what is dell's mission statement

European Foundation for Management Development Undergraduate Conference Fiona McCarthy HR Director – EMEA Operations October 12th – 2006 Agenda • Introduction to Dell • Dell in Asia Pacific – Emerging market • Dells Culture • Graduate program – • The challenges ahead - Fiona McCarthy HR Director – EMEA Operations October 12th – 2006 Dell Mission Statement “Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve.” In doing so, Dell will meet customer expectations of : • Highest quality • Leading technology • Competitive pricing • Individual and company accountability • Best-in-class service and support • Flexible customization capability • Superior corporate citizenship • Financial stability Our History Dell shipped more than Dell.com internet revenues $56.7 billion in list of "World's 10 million systemsworldwide; 75,000 employees inrevenue; Ranked #8 in global a single greater on Fortune eBay, #25 than Yahoo, Founded in 1984 #1 global share quarterAdmiredEMEA500 first Most (Q4, FY06) for the 17,000 employees EMEA $13.1 billionAmazoninrevenue in Companies" Google andin its history combined time $41.4B $31.5B $7.7B $5.2B $2.0B $69M $546 '84 Michael Dell founds Dell Computer Corporation '87 '90 '93 '96 '99 '02 '05 '08 Dell ranks #1 in #1 on list of "America's global market share Most Admired Companies" Why We Joined Dell • • • • • • Different Well-managed Really smart people We like to win Growing Global • Ethical • Combines great strategy with operational excellence • Committed to continual improvement • Career opportunities The Direct Model A Different Kind of Company Direct Customer Commitment to AssetThinking Lean Velocity/ The Dell Effect Relationships (Opex management) Open Standards Build to Order (no middleman) Global Operations EMEA • 22% of WW revenue Americas • 17,100 employees Glasgow Halle Casablanca Bratislava Miyazaki Chandigarh Delhi • 63% of WW revenue Edmonton • 36,000 employees Ottawa Winston Salem Oklahoma City APJ • 15% of WW revenue San Salvador Hyderabad • 16,700 employees Manila Our Products and Services: Broad and Deep Product Category Revenue ($bn) Desktop PCs Mobility Software & Peripherals Servers Storage 0.5 1.3 2.2 3.7 5.1 Value Added Services 1.4 Dell Direct Model The Advantages of Direct Suppliers Customers Dell Advantages Supply Chain 4-5 Points Manufacturing 2-3 Points Operations 2-3 Points Direct Model 5-10 Points Information Flow • Low inventory • Efficient cash conversion • Proprietary advantages • Lean cost structure • Direct across all segments • Real-time feedback on price/promo • Efficiency gains to scale ops • Leveraged partner model • No retail, distributor mark-up • Strong vendor relationships • Act on market changes within hours • Continued cost reductions • Asset efficiency • Immediate cost savings to customers • Enables cross-sell opportunities • Maximize profits What Does Dell Look for in its People? Tickets to Entry Functional & Technical Skills Trust & Integrity Business Sense Customer Focus Business Acumen Financial Acumen Strategic Agility Individual Effectiveness Drive for Results Dealing with Ambiguity Intellectual Horsepower Command Skills Leadership Behavior Motivating Others Building Effective Teams Developing People Hiring & Staffing Customer Support Throughout EMEA Sales offices in 22 countries EMEA support & market presence in 93 countries Regional Corporate Executive HQ in Bracknell, UK European Manufacturing facilities & Operations Centre in Ireland Eight Regional Call Centres : • • • • • • • • Cherrywood, Ireland Halle, Germany Copenhagen, Denmark Montpellier, France Amsterdam, The Netherlands Bratislava, Slovakia Casablanca, Morocco Glasgow, Scotland Austria Belgium Czech Rep Denmark Dubai France Finland Germany Greece Ireland Israel Italy Luxembourg Norway Netherlands Poland Russia S. Africa Spain Sweden Switzerland UK Agenda APJ Region profile Fiona McCarthy HR Director – EMEA Operations October 12th – 2006 DELL ASIA PACIFIC AND JAPAN Annual revenue of US$7.1 billion Ranked No. 3 in Asia Pacific and Japan by unit shipments * Direct operations in 13 markets Customers in 40 markets 16,700+ employees region-wide á Manufacturing facilities in Penang, Malaysia and Xiamen, China www.dell.com has 11 country specific sites for Asia Pacific using four languages including Chinese English, Korean and Japanese * Source: IDC á excludes DIS APJ FOOTPRINT… FOOTPRINT… North Asia $4.02B in 2005 +17.5% Y/Y; 68.7% of APJ Rev Japan ($2.3B) PRC ($1.4B) Hong Kong Korea South Asia $881.0M in 2005 +26.9% Y/Y; 15.1% of APJ Rev Singapore Malaysia Thailand Taiwan India SADMG CHINA CUSTOMER CENTER Xiamen, China ANZ $945.7M in 2005 +24% Y/Y; 16% of APJ Rev ASIA PACIFIC CUSTOMER CENTER Penang, Malaysia Australia New Zealand Note: Data based on IDC Q405 report DELL’ DELL’S GROWTH IN KEY ASIAN MARKETS DELL’S Rapid growth through direct model Build out of key infrastructure and support regionally 13.5% Japan 7.5% 11.2% China Dell Share (%) Australia w Drive efficiency w Support customers Enhance structure regionally Malaysia 13.3% Singapore 3.8% 15.4% 2005 1998 India 0% Source : IDC 5% 10% 15% 20% Talent is our no.1 challenge 7000+ TEAM MEMBERS NEEDED* 800+ MANAGERS NEEDED* 60+ EXECUTIVES NEEDED* FY’09 FY’09 FY’06 FY’06 FY’06 FY’09 11,752 19,022 1,372 2,221 74 140 Source : 3 Yr APJ Financial Plan, Nov 05. Actuals for FY’06 Agenda Dell Culture Fiona McCarthy HR Director – EMEA Operations October 12th – 2006 Dell Culture – Then & Now Past •Founder Led •US Centric •Culture – “Be Direct” •Earnings Driven •Results at all cost •Pot of Gold •13 week horizon Present •Founder Led – with help •Market Down Turn/ 9/11 •Soul of Dell •Leadership Imperative •Tell Dell •Talent Management •Great Company…Aspirational Goal •Strategic Planning •Continuous Improvement / BPI We are still only 22 years old!!!! Soul of Dell “The Soul of Dell statement of our values and beliefs, provides a common which communicate the kind of company we are and aspire to be.” Michael Dell Chairman Kevin Rollins President and CEO Soul of Dell Customers • We believe in creating loyal customers by providing a superior experience at a great value Direct Relationships • We believe in being direct in all we do Global Citizenship • We believe in participating responsibly in the global marketplace Winning • We have a passion for winning in everything we do The Dell Team • We believe our continued success lies in teamwork and the opportunity each team member has to learn, develop and grow Leadership Imperative Series The LI Approach: § § § § § Annual program Leader-Led Inclusive Global Interactive Leadership Imperative: The First Years Leadership Imperative ~ FY ’03 $62B Developing Champions ~ FY’04 Inspiring Champions ~ FY’05 Customer Experience Revenues Execution Vision $35.4 $31.5B Globalization Commitment Product Leadership Winning Culture FY02 FY03 Key Theme: How must we improve our leadership in order to reach our strategic goals? Key Theme: How do we engage our team members in reaching our strategic objectives in a Winning Culture? Key Theme: How do we inspire our team members and build their capability to reach Dell’s vision? Grow with Dell ~ FY’06 Key Theme: How do we engage and empower our team members in building their careers and meeting their personal and professional goals? Making the Connection ~ FY ’07 IDP Key Theme: Performance Planning Performance Review Engagement Feedback & Coaching 1:1 Meetings How do we effectively use processes & tools to enhance employee engagement? Tell Dell What does Tell Dell Measure? • Employee opinions on important drivers of Employee Engagement and a Winning Culture Trust Providing Feedback Employee Creating Alignment Work/Life Effect. Managerial Effectiveness Developing Capability Engagement Which all drive Instilling Ownership Winning Culture Inclusion EMEA Ops WC metrics - Trend FY03-FY06 FY04 Winning Culture Metrics Actual Actual Actual Actual Actual Actual Actual Trend Q3 FY03 Q2 FY04 Q4 FY04 Q2 FY05 Q4FY05 Q2FY06 Q4FY06 EMEA OpsEMEA OpsEMEA OpsEMEA Ops EMEA Ops EMEA OpsEMEA Ops EMEA Ops I receive on-going feedback to help improve my performance. I can be successful at Dell and still retain my individuality My manager is effective at managing people. My manager supports my efforts to balance my work and personal life. Even if I were offered a comparable position with similar pay and benefits at another Company, I would stay at Dell. 49% 51% 69% Q2FY04 Survey. 