Michael Dell Gives Rollins Vote of Confidence

Michael Dell, founder and chairman of the company that bears his name, provided a strong endorsement of his company’s CEO, Kevin Rollins, at a meeting today designed to apprise analysts and investors of Dell’s product and technology plans.

In the wonderful world of professional sports, the dreaded vote of confidence from executive management often is a foreshadowing that the axe is about to fall on a coach or general manager. Despite Michael Dell’s protestations to the contrary today, I wonder about Mr. Rollins’ job security at Dell Computer.

Clearly, as Michael Dell himself made clear today, the company’s problems are not all the fault of Rollins. Said Dell:

I believe that Kevin Rollins is an outstanding executive. I think characterizations of the company’s challenges as being only of Kevin’s doing are inaccurate. Kevin and I run the business together. So if you want to blame someone, you can blame me too.

Dell is right. He should share the blame with Rollins, and others, at Dell for the company’s continuing missteps and travails. Michael Dell was just as guilty as the company’s other leaders for taking his eye of the ball, getting complacent, and allowing Dell to lose its business focus, market momentum, and corporate flexibility.

But Michael Dell has an impressive track record of success at his company, and investors and analysts will give him a chance to rediscover the magic. Kevin Rollins? He doesn’t have that cushion, that history, behind him. Major institutional investors, large customers, and strategic business partners will be less forgiving of the debacles the company has experienced during Rollins’ mandate as CEO.

Can Michael Dell be his company’s Steve Jobs, coming to the rescue of a beleaguered, seemingly enervated technology firm and helping to restore it to former glory? Well, probably not, because life and business are more complicated than that, and also because Michael Dell, by his own entirely accurate admission, has been part of the problem, rather than part of a possible solution, at Dell Computer.

Still, he represents a measure of hope to the desperate stakeholders at Dell. If things at the company get worse before they get better — and that’s entirely likely — look for pressure to mount, internally and externally, for Michael Dell to return to the CEO chair and for Kevin Rollins to leave the company.

Dunn Steps Down as HP Board Chairman, but Remains a Director

In my estimation, HP has not done enough to quell the furor over the heavy-handed, unethical, and illegal methods that were used in its contracted and subcontracted investigation of leaks that emanated from its board through 2005 and into this year.

Patricia Dunn, the board chairman, has agreed to step down, to be replaced by HP CEO Mark Hurd as of January 1, 2007. On that same date, former HP executive Richard Hackborn will be elevated to "lead independent director," which seems to suggest he will take a prominent role in assisting Hurd in managing and running the board’s affairs. Anything better than the recent cloak-and-dagger antics and vaudeville routines would be well received.

I don’t see how HP can allow Dunn to remain a board member.

What has happened to business ethics, to executive accountability? HP is setting a dangerous precedent, for itself and for the industry, by refusing to mete out the punishment that Dunn deserves.

Let’s not mince words: She doesn’t deserve to serve on the HP board.

In another era, another place, she might have made a good KGB officer, but, after what has been commissioned and undertaken on her watch — pretexting as an investigative tactic against board members and nine journalists, plus an apparent misrepresentation of the reasons behind venture-capital Tom Perkins’ resignation from HP’s board — there is no way she can server as credible representative of the company’s interests, either as an employee or as a board member.

Do the right thing, HP. You’re getting there, but you’re not there yet.

What’s Taking HP So Long?

The more we learn about the circumstances and details of Hewlett-Packard’s investigation into information leaks from its board of directors, the worse the situation looks for the board’s chairman, Patricia Dunn, and for the integrity and reputation of the company itself.

Yesterday, as reported by the Associated Press, the FBI, the U.S. Attorney for Northern California and the House Energy and Commerce Committee joined the California attorney general and the Securities and Exchange Commission in investigating the HP scandal.

It is well past time for HP to make the right call and dismiss Dunn from the board. No, I don’t think she should retain a board position while losing her status as chairman. She needs to leave the board, never to return.

I cannot believe that HP is struggling with this decision. It’s an easy call, and it should have been made days ago, if not earlier.

CEO Mark Hurd, who has been a golden boy since coming aboard about 18 months ago, should not allow the situation to deteriorate further, which is what will happen if HP doesn’t take definitive action, showing the proper degree of contrition in the process.