This week, Lenovo introduced its monetary report. Given the logistics and pandemic points being skilled globally, the outcomes showcased a powerful deal with the basics and growing components of synergy between the working items which have traditionally been tough to establish. However what actually struck me was the method Lenovo used to current the outcomes. It showcased what I feel is a collection of distinctive finest practices that spotlight each repetition as a reminiscence enhancement course of and delegation to the collective capabilities of the management workforce.
Let’s discuss first about Lenovo’s monetary outcomes after which go over the presentation course of that seems to be a superior follow to what most different firms do with reviews like this.
Lenovo outcomes
Lenovo reported that whereas its main PC enterprise declined, growing income variety and stable enterprise practices resulted in a rise in internet revenue a decent 11%. The decline in PC shipments was anticipated given the market over-purchased PCs in the course of the pandemic ramp-up to work at home. This led to a saturated market, a short-term drawback that ought to mitigate as soon as these new machines begin growing older out. This can create a cycle of retirements tied to the pandemic occasion that may doubtless recur each three to 5 years or till the market strikes to a alternative for PCs which has not but been recognized. Even so, Lenovo reported that its Whole Out there Market now could be increased than it was pre-pandemic, which anticipates the potential for renewed progress within the section as we transfer away (if we transfer away) from the pandemic impacts.
Whereas the income line was smooth, Lenovo solidly hit expense management, permitting it to carry bills flat whereas growing analysis and growth by a wholesome 10%. Analysis and Improvement is what assures an organization’s future and the extra frequent follow of slicing this line merchandise throughout a income decline usually leads to a dying spiral for a agency, a spiral Lenovo is avoiding by growing R&D growth and assuring the long run well being of the corporate.
Lenovo reviews it has diversified round a 3rd of its income from PCs, and this variety additionally helped present stable outcomes in the course of the PC slowdown. Different segments, like servers, companies and storage, aren’t experiencing this post-pandemic decline, and growing revenues from these companies shielded Lenovo from a lot of the impression of the PC gross sales decline. It needs to be famous that even with the decline, IDC nonetheless ranks the corporate #1 in PC gross sales worldwide with round 24% market share.
Even Lenovo’s smartphone enterprise showcased stable progress and outcomes. It is a traditionally problematic unit that had been almost destroyed by its prior possession and management, however it’s clear from these outcomes that Lenovo has largely fastened the unit which ought to give you the option now to showcase even larger efficiency will increase sooner or later.
Greatest practices for reporting outcomes
Usually, quarterly outcomes are delivered by the CFO with some preliminary remarks by the CEO to determine that CEO as the top of the corporate and connecting the viewers to that management. Lenovo’s CEO introduced the monetary leads to depth and was adopted by the CFO who largely repeated what the CEO stated. It’s a rote follow that results in larger retention of the fabric being shared. I usually assume that these displays don’t take sufficient account of the viewers that, throughout these work-from-home occasions, is essentially distant and distracted. By approaching the presentation this fashion, Lenovo ought to higher be capable of direct the protection of its monetary outcomes by repeating them and enhancing the recall of the viewers. It does you little or no good to current one thing necessary like this and never have the viewers keep in mind it.
One other finest follow is that Lenovo additionally had the division heads on the occasion. Now having every of them current materials would have doubtless misplaced a lot of the viewers’s curiosity. As an alternative, Lenovo had these executives reply to questions. This method showcased the competence of the chief workforce, helped that workforce discover ways to do calls like this, and honed expertise that can be wanted if any considered one of them in turns into CEO. It additionally showcased the power of Lenovo’s government workforce which ought to assist analysts and reporters see Lenovo for the facility it’s.
That energy comes all the way down to Lenovo being the one really multi-national tech firm and the one one in its section in a position to transfer between the U.S. and China seamlessly.
Wrapping up: Stable outcomes, spectacular presentation
Lenovo’s monetary outcomes had been impressively good given the pandemic, wars and associated logistics issues plaguing the trade. Lenovo showcased a strong deal with administration fundamentals by lowering prices whereas growing R&D and concurrently addressing present price issues whereas assuring the corporate’s future.
Nonetheless, it was the best way Lenovo introduced that I feel requires some focus. By having the CFO largely repeat the CEO’s presentation, it validated the CEO’s pitch whereas making a stronger reminiscence of the outcomes which ought to, in flip, end in extra correct, and certain constructive, protection of those outcomes.
As well as, the usage of the division heads for Q&A showcased the competence of those executives and helped practice them on do displays like this, making them extra viable as CEO candidates sooner or later. Impressively achieved.
As President and Principal Analyst of the Enderle Group, Rob supplies regional and world firms with steering in create credible dialogue with the market, goal buyer wants, create new enterprise alternatives, anticipate expertise adjustments, choose distributors and merchandise, and follow zero greenback advertising and marketing. For over 20 years Rob has labored for and with firms like Microsoft, HP, IBM, Dell, Toshiba, Gateway, Sony, USAA, Texas Devices, AMD, Intel, Credit score Suisse First Boston, ROLM, and Siemens.
