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2/14/2007
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Dell Taps Ex-Solectron CEO To Head Global Operations

The PC powerhouse named Michael Cannon, former president and CEO of contract manufacturer Solectron, as president of global operations.

Dell is touting its involvement in a future episode of the hit TV program, "Extreme Makeover Edition", on its Web site. But inside headquarters, Dell is moving ahead with its own extreme makeover in management.

Dell on Wednesday namded Michael Cannon, former president and CEO of contract manufacturer Solectron, as president of global operations, reporting to Chairman and CEO Michael Dell. Cannon also is a former CEO of hard-drive maker Maxtor, which has since been acquired by Seagate Technology.

Solectron said Cannon resigned from the company to take the post at Dell and has appointed Paul Tufano as interim CEO.

In recent weeks, Dell has seen five of its top executives -- including its CEO and CFO -- quit. The appointment of Cannon marks an about-face of sorts for CEO Dell, who just weeks ago -- in returning to the top operations job at the company -- suggested to various media outlets that he would eschew the naming of an operations officer. In a statement, Michael Dell said that the struggling PC maker is as intent as ever to use its direct model to create efficiency and bolster technology and product design.

"As we continue to grow worldwide, it is important that we increase our ability, via the direct model, to manufacture close to our customer and fully integrate our supply chain into one global organization. This will allow us to drive for even greater excellence in quality, cycle time and delivered cost," Dell said in a statement.

The Round Rock, Texas-based PC giant, which has fallen out of the No. 1 position in worldwide PC market share and has come under several internal and federal investigations into its finances, has signaled to Wall Street analysts that its sales for its most recent quarter failed to achieve any growth. It was a noteworthy announcement for the one-time, high-flying darling of the investment community. Dell is slated to announce its most recent quarterly earnings on March 1.

Cannon joins Dell just weeks after Kevin Rollins quit under pressure as Dell's CEO and was replaced by Michael Dell, and two months following the abrupt resignation of then-CFO James Schneider. Several other top executives, including Dell Americas chief Joseph Marengi, have also announced they are exiting the company.

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