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Analog Devices: 1986-1991

The First Balanced Scorecard

by

Arthur M. Schneiderman

Phase 2: 1988/1991 - Deployment

Internal communications: spreading the word
By the end of 1987, we had a QIP deployment plan, a set of strategically derived performance metrics and a way to manage them: the annual planning process and scorecard system.  In early 1988, I presented the plan as part of our worldwide rollout of the 1988-1992 five-year strategic plan.  Because of its importance as the roadmap Analog would be using for the next five years, each of the key presenters (Ray, Jerry, the CFO, the VPs of worldwide sales, technology, HR, and QPI) prepared a written speech which was reviewed and critiqued in advance by the other speakers.  That speech, and the associated slides, captures where we were in early 1988 and where we expected to get to on our TQM journey (see March 1988 QIP Strategy presentation with transcript).

As I mentioned earlier, we had grown to believe that the primarily benefit of strategic planning was in the process, not the physical results.  So we decided to limit our written output to a four page flyer that was distributed at the oral presentations.  Here's my contribution to that document:

"Quality Improvement Process
The overall goal of Analog's Quality Improvement Process (QIP) is to support the company's business objectives. These objectives, in general terms, are to maintain market leadership and to achieve high revenue growth and profitability. QIP is particularly relevant to profitability goals, since even during periods of high sales growth, profits can be eaten away through waste in manufacturing, administration and other processes. It is the elimination of waste that is the key result of QIP efforts.

Otherwise stated, Analog's QIP goal is to be rated number one by its customers in total value delivered. This means designing the right products and delivering them defect-free, on time, with short lead times. Progress toward this goal will be made by applying QIP methodologies to processes in all areas of the corporation. Accordingly, training in QIP approaches and methods is planned for all Analog employees during the early part of this strategic plan period."

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1999-2006, Arthur M. Schneiderman  All Rights Reserved

Last modified: August 13, 2006