In retort to the year 2001 market downturn, Cisco Systems executed a major restructuring that transformed the company from a decentralized to centralized organization. While recognizing that a centralized, practical construction was needed to prevent product and resource redundancies, in addition, it risked making the business less customer-centric. To mitigate this danger, Cisco implemented a cross-operative system of executive-level councils that would bring leaders of different functions together to collaborate and focus on the needs and problems of special customer groups. Each council employs a "Three-in-a-Box" direction model composed of an executive leader from the engineering or technology business unit, a part of the goto-market team, and an operations resource manager.
Each council is also answerable to the Operating Committee, which is chaired by CEO John