Dell Looking to Clean House in the Executive Suite?

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BusinessWeek is peddling a rumor that Michael Dell is tyring to handpick a new executive team to jumpstart his company's (relatively) moribund business:

Says one high-ranking executive from a Dell rival: "It has been clear for months that Rollins had lost external support, but my sense is that he has now lost internal support as well. Perhaps a CEO can lose one of the two temporarily, but never both."

A Dell spokesman says that the company is not seeking to replace Rollins. "Michael and Kevin have been involved in business decisions, in accessing talent, in interviewing talent, together," says spokesman Bob Pearson. "There's nothing new here. There's no change."

Pearson declined to comment in any detail on attempts to fill other senior positions at Dell. "We're always looking to grow teams at all levels. We're always interested in looking at top talent," he says.

So, the word from Dell is "Nothing to see here, everything is fine, all systems are normal." BusinessWeek, however, goes on to suggest that Dell's been looking to find some heavy-hitters to shore up a few weak spots in the business. Nothing major, just looking for executives to fix Dell's services, their marketing, design, and operations.

Wow. If you're bleeding in all those areas, why not just shut it down and give the money back to the shareholders, Mike?

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Business may have slowed a tad, but to call it (relatively) moribund fails to recognize we continue to grow and be the most profitable in the business.

Just a reminder that you cant believe everything you read in Business Week.

The facts are that Michael Dell has publicly indicated that he and Kevin work together and are involved in our business decisions. Kevin has contributed to Dell's success as it emerged from other challenging times and is again demonstrating solid buisiness leadership as we emerge from current challenges. He has already announced Dell 2.0; our incremental $150 million investment in improvements to the customer experience; and, initiatives related to our significant global growth.

You also need to keep in mind how we operate at Dell -- first, Michael and Kevin share leadership and second we are making significant investments for the future of the business. I dont see others making those investments.

And, by the way, people are always a critical factor across all functions -- both the leaders and the bench strength. No reason to close the business because we always want to have the best talent in every aspect of the business. Michael and Kevin know that and are building both from within and by recruiting the best, externally.

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