Michael dell presentation
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Michael Dell established Dell Inc. in 1984 with a concept of direct computer system sales to customers. Under his transformational leadership, Dell expanded its business model and global operations. Dell exercises various leadership styles including open communication, empowering employees, learning from mistakes, job segmentation, and ensuring a balanced life for employees. These strategies helped Dell become the largest PC company and achieve $61.5 billion in sales in 2011 under Michael Dell's continued leadership.
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- 1. LEADERSHIP IN ORGANIZATIONS BPMN 6043 GROUP ASSIGNMENT BUSINESS LEADER: MICHAEL DELL LECTURER: DR. SITI ZUBAIDAH OTHMAN
- 4. Time Line 1984 - With $1,000 in startup capital, Michael registers his business as Dell Computer Corporation, doing business as PC ’ s Limited 1987 - Dell establishes its first international subsidiary in the United Kingdom. Eleven more international operations would open over the course of the next four years. 1988 - Dell raises $30 million in its initial public offering, bringing the market capitalization of the company to $85 million. 1989 - The fast-growing company experiences its first major stumbles: It accumulates excess inventory of memory components, which results in write-downs, and cancels an overambitious product development program code-named “ Olympic. ” 1992 - Dell achieves slightly more than $2 billion in sales for the fiscal year ended January 1993, which represents a remarkable 127 percent increase. 1994 - Dell launches its new Latitude notebook line with record-breaking battery life. Following the earlier launch of Dell Japan, Dell opens its first operations in the Asia Pacific region, which has become the fastest-growing international startup in the company ’ s history.
- 5. 1996 - Dell goes online in www.dell.com ; $1 million per day in online sales; $5.3B in annual sales 1997 - Dell online sales at $3 million per day; 50% growth rate for 3 rd consecutive year, $7.8B in total annual sales. 1999 - Dell becomes the number one PC company in the United States, the largest worldwide market for personal computers. New manufacturing facilities in Nashville, Tennessee and Eldorado do Sul, Brazil. Sales over www.dell.com top $35 million per day. 2004 - Michael relinquish his CEO title to Rollins in July 2004 but would remain actively involved in the company as chairman 2007 - CEO Kevin Rollins resigned and Michael Dell resumed his position as CEO 2011 - $61.5B in sales marking the largest single-year dollar increase in company history
- 20. Q & A
Editor's Notes
- Dell Inc. was established in 1984 by Michael Dell with a simple concept: by selling computer systems directly to customers. Dell Inc. can best understand their needs and efficiently provide the most effective computing solutions to meet those needs. Over time, they expanded their business model to include a broader portfolio of products and services, and they have also added new distribution channels, such as retail, system integrators, value-added resellers, and distributors, which allow them to reach even more end-users around the world. Operational regions : Americas; Europe, Middle East and Africa (EMEA); Asia-Pacific and Japan (APJ). Global corporate headquarters is located in Round Rock, Texas. Dell’s sales totaled $61.5B in 2011 and employ approximately 103,300 people globally.
- Points to stress 1984 – year of establishment 1988 – IPO year to go public listed 1989 – 1 st major stumbles for Dell, Inc due to “Olympic program. 1994 – record breaking battery life for latitude notebook lauched
- Point to stress 1996 – Dell goes online in www.dell.com. Reaches sales $1m per day, $5.3b in this year. 1999 - #1 PC company in USA and largest worldwide market for PC. 2004 – Michael gave up his CEO to Kevin and remain as chairman. 2007 – After three years at the helm, Dell Inc. and Rollins fell out of favor with Wall Street, and the company's stock is down 31% since Rollins came on the job. In 2007 CEO Kevin Rollins resigned and Michael Dell resumed his position as CEO. 2011 - $61.5B sales recorded largest single year dollar increase in company history.
