Analog Devices Case Study Answers
Introduction
This case is an extension of Analog Devices, Inc. (A) The company continued to use the advanced format of scorecards to evaluate the performance. The company again faced a new challenge of effectively utilizing the corporate scorecard in a faster pace, more dynamic, and more complex market environment. In 2001, the company faced topline growth rate of 78 percent, growing from $1.5B to $2.6B.The company expanded itself by introducing a lot of new products in the market. The company adapted to the changes pretty soon. ADI’s product mix included components for Internet-related equipment. ADI’s strategy was innovation and product design
1.How did ADI’s industry change between 1996 and 2001?
>>Topline growth increased by 78% due …show more content…
3. Is ADI’s scorecard as useful today as it was in the 80s? What are the limitations to the scorecard? What can go wrong?
ADI score card is not as effective as in 80s, this is due to change in Business Environment. ADI had installed an Executive Information System (EIS). The EIS supported the use of divisional, departmental, even individual scorecards. Managers at all levels could break down performance results by region, product, customer. Extremely dynamic measures were not included in the Executive information system and were captured through spreadsheets .Presence of too many measures made them less relevant as actionable information. The Scorecard was not linked with the employee compensation.
4. Would you make any changes to the way ADI manages its scorecard? What changes? Why? Yes there are two changes that can be made:
>>Metrics should be embedded in EIS & not on manual spreadsheets
>>Metrics should be kept …show more content…
If the company is flexible it becomes easier to adapt things faster.
5. Does the metrics/scorecard system have flaws? Can employees “game” the system? What are the dangers of the EIS?
As employees and the organization get used to the old way of doing things, new scorecard measures should be introduced keeping in mind the Dynamic nature of the semiconductor market and time required to implement the project
The dangers of EIS may be :
>>Ambiguity of information, due to presence of too many measures which make them less relevant as actionable
This case is an extension of Analog Devices, Inc. (A) The company continued to use the advanced format of scorecards to evaluate the performance. The company again faced a new challenge of effectively utilizing the corporate scorecard in a faster pace, more dynamic, and more complex market environment. In 2001, the company faced topline growth rate of 78 percent, growing from $1.5B to $2.6B.The company expanded itself by introducing a lot of new products in the market. The company adapted to the changes pretty soon. ADI’s product mix included components for Internet-related equipment. ADI’s strategy was innovation and product design
1.How did ADI’s industry change between 1996 and 2001?
>>Topline growth increased by 78% due …show more content…
3. Is ADI’s scorecard as useful today as it was in the 80s? What are the limitations to the scorecard? What can go wrong?
ADI score card is not as effective as in 80s, this is due to change in Business Environment. ADI had installed an Executive Information System (EIS). The EIS supported the use of divisional, departmental, even individual scorecards. Managers at all levels could break down performance results by region, product, customer. Extremely dynamic measures were not included in the Executive information system and were captured through spreadsheets .Presence of too many measures made them less relevant as actionable information. The Scorecard was not linked with the employee compensation.
4. Would you make any changes to the way ADI manages its scorecard? What changes? Why? Yes there are two changes that can be made:
>>Metrics should be embedded in EIS & not on manual spreadsheets
>>Metrics should be kept …show more content…
If the company is flexible it becomes easier to adapt things faster.
5. Does the metrics/scorecard system have flaws? Can employees “game” the system? What are the dangers of the EIS?
As employees and the organization get used to the old way of doing things, new scorecard measures should be introduced keeping in mind the Dynamic nature of the semiconductor market and time required to implement the project
The dangers of EIS may be :
>>Ambiguity of information, due to presence of too many measures which make them less relevant as actionable