jodi krause - organization design...
TRANSCRIPT
Jodi Krause
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
For Thousands of Years
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
mass distribution
and
long distances
Building a network of human connections...
The Evolution of Organization Structure
Wave 2
Centralized“Command & Control”
CEO
Div SVP
VP VP
Div SVP
VP
Corporate Hierarchy
Wave 3
DynamicNetworked
Organization
Decentralized“Collaboration”
Wave 1
Independent“Disconnected”
Small Businesses
Adapted from Thomas Malone, “The Future of Work”
Cisco’s Transformation
Culture of Competition
Culture of Collaboration
01 02 03 04 05 06FY00 07 08 09 10
Lines Of
Business
CEO
EnterpriseSP Commercial Small
DynamicNetworked
Organization
Components of the Model
Keys to Successful Implementation
Cisco’s Journey to a Dynamic Networked Organization
Discussion Topics
• Social networking andinternet technology
• Globalization
• Economic uncertainty
• Quickly changing markets
• Mergers, partners &joint ventures
• Gen Y (Millenials)
Why Collaboration?
© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10
Source: Cisco Workplace Resources Work Profile Survey, 2008
63% of time is spent communicating and collaborating
Collaborative work is more often virtual (35%) thanface-to-face (28%)
Why Collaboration?
56% of work is done away from their office desk
24% of work is done from home
40% are not located in the same city as their manager
85% telecommute part of the time
Technology Enables Mobile, Collaborative Work “Styles”
How Employees Work Is Changing
“A great wind is blowing that gives you
either imagination or a headache.”
– Catherine the Great
Operational Excellence
Innovation
Productivity Redefined
Agility of a Small Organization
Economic Benefits of a Large Enterprise
The Power of the “And”
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
Where Cisco’s
BeganJourney
$1 OPEX =
Revenue
Net Income
1997-2001
$2.06
$.18
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
Crisis is the
Mother of Invention
Creating Structural Agility
Fin
an
ce
Mark
etin
g
Serv
ices
Engin
eerin
g
Sale
s
Com
munic
atio
ns
Op
era
tion
s
The Power of the “And”
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
Evolution of Cisco’s Dynamic Networked
Organization: The Big Picture
2001–2005Command / Control
2006-2008Councils
2009+Councils/Boards/
Working Groups
4 Councils 6 Councils
4 Boards
10-50 people 500-1500+ people50-100 people
9 Councils
48 Boards
~100 Working Groups
Why Collaboration?
Productivity Gains$1 OPEX =
1997-2001 2002-2010
$2.06 $2.42
$.18 $.46
2Categories
9Categories
Revenue
Net Income
Market ShareLeadership
Discussion Topics
Components of the Model
Cisco’s Journey to Collaborative Management
Keys to Successful Implementation
Critical Elements of a Collaborative
Organization Design
Shared Goals
TeamStructure
EXECUTIONCisco’s Evolving Value Proposition to Customers
STRATEGY
VSEM Communication Template
How CiscoSustains Differentiation
Top 3-5 initiatives in support of Your Strategic Priorities
5+ Years
2-4 Years
12-18 Months
How you aremeasuring success
12-18 Months
METRICS
VISION
Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved.
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
V Cisco’s Value Proposition to Customers 5+ years
SHow Your Council, Board, Function or Work Group Sustains Differentiation
Strategic Priority X(e.g., grow or improve
competitive advantage)
Strategic Priority Y(e.g., grow or improve
productivity)
Strategic Priority Z(e.g., drive growth)
2-4 years
2-4 years 2-4 years 2-4 years
List of critical initiatives, programs or actions in support of Strategic Priority X (above).
List of critical initiatives, programs or actions in support of Strategic Priority Y (above).
List of critical initiatives, programs or actions in support of Strategic Priority Z (above)
12-18 months 12-18 months 12-18 monthsE
Define the quantitative metrics
used to measure execution
progress and accountability,
and what success looks like.
Example Metrics:
• Y:Y Share of Wallet
• Y:Y Contribution Margin
Define the quantitative metrics
used to measure execution
progress and accountability,
and what success looks like.
Example Metrics:
• Y:Y Expense-to-Bookings
Ratio
• Y:Y Results per Employee
Define the quantitative metrics
used to measure execution
progress and accountability,
and what success looks like.
Example Metrics:
• Y:Y Growth
• Y:Y Market Share
• Y:Y Customer Satisfaction
12-18 months 12-18 months 12-18 months
M
Transparent Decision-Making Drives Alignment Prioritization
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
V
S
E
Cisco’s Value Proposition to Customers 5+ years
How Your Council, Board, Function or Work Group Sustains Differentiation
Strategic Priority X(e.g., grow or improve
competitive advantage)
Strategic Priority Y(e.g., grow or improve
productivity)
Strategic Priority Z(e.g., drive growth)
2-4 years
2-4 years 2-4 years 2-4 years
List of critical initiatives, programs or actions in support of Strategic Priority X (above).
List of critical initiatives, programs or actions in support of Strategic Priority Y (above).
List of critical initiatives, programs or actions in support of Strategic Priority Z (above)
12-18 months 12-18 months 12-18 months
Define the quantitative metrics
used to measure execution
progress and accountability,
and what success looks like.
Example Metrics:
• Y:Y Share of Wallet
• Y:Y Contribution Margin
Define the quantitative metrics
used to measure execution
progress and accountability,
and what success looks like.
Example Metrics:
• Y:Y Expense-to-Bookings
Ratio
• Y:Y Results per Employee
Define the quantitative metrics
used to measure execution
progress and accountability,
and what success looks like.
Example Metrics:
• Y:Y Growth
• Y:Y Market Share
• Y:Y Customer Satisfaction
12-18 months 12-18 months 12-18 months
M
De
gre
e o
f C
olla
bo
ratio
n
High
Low
Are We on the Same Page?
AGREEMENT
Who is Responsible for Success?
ACCOUNTABILITY
Are Our Resources Creating
Sustainable Differentiation?
ALIGNMENT
Transparent Decision-Making Drives Alignment Prioritization
Emerging Solutions Council
Connected Architecture Council
Connected Business Operations Council
Emerging Countries Council
Fin
OPS
CMO
Service
CDO
Sales
Operating Committee
5 SegmentCouncils
Ent Small ConsComm SP
Organizational Structure:
Cisco Councils
4 Cross-SegmentCouncils
CustomerRelevance
Operational Excellence
Innovation
Cross-Functional collaboration delivering Cisco’s technologies and
services to Small Businesses
Small Business Council
Members and Mission
*Council Lead
Business DevelopmentManufacturingChannels Europe Sales
Engineering ServicesWebEx
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
Role Hold budgets
Execute Company Strategy
Business Goals Contribution
MarginAccountability/
Metrics
Productivity Expense /
Bookings
Accountabilty/
Metrics
9 Corporate Councils
Leader Commitment: 30% of Their Time
7 Corporate Functions
Leader Commitment: 70% of Their Time
Role Set Strategy
Establish Strategic Priorities
(shared goals)
Expectations of Leaders
Participation: Increased Breadth & Depth
110 Working Groups(1232 People)
Operating Committee(15 People)
9 Councils(117 People)
49 Boards(557 People)
Discussion Topics
Components of the Model
Cisco’s Journey to Collaborative Management
Keys to Successful Implementation
Critical Elements for a Dynamic
Networked Organization
Process
Technology
Culture
SustainableAdvantage
Portfolio of Collaboration Technology
Enterprise
Social
Software
Mobile
ApplicationsIP Voice &
VideoMessagingConferencingTelepresence
Cisco’s Journey
4 Levers of Cultural Change
DecisionMaking
LeadershipPassive-Aggressive
Constructive/Authentic
AccountabilitySiloed Shared
Culture of Competition
Culture of Collaboration
From… …To
ResourcesVertical Alignment
PortfolioManagement
Opaque Transparent
Disciplined Collaboration
W E E E E E E E E E E…
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
Speed, S
cale
, F
lexib
ility
and R
eplic
ation
Evolution of a Dynamic Networked
Organization: Where are We Now?
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Phase One:We Built a Culture of Collaboration
OrganizationalStructure
Shared Goals
V ES
Phase Two:Drive Alignment and
Accountability
Build Repeatable Process
Organization Role Accountability
Cisco VSE
Segment
Councils Segment VSE
Functions Function VSE Productivity and Performance
Holds Councils and Functions Accountable
Segment Performance (Growth, CSAT, Share, Contribution Margin)
+ Market Adjacency Performance (CPAD)
X-Segment
Councils
X-Segment
VSE
(Innovation/
Op Excellence)
Incubation Performance + Operational Excellence across segments + Market
Adjacency Performance (CPAD)
Operating
Committee
Accountability Guiding Principles
Council or Board Leader Role• 51% of the vote
Council or Board Member Role• Makes commitments on behalf of their
function – does not have to ask for “permission”
Clearly Defined Roles
Which Councils or Boards are more effective, and why?
How do we measure effectiveness?
What are the best practices in Councils & Boards?
How do we improve the effectiveness of the model?
Council & Board Effectiveness Study
Council & Board Effectiveness
Framework
31% 31%
16%
8%12%
1%
0%
20%
40%
60%
80%
100%
Sit on 1 Council
or Board
Sit on 2 Councils
orBoards
Sit on 3 Councils
orBoards
Sit on 4 Councils
orBoards
Sit on 5or moreCouncils
orBoards
Don’t know
Council and Board Membership(From Board Survey only)
*Top 2 Box Reported (Those that are somewhat or much more effective)
Base size: Total Base = 148
Number of Council and Board
Memberships
Perc
ent
Average number of
Council or Board
Memberships = 3
Research Notes:
88%81%
0%
20%
40%
60%
80%
100%
Perc
ent
Impact of Council and Board
Membership*
Somewhat/ Much
more effective at your
functional role
Somewhat/ Much
more effective at your
role on a Board
88%
20%
68%
11%1%
Don’t know
I’m on the right
number
I’m on too many
Perspective on Council and Board
Membership
I’m on too few
68%
Statement Boards Councils
The personal investment I make in this Board/ Council’s activities is
rewarding94% 91%
Increased strategic alignment between Board/ Council priorities and the
business functions86% 89%
Increased Cisco's ability to differentiate itself in meeting the needs of our
customers/ partners83% 84%
Improved the quality of the decisions that are made within the Board/
Council83% 82%
Overall, this Board/ Council has been effective in achieving its VSE 80% 80%
Created new sources of growth for Cisco which will be realized in the next
12 to 18 months80% 71%
Increased the speed with which decisions are made within the Board/
Council72% 67%
Celebrated the achievement of important milestones related to the Board/
Council’s progress70% 58%
Effectively identified when to phase out a (Board or) Working Group 46% 49%
Acquired the necessary resources (headcount or budget) to support the
Board/ Council’s priorities43% 44%
Collaboration Effectiveness Index
© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential 40
Improvement Focus for FY11 and Beyond
Data & Metrics
Goal & Reward Alignment
Portfolio & Investment Management
Meeting Effectiveness & Decision-Making
UESTIONS
1. How to Get Started on this Journey
2. Leadership Expectations
3. Developing Next-Generation Leaders
4. The Lifecycle of a Team
5. Conducting Effective Meetings
6. Creating Goal & Reward Alignment
7. Measuring Success
8. Creating Community Through Technology
Menu of Collaborative Management
Practices
End
Case Study:
How to Get Started on this Journey
© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential 44
Developing a Dynamic Networked
Organization
Are you ready for it?
How does the journey
begin?
Transformation case
studies
© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential 45
Are you ready for it?Developing a Collaborative Management Model
Is there an influential executive sponsor who’s bought
into the concept?
Is there a need for the organization to come together
differently in order to be successful in the future?
Are there some key leaders who already exhibit
collaborative behaviors and can become role models?
Does the organization hold people accountable for
shared goals?
Is there basic collaboration technology available (e.g.
voicemail, email, conferencing, and shared document
spaces)?
Process
Technology
Culture
Scope of impact
Experiment
Org
an
izati
on
al valu
e f
rom
DN
O
Transform
Chasm
Workgroup
Ecosystem
Individual
Another Chasm
Evolution to a Dynamic Networked
Organization
Scale
Return
Case Study:
Leadership Expectations
C-LEAD at a Glance
C Collaborate
• Working Across Boundaries
• Engaging Others
• Earning Trust
L Learn• Developing Self
• Developing Others
E Execute
• Demonstrating Passion
• Empowering Teams
• Achieving Results
A Accelerate• Shaping Strategy
• Building Capability
D Disrupt• Promoting Innovation
• Leading Change
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
C-LEAD Leadership Transformation
Reward
Educate
Measure
Enable
Managers’ Meeting, Senior
Leader Calls to Action, Website
Self-Assessment,
Development Resource
Guide, 360 Feedback Tool
Integration into
Performance
Management
Alignment
with
Rewards
Return
Case Study:
Developing Next-Generation Leaders
Developing Leadership and Innovation
Simultaneously
• Hogan assessment
• Individual coaching sessions
• Leadership platform videos starring you(?)
Baseline assessment debrief with coach?
Transformational platform
• Skip level development meeting
• Robust development plan update
“There's almost nothing a leader cannot
accomplish if they do not care who gets
the credit.”- John Chambers, Cisco Chairman & CEO
Cisco Executive Action Learning Forum Activities
Leadership Innovation
Enterprise-level mind set
Disruptive innovation
framework
Robust development
(Assess, plan, discuss)
Collaborative decision
making with peers
Executive coaches
$1B+ business opportunities
Residential Workshop
Business partnership
Top executive stakeholders
Enterprise transformation
Return
Case Study:
The Lifecycle of a Team
Return
Work: Reach agreement on vision, leadership, membership, shared goals, roles and responsibilities
Work: Translate shared goals into the organizationalengagement needed to execute on priorities
Work: Develop bold strategies and the organization’s capability to achieve both operational excellence and innovation
Work: Promote change and innovation to support Cisco strategy and set Cisco apart in the global marketplace
Work: Assess completion of goals against current strategy and choose to reconfigure or disband
Sign of Success: ClearPurpose
Sign of Success:Committed Resources
Sign of Success: EffectivePrioritization
Sign of Success: Positive Disruption
Sign of Success: Healthy Evolution
Sign of Distress: Disengagement
Sign of
Distress:
Stagnation
Distress:
Overwhelm
Sign of
Distress:
Critical Failure
Sign of
Distress:
Irrelevance
Start Up Align Accelerate TransformReinvent or
Retire
Council & Board Lifecycle Model
Case Study:
Conducting Effective Meetings
Optimize Executive Meetings
Inform Engage Exchange
• Update
• Address issues
• Educate
• Discussion
• Build consensus
• Make a decision
• Share expertise
• Brainstorm / debate
• Reach agreement
30 minutes 1 hour 1-2 hours
Goals
Timing
Interaction75% Presentation
25% Discussion
50% Presentation
50% Discussion
25% Presentation
75% Discussion
What format is best
for the following types of meetings?
Make Strategic Decisions
PlanChallenge Thinking
Course Correct
Educate InspireMeasure Progress
Inform25%
Discussion
Engage50%
Discussion
Exchange75%
Discussion
Speaker Expectations
Discussion Type Type of discussion (Exchange, Engage, Inform)
% time presenting and % time discussing
Allocated Time # Minutes or Hours total
Recommended # of slides
Speakers Speaker Name
Key Discussion Points Include the Following Slides
Project Overview
Update from prior meeting
Project details
What decisions do we need to make?
Risks/Challenges
Purpose and Desired Outcomes
Project Overview/Update
Details related to xxx
Presentation Deadlines
When due
Where to send Return
Case Study:
Creating Goal & Reward Alignment
People Drive Accountability
A Council or
Board strategic
priority or
execution
activity must
have at least
one EVP/SVP/VP
accountable to it
VSEM Publishing Process
Priorities Centralized in Performance Management Tool
Transparent Goal Alignment
Return
Case Study:
Measuring Success
SPEED SCALE
FLEXIBILITY REPLICATION
The Power of the “And”
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
VisionAgreement
ExecutionAccountability
StrategyAlignment
Speed
Oct08
Nov09
Internet Routersin Space
Oct08
Launch of firstsatellite router
Data, Voice, Videobetween satellites
Smart GridSept08
Jan09
Apr09
Florida Power &Light/GE
End-to-End Grid Comm & Control System
Apr09
Feb 09
Smart + Connected Communities
Aug08
Gale International/SongdoIBD
Blueprint Announced
Sports &Entertainment
Sept07
July08
StadiumVisionWins:Yankees/Cowboys
IP-enabled SportsBusiness Model
Nov09
Speed of Innovation:
~ One Year from
Vision to Execution
Switching 70%
Scale
WebConferencing
50%
Voice 30%
Security 35%
Storage: Area Networks
24%Wireless:LAN
61%
43%NetworkedHomeRouting 58%
Digital Video:IPTV 65%
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
Faster, Better, “Stickier” Decisions
Passive Aggressiveness
Flexibility
November 2008 - January 2009
$500 Million Re-Aligned
90 Days
February 2008 - August 2008
$500 Million Re-Aligned
180 Days
Fiscal Year 2009
$1.5 Billion Cut from
Cisco’s Run Rate
180 Days
ReplicationExpansion into New Markets
FY07 2 Adjacencies
FY10 30 Adjacencies 15X
Increased Breadth and Depth of Participation
FY07 100 Executives
FY101300 Executives13X
FY07 60 Days
FY10 55 Days1X
No Increase in Sr. Executive Time
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
VSEMAlignment &
Accountability
Council LeaderMBOs
Metrics
VSEM:“4-Page” Dashboard
Case Study:
Creating Community Through Technology
© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID
Virtual Community Spaces:Council & Board Connection
Return
UESTIONS
“While hierarchies are not vanishing, profound
changes in the nature of technology, demographics,
and the global economy are giving rise to powerful
new models of production based on community,
collaboration, and self-organization rather than on
hierarchy and control.”
– Opening to Wikinomics by Tapscott & Williams, 2008
Thank you!