire straits. It was hemorrhaging money, its technology was outmoded, its factories were inefficient, and its employees lacked morale. So many things were wrong with the company that Sanghi didn't know where to start.A parade of consultants marched through the Microchip offices offering every kind of cure, from cycle time reduction to process controls to outsourcing. All those suggestions were valid, but there was no single cure for what ailed Microchip. Sanghi recognized that Microchip required an approach that would improve all aspects of the enterprise and involve every employee in the quest for improvement. But since no one could offer such an approach, it was up to Sanghi and Michael Jones, the company's Vice President of Human Resources, to develop their own model for reform.Together, Sanghi and Jones designed and, with the help of an outstanding management team, implemented the Aggregate System. As the name implies, the Aggregate System is designed to simultaneously improve all of a company's business processes by aligning and uniting the processes and elements that lead to success. Rather than focusing solely on manufacturing processes, business strategies, or workforces, the Aggregate System is a big-picture approach that creates an exceptional business culture and a management model that institutionalizes and perpetuates improvement across the entire business.Today, Microchip is a leader in the semiconductor industry. The Aggregate System worked for Microchip and it can work for you too. Now, in this practical and prescriptive guide, Sanghi and Jones explain the origin and proper implementation of the Aggregate System so that business leaders can apply it to their own struggling organizations. In four sections, they explain the story of Microchip and its rebirth; how the Aggregate System works and the ten key elements of it; the foundations of a true values-based corporate culture; and, finally, how you can put it to work in your own organization.Based on hard-earned experience, the Aggregate System is a real-world solution for real-world business problems. It's no magic bullet and it won't change your business overnight. What it will do is show you how to create a business culture that improves, and succeeds, at every endeavor.