The Amazing Success of Microchip Technology Inc. in a New Book 'DRIVING EXCELLENCE: How the Aggregate System Turned Microchip Technology From a Failing Company to a Market Leader' By Steve Sanghi and Michael J. Jones
When Steve Sanghi joined Microchip Technology (Nasdaq: MCHP) in July 1990, the company was in complete disarray. Microchip was losing $2.5 million per quarter, had less than six months of cash, had exhausted its bank credit lines and expenses were out of control. This wasn't a surprise to Sanghi. He was, in fact, well aware of the company's troubles. But it wasn't until he arrived at the company that he understood the extent of the problems. Rather than quit (as many colleagues advised him to do) he dug in his heels and began to try to turn the company around. He enlisted the help of his HR manager and they quickly began to build a program to revitalize the company. Within three years, Microchip was healthy enough to go public -- it had the top IPO of 1993. Today, it is the world's No. 1 supplier of 8-bit microcontroller units -- the most ubiquitous semiconductor type. How did they do it? The authors credit the Aggregate System.
"DRIVING EXCELLENCE: How the Aggregate System Turned Microchip Technology from a Failing Company to a Market Leader" (Wiley; April 2006; $27.95; Cloth) is the story of how Steve Sanghi and Michael J. Jones designed and implemented the Aggregate System at Microchip Technology, and how this systematic and comprehensive approach to building exceptional corporate culture was responsible for the company's amazing turnaround.
The Aggregate System is about uniting employees through shared workplace values, and guiding them through decisions, strategies, actions, and job performance. It is achieved by aligning, integrating and uniting all elements of the enterprise that influence an employee's performance.
The 10 key elements of the Aggregate System, as described in "DRIVING EXCELLENCE," are:
-- Inspiring leadership
-- Continuous-improvement culture
-- Clear company values
-- Fully aligned strategies
-- Employees share in the company's prosperity
-- Managers serve as role models
-- Politics, ego and arrogance are not allowed
-- Systems approach utilized to make improvements
-- Pursuit of excellence
-- Engaged board of directors
"DRIVING EXCELLENCE" describes in detail the key elements above and how they were incorporated into Microchip's corporate structure. The results speak for themselves. The Aggregate System can be implemented in any business. 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."
"DRIVING EXCELLENCE: How the Aggregate System Turned Microchip Technology From a Failing Company to a Market Leader" By Steve Sanghi and Michael J. Jones Wiley; April 2006 $27.95; 0-471-78484-2; Cloth www.drivingexcellence.biz
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Wiley Jocelyn Cordova, 201-748-6249 Email Contact or Microchip Technology, Chandler Eric Lawson, 480-792-7182 Email Contact www.drivingexcellence.biz