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Management article
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Reference no. 89409
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1989

Abstract

A few years ago, Northern Telecom, Inc. (NTI) set up a council of division heads and headquarters managers to devise a manufacturing plan for the 1990s. It began by listing things NTI had to do--surprisingly, all items had to do with meeting customer needs faster. New pay incentives, profit-and-loss statements, and training sessions supported the new direction. NTI''s experience shows that time-based strategy is achievable and rewarding; the receiving cycle is shorter, inventories and defects are down, and customer satisfaction is fast approaching the 1990 goal.

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Abstract

A few years ago, Northern Telecom, Inc. (NTI) set up a council of division heads and headquarters managers to devise a manufacturing plan for the 1990s. It began by listing things NTI had to do--surprisingly, all items had to do with meeting customer needs faster. New pay incentives, profit-and-loss statements, and training sessions supported the new direction. NTI''s experience shows that time-based strategy is achievable and rewarding; the receiving cycle is shorter, inventories and defects are down, and customer satisfaction is fast approaching the 1990 goal.

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