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Table of Contents

Foreword-L.B. Day.



SECTION ONE: The Microchip Story-Applying the Aggregate System.

1. Microchip: Before and After.

SECTION TWO: The Aggregate System.

2. The Aggregate System: Driving Excellence and Continuous Improvement.

3. The Ten Key Elements of the Aggregate System. SECTION THREE: The Foundations of a Values-Based, Highly Empowered, Continuous-Improvement-Oriented Culture.

4. How Cultures Evolve.

5. Rules-Based versus Values-Based Cultures.

6. Systems Thinking.

7. The Six Principles of Building a Merit-Based, Variable, Total Compensation System.

8. How Managers Become Barriers.

9. Discovering the Origins of Behavior and Job Performance.

10. The Weakness Principle.

11. The Human Change Process.

12. The Transformation of Charlie Campbell.

SECTION FOUR: Building the Aggregate System.

13. Strategic Formula.

14. Selecting Your Core Values.

15. Policies and Procedures: Establishing the Rules.

16. Management Practices.

17. Human Systems: Backbone of the Culture.

18. Performance Appraisals.

19. Employee Practices and Assessing the Culture.



About the Authors.

About the Author

Steve Sanghi is the President, CEO and Chairman of the Board of Microchip Technology Inc. Under his leadership Microchip became the top IPO of 1993. Steve holds a MS in Electrical and Computer Engineering from University of Massachusetts and BS in Electronics and Communications from Punjab University, India. In June 1995 he received an Arizona Entrepreneur of the Year Award and was a finalist in the National Turnaround Entrepreneur of the Year category. Steve co-chairs the State of Arizona Governor's Council of Innovation and Technology, and is a member of the Board of Trustees of Kettering University in Flint Michigan. His media appearances include: CBNC Squawk Box (May 05') and Mad with Money, Jim Cramer's show; Bloomberg TV and radio, quoted in the WSJ and more. Michael J. Jones, retired from Microchip Technology Inc. in 2004. Prior to that he was the VP of Human Resources. Michael was one of the primary architects of Microchip's successful company culture. A graduate of California State University, Chico, he holds a MA from the College of Communication and Education and a BA in Psychology. He is currently starting his own HR consulting practice to train others on the success of The Aggregate System.

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