- Transformational leadership is an effective form of leadership that causes change in individuals and organizations. T his is a true leader style that inspires his team by painting a vision of the future. They spend a lot of time communicating their vision and then allow their team members to decide how to achieve this vision. Michael Dell has been a good leader not only to the people in his organizations but also to the suppliers and customers. He sees the whole picture which includes everyone in order to bring Dell to being recognized as one of the top players in the computer industries Michael Dell exercises transformational leadership in his organization as he acts as a role model for his employees. Moreover, Dell also listens to them and helps them to have a vision that contributes to the success of his company. His style creates valuable and positive change in his employees with the end goal of developing them into leaders The Dell company learns and listens about employee’s concerns through ‘Tell Dell’ (a voluntary employee survey) and created the Soul of Dell
- The Soul of Dell reflects the elements of Dell traditional culture that focus on the customer, be open and direct in communications, be a good global citizen, and have a passion for winning and understanding and meeting the needs of their people To Dell, when success is achieved, it's greeted with five seconds of praise followed by five hours of postmortem on what could have been done better to create another change in the technology world of competition. Dell also believes that a problem should be dealt with quickly and directly, without excuses Michael also has his influence on his employees. His employees have trust, admiration, loyalty and respect to him and because of the qualities of the transformational leader who is willing to work harder The leader transforms and motivates employees through his idealized influence, intellectual stimulation and individual consideration. In addition, he encourages them to come up with new and unique ways to being successfu l
- Communication champion is philosophically grounded in the belief that communication is essential to building trust and gaining commitment to the vision. In Dell, when a new project is going to be launched, Michael makes sure that everyone in the company gets the clear message about the new project. They sent out company-wide “Message from Michael” emails, put up posters in high-traffic areas, and talked through the strategy at numerous brown-bag lunches and company get-togethers. Michael also believes that communication is very important when it comes to motivate his employees. He spends most of his time communicating to his team and employees. Michael emphasizes on face-to-face communications as well as through emails and all other ways which can help him to communicate with his people. Usually a formal email will be sent out to the people and later on, he will spent most of the time meeting his people to further explain his intention and most importantly, to know how his people felt about the new projects or new procedures implementation.
- In Dell, open communication is practiced where everyone share information throughout the organizations. Michael prefers to roam around to have interactions with his people and he does not plan the interaction. He wants to hear spontaneous remarks as those remarks are the most sincere feedback. When it comes to the customers, Michael also practices the same communication style with them in order to know their feedback and offer better solution to them. He spent most of time visiting the place where his customers work as he knows through this, he will get to know better what problems that his customer encounter and offer the best solutions to them in a reasonable price. Through communicating with their customers, they gained the information and it helps to them to come up with new products which suit the needs of customer and not producing products which they believed will succeed Dell’s suppliers also share the same vision and goal as Dell. Michael makes it an effort to explain the vision and goal to their suppliers so that they will be able to support Dell and see that they could grow together with Dell. Management from Dell visits their suppliers as frequent as possible and through meetings, information is being exchanged.
- People often been assumed that they are not compatible with others if they ask questions. However, things are different in Dell where Michael himself encourages his people to ask more questions as he finds that it helps him to understand more by asking questions. Michael also promotes the art of listening to everyone. One will learn more when they ask questions and listen to the feedback with an open mind. He listens to feedback from his people, customers and also suppliers. The listening skills ensure them to provide the quality and scope of experience that their customers expect as they listen closely to their customer needs and wants. With this, they are able to bring information from the outside world into Dell. By listening to his employees, Michael Dell would think and work on possible solution and give hope. Michael also listens patiently to accusations made to his company at one point where Dell's hard-earned reputation was nose-diving between 2003 and 2006.
- Dell encourages their people to challenge the conventional wisdom and learn from their mistakes so that they can constantly improve their service to their customers. Mistakes are seen as a learning opportunity. When they make mistakes, they learn from them and press on. According to Michael, we will learn faster when we make mistakes. Therefore, in Dell, no one will be punished for making mistake as it is part of the learning process but never repeat the same mistakes twice. Dell always encourages smart experiment among their people by telling them it is safe for them to fail. Michael has deliberately shaped Dell’s culture to accept continual “course corrections” on the learning curve because, he wants his people to feel safe to experiment in order to thrive. Dell is able to capture the big market because he has studied how some technology's legendary figures lost their way by refusing to admit their mistakes.
