REPRINTED FROM

interVIEW

Accelerating the Development of High Potentials

Strategic Leadership @Dell

DELL INC. was founded BACKGROUND

Dell announced an aggressive global target of $62B in revenue by 2006, which meant the firm would need to make talent acquisition and development a global priority. At the same time, Dell wanted to continue to focus on cost effectiveness and operational efficiency. The companys cornerstone values and philosophy are expressed as five elements, which together comprise The Soul of Dell:
Customers The Dell Team Direct Relationships Global Citizenship Winning

The company was at a point where it was asking its managers and leaders to lead differently than they ever have before. While reaching the aggressive numbers was essential, it was not enough. Instead, leaders were being called on to get to the numbers while engaging their people by offering inspiration and extraordinary leadership, integrating the Soul of Dell into their leadership styles. This called for a unique development program, linked to specific identified competencies.

Dell Competency Framework

Set Business Direction
Customer Focus Business Acumen Financial Acumen Strategic Agility

Kathleen Woodhouse, Senior Manager, Learning and Development, Dell EMEA, realized the hi-po program could not focus on everything. She had to make tough choices about the most relevant, critical competencies to be included. Because Dell believes that at the heart of a successful leadership team is the individual leader, self-awareness was an important competency. She selected Interaction Associates as a partner to create a learning process to support the competency development. Her choices were bold in light of past initiatives and traditional wisdom. She was asking busy high-potentials, all of whom are in senior leadership roles, to leave their locations to participate in the learning session. In addition, sharing 360-degree assessments with real-time peer-to-peer feedback was a revolutionary concept at Dell at the time. As Kathleen put it, we were setting new expectations.

1984, by Michael Dell. The firm employs 46,000 employees globally, and in 2003 generated $42 billion in revenues. Dells Europe, Middle East and Africa group, headquartered in Bracknell, U.K, enjoys the #2 market position in Europe. 2003 Dell EMEA revenues were $8.5B, and its 4th quarter year/year revenue growth was 27.3%. EMEA employees number 10,300. Paul Bell serves as senior vice president, Europe, Middle East and Africa (EMEA). In his role, Mr. Bell is responsible for Dell's EMEA regional business operations, including manufacturing facilities in Limerick, Ireland.

Align & Motivate Others

Motivate Others Build Effective Teams Develop Direct Reports Hire & Staff

Deliver Results the Right Way

Drive for Results Deal with Ambiguity Intellectual Horsepower Command Skills Integrity & Trust

At the same time, Kathleen minimized risk in several ways. She chose a partner with considerable experience and reputation. She also ensured complete integration with Dell leadership competencies and strategic imperatives. She had strong support from top executives and executive participation in the development process. And she made sure the program was data-driven, represented high levels of cultural alignment, and was relevant for high-potentials at many levels.

Functional Skills
Sales Marketing Product Development Manufacturing CSS Etc.

A Map of the DELL EMEA Leadership Journey

Start Here
Kick-off
Executive dialogues 1-1 meetings with EMEA Leadership Team 360 Feedback Tell Dell review sessions Ongoing coaching

Individual Milestones

Strategic Leadership

Leadership Forum
THE SOLUTION

Strategic Leadership @ Dell was conceived as an integral parta core building blockof Dells overall EMEA highpotential (hi-po) program. It is a targeted program for a highly targeted population, which is seamlessly integrated with Dells leadership competency framework. The overall hi-po program incorporates personal insight, organizational support, and on the job experienceand Strategic Leadership @ Dell is a central component.

Strategic Decision Making Teams Outcomes

Prepared for greater leadership roles Expanded support network Greater insight into self and others Development Plan

OVERVIEW OF STRATEGIC LEADERSHIP @ DELL

During the four-day learning event, Dell EMEA high-potentials participate real-time in a computer-based business simulation designed specifically to reinforce the identified competencies. They work in teams, across boundaries within and among organizational units. They are peer-coached in areas identified in their 360-degree assessments as areas for improved performance, thereby enhancing their capacity for selfawareness and self-correction. Participants use the simulation to experience, practice, refine, and revisit leadership concepts, models, and frameworks. They operate in a work group to develop a collaborative approach to win potential customer businesswhile satisfying demanding shareholders, employees, and business requirements. The competencies on which hi-pos focus during Strategic Leadership @ Dell are:
Motivating Others Business and Financial Acumen Building Effective Teams Customer Focus Strategic Agility

Strategic Thinking Skills

Skill Definition Accessing a broad range of information that relates to the business decision or issue at hand. Simulation Example Reading through all the Simulation documentation and identifying the most pertinent in terms of impact.

