Strategies of Market Leaders

Competitive Advantage

Case Studies Dell Inc.

Creating a Company Composed of Independent Owners

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Rapid-Growth Company

Dell created a company composed of independent owners. They established a healthy, competitive culture by partnering with their people through shared objectives, a common strategy, and gain sharing.

 

 

Michael Dell advice

We decided to reward employees around a matrix of Return on Invested Capital (ROIC), and growth.

Michael Dell

Dell Inc..

 

 

 

 

"How we manage to maintain the attitude of a challenger, even as we continue to grow at record speeds? Culture is, by far, one of the most enigmatic facets of management that I've encountered. The best way I know to establish and maintain a healthy, competitive culture is to partner with your people through shared objectives and a common strategy," says Michael Dell, the Founder of the Dell Inc.

"It's one thing to create a culture that works. It's another to use that culture to create a measurable strategic advantage. At Dell, much of our success can be attributed to our people. But it's not enough to just hire well. You need to engender a sense of personal investment in all your employees which comes down to three things:

❶ responsibility

❷ accountability, and

❸ shared success.

"Creating a culture in which every person in your organization, at every level, thinks and acts like an owner means that you need to aim individual performance with your company's most important objectives. For us, that means we mobilize everyone around creating the best possible customer experience and enhancing shareholder value and we use specific quantitative measurements of our progress toward those goals that apply to every employee's performance. A company composed of individual owners is less focused on hierarchy and who has the nicest office, and more intent on achieving their goals. At Dell, everyone's an owner."... More