Posted on by

Michael Dell, Founder of Dell — Early Failures, Battling Carl Icahn, Learning from the Competition, and How to Play Nice But Win (#534)

6 Comments
Topics: CategoriesThe Tim Ferriss Show
Illustration via 99designs

“You learn a lot more from your customers than you do from the competition.”

— Michael Dell

Michael Dell (@MichaelDell) is chairman and chief executive officer of Dell Technologies, an innovator and technology leader providing the essential infrastructure for organizations to build their digital future, transform IT, and protect their most important information. He is the author of Play Nice But Win: A CEO’s Journey from Founder to Leader.

Michael is an honorary member of the Foundation Board of the World Economic Forum and is an executive committee member of the International Business Council. In 1999, he and his wife, Susan Dell, established the Michael & Susan Dell Foundation.

Please enjoy!

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform. You can also watch the interview on YouTube.

Brought to you by Wealthfront automated investing, Helix Sleep premium mattresses, and Tonal smart home gym. More on all three below.

The transcript of this episode can be found here. Transcripts of all episodes can be found here.

Listen onApple Podcasts
Listen onSpotify
Listen onOvercast
#534: Michael Dell, Founder of Dell — Early Failures, Battling Carl Icahn, Learning from the Competition, and How to Play Nice But Win

This episode is brought to you by Wealthfront! Wealthfront is an app that helps you save and invest your money. Right now, you can earn 4.80% APY—that’s the Annual Percentage Yield—with the Wealthfront Cash Account. That’s more than eleven times more interest than if you left your money in a savings account at the average bank, according to FDIC.gov. 

It takes just a few minutes to sign up, and then you’ll immediately start earning 4.8% interest on your savings. And when you open an account today, you’ll get an extra fifty-dollar bonus with a deposit of five hundred dollars or more. Visit Wealthfront.com/Tim to get started.

This episode is brought to you by Tonal! Tonal is the world’s most intelligent home gym and personal trainer. It is precision engineered and designed to be the most advanced strength studio on the market today. Tonal uses breakthrough technology—like adaptive digital weights and AI learning—together with the best experts in resistance training so you get stronger, faster. Every program is personalized to your body using AI, and smart features check your form in real time, just like a personal trainer.

Try Tonal, the world’s smartest home gym, for 30 days in your home, and if you don’t love it, you can return it for a full refund. Visit Tonal.com for $100 off their smart accessories when you use promo code TIM100 at checkout.

This episode is brought to you by Helix Sleep! Helix was selected as the best overall mattress of 2022 by GQ magazine, Wired, and Apartment Therapy. With Helix, there’s a specific mattress to meet each and every body’s unique comfort needs. Just take their quiz—only two minutes to complete—that matches your body type and sleep preferences to the perfect mattress for you. They have a 10-year warranty, and you get to try it out for a hundred nights, risk-free. They’ll even pick it up from you if you don’t love it. And now, Helix is offering 20% off all mattress orders plus two free pillows at HelixSleep.com/Tim.

What was your favorite quote or lesson from this episode? Please let me know in the comments.

SCROLL BELOW FOR LINKS AND SHOW NOTES…

Want to hear another episode with an innovator who understands the value of failure? Listen in on my conversation with Sir James Dyson in which we discuss what it means to think like an engineer, how many tries it took to get a working prototype of his famous Dyson vacuum, the trials and tribulations of funding research and development, why invention is more about persistence than brilliance, experience as baggage that can get in the way, and much more.

#530: Sir James Dyson — Founder of Dyson and Master Inventor on How to Turn the Mundane into Magic

SELECTED LINKS FROM THE EPISODE

  • Connect with Michael Dell:

Twitter | Facebook | Instagram | LinkedIn

SHOW NOTES

  • How does meatloaf figure prominently in the story of Michael’s life? [05:28]
  • Who is Carl Icahn? [06:57]
  • Where did the title Play Nice But Win originate? [07:53]
  • Does playing nice make it harder to negotiate or compete against people who don’t live by such a code? [09:02]
  • How did Michael make $18,000 selling newspaper subscriptions at age 17? What tactics did he employ to gain an edge that wouldn’t normally occur to most 17-year-olds? [10:26]
  • During this time, were there any entrepreneurial heroes Michael looked up to? [15:07]
  • Michael wrote his first book, Direct From Dell, in 1998. What does he feel more comfortable discussing now that he may have hesitated to share back then? [16:16]
  • Memorable mistakes and failures — how Michael felt about them in the moment, and how they drove him to adapt. [18:03]
  • Is the ability to be more vulnerable something that comes with age? [21:54]
  • What considerations are especially stressful for a CEO of Michael’s stature when things don’t go according to plan, and what has gotten him through the particularly tough times? [23:15]
  • As an introvert, how does Michael navigate his high-profile vocation? [26:23]
  • In retrospect, would Michael have handled his company’s unsustainable early hypergrowth differently? [28:05]
  • Michael explains what happened when Dell walked back from being publically traded to privately held — and then public once again. [29:49]
  • What is a tracking stock? [34:16]
  • What were the risks of going private, and how did Michael think about mitigating them? [37:28]
  • How was the decision to go public again made? [39:12]
  • Who was particularly helpful during the take private chapter of this experience? [41:02]
  • The most worthwhile investments Michael has made. [42:05]
  • How does Michael think about competition while remaining true to his Play Nice But Win ethos? [43:51]
  • What are some common mistakes Michael sees when companies engage in a direct-to-consumer business model? [45:47]
  • As busy as Michael already is, why did he dedicate the time and energy to write Play Nice But Win? What does he hope the reader will take away from it? [50:10]
  • Parting thoughts. [52:17]

MORE MICHAEL DELL QUOTES FROM THE INTERVIEW

“Failure is a key ingredient in any success.”
— Michael Dell

“You learn a lot more from your customers than you do from the competition.”
— Michael Dell

“I believe fundamentally that organizations like ours and others will be successful if they solve the future problems that customers have. If they don’t, they’ll just go out of business.”
— Michael Dell

“I have this belief that a lot of human potential is left unrealized because people are afraid to fail.”
— Michael Dell

PEOPLE MENTIONED

The Tim Ferriss Show is one of the most popular podcasts in the world with more than 900 million downloads. It has been selected for "Best of Apple Podcasts" three times, it is often the #1 interview podcast across all of Apple Podcasts, and it's been ranked #1 out of 400,000+ podcasts on many occasions. To listen to any of the past episodes for free, check out this page.

Leave a Reply

Comment Rules: Remember what Fonzie was like? Cool. That’s how we’re gonna be — cool. Critical is fine, but if you’re rude, we’ll delete your stuff. Please do not put your URL in the comment text and please use your PERSONAL name or initials and not your business name, as the latter comes off like spam. Have fun and thanks for adding to the conversation! (Thanks to Brian Oberkirch for the inspiration.)

6 Replies to “Michael Dell, Founder of Dell — Early Failures, Battling Carl Icahn, Learning from the Competition, and How to Play Nice But Win (#534)”

    1. Hi, H.E.

      Try right-clicking on the three vertical dots in the player window and then selecting “Save Audio As.” If that doesn’t work, please reply here.

      Best,

      Team Tim Ferriss

      Reply

  3. From what I have read about Coco Chanel’s life, McChrystal’s description of her success is totally wrong.

    Reply

  4. “There’s no such thing as success by itself, failure is an ingredient of success.” WOW! How often does one think of succeeding with the ingredient of failure present? I’m talking about the little things, not starting a business but simply going through day to day activities. Love this quote, so valuable in everything we do!

    Reply