Employee Engagement for Competitive Advantage Marie Moynihan Human Resources Director Dell EMEA – Home and Small Business

2 Human Resources Agenda Who we are What we are trying to achieve Challenges we face How we engage our employees Globalisation – the employee experience Measuring success Summary

3 Human Resources #1 computer systems company in the world* – #1 in US, #2 in EMEA, #3 in Japan, #4 in Asia Pac Pioneered direct model Fastest growing and most profitable company in our industry $45.4 billion in global revenue Fortune 31 Company Almost 50,000 employees worldwide #1 computer systems company in Ireland 4,500 employees in Ireland – 40% of Dell EMEA employee base Ireland home to Dell’s European Manufacturing Facilities Dell is Ireland's largest exporter, largest technology company and its second largest company overall** IDC Q Final Data ** Irish Exporters’ Journal and Business and Finance 2004 Who We Are

4 Human Resources 20 Years of Unprecedented Success * Forerunner companies used to count down first 20 years of existence Note: 20 th year revenue: GE’s = $22M (1898); Walmart’s = $2.4B in (1982); Microsoft’s = $9B (1995); HP’s = $48M (1959); IBM’s = >$5M (1908) Source: Company archives, websites and annual reports; Fortune.com; Inflation rates from Bureau of Labor Statistics (BLS) 20 year inflation adjusted revenue Founded: IPO: * *

5 Human Resources What We’re Trying to Achieve WW: $60B Dell Revenue by Product Client Systems Server/ Storage Services S&P

6 Human Resources Product Leadership The best products Grow in servers, storage, services and printer markets Maintain price and cost leadership in all products No weakness in: features, availability, reliability, value and speed to market Customer Experience Best value due to lowest cost Most critical beyond-the-box support Easy to do business with Dell Globalisation Grow outside United States at a multiple of market growth Transfer global best practices Accelerate share gain by focusing on most critical countries, products and customer segments Winning Culture Develop leadership skills Encourage personal accountability Build a workforce of diverse backgrounds, skills and potential Maintain high standards of ethics and integrity Key focus areas of our mission

7 Human Resources An increasingly competitive IT market Industry consolidation and globalisation Maintain lowest cost structure for competitive advantage – Intense pressure to control/lower operating costs – do more with less Need to expand portfolio of products and services – Greater complexity for employees Need to grow global workforce, adding new employees in new locations, without compromising quality of the Customer Experience we deliver Managing dynamic change The Challenges We Face to Get to $60B

8 Human Resources Foster a culture where there is a constant awareness and focus on staying ahead of the curve amongst all employees Continual improvement is in our DNA Focus on a culture of ‘winning’ and clear demonstration of what is in it for our employees Align our people to our business goals Apply the same rigour and focus to building a great place to work as we have to building a great financial company Measure metrics hourly, daily and weekly For customer satisfaction, business performance and employee engagement How We Respond

9 Human Resources The Soul of Dell At Dell, we value and are committed to: Customers: Creating loyal customers by providing a superior experience at a great value. The Dell Team: Our continued success lies in teamwork and the opportunity each team member has to learn, develop and grow. Direct Relationships: Being direct in all we do. Global Citizenship: Participating responsibly in the global marketplace. Winning: Having a passion for winning in everything we do. The Dell Team is Central to Our Values & Success We are committed to… Being a meritocracy – We value accountability and reward those teams and team members who continually improve their capability and contribution. Developing, retaining and attracting the best people, reflective of our worldwide marketplace. – Hire and promote based on performance, capability and qualifications as key criteria. Look first to promote from within Dell. – Providing training and learning opportunities to maximize team and individual performances. – Investing in our people leadership capabilities as a competitive advantage. – Managing our talent as a key asset. – Utilizing job assignments across and within regions to build global leadership capability. – Promoting an environment that values individual differences, engages people in decision-making and encourages employees at all levels and across all parts of the company to work as a team. – Maintaining base pay and benefit programs competitive with successful companies relevant to our marketplace.

10 Human Resources Competency based hiring – drive for results, flexibility, tolerance for ambiguity are key attributes Objectives agreed and reviewed quarterly with each employee Expectation that each employees has an Individual Development plan which is worked on with direct manager Minimum 40 hours training per employee per year Meritocracy – pay for performance and profit related bonuses Open job postings advertised with preference given to internal candidates How We Engage Our Employees

11 Human Resources Open and regular communication – strategy and business results shared, metrics reviewed daily in huddles – All staff meetings quarterly with question and answer session – Employee meetings with visiting senior executives – Michael Dell and Kevin Rollins – Quarterly Middle management meetings – Regular employee forums with senior managers (brown bag lunches) – Recent standing employee forum concept launch in UK/I sales – One to One meetings - typically bi-weekly – minimum monthly Coaching and mentoring programmes Weekly bulletin; monthly printed newsletter featuring company news plus Dell employees at work and in the community Focus on non-work personal development – Community Involvement/volunteerism actively encouraged – Sports and Social events How We Engage Our Employees

12 Human Resources BPI is a set of tools and skills used to understand, investigate and improve business processes. BPI Mission: To empower employees with the knowledge, skill and tools in order to make Dell more efficient through reduced cycle time, improved quality or lower costs. Why has Dell made BPI a priority? Because of its inherent benefits: BUSINESS: Quality, cost savings (more than $1.55B during FY04) EMPLOYEES: Effective teams, empowerment, career enhancing CUSTOMERS: Better Customer Experience through cost, quality and cycle time improvements How we engage our employees – BPI

13 Human Resources Globalisation – the employee experience Globalisation strategy enables growth by reaching new markets and ability to leverage resources around the world to provide our customers everywhere with great value and services, 24x7 For UK & Ireland, this means dual site strategy for the home and small business (HSB) market with sales and support locations in both Ireland and India Initial reaction amongst employees of fear and uncertainty has changed due to lack of impact on employment & one team approach Keys to success: – Open communication – Sending employees on assignment to new locations – this has helped to create more of a sense of one team – Integration: regular updates on Indian team, features on Indian team in newsletter and other communication forums – Ongoing focus on sharing best practice with new teams in new locations – Growth brings opportunity: career development through redeployment & training

14 Human Resources Measuring How We’re Doing: “Tell Dell” Which all drive Employee Engagement Winning Culture Trust Creating Alignment Work/Life Effect. Providing Feedback Developing Capability Instilling Ownership Managerial Effectiveness Inclusion Twice-a-year, all-employee survey opinions on important drivers of Employee Engagement and a Winning Culture

15 Human Resources Summary Engagement requires understanding and buy-in to the dream! – Understanding is built on good communication, clarity of purpose and teamwork – Buy-in is based on people identifying with the dream either from a personal or organisational perspective, ideally both! Also recognising & acting upon the fact that people need to have fun and a bigger sense of community. Applying equal focus to building a great company & a great place to work