John Wiley and Sons, Inc. has published "Driving Excellence: How the Aggregate System Turned Microchip Technology from a Failing Company to a Market Leader," by Steve Sanghi, Microchip's President, CEO and Chairman, and Michael J. Jones, Microchip's retired Vice President of Human Resources.
"Driving Excellence" describes how Sanghi and Jones designed and implemented the Aggregate System at Microchip and how this systematic and comprehensive approach to building corporate culture was responsible for the company's turnaround. The Aggregate System is about uniting employees through shared workplace values, and guiding them through decisions strategies, actions and job performance. It is implemented by aligning, integrating and uniting all elements of the enterprise that influence an employee's performance.
"When I took over as CEO of Microchip Technology in 1990, the company was in dire straits. It was hemorrhaging money, its technology was outmoded, its factories were inefficient, and the employees lacked morale," stated Steve Sanghi. "I recruited the help of Michael Jones, who was Microchip's Organizational Development Manager and later became VP of Human Resources.
"We designed, and with the help of Microchip's outstanding management team, implemented The Aggregate System. 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 the manufacturing processes, business strategies, or workforce, The Aggregate System represents a comprehensive approach to consciously design the whole enterprise to optimize its rate of improvement," Sanghi concluded.
"Driving Excellence" details the ten key elements of the Aggregate System and how they were incorporated into Microchip's corporate structure. Employing the Aggregate System, Microchip was transformed from a company on the verge of bankruptcy to a market leader.
The Aggregate System can be implemented in businesses outside of the semiconductor industry. As Sanghi and Jones write in the book, "The use of the Aggregate System is not limited to the semiconductor industry. When implemented correctly, it can be universally applied to any business. The key is to convert your desire to improve the enterprise into the successful application of the Aggregate System."
