“Direct from Dell” is an autobiographical book written by Michael Dell sharing his story of starting the business from scratch to building the business empire. Along with the eye-opening lessons scattered throughout the pages, one of the beauties that can be noticed is that the writer uses both "he" and "she" pronouns to refer to customers or team members showing respect for both genders. This book is highly recommended to people who are or aspire to become successful entrepreneurs. This article explores the eight valuable lessons from the book that can guide entrepreneurs and business enthusiasts towards success.
Lesson 1: Execution Over Perfection
In the business world, prioritizing execution over perfection is crucial. Many people wait for the perfect time to start their project. Not only business projects but also personal pursuits like beginning an exercise routine, embarking on a reading journey, or venturing into book writing do not require any perfect time to start. What truly matters is commencing the journey rather than fixating on perfect timing. Perfect starting is not the point, but the important thing is to start and evolve along the journey. A little late might be too late in business.
Quote from the Book
“The pace of business moves too quickly these days to waste time noodling over a decision. And while we strive to always make the right choice, I believe it’s better to be first at the risk of being wrong than it is to be 100 per cent perfect two years too late.”
Lesson 2: Perfection is a Myth
There is no such thing as perfect, especially in a business organization. Business organization, no matter how professionally managed or whatever it has achieved, cannot be perfect. Because perfect means the state where no change is required and in business, the way business is managed requires continuous changes as per the change in the market. There is always room for progress, always something more to be done and achieved. Improvements can always be made, and businesses should be open to change. Perfection is a myth.
Quote from the Book
““There’s a saying in the technology field that what can be done, will be done. If something can be improved, someone will figure out a way to do it. No matter what your business, that someone had better be you.”
Lesson 3: Respect Customers
Quote from the Book
“If you’re trying to solve a customer’s problem, go and ask him how he’d like to see it solved. This kind of problem-solving “empathy” leads to innovative thinking.”
“In the market, the customer is indeed the king. Due respect should be given to the king. The first thing that shows respect to the customer is producing not what the business wants to produce but what the customers want to buy. There is no point in producing anything that customers do not buy. Once goods or services are sold, continuous customer service is equally important to show respect to the customers. Customer loyalty and the strength of a long-lasting brand depend on customer service. The goods and services should be modified as per the requirements of the customers. For that, continuous feedback from the customers should be collected and that feedback must be taken seriously. Respecting customers is paramount..”
Quote from the Book
“Jack Welch of General Electric (a Dell customer, we’re happy to say) has been quoted as saying, “Everything we do is aimed at either getting a customer or keeping a customer.” That’s a belief that’s always guided Dell, too. I spend about 40 percent of my time with customers. When people hear that, they often say, “Wow—that’s a lot of time to spend with customers.””
Lesson 4: Direct Sell Approach
The massive success of Dell is significantly attributed to the least taken route by the other businesses, which is the “Direct Sell" approach of the company. Dell is guided by the principle of selling the computers directly to the end consumers, breaking the barriers between distributors and retailers. As mentioned above, Dell is strongly convinced that the product must be as per the needs of the customers. To understand the needs of the customers, the company must collect feedback from the customers. Feedback is essential for the survival and growth of any business. If the company is in direct contact with the end users of the product, feedback can be collected easily. A large part of the genuine feedback is lost along the way if it is collected through distributors and retailers. When the company which manufactures the product is in direct contact with the customers, their comments and suggestions can be directly messaged to the engineering department to modify the product swiftly. The title of the book, "Direct from Dell", shows how Dell values the direct sell approach.
Lesson 5: Use of E-commerce in the Business
Dell was an early adopter of e-commerce, using its website for custom configurations and pricing. The book describes how sales were boosted using the site: www.dell.com. The author describes that using this innovative approach saved the cost of human resources for the company and saved time of visiting the store for the consumers, highlighting the importance of embracing e-commerce. Dell started selling computers online when no one believed it was possible. The belief was that customers would not buy computers from those who do not have physical stores. But Dell was among the first companies to make online sales and it paid off well. The use of e-commerce for business has become inevitable for all businesses.
Lesson 6: Delegation
The decision of delegation is crucial in any business. While manufacturing the computers, Dell repeatedly had to face the problem of deciding whether to manufacture the parts by Dell itself or buy from other vendors. Many times, it was more beneficial for the company to buy the parts from other vendors so that the company could focus on the product itself. Dell's approach of focusing on core competencies is a valuable lesson in delegation.
Quote from the Book
“…someone at Boeing once said, “We want to be experts at airplanes, not computers.”
Lesson 7: The Goal-oriented Team
Ensuring that the entire team understands how their work impacts the overall business is essential. The book describes that at Dell, even the non-finance employees such as engineers were provided with Profit and Loss Statements and Balance Sheets. They were provided with insights into how their work affects the sales, profit, cash flow etc.
Lesson 8: Liquidity, Profitability and Growth
In 1993 when Dell faced a serious downturn in the business, Dell prioritized the company's liquidity, profitability, and growth, in that order. This is such an eye-opening strategy. If a business focuses on profitability or growth before liquidity, the business will face a financial crisis. Liquidity is the first factor to be considered by the business. But liquidity is not the final goal. After the business is in a comfortable liquidity position, its target should be profitability. A business cannot survive long without adequate profit. However, rapid growth in profitability for a certain time does not guarantee the long-term sustainability of the business. The long-term sustainability of the business depends on the growth of the business. The end goal of the business should be growth, but it must be preceded by a series of other factors.
Conclusion
"Direct from Dell" provides a wealth of lessons for entrepreneurs and business leaders. Michael Dell's journey serves as a testament to the significance of adaptability, innovation, and customer-centric approaches in attaining success.