Scanning

Abstracting/ Patterning

Grasping the essential themes or discovering the synergy among often disparate bits of information in a way that organizes and focuses thinking and informs choice.

Selecting a theme(s) from the information to provide focus for your simulation decisions.

Inducting/ Hypothesis Creation

Rapidly forming beliefs and hypotheses from concrete, but sparse data, and drawing conclusions.

Creating working hypotheses about key simulation decisions like: whether or not to focus on plan, manage or build. Or, selecting which business to go after.

Multivariate Analysis

Balancing many dynamic variables in the air simultaneously and seeing the relationships cause and effect among them.

Seeing the interrelationships among: long term growth goals, revenue targets, the businesses that you went for, staffing decisions, development investments, etc.

Stakeholder Analysis

The Strategic Leadership @ Dell Model

Reframing

Seeking the underlying values, beliefs and attitudes held by current and potential stakeholders and sensing a direction that incorporates a balance of interest. Challenging and revising existing conclusions, hypotheses and assumptions.

Identifying the stakeholders for the Business Case and making sure that their interests are represented.

s l es ia in nc s a Bu Fin en d um an Ac
er tom Cus cus Fo

Bu

ild

in g Te Ef am fe s ctiv e

Looking at the beliefs or hypothesis tried out in the Round 1 Simulation and reframing them for Round 2.

Strategic Leadership @ Dell

Kathleen reported the following points as Lessons Learned for those who are planning a hi-po program launch:
Sponsorship at the top is critical. Executive involvement is valuableleader-led works. Clear, cohesive, consistent application is critical. Development is a singular process.

Mot iva Oth ting ers

Strategic Agility

Be willing to take risks.

ABOUT INTERACTION ASSOCIATES

According to Michael Reidy, Senior Consultant, Interaction Associates, one highlight of the program is the content around Strategic Thinking. Participants learn strategic thinking skills and practice using them to make decisions during team meetings decisions which are then tested by the computer-based business simulation. That way, participants receive real-time feedback on application of these new skills. (See chart at right.)
RETURN ON INVOLVEMENT

Interaction Associates, Inc. provides people with the skills, tools and mindset to think strategically and work collaboratively to solve problems and create opportunities. We develop leaders at all levels as well as others who manage organizational change. Our skilled consultants have been helping companies overcome their toughest challenges since 1969. We provide an integrated curriculum for developing leaders and change agents, with a focus on collaborative capabilities, strategic thinking, and self-awareness. We model the skills we teach to help clients put their learning into practice on the job for immediate results. Our work is based on proven research, and we combine vertical industry knowledge with customized consulting services tailored to our clients needs. Unlike many firms, we work with our clients to develop a seamless solution, even integrating our work with that of other vendors. The result is a powerful, tailored solution with no internal disruption. Interaction Associates serves the following industries: Banking/Financial/Insurance Business Services/Consulting Construction/Mining Education/Libraries/Museums Energy/Petrochemical/Utilities Engineering/R&D/Science Entertainment/Hospitality/Recreation Government/Military Health Care Manufacturing Pharmaceutical Retail/Wholesale Transportation

Kathleen reviewed the results of the program to date, measuring participants in a number of ways. The results indicate the program is developing leaders, quickly, in the areas Dell needs to reach its goals:
The majority have been rated #1 or #2 performers (the top

two levels of a five-tier rating system).

Participants have enjoyed above-average bonus modifiers and

stock modifiers.
There have been measurable increases in Winning Culture

metrics from the Tell Dell employee opinion survey.

Based on a presentation given at The 2004 Conference Board Leadership Development Conference. Presenters: Kathleen Woodhouse Senior Manager, Learning and Development, EMEA (Europe) Dell, Inc. Michael Reidy Senior Consultant Interaction Associates, Inc.

TO LEARN MORE about Dell, visit www.dell.com.

To learn more about interactionassociates, visit us online at www.interactionassociates.com.

San Francisco, CA 415.343.2600 88 Kearny Street, 12th floor San Francisco, California 94108

Boston, MA 617.535.7000 70 Fargo Street, Suite 908 Boston, MA 02210