Foreword—L.B. Day ix
Preface xi
Acknowledgments xiii
SECTION ONE: The Microchip Story—Applying the
Aggregate System 1
1. Microchip: Before and After 3
SECTION TWO: The Aggregate System 17
2. The Aggregate System: Driving Excellence and
Continuous Improvement 19
3. The Ten Key Elements of the Aggregate System 29
SECTION THREE: The Foundations of a Values-Based, Highly
Empowered, Continuous-Improvement-Oriented Culture 37
4. How Cultures Evolve 39
5. Rules-Based versus Values-Based Cultures 45
6. Systems Thinking 57
Contents
7. The Six Principles of Building a Merit-Based, Variable,
Total Compensation System 74
8. How Managers Become Barriers 92
9. Discovering the Origins of Behavior and Job Performance 105
10. The Weakness Principle 124
11. The Human Change Process 134
12. The Transformation of Charlie Campbell 145
SECTION FOUR: Building the Aggregate System 163
13. Strategic Formula 165
14. Selecting Your Core Values 174
15. Policies and Procedures: Establishing the Rules 184
16. Management Practices 189
17. Human Systems: Backbone of the Culture 197
18. Performance Appraisals 221
19. Employee Practices and Assessing the Culture 233
Summation 245