Every component of a corporate sustainability model should be associated with performance indicators such as inputs, processes, outputs, and outcomes. By determining the appropriate performance measures needed for each component of the sustainability model, companies can evaluate the performance and financial benefits of the sustainability initiatives. Dell Computer Corporation knew that balance is especially important in performance measurement and wanted to make a change to improve their reputation and also their consumer sales.
The performance metrics that are most valuable to Dell from the inputs are mostly from the business context performance measures which include number and size of competition, diversity from competition, market size, and their competitive position within the industry should be the most important to them since they have so much competition in the industry (Epstein, 2008, p. 169).
One way that I found through research that Dell has come up with to stay unique and making them competitive with their competition was by creating “the Dell Precision T5500 and T7500 which deliver up to 90 percent better multi-threaded digital content creation application performance versus previous generation systems” (Bolen, 2009). “The new systems are purpose-engineered for professionals in engineering, media, entertainment, biosciences, exploration, economic modeling and risk analysis” (Bolen, 2009). Dell feels that this will put them a step ahead of competition in the professional field.
This is a great way for them to get ahead of technology and to be innovative. Having a sustainability strategy in place is a good step towards becoming a strong competitive organized company. Measuring the sustainability process is the next step to develop. Performance measures that I feel that Dell should be using are becoming a green office, having diversity in the workplace, costs for employees, inventory on hand and also creating on-going projects that entice employees causing a reduction in lost workdays (Epstein, 2008, p. 70).
This combination of metrics is important to the value of any company. Dell also must control their performance measures that are tied into their outputs of their suitability performance. Some ideas that I feel that they should pay attention too are the number of plant closures they have, how they can generate business locally to support the community, how they use recycled materials, and how they can better their company though better sustainability issues protecting the environment (Epstein, 2008, p. 72).
This is a main goal nowadays of any major organization. The outcomes of Dells suitability plans are the goal of long-term corporate financial performance using performance measures such as income and percentage of sales from green products, income from recycled products and recycled waste materials, costs from savings in energy costs, pollution costs and debt, as well as their return on investment form products they make (Epstein, 2008, p. 76).
Thomas Meredith, former CFO for Dell, stated that “The balance between profitable growth and liquidity management is all about velocity (Meredith, 1998, para. 6). ” He determined a formula using performance measures to determine the cash conversion cycle for Dell to use to be the most profitable. When Dell reduces the costs relative to the performance measures stated in the above paragraphs, they will result in higher profitability.
The survival of Dell is making sure that they know how to navigate these performance measures using inputs, processes, outputs, and outcomes of their sustainability model. Dell must make sure that they continue to improve their goals and keep coming up with innovative and new suitability ideas while still benchmarking and measuring what works and doesn’t work for them in order to be able to change for success.
Dell must continue to surpass the competition by continuing to develop new products that work well and provide a service to consumers that focus on the consumers and what they need and want. Dell will continue to perfect its sustainability systems, programs, and actions to succeed in the industry. They will continue to tailor their business in the direction of goals and train their employees to give the attention they must give customers to keep them coming back.
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