LoD -
You know how I hate to contradict you but the facts don't support your statements. Don't know the business week report you refer to but those guys have been wrong before... I took this data directly from the financial reports of Dell and CPQ (WSJ breifing book), using calendar 1997 since Dell's fiscal is offset 1 month.
Dell had revenue of 11,002K for the period, avg of 11,500 employees, yielding revenue/employee of 956K. CPQ had revenue of 23,614K, avg of 19,125 employees for revenue/employee of 1.23M. CPQ wins that race. 1st half was even more in CPQ's favor since 2nd half included Tandem which had lots of employees but little revenue.
If we look at income, Dell had 848K for the period, inc/employee was 73.7K. CPQ had 1,785K, inc/employee was 93.33K, CPQ wins here also.
Of course if we did that same snapshot now, Dell would be a lot closer on the income/employee (since CPQ gets to average in a zero for 1Q), but revenue per employee would still fall to CPQ.
As Paul has pointed out, this has to do with the number of employees answering phones at Dell - if they get to 100% Web orders that number should change a lot. |
