Dell was founded by Michael S. Dell in the 80s. It grew form a one-man show to be the leading manufacturer and distributor of low-cost PCs today, employing more than 40,000 people worldwide with businesses globally. From the findings, we learn about the management style of both, Michael S. Dell, Kevin B. Rollins and his management. At start, Mr. Dell was seen as aloof and Mr. Rollins as autocratic. Trying to improve the company, Mr. Dell took step to enhance relationship with their team. In order to be the leader in low-cost PC, he uses a direct sales model which causes Dell to transform from a no-name PC player to a powerhouse.
He focuses on cost efficiency to reach his goals. As a result, his overhead expense was just 9. 6% revenue, boosted productivity to nearly $1 million in revenue per employee. Later he diversifies into computer peripherals and tech services. Dell was able to expand its business by focusing their core strength in being discipline, speed and efficiency. Later the Mr. Dell also outsources to help in his expansion. Mr. Dell adopts a leadership management process that works for his huge and important company and he maintains a pinpoint control of his company operation.
Further more he and his team was concern of the product features and the buying experience. However, his demanding culture and high expectation has caused discontent and loyalty issue among his staff. Although Mr. Dell may struggle as he goes into the up market, many has commented that he may not be able to survive in the high end business but with better technology, low-cost PC will become better for most customers. Visionary leader posses company visions that should generate interest, vitality which in turn will lead to the total commitment and energies of everyone in the company.
The main features of a vision should include elements that are values centered, clear and specific and could be communicated across the board, to everyone in the company. Visionary leaders must also have the skills to generate and communicate this vision across and which will result in an improvement of the company’s overall performance. Furthermore, he must explain to every body the actions and steps needed to achieve the vision thru oral and written communication. He must also be able to lead by example and his actions must serve to achieve the vision that he believes in.
In addition, he must be able to communicate the vision across different level of leadership and management until everyone in the company also sees the value and the practicality of the vision. Moreover, great leader must display the six common characteristics: Integrity: A leader must be truthful to the company and do what he said. Drive: A leader must be able to motivate others to achieve the vision and he must be able learn continuously. Leadership: A leader must be have high socialized power to allow others to gladly Motivation follow and finish company’s goal.
Self-Confidence: A leader should believe that he is able to lead his company effectively whether through good and bad times. Intelligence : A leader must be able to analyze problems and sees opportunities. Knowledge : A leader must be familiar with the entire industry and know about their own business. Visionary Leadership A vision must be able to excite and bring vitality and commitment to the organization. Besides it must be values centered, realistic and clear. Michael Dell envisioned a goal of reaching $60 billion revenue by 2006.
This vision helps to unite the company towards this goal such that results could be seen 6 months later. He was also clear and specific in his description. Ability to explain vision to others A visionary leader must be able to have the skills to communicate the vision across to everyone in the company. From the findings, CEO Michael S. Dell set a vision that he will meet a $60 billion revenue goal by 2006. After just 2 quarters, the company have already capture 37% of the handheld computer. Most of the company was able to catch hold of the vision.
As for Mr. Dell, he has efficiently communicated his vision across to this company. Character traits of leaders Integrity – A leader must be truthful to the company and do what he said. Initially Mr. Dell was thought of as impersonal and emotionally detached which lead to great discontent in the company. He later face his top 20 manager and confess that he was a very shy person which made him seem aloof and unapproachable. He also determines to build a stronger relationship with team. He even videotaped his talk to every manager in the company.
This show he was truthful and serious, the fact that he wanted the company to grow and not just saying it only. Drive – A leader must be able to motivate others to achieve the vision and he must be able to continue to learn continuously. Mr. Dell believes that when there is problem, it should be dealt with quickly and directly without any excuses. He also expects everyone to be a walking database and able to know everything from top-line growth and to the average number of time a part has to be replaced in the first 30 days.
This shows that he was fully reach his goals of making Dell efficient and successful. Not only that, he continuously reaches to the height of perfection, while monitoring every single detail of the company. Self confidence – A leader should believe that he is able to lead his company effectively whether through good and bad times. In the year 2001, when the PC industry in the world was not doing well, Mr. Dell and Rollin believe strongly that their company would recover eventually. Evident have shown that they will able to achieve growth in the sub sequence years.
They believe in their own capability to lead the company through such difficult times. Intelligence / Knowledge of the business – A leader must be able to analyze problems and to see opportunities not only that he must be familiar with the entire industry and know about their own business. In the initial years of business when Mr. Dell was fighting with the IBM and Compaq Computer Corp. He was able to analyze and see opportunity in the direct-sales model. True enough, This model lead him to be worth $17 dollar and his company hired 40,000 employee, with $40 billion in Sales.
Furthermore, he monitors everything in the company which leads him to very familiar with the workings of the company. He was able to make good decision as a result. Mr. Dell initially involves his business in PC but later move into printers, networking, handheld computers and tech services. Not only that, he has the ability to enter the cut throat $95 billion consumer electronics market with a portable digital-music player, an online music store, and a flat-panel television set. This shows that apart from his present vision, he is able to extend his vision to the new consumer market.
Negative aspects Vision was not communicated sufficiently to different leadership context. Despite the success that Mr. Dell achieve in the company. There are serious retention and motivation issue in the company. When something is not done well, workers are either replaced or demoted and furthermore leader seems aloof and unapproachable even if steps have been taken. His demanding has cause many season executives to change company and they have problem in grooming a new generation of leaders. Also he has achieved little in the morale of the company.
There is also innovation issue because of his cost cutting measures. Why the findings support the theoretical concept of the leaders? Character of the CEO Michael S. Dell was humble and willingly admits his mistake and learns from them that I am able to find so many findings about him. Early business experience and powerful competitor like IBM and Compaq Corp has made him till what he is today. Why the findings don’t support the theoretical concept of the leaders? He is too achievement oriented leader.
There are retention and motivation issue with the company, the leaders and the management is not able to motivate the worker sufficiently which lead to a lack of leadership motivation, thus arises. Because Mr. Dell and the manager has been too focus on achieving profits and cutting cost for the company as a result , the wor4keres in the company faces high stress and they do not actually feel valued at all. Dell like to monitor every detail, probably even the movement of the worker, therefore they are not happy.