After exploring through the Dell website and the details as listed in the Investors section has been taken into consideration to base this discussion post. Most of the key facts have been considered from their corporate governance principles. Whether or not Dell has effective governance with regard to each of the categories are considered as provided below:
Accurate Financial Reports and Controls
The management team at Dell pens the financial statements every quarter and also on an annual basis. These reports are then reviewed, understood and approved by the board before release. Further, there’s a separate team formed as part of the process called audit committee. The role of this committee is to assist the members of the board to fulfill their roles and responsibilities to oversee things with regard to the financial reports and other disclosers that are to be shared to the stakeholders (Dell Inc, 2018). It works as an internal control to ensure that the correct information is passed on. The committee also has additional roles like ensuring that the standards of accounts and reports are met, analyzing the risk that the company is exposed to, forecast the effect that the purposed or new addition might bring to the business and as such.
A Critical Appraisal of Strategic Action Plans
The management team and the board both are involved in the process of forming and implementing a strategic action plan. It first starts with the management team which is responsible to come up with a long-term strategic action plan along with annual operation plans. Those plans are then presented by the management team to the board which would review and suggest changes if needed (Dell Inc, 2018). Once all the suggestions are incorporated, the board approves the action plan. The management team now is responsible to implement and execute the approved plans. Once in action, if any changes are to be made, the management team makes a suggestion to the board which would either suggest an improvement or approves or reject the recommendation as per their understanding of the need. Once the recommended is accepted, the management team is tasked to incorporate the change in the system accordingly and execute it.
Evaluation of the Strategic Leadership Skills of the CEO
The company board serves as the judge when it comes to the overall plans, performance, and operation as a whole. The leadership development and compensation committee along with all of its other work is also responsible to have a succession plan in place for the company leadership along with evaluating the achievements of the CEO and passing it on to the board. The board than bases its decision on the report as presented by the committee. The evaluation of the CEO and other leaders are done on a yearly basis. If the performance of the CEO isn’t up to mark, the decision of termination is taken by the board. The decision to continue with the same CEO is in their control as well (Charan, 2016).
Executive Compensation
The leadership development and compensation committee plays a role in executive compensation as well. Their task with regard to this is to check the amount and type of compensation on behalf of the board that is to be paid to the executive staffs of the dell and all other staff as well (Dell Inc, 2018). They also come up with the bonuses and equity compensation that is to be paid out to the executives. They basically admin the company’s equity and benefit compensation.
Does Dell have effective governance?
Will all things considered and analyzing what Dell, as a company does in each of the four components, looked into, Dell indeed practices effective governance. The roles and responsibilities have been split across multiple smaller committee to recommend to the upper management for the decisions which help to streamline the process as well. All those processes and steps necessary are well defined as well to make things simpler. So, based on the findings for each of the criteria, there is ample evidence to suggest that Dell infact have effective governance.
After exploring through the Dell website and the details as listed in the Investors section has been taken into consideration to base this discussion post. Most of the key facts have been considered from their corporate governance principles. Whether or not Dell has effective governance with regard to each of the categories are considered as provided below:
Accurate Financial Reports and Controls
The management team at Dell pens the financial statements every quarter and also on an annual basis. These reports are then reviewed, understood and approved by the board before release. Further, there’s a separate team formed as part of the process called audit committee. The role of this committee is to assist the members of the board to fulfill their roles and responsibilities to oversee things with regard to the financial reports and other disclosers that are to be shared to the stakeholders (Dell Inc, 2018). It works as an internal control to ensure that the correct information is passed on. The committee also has additional roles like ensuring that the standards of accounts and reports are met, analyzing the risk that the company is exposed to, forecast the effect that the purposed or new addition might bring to the business and as such.
A Critical Appraisal of Strategic Action Plans
The management team and the board both are involved in the process of forming and implementing a strategic action plan. It first starts with the management team which is responsible to come up with a long-term strategic action plan along with annual operation plans. Those plans are then presented by the management team to the board which would review and suggest changes if needed (Dell Inc, 2018). Once all the suggestions are incorporated, the board approves the action plan. The management team now is responsible to implement and execute the approved plans. Once in action, if any changes are to be made, the management team makes a suggestion to the board which would either suggest an improvement or approves or reject the recommendation as per their understanding of the need. Once the recommended is accepted, the management team is tasked to incorporate the change in the system accordingly and execute it.
Evaluation of the Strategic Leadership Skills of the CEO
The company board serves as the judge when it comes to the overall plans, performance, and operation as a whole. The leadership development and compensation committee along with all of its other work is also responsible to have a succession plan in place for the company leadership along with evaluating the achievements of the CEO and passing it on to the board. The board than bases its decision on the report as presented by the committee. The evaluation of the CEO and other leaders are done on a yearly basis. If the performance of the CEO isn’t up to mark, the decision of termination is taken by the board. The decision to continue with the same CEO is in their control as well (Charan, 2016).
Executive Compensation
The leadership development and compensation committee plays a role in executive compensation as well. Their task with regard to this is to check the amount and type of compensation on behalf of the board that is to be paid to the executive staffs of the dell and all other staff as well (Dell Inc, 2018). They also come up with the bonuses and equity compensation that is to be paid out to the executives. They basically admin the company’s equity and benefit compensation.
Does Dell have effective governance?
Will all things considered and analyzing what Dell, as a company does in each of the four components, looked into, Dell indeed practices effective governance. The roles and responsibilities have been split across multiple smaller committee to recommend to the upper management for the decisions which help to streamline the process as well. All those processes and steps necessary are well defined as well to make things simpler. So, based on the findings for each of the criteria, there is ample evidence to suggest that Dell infact have effective governance.
References
Charan, R. (2016). The Secrets of Great CEO Selection. Retrieved from hbr.org/2016/12/the-secrets-of-gre...
Dell Inc. (2018). Retrieved from http://euro.dell.com/content/topics/global.aspx/about_dell/investors/corp_gov/corp_gov?c=eu&l=en
Dell Inc. (2018). Retrieved from http://euro.dell.com/content/topics/global.aspx/about_dell/company/leadership/email?c=eu&l=en&s=gen