Found this on Paul Kedrosky's website and I just wanted to share about the story of Dell, which was once the tech powerhouse that dominated the PC industry, and how it is on the verge to try and come back with vengeance with Michael Dell, a great entrepreneur, back on top. Read this
BusinesWeek article as well. Here is what he had to say:
We held a meeting this morning with our Vice Presidents and Directors. I'd like to share the highlights of this meeting with all of you.
I told our team that I remember the great times and many successes with Kevin Rollins, but now it's time for a change.
I remember what it's like to start a company. We're moving fast. There is no luxury of time. The competitors are fierce. The difference is this time we have many new assets and some hidden ones that can be brought out.
We have great people . . . but we also have a new enemy: bureaucracy, which costs us money and slows us down. We created it, we subjected our people to it and we have to fix it!
I am asking each of you to look across your organizations and eliminate redundancies, think about what is best for Dell, and provide the clarity and focus of leadership that we need.
Last year, we worked really hard and there were many sacrifices. Thanks!
We had great efforts, but not great results. This is disappointing and it is unacceptable.
We have a tough couple of quarters ahead. We didn't get here overnight and we won't fix things overnight either.
OPEX (operating expense) grew too fast. We need to grow into what we have, hold cost and eliminate marginal activities. We must focus and wring out savings.
Long-term, we will be the technology leader known for strong operating performance, a great experience for our customers and a great place to work!
We will have clear priorities and a focused strategy.
We will grow Small and Medium Business and expand Services.
We will continue to build the enterprise Server/Storage business. In Services, we will build, partner and buy.
Product Group will shorten design cycles, increase speed and innovation/design that create real differentiated value for our customers.
We're going to introduce new brands and products with a focus on Consumer and Small Business. We will ensure quality, stability and predictability for our larger customers.
We will complete our dual processor supplier strategy.
We'll restore loyalty and continue CE (consumer experience) improvement. . . . We will bring excitement and pride back to our brand.
In emerging markets, we'll take new approaches and introduce new products.
When I started in 1984, it was just me. But now we are blessed to have an awesome team, many great assets and $11 billion or so. It won't be easy, we'll have to make some tough decisions and we won't be shy about those. Our focus will be on building Dell into the company we all know it can be for our customers, our people and our shareholders.
We will be bold in our thinking and swift in our action.
I ask you to commit with me to the future of Dell. Show confidence with your teams and our customers. We will fix this business and take it to new heights!