- Dell is a relationship-oriented company because they devote themselves to communicate and partner with their employees and customers as well as suppliers. At Dell, most of their success was attributed to their people. Michael develops a company of owners where everyone thinks that they own the company. This includes the employees, customers and suppliers. Michael empowers his people so that they will act as “owners” rather than as an employee. Through employee ownership strategy, the people will continually create new and different ides as they have the freedom and courage to take risks. The people of Dell are not empowered only to feel as an owner but they also purchase the company stock through various plans. The only difference that they have when compared to other companies is that the stock ownership comes with a commitment where they need to think like the owner. In Dell, they give their people the knowledge, the abilities and the permission to do what they do best and bring it to the height of “ownerships” and lastly bring more success to the company.
- Michael built strong partnerships with his people, customers and suppliers to achieve maximum results. He developed one team, one strategy and gives them the authority to drive the business in a particular direction and provide them with the tools and resources that they need to accomplish their goals. Partnership in Dell also means job segmentation and Michael himself segmented his CEO position twice because he believes two persons can complement each other by focusing on the areas which they can contribute the most value. Profit sharing incentives is one of the encouragements that Dell created in order to have their people to work as team. The profit sharing incentives shows the people that it is more beneficial to work as a team rather than apart as they are rewarded more if their team are more efficient.
- At Dell, they implemented 360 degree performance appraisal to their employees and suppliers. This full circle review solicits input from everyone an employee work with and the results is openly shared with one another. Through this open review, it’s no longer about people staying out of each other’s way or working hard to be competitive but it will be about people who are thoroughly invested in each other’s growth. Michael defined his option of job segmentation as a form of empowerment. Job segmentation helps Dell to identify their weaknesses and it is a very practical check and balance system. Through job segmentation, it allows them to have job enrichment as it create new opportunities for the people.
- In a traditional management, when a talented employee masters a job, they will be promoted to a new job that has broader responsibility, a larger staff and a bigger budget. Everyone in Dell has narrow responsibilities due to job segmenting where they formed smaller team and renewed their inspirations through creation of new tasks. It is also an opportunity for development as well as the chance to focus more sharply on a narrower range of responsibilities. Michael wants his people to have balanced life. Life is not only working and therefore he sees narrow responsibility as a way for his people to achieve a balanced life where they have time to spend with their family, exercising and work. Balanced life is the way to have long lasting success.
- The leadership and entrepreneurial skills of Michael Dell and his influence over his organization's success is incontestable. His transformational leadership style is a true leader who inspires his team constantly with a shared vision of the future. Michael dell set the rules for his organization and his employees which gives the clear road map. Michael Dell’s leadership approaches are command skills, motivating others, integrity & trust, empowerment, building effective teams, strategic agility, drive for results, deal with ambiguity, intellectual horsepower and customer focus. Michael is a very good communicator and able to motivate people. He has ability to forecast the feature very well.
- Michael is a leader who led by example and made a very strong commitment such as below: We values accountability and reward those teams and team members who continually improve their capability and contribution. Developing, retaining and attracting the best people, reflective of their worldwide marketplace. Hire and promote based on performance, capability and qualifications as key criteria. Look first to promote from within Dell. Providing training and learning opportunities to maximize team and individual performances. Investing in People Leadership capabilities as a competitive advantage. Managing company’s talent as a key asset.
- . Utilizing job assignments across and within regions to build global leadership capability. Promoting an environment that values individual differences engages people in decision-making and encourages employees at all levels and across all parts of the company to work as a team. Maintaining base pay and benefit programs competitive with successful companies relevant to our marketplace. Understanding and respecting all nations’ laws, values and cultures. Profitably growing our business in all markets. Promoting a healthy business climate globally. Contributing positively in every community that we call home, both personally and organizationally.
- In 2011, Dell’s revenue grew 16 percent to $61.5 billion, marking the largest single-year dollar increase in company history. To date, Dell Inc. had successfully transformed itself from its direct-sales-only mantra to building a successful reseller network. At Dell Inc., they aspire to do great things. Michael cultivates the best business leaders because he is one himself. Michael Dell, a great leader achieves his goals the right way, by maintaining the highest standards of ethics and integrity. Michael Dell believes that on a solid foundation of people and principles that he can build many future successes with more challenges ahead.