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Direct From Houston: Dell is Born

In 1999, Michael Dell was giving a lecture on the ABCs of entrepreneurship to a business class at his psuedo-alma mater, the University of Texas. When it came time for the question and answer period, one of the students eagerly stood up and asked Dell why, despite being worth over $17 billion, he continues going to work each day. “You’ve got so much money,” the student said. “Why don’t you just sell out, buy a boat, and sail off to the Caribbean?” Dell stared back at the student and replied, “Sailing’s boring. Do you have any idea how much fun it is to run a billion-dollar company?”

Taking the Industry By Storm: The Dell Revolution

In 1985, PC’s Limited introduced its firt computer design of its own, called the Turbo PC. Dell began advertising the system in national computer magazines, but with a unique twist: these computers were available for sale directly to consumers and could be custom-assembled. The prices Dell was offering were thus far lower than the retail brands. In its first year, PC’s Limited had grossed over $6 million. Dell finally moved out of his dorm room and into his own condominium.

Lesson #1: Build Byte By Byte

“I've learned from experience that a company can grow too fast,” says Dell. “You have to be careful about expanding into new businesses because if you get into too many too quickly, you won't have the experience or the infrastructure to succeed.”

Lesson #2: Develop a Customer-Focused Philosophy

“Let’s say you decide to buy a car – red, two-door,” says Dell. “All sold out – four months to get one – but a really convincing salesperson talks you into the blue, four-door and probably the rust-proofing too. The salesperson gets a nice commission, when she actually sold you a car you didn’t want. Then, the dealer sends a signal back to the factory that blue four-doors are selling really well – build some more!” Contrary to this, Dell’s philosophy is that, “We’ll listen, and we’ll respond…It’s about the customer. It’s that simple.”

Lesson #3: Build a Company of Owners

“It’s one thing to create a culture that works,” says Dell. “It’s another to use that culture to create a measurable strategic advantage. You need to engender a sense of personal investment in all your employees, which comes down to three things: responsibility, accountability, and shared success.”

Lesson #4: Thrive On Change

Dell believes in the power of deriving strength from change. When speaking on the issue, he often makes a link between change and “the Chinese character for crisis which represents both danger and opportunity.” The success of his company has come about in large part due to Dell’s ability to not only withstand change, but also to take advantage of new opportunities.

Lesson #5: Think For Yourself

“The first thing you should do is throw away that store-bought map and begin to draw your own,” says Dell. “It’s through curiosity and looking at opportunities in new ways that we’ve always mapped our path at Dell.”

Computing Success: How Dell Came Out On Top

To become a success, Dell says, “You just need a framework and a dream.”

Michael Dell Quotes

Michael Dell Quotes

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