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Prepared by: Ana Alvarez, Jason Borg, Kelly Evans, Stephen May, Melinda Smith(ORGL 615 Group 1)
Kennel Consulting Presents:Managing the 2002 Transition
Maintaining Customer Focus – Adapting to Changes
Sustainable Culture Inside and Outside Cisco
Customer-‐Centric CultureMike Volpi, SVP of Switching and Services
“We are in the business of fixing our customers’ problems, and we use technology to that purpose” (Gulati, 2010, p.6)
Able to provide great service consistently, building loyalty and devotion
John Morgridge, VP of Customer Advocacy“We are customer focused” (Gulati, 2010, p. 5)“We think about the customer” (p. 5)“You can’t have business without the customer” (p. 5)
Responsive to the relevance of the customer
Values and LeadershipValues in support of
• Empowerment • Teamwork• Open Communication• Trust
Leadership• Leaders set the vision and mission of the
culture, and lead by example
• Empower employees to act spontaneously and take the initiative to exceed customer expectations
• Equipped employees with the correct skills and tools to do the job. They are well trained, supported and encouraged to strive for improvement
Building and TrainingBuilt and maintained through:
• Egalitarian practices• Bonus structure• Business-‐IT alignment• TAC – Technical Assistance Center• IBSG – Internet Business Solutions Group• Acquisition strategy
Training• Invests time and resources in training for skills such as
relationship-‐building and customer service
“to use technology to drive customer satisfaction and loyalty” (Gulati, 2010, p. 6)
-‐-‐ Joe Pinto, VP of Technical Support, on Business-‐IT alignment
Purpose for Reorganization
Looking past the bubble• Economic downturn• 50% decline in capital
spending• Excess overhead• Maintain competitiveness
“Planning creates long-‐term balancing processes” -‐-‐ Peter Senge (p. 85)
Decentralized vs. Centralized
Advantages• Eliminate product & research
overlap• Encourage teamwork
Disadvantages• Reduce sensitivity to customer morale• Insecurities in the state of the company, careers, & personal contributions
• Personal job satisfaction• Team collaboration
Rethinking Customer-‐Centric“Now, we will take the the right technologies and apply them to the market as opposed to
those technologies that are developed only in one division.” -‐-‐ James Richardson, Chief Marketing Officer (Gulati, 2010, p. 12)
Reasons for Restructuring: For ActionTo boost near-‐term results, achieve aggressive stretch goals,
and make product development more efficient• Similar to 2001, restructure will improve savings, decrease redundancy,
and simplify production collaboration.• Sets conditions for Cisco to maintain competitiveness and avoid losing
future market share.• Puts greater emphasis on core business (routing and switching) and
increases the company’s pace of innovation in nascent markets and technologies.
• Use the Customer Focused Initiative (CFI) to drive change in company and “understand our customers” (Gulati, 2010, p. 14)
• Maintain Customer Response Program and Customer Champion Program
Managing Through TransitionThrough the restructuring, it is important that leaders emphasize
culture and share a vision for the futureRecommended messages include:1. Cisco continues to be a leader in innovation,
technology and product development, and customer satisfaction.
2. The transition does not change who Cisco is.3. Cisco has and always will be Customer
Focused.4. This latest restructuring and evolution allows
us to improve on our successes and set the conditions for continued future success.
Focus areas:• Focus on relationships: Customers, partners,
and your internal personal relationships. • Explain why: Tell others how they fit into the
transition, and how the customers remain your top priority.
• Explain how the reorganization will enhance and embrace the customer-‐focused culture and how each division/employee contributes.
• Lead by example, repeat, and restate the vision openly, directly, and often. Make it a shared-‐vision.
Elements of Transition• Traits and behaviors of Cisco’s culture -‐ what are the ones that will help make
this transformation possible• Analyze the assumptions and beliefs that are currently embedded in the culture• Socialization of the culture• Organizational language• Problem-‐solving and decision making
Once all these elements are clearly defined, create new ways of connecting employees with the changes happening. Ideas range from a knowledge-‐sharing system to coaching of executives.
Lane, Gregg. (2013). “Culturally Aligned,” Industrial Engineer. Vol 45, Issue 8. Retrieved from Business Source Complete
Recommendations and Rationales• Always reframe the problem set and
never stop listening, with a strategic aim at the future.
• Set new milestones and analyze historic milestones. Compare.
• Analyze problem sets from within the organization and from outside it.
• Listen to chatter, ideas, and all perspectives with an open mind.
“Through learning we re-‐create ourselves…we become able to do something we were never able to do.” -‐-‐ Peter Senge (p.13)
An Understanding of Relationships
PEOPLECustomersEmployeesPartners
DATA THINGS
PROCESSES NAVIGATING CHANGECOMPETITIVENESS
PEOPLE
Creating Value for the FuturePeople (Customers, Investors, Employees) Globally
FEEDBACKINNOVATION
ACQUISITIONS, REORGANIZATIONGROWTH
CFI CRP CVSCCP SURVEYS
Chambers, J. (2016)
Executive Summary• The market constantly demands change. Cisco must change with it. • Cisco culture and values have not changed. Customer satisfaction is our focus.• Transition are difficult and must be backed with a strong shared-‐vision. Leaders,
investors, employees, and customers must embrace the change and know how they fit in.
• Always keep a watchful eye for the next big thing. Self analyze and analyze from all angles.
• Understanding relationships are key to solving our customers’ problems now and predicting future problems and solutions.
“A shared vision is not an idea. It is, rather, a force in people’s hearts, a force of impressive power.” -‐-‐ Peter Senge (p. 192)
AppendixOther thoughts for consideration:1. How does Mr. Chambers best share his Vision -‐ what will cause the board of directors to
embrace his vision?2. Is the Vision changed from before the restructure? It is not a new company -‐ it is not
completely different. Define what has changed and what remains the same. It has evolved.3. How will the future of Cisco look like? How is Cisco better poised now then before?4. What future steps and milestones can Cisco strive for and how/when does the company
get there?5. What are the board of directors, the managers, and the CEO going to do to share the vision
and ensure that Cisco is the great company it has always been?6. How do we as leaders ensure that employees support the changes?7. Explain why we failed and explain the lessons learned?8. Expectations defined.
ReferencesChambers, J. (2016). Cisco's John Chambers Explains How Leaders Can Cross the Digital Divide.
Retrieved from: http://fortune.com/2016/09/14/cisco-‐john-‐chambers-‐digital-‐age.
Christensen, C. M. (2006). What Is an Organization’s Culture? Harvard Business School. Aug. 2, 2006. Boston, MA: Harvard Business Publishing.
Gulati, R. (2010). Cisco Systems (2001): Building and Sustaining a Customer-‐Centric Culture. Harvard Business School. June 11, 2010. Boston, MA: Harvard Business Publishing.
Lane, Gregg. (2013). “Culturally Aligned,” Industrial Engineer. Vol 45, Issue 8. Retrieved from Business Source Complete
Senge, P. M. (2006). The fifth discipline: The art & practice of the learning organization. New York, NY: Doubleday.
Image Sources• Cisco logo from: https://en.wikipedia.org/wiki/Cisco_Systems
• Volpi image from: http://allthingsd.com/20090706/mike-‐volpi-‐jumps-‐from-‐joost-‐to-‐index-‐a-‐boomtown-‐interview-‐and-‐full-‐press-‐release/
• Morgridge image from: http://www.forbes.com/forbes/welcome/?/profile/john-‐morgridge/&toURL=http://www.forbes.com/profile/john-‐morgridge/&refURL=https://www.google.com/&referrer=https://www.google.com/
• Pinto image from: https://newsroom.cisco.com/execbio-‐detail?articleId=33940
• All other images from: www.pexels.com
