Analog Devices Inc
ANALOG DEVICES, INC. (A)
Analog Devices Inc. (ADI) was a leading manufacturer of integrated circuits that convert between analog and digital data. From 1981 through 1996, ADI experienced periods of growth and stagnation, both achieving record profits and sales a experiencing its first loss ever. To meet the needs of the changing market, management at ADI introduced a number of different management tools to implement change. One such tool was its corporate scorecard. ADI's corporate scorecard was recognized as a management best practice in a survey the NolanNorton Group conducted in 1991. Despite this accolade, ADI's management was wondering in 1996 how to change the scorecard to best fit the needs of management, specifically, how fast to change it and how best to use it to focus management attention in the future.
BACKGROUND
Analog Devices was founded in 1965 in Cambridge, Massachusetts, by Ray Stata and Matthew Lorber. Stata had a B.S.E.E. and an M.S.E.E., both from MIT. In 1996 the company operated predominantly in one industry segment: the design, manufacture and marketing of a broad line of high-performance linear, mixed-signal, and digital integrated circuits ("ICs") that addressed a wide range of real-world signal processing applications. The company's principal products were divided among four classifications: general-purpose, standard-function linear, and mixed-signal ICs ("SLICs"); special-purpose linear and mixed-signal ICs ("SPLICs"); digital signal processing ICs ("DSP ICs"); and assembled products. SLICS were the largest product segment for the company, accounting for 65 percent of total sales. Nearly all the company products were components that typically were incorporated by original equipment manufacturers (OEMs) in a wide range of equipment and systems for use in communications, computer, industrial instrumentation, military/aerospace, and high-performance consumer electronics applications. The company sold products worldwide; in 1996 one-half
Analog Devices Inc. (ADI) was a leading manufacturer of integrated circuits that convert between analog and digital data. From 1981 through 1996, ADI experienced periods of growth and stagnation, both achieving record profits and sales a experiencing its first loss ever. To meet the needs of the changing market, management at ADI introduced a number of different management tools to implement change. One such tool was its corporate scorecard. ADI's corporate scorecard was recognized as a management best practice in a survey the NolanNorton Group conducted in 1991. Despite this accolade, ADI's management was wondering in 1996 how to change the scorecard to best fit the needs of management, specifically, how fast to change it and how best to use it to focus management attention in the future.
BACKGROUND
Analog Devices was founded in 1965 in Cambridge, Massachusetts, by Ray Stata and Matthew Lorber. Stata had a B.S.E.E. and an M.S.E.E., both from MIT. In 1996 the company operated predominantly in one industry segment: the design, manufacture and marketing of a broad line of high-performance linear, mixed-signal, and digital integrated circuits ("ICs") that addressed a wide range of real-world signal processing applications. The company's principal products were divided among four classifications: general-purpose, standard-function linear, and mixed-signal ICs ("SLICs"); special-purpose linear and mixed-signal ICs ("SPLICs"); digital signal processing ICs ("DSP ICs"); and assembled products. SLICS were the largest product segment for the company, accounting for 65 percent of total sales. Nearly all the company products were components that typically were incorporated by original equipment manufacturers (OEMs) in a wide range of equipment and systems for use in communications, computer, industrial instrumentation, military/aerospace, and high-performance consumer electronics applications. The company sold products worldwide; in 1996 one-half