Technology executives are notorious for their out-of-proportion egos and hot-headed tempers. Michael Dell, Larry Ellison, Bill Gates, Steve Jobs-- even Andy Grove--are all members of a long list of distinguished high-tech executives who are famous for not suffering fools lightly, among other things.
But what happens when they're the fools? What happens when a high-powered executive has his head up his you-know-what and has lost all sense of objectivity? What happens when a gutsy employee speaks up? Well, in many cases he gets his head chopped off for his trouble. In shrink speak this is called transference, which in this case means unconsciously taking one's own feelings of inferiority and guilt out on another.
Given a choice, the vast majority of people would rather forgo the whole decapitation thing rather than declare that "the emperor (or should I say executive) has no clothes." Not surprisingly, this phenomenon is rampant in the technology industry. ... Read more
I'm not a big fan of surveys, so I don't quote them often. But a recent Consumer Reports survey about PC manufacturers listed Apple as No. 1 in tech support, with Lenovo second, Dell third, and HP dead last. I should also say that Dell came in second in desktops.
I thought the headline should be "Survey says leading PC maker HP dead last in tech support." But that's not what happened. The media hailed Apple, trashed Dell, and gave HP a pass.
Horror stories about Dell's support are all over the blogosphere. Why is that? I mean, why does the media give Dell such a hard time?
Because perception is reality. But aside from being a pithy statement, what does that really mean? ... Read more
Sometimes I'm so uninspired I can't come up with a decent blog post to save my life. When that happens, I turn to what comforts me: numbers. Yes, I know how weird that sounds. What can I say, I'm a geek.
Anyway, I just got to wondering how investors in various technology companies fared over the long haul. I was just as interested in how technology companies performed versus companies with a more traditional business model. ... Read more
Technology companies run into trouble from time to time. Today it's Yahoo, Dell , and Motorola. Tomorrow it could be Google, Cisco Systems, or Apple.
Lest we forget, it wasn't that long ago that Apple flat-lined for an entire decade before ousting Gil Amelio in favor of ex-chief Steve Jobs. Jobs restructured the company by first cutting Newton and other unprofitable products, then introducing exciting new core products like iMac, and finally branching out into consumer devices like iPod and iPhone.
But that's nothing new. It happens to most companies, sooner or later. ... Read more
As reported, Dell recently concluded a year-long internal investigation into its accounting practices. As a result, the company will restate its financials for four fiscal years (2003 through 2006) plus the first quarter of fiscal 2007. The good news is that the cumulative decrease in net income will be between $50 and $150 million - peanuts compared with Dell's reported profit of $12 billion during the restatement period.
The bad news, however, is contained in a rather heavily wordsmithed paragraph of Dell's press release:
"The investigation identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets. According to the investigation, these activities typically occurred at the close of a quarter. The investigation found evidence that, in that timeframe, account balances were reviewed, sometimes at the request or with the knowledge of senior executives, with the goal of seeking adjustments so that quarterly performance objectives could be met."
It appears that certain senior executives had a chronic case of end of quarter madness, a relatively common disease among executives of publicly traded companies.
Confirming what was evident from Dell's announcement, CFO Don Carty said in a conference call with investors, "We did find evidence of fraud." But neither Carty nor Michael Dell - who reclaimed the CEO role in January - would divulge the identities of the senior executives referenced in the company's release. ... Read more
- prev
- 1
- next