55% 52% 69% 66% 63% 62% 75% 74% 67% 64% 76% 76% 67% 65% 78% 77% 72% 72% 79% 83% 77% 76% 83% 85% 5% 4% 4% 2% 47% 48% 58% 58% 56% 62% 66% 4% Leadership Development Target Audience Top 10% of D3/E1 leaders Prep for SVP or broad VP roles Top 5- 10% of D1/D3 leaders Prep for VP roles SC Members Owner KBR/ MSD Classroom Learning ELS I (10 Days) ELS II (5 Days) Outside of the Classroom Learning (Bold=Common) •Regional Meetings •Mentoring •Strategic Projects •Teaching Opportunities •Job Movement/Enrichment •Executive and Peer Coaching •Regional Meetings •Mentoring •Strategic Projects •Teaching Opportunities •Job Movement/Enrichment •Executive and Peer Coaching •Leadership Exchange Dell-wide Focus 5-day Session 3-day Session Cross-business Focus Top 5- 10% of C3/D1 leaders Prep for Director roles SC Members 3-day Session •Regional Meetings •Mentoring •Strategic Projects •Teaching Opportunities •Peer Coaching Agenda EMEA - Dell Graduate program Fiona McCarthy HR Director – EMEA Operations October 12th – 2006 Background •The requirement to recruit and build talent for leadership in the future is an ongoing challenge •Recruitment of graduates has changed from filling “current vacancies” to investment hiring encompassing a graduate development program •Calibration of graduates through recruitment process to specified standards to ensure future leadership capability •Dell currently has developed an EMEA formal graduate recruitment and development programme •Organisations of our size and stature do offer Graduate programmes Dell branding •The graduate programme has enhanced our reputation as an employer, EMEA Graduate recruitment and development programme for FY08 •Recruit typically Degree/Masters graduates •Clear standards of assessment applied to ensure future leadership potential •Recruit to a specific function •Entry level at B2 •2 year tailored programme including both on and off-the-job development opportunities •Up to 3 rotations giving broad experience within their chosen function •Delivering ‘real jobs’ for the business •Ready to flow into C1 level positions at the end of 2 year programme •Headcount held as ‘super-numery’ in HR and therefore ring-fenced from usual headcount figures for opex purposes (key learning from EMF) The Programme •Focus is required in 4 key areas Acquisition On-Boarding Development Compensation & Benefits Performance Planning The Programme Acquisition •The Talent Acquisition Team will ‘own’ the process of recruiting graduates across EMEA. This will be achieved through:• Reaching clear agreement with the businesses/functions on the number of graduates that will be recruited to the scheme each year. • Defining the standards to which graduates will be recruited • Identifying current Interns who demonstrate the capability and potential to be good candidates for the development programme. • Building relationships with local targeted universities to promote Dell as a graduate recruiter. • Conducting initial in-country screening to identify candidates for a European assessment centre. The Programme On-Boarding A dedicated Graduate Induction Programme including:•a scaled version of the Executive Induction Programme •a team-building event for the graduate community •a team ‘action challenge’ to accelerate business learning, networking and problem solving Development and Performance Planning Development Performance Planning Graduate Development Programme Training/ Development Job Mngnt Devt/ Core Competencies Functional Devt Professional Qualifications Rotation On the Job Devt •Suite of training •Core competence development •Support to train for professional qualifications and/or BPI certification •Defined graduate roles of differing scope •2 or 3 rotations within chosen function in 2 years •Delivering for the business •Clear development goals •Performance management •Mentoring Agenda What got us here won’t get us there Fiona McCarthy HR Director – EMEA Operations October 12th – 2006 Emerging Challenges Supply Chain Sourcing/Procurement: 80% Products Procured by Dell are from Far East Skill sets changing - Business Acumen & Economic Awareness - Political Savvy & Negotiation skills - Cultural Awareness R&D Free Market Vs. Closed Market Government requirements in Product Development Build on-the-ground relationships to influence Government requirements in Product Design & Development; Product Positioning in the Market Import Talent Restriction to sourcing within the EU Challenge How to merge business acumen for the emerging Asian markets – Dell ? * Export European Talent – ASIAN grad programs * Import Asian Talent to EMEA – EMEA grad program