LEADERSHIP IN ORGANIZATIONSBPMN 6043GROUP ASSIGNMENT

BUSINESS LEADER:

MICHAEL DELL

LECTURER: DR. SITI ZUBAIDAH OTHMAN

• LEE CHIN YEW 805542

• WONG KAM PHUN 805550

• KOO SUET YAN 806665

• WONG HUI YEE 806667

Dell Inc. established in 1984 by Michael Dell

With a simple concept: by selling computer systems directly to customers.

Business model expanded to include broader portfolio of products and services, also added new distribution channels 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.

Time Line1984 - 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.

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 3rd 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

Effective form of leadership that causes change in individuals and organizations.

Michael Dell ,a good leader not only to the people in his organizations but also to the suppliers and customers.

Michael Dell exercises transformational leadership - he acts as a role model for his employees.

Dell also listens to his employee and helps them to have a vision that contributes to the success of the company.

Creates valuable and positive change for the employees with the end goal of developing them into leaders

“Tell Dell” (a voluntary employee survey) - created the Soul of Dell

2.0 TRANSFORMATIONAL LEADERSHIP STYLE

The Soul of Dell - 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

When success is achieved, it's greeted with 5 secs of praise followed by 5 hrs of postmortem. – what to be done better. To create another change in the technology world of competition.

Problems should be dealt with quickly and directly, without excuses

Employee have trust, admiration, loyalty and respect to Michael 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.

2.1 COMMUNICATION CHAMPION AND OPEN COMMUNICATION

Communication is essential to building trust and gaining commitment to the vision.

New project launched, Michael wants everyone in Dell Inc. gets the clear message about the project.

Method : 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 believes communication is at utmost important to motivate employees. Spends most time communicating to his team and staff.

Face-to-face communications, through emails, all other ways which can help him to communicate with people in the company.

Meeting his people to further explain his intention and to know how his people felt about the new projects or new procedures implementation.

Open communication is practiced to share information throughout the organizations.

Prefers to roam around to have interactions. Unplanned interaction to hear spontaneous remarks (most sincere remark).

Practices the same communication style with customers in order to know their feedback and offer better solution to them in a reasonable price.

Through communicating with their customers, they gained the information and helps to come up with new products which suit the needs of customer and not producing products which Dell Inc. believed will succeed.

Dell’s suppliers also share the same vision and goal – Michael explains the vision and goal to suppliers - be able to support Dell - could grow together with Dell.

Management from Dell visits their suppliers as frequent as possible and through meetings, information is being exchanged.

2.2 ASK QUESTIONS AND LISTEN

Encourages to ask more questions - helps to understand more by asking questions.

Promotes the art of listening to everyone.

The listening skills ensure them to provide the quality and scope of experience.

Able to bring information from the outside world into Dell.

By listening to employees, Michael Dell would think and work on possible solution and give hope.

2.3 MAKE MISTAKES AND CONTINUOS LEARNING

Encourages people to challenge the conventional wisdom and learn from mistakes - constantly improve service to customers.

Mistakes are seen as a learning opportunity. When they make mistakes, they learn from them and press on.

People learn faster when make mistakes – no one will be punished for making mistake as it is part of the learning process but never repeat the same mistakes twice.

Encourages smart experiment among people by telling 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.

2.4 EMPOWERMENT AND EMPLOYEE OWNERSHIP

Dell Inc. – a relationship-oriented company. They devote themselves to communicate and partner with their employees and customers as well as suppliers.

Success was attributed to their people. Michael develops a company of owners –everyone (employees, customers and suppliers) thinks that they own the company.

Empowers people to 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.

Staff - not empowered only to feel as an owner but also purchase the company stock. 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.

2.5 PARTNERSHIP AND JOB SEGMENTATION

Strong partnerships built with people, customers and suppliers achieve maximum results.

One team, one strategy developed - 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.

Michael segmented his CEO position twice - believes two persons can complement each other by focusing on the areas which they can contribute the most value.

Profit sharing incentives – encouragements to have people to work as team. This 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.

360 degree performance appraisal implemented – both staff and suppliers. This full circle review solicits input from everyone an employee work with and the results is openly shared.

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 - job segmentation as a form of empowerment.

Job segmentation helps Dell to identify their weaknesses. It is a very practical check and balance system.

Through job segmentation – allows people to have job enrichment as it creates new opportunities for the people.

Traditional management, people 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 - formed smaller team and renewed inspirations through creation of new tasks.

An opportunity for development and 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.

2.6 NARROW RESPONSIBILITY AS REWARD, STAY FOCUSED AND

BALANCE

3.0 CONCLUSION

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 set the rules for his organization and his employees which gives the clear road map.

Leadership styles approaches: command skills, motivating others, integrity & trust, empowerment, building effective teams, strategic agility, drive for results, deal with ambiguity, intellectual horsepower and customer focus.

A good communicator able to motivate people.

Has ability to forecast the feature very well.

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.

At Dell Inc., they aspire to do great things.

Michael cultivates the best business leaders because he is one himself.

Michael 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.

Q & A