xiaoyan's summary

1986-90
TQM: total quality management
In1983, ADI has problems with the quality of its production. They began to use TQM. TQM ensures customers get the quality they expect and that continuous improvements in business in processes are pursued. By the end of 1984, they were in the fastest-growing in the economy. However, between the end of 1984 and the end of 1986, The ADI's revenues were stagnant and its profitability was declining.
QIP: quality improvement process
At the very start, many managers were skeptical of this new quality program, but the financial basis of ADI's incentive and performance measurements systems reinforced the QIP.
Half-life

Scorecard
The scorecard showed 3 categories: financial, new products, and QIP. They added to it the half-life and target for each of the measurements. They did this to provide a link between short-term results and ADI's long-term plans. They created divisional scorecards and compared the division results. The company used the corporate scorecard as a communication tool.
1990-96
Changing roles
ADI's management changed considerably. The changes reflected ADI's efforts to infuse a different culture. It was the time to begin the era of senior management. New management team.
Changing systems
New performance measures.
Hoshin
A technique called Hoshin kanri for quality management energies on wealth creation
Hoshin tells us to focus on the most important objectives. Hoshin goals
Compensation
did not link incentive compensation to performance on the scorecard measures.
Compensation philosophy is based on cross-functional coordination and the highest degree of teamwork.
1996: technological leadership