What You Don't Know About Dell: A look at the management secrets of the best-run company in technology

For more than a decade, Dell has been the master at selling direct, bypassing middlemen to deliver PCs cheaper than any of its rivals. And few would quarrel that it's the model of efficiency, with a far-flung supply chain knitted together so tightly that it's like one electrical wire, humming 24/7. And although the entire computer industry has tried to replicate Dell's tactics, none can hold a candle to the company's results. Today, Dell's stock is valued at a price-earnings multiple of 40, loftier than IBM, Microsoft, Wal-Mart Stores, or General Electric. As it turns out, it's how Michael Dell manages the company that has elevated it far above its sell-direct business model. What's Dell's secret? At its heart is his belief that the status quo is never good enough, even if it means painful changes for the man with his name on the door. When success is achieved, it's greeted with five seconds of praise followed by five hours of postmortem on what could have been done better. Says Michael Dell: "Celebrate for a nanosecond. Then move on." Just as crucial is Michael Dell's belief that once a problem is uncovered, it should be dealt with quickly and directly, without excuses. Above all, Michael Dell expects everyone to watch each dime-and turn it into at least a quarter. Unlike most tech bosses, Dell believes every product should be profitable from Day One. To ensure that, he expects his managers to be walking databases, able to cough up information on everything from top-line growth to the average number of times a part has to be replaced in the first 30 days after a computer is sold. But there's one number he cares about most: operating margin. To Dell, it's not enough to rack up profits or grow fast. Execs must do both to maximize long-term profitability.