| Abstract: | In this HBR interview, CEO Michael Ruettgers speaks in detail about the managerial practices that have allowed EMC to anticipate and exploit disruptive technologies, market opportunities, and business models ahead of its competitors. He recounts how the company repeatedly ventured into untested markets, ultimately transforming itself from a struggling maker of minicomputer memory boards into a data storage powerhouse and one of the most successful companies of the past decade. The company has achieved sustained and nearly unrivaled revenue, profit, and shareprice growth through a number of means. Emphasizing timing and speed, Ruettgers says, is critical. That's meant staggering products rather than developing them sequentially and avoiding the excessive refinements that slow time to market. Indeed, a sense of urgency, Ruettgers explains, has been critical to EMC's success. Processes such as quarterly goal setting and monthly forecasting meetings help maintain a sense of urgency and allow managers to get early glimpses of changes in the market. So does an environment in which personal accountability is stressed and the corporate focus is single-minded. Perhaps most important, the company has procedures to glean insights from customers. Intensive forums involving EMC engineers and leading-edge customers, who typically push for unconventional solutions to their problems, often yield new product features. Similarly, a customer service system that includes real-time monitoring of product use enables EMC to understand customer needs firsthand. |
