Memo to Michael Dell 2
A week ago, I asked you: "What were you thinking when you issued a statement saying that recalling over four million laptop batteries because of a fire hazard would have 'no material impact on the company's finances?' You had to know the word 'material' would be dropped from all the headlines. It makes Dell, the man and the company, appear disingenuous. Dell, with its customer-direct model, needs to promote trustworthiness. This instead gives the appearance of being in denial."
I know you are a busy man, but this really needs your attention. As reported by the Washington Post and others, the president of your Japanese unit told reporters Tuesday that the recall of Dell laptops with Sony batteries will not impact Dell’s brand in Japan, where two Dell computers are reported to have caught fire. The headline on this article: “Dell says recall won't impact its brand in Japan.” This once again gives the appearance of being in denial. Of course it will impact your brand. The question is, how?
The same article reported public statements that amount to nothing more than finger pointing between Dell and Sony. So what if Sony is to blame? These are your customers affected, not Sony’s.
Full disclosure, Michael: I am a big fan of Dell. My desktop computer is a Dell. My wife’s laptop is a Dell. (Perhaps ironically, my laptop is a Sony.) I admire you as a company builder. So I want to urge you again to get your folks on message, emphasizing concern about customers and only concern about customers. Do not worry for now about calming the financial markets, your CFO can do that in purely financial discussions. Do not worry about who is to blame, the press is doing that for you. Have your people take the high road.
Perception is everything with this sort of PR problem. Dell not only needs to execute the recall well, as you appear to be doing. You need to use this as an opportunity to emphasize devotion to customers. You can turn this into a net gain for your brand. Sure, Apple has a similar problem with Sony batteries. So what? The answer to all questions about the recall should be, “We are busy taking care of customers.”
As a man who builds a business for the long haul, you know that happy customers will take care of your brand image and financial results. Not doing so will, well, you know that too.
Copyright © 2006 Philip Bookman
Technorati: Dell
I know you are a busy man, but this really needs your attention. As reported by the Washington Post and others, the president of your Japanese unit told reporters Tuesday that the recall of Dell laptops with Sony batteries will not impact Dell’s brand in Japan, where two Dell computers are reported to have caught fire. The headline on this article: “Dell says recall won't impact its brand in Japan.” This once again gives the appearance of being in denial. Of course it will impact your brand. The question is, how?
The same article reported public statements that amount to nothing more than finger pointing between Dell and Sony. So what if Sony is to blame? These are your customers affected, not Sony’s.
Full disclosure, Michael: I am a big fan of Dell. My desktop computer is a Dell. My wife’s laptop is a Dell. (Perhaps ironically, my laptop is a Sony.) I admire you as a company builder. So I want to urge you again to get your folks on message, emphasizing concern about customers and only concern about customers. Do not worry for now about calming the financial markets, your CFO can do that in purely financial discussions. Do not worry about who is to blame, the press is doing that for you. Have your people take the high road.
Perception is everything with this sort of PR problem. Dell not only needs to execute the recall well, as you appear to be doing. You need to use this as an opportunity to emphasize devotion to customers. You can turn this into a net gain for your brand. Sure, Apple has a similar problem with Sony batteries. So what? The answer to all questions about the recall should be, “We are busy taking care of customers.”
As a man who builds a business for the long haul, you know that happy customers will take care of your brand image and financial results. Not doing so will, well, you know that too.
Copyright © 2006 Philip Bookman
Technorati: Dell
Labels: software strategy
posted by Phil Bookman at 9:59 AM
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