Thread regarding Dell Inc. layoffs

Email - Organizational and business updates for 2H

Looks like it’s official:

Organizational and business updates for 2H

Team,

Thank you for the work you’ve done throughout the first half of the year and your focused effort to deliver a strong Q2. You’ve shown strength and determination and I continue to be impressed and proud of the spirit this team brings to work each day.

The world is changing faster than ever, and we always want to position ourselves to win. Advancements in AI, Edge, multicloud and cybersecurity are generating even more opportunities to provide business transformation for customers. At the same time, B2B has caught up with consumer in online experience, and customers appreciate the speed and convenience of self-serve to get information, place orders, and arrange service.

We need to meet customers where they want to meet us – digitally or face-to-face. And as we move transactions online, our face-to-face time needs to be focused on outcome-led selling and driving those transformational deals. This is how we will grow and capture share into the future.

Heading into the second half of the year, we are prioritizing and aligning resources to deliver the business outcomes our customers need and ensure the most productive and effective Go-to-Market (GTM) approach. We will continue to put our sales team members in roles that give them and Dell the best opportunity to win.

Unfortunately, some members of our sales team will leave the company. We don’t make these decisions lightly, and we’ll support those impacted as they transition to their next opportunity.

Fine-tuning GTM roles and responsibilities
We have a proven, globally consistent GTM model and strong foundation. While most of our GTM will remain the same, we are refining the focus of some sales roles as we evolve to take advantage of the above trends. Who you work with day-to-day and how you collaborate may be a little different in the future.

Expect a town hall invitation soon from your regional sales leader. During this town hall, your regional leadership team will review how we work together and the opportunities in front of us. You’ll hear from your leader in the coming days about any changes that may impact your team.

There are two critical focus areas we must accelerate to propel our future growth, each supported by NEW compensation modifiers.
Embrace Online transactions. The shift to online and virtual selling is essential to winning in the B2B market. As I prewired in June, moving Online is so vital that we are adding an Online commission modifier for Client and Server transactions, including 1.1x for Online Self-serve, 1x for Online High Touch and 0.9x for Offline.

Customers find it easier to get information, place orders, and arrange service Online. Channel partners also appreciate the speed and convenience of self-serve transactions. For you, Online transactions eliminate the need to enter data for orders, process transactions, track orders and field post-purchase questions. Part of the 4P’s Productivity pillar, Online frees up your time for proactive selling and planning.

Drive Partner First for Storage. We’ve long talked about the power of working together with our partners. When we collaborate seamlessly, we scale our reach, generate more pipeline, win more deals and sell more across the portfolio! To accelerate storage share growth, today we are launching a Partner First Strategy for Storage. With this approach, 99%+ of Dell customers and prospective customers will now be considered “partner first” for storage, which includes our data protection portfolio.
To encourage greater partner teaming, we have a NEW 1.1x Partner Storage attainment modifier when you sell storage through a partner. The modifier will apply to 99%+ of our customer base, excluding a small number of accounts where we already have a strong footprint.

We are also increasing by 4X the number of eligible Partner of Record (POR) accounts. POR provides you with clear engagement guidelines while protecting our partners’ investments and encouraging them to uncover, register and sell Dell within that account.
Partners will have predictability of engagement, protect their investments and increase Dell storage opportunities. You will be rewarded for leveraging our partner ecosystem while freeing up time to focus on value-add activities, like exploring new business.

Our Global Partner First strategy maps closely to our 4P’s framework and reinforces the power of the Pod Model. Hear more from me and John Byrne in this video about what the Partner First Strategy for Storage means for you and our partners.

Other Compensation Plan updates
Plan stability is very important, and our foundational compensation plans are not changing for 2H. Updates are designed to support business priorities, such as the 4P’s focus areas. You will hear more from your leader about the 2H Compensation Plan over the next couple of weeks.

Next steps:
Expect an invitation tomorrow for an upcoming regional town hall and make the time to attend.
Following the town hall, meet with your manager to review your 2H compensation plan and ensure you understand your role as part of the Pod Model.
Look for Sales Ready and Tech Summit registration emails to hit your inboxes later this month for the Ready event beginning Sep. 19.
Continue to look to the 4P’s to prioritize where you spend your time and focus on the right actions.
I know it is difficult to say goodbye to colleagues and friends who will be leaving the company. As we’ve discussed before, we sometimes must make tough decisions for the long-term health and success of our company and our team.

Looking ahead, we have the strategy, the culture and the drive to win. New opportunities are growing across AI, Edge, Future of Work, multicloud, security and sustainability. Our technology has never been more important. No other company can do what we can, and no one else can get our products and solutions in front of our customers like this sales team (AND our incredible partners!).

We know what we’re capable of. It’s up to us to use our GTM advantage to become even stronger, accelerate growth and take share.

Good selling,

by
| 5734 views | | 19 replies (last August 10, 2023) | Reply
Post ID: @OP+1nZZPs2c

19 replies (most recent on top)

the 1.1X on storage via partners is NOT a needle mover for the direct team to work with the partners. 1.25 to 1.5 would be needle-moving. The POR list is a joke. it has never PREVENTED Dell from taking a deal direct, does not force the partner motion. I will be interested to see how the online transactions go for server & client. This feels like they are paying those reps more if they basically don't talk to customers. how is this customer service?

by
| | Reply
Post ID: @3nfk+1nZZPs2c

There’s nothing wrong with partners per se, but partners are focused on their own business first, which is how it should be in a competitive and free economy. The only company who has the self-interest to push Dell product as hard as possible, is Dell itself using the Dell sales team. I think this “partner first” strategy will probably work for 6-12 months, until the current sales pipeline is drained, and then Dell will have to re-hire and re-build the Dell sales team.

by
| | Reply
Post ID: @2heh+1nZZPs2c

"For those of us staying in Storage, get ready for the 40% partner margins across the board."

The problem is not just management. It's so clear that some of the Dell sellers, like yourself, do not understand the channel at all. Partners are not putting 40 points on the deal and just papering things. Your attitude needs to shift or you could be in danger of getting picked for the next WFR.

by
| | Reply
Post ID: @1app+1nZZPs2c

This will only be a "strategy" until Dell need more revenue, and customers want to pay less (ie cut out the reseller).

by
| | Reply
Post ID: @npy+1nZZPs2c

yes legacy enterprise is dead @bbh+1nZZPs2c

by
| | Reply
Post ID: @cfq+1nZZPs2c

I heard our partner and SI teams got hit hard - how is that possible if we want to sell more thru partners???

by
| | Reply
Post ID: @ely+1nZZPs2c

Sounds like legacy EMC Enterprise Sales is big target.

by
| | Reply
Post ID: @bbh+1nZZPs2c

For those of us staying in Storage, get ready for the 40% partner margins across the board.

We're about to lose control over all of our business.

by
| | Reply
Post ID: @jiy+1nZZPs2c

I see no mention of Telco TSB so is this the beginning of the end for that group?

by
| | Reply
Post ID: @xft+1nZZPs2c

@das+1nZZPs2c Nobody cares HR.
Morale is at an all time low.

by
| | Reply
Post ID: @owp+1nZZPs2c

You should not CC internal e-mail…

by
| | Reply
Post ID: @das+1nZZPs2c

It is for all sales under Bill Scannel I assume. However CSG has their own sales organisation (Gregory Davis) reporting to Jeff Clarke trough Sam Burd. I dont know if they got any memo.

by
| | Reply
Post ID: @hue+1nZZPs2c

Some folks asking if this is only impacting Sales. The answer is no unfortunately. Cuts have and will continue to be made in “back office” and support functions. Some very fine and experienced individuals being let go.

by
| | Reply
Post ID: @mfo+1nZZPs2c

They’ve never given a sh-t about us, never will.

by
| | Reply
Post ID: @apc+1nZZPs2c

After 12 years of successful selling in various Data Center Sales roles its my turn to be let go. I have personally closed just over 800 million dollars in deals for Dell over the years.

I'm actually curious how Dell will spend years cultivating talent and breeding success (I have never once missed my number) to then cut a nearly 175k check to pay me to leave the company and go work somewhere else (likely selling against them) what sense does that really make long term?

by
| | Reply
Post ID: @xtm+1nZZPs2c

All sales

by
| | Reply
Post ID: @qwh+1nZZPs2c

Who got this email?

by
| | Reply
Post ID: @sgd+1nZZPs2c

Absolute disaster. What the he-l... This will be the downfall of Dell IMO...

by
| | Reply
Post ID: @tlu+1nZZPs2c

This email is only to sales, is the rest of the company exempt ?

by
| | Reply
Post ID: @bvr+1nZZPs2c

Post a reply

: