It is great news that Michael Dell is back at the helm of Dell. It was sort of expected given that Dell has been facing a lot of problems beginning with losing market share to HP, SEC investigations, battery recall and failure to introduce any new products. It only goes to show that it is difficult to leverage one’s core competencies in other areas.
What the world expects is whether he will restore Dell to its former glory; as much as Steve Jobs (another founder) did to Apple. Ted Waite (Gateway) another founder who came back failed.
Michael’s no nonsense email to employees is exemplary.
His way to reduce the bureaucracy is to institute major job cuts.
It looks that he just want to rev up the operational efficiency engine. I am not sure whether that is enough.
Had he decided to forego his own salary and options and also reduced the salary of some of the senior management, that would have motivated the rank and file, much in the way Jobs did.
I don’t think the services business is something that Dell can do effectively. It would serve as a distraction.