How To Destroy Dell

Note: This posting is based on my weekly “Thank God It’s Monday” that helps you and your company thrive!

This week’s focus: how to destroy Dell

Dell is attempting to go private. In Saturday’s news, there is word that the private equity firm Blackstone may be making a bid for Dell and may be attempting to recruit Mark Hurd, the former CEO of HP, to be president should the deal go through.

While Mark Hurd did positive things for HP’s stock during his tenure, his sole focus was wringing every scintilla of cost out of the company. He was responsible for no new, significant innovation and left a horror story behind that HP is still trying to dig out from under. HP’s merger and acquisition activity of the last 10 years has largely been written down to a fraction of the original investment value. He left a deeply demoralized team when he resigned due to personal improprieties. Mark Hurd joins Carly Fiorina and Leo Apotheker in undermining the spirit of the company.

Now, after all the talent that could have made a difference at HP has long since left the company, HP finds itself with flat-footed with little bench strength as it engineers a turn-around. This formerly “A” company is left with mostly “B” and “C” players to run the show.

The worst thing in the world for Dell employees and customers would be for a private equity firm to take over Dell without Michael Dell at the helm. Add Mark Hurd to that mix and the party will be over. I don’t see how Dell can possibly thrive under a traditional private equity culture. Remove Michael Dell and Dell becomes just another company.

[Note: I encourage you read why Dell is poised for a strong comeback in my highly-acclaimed Fast Company article If I Sell You My Company Will You Respect Me In The Morning?]

Thought for the week:

“The problem with the world is the intelligent people are full of doubts while the stupid ones are full of confidence.” – Charles Bukowski

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What do you think? I welcome your blog comments!

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Dave Gardner, Gardner & Associates Consulting

http://www.gardnerandassoc.com

© 2013 Gardner & Associates Consulting  All Rights Reserved

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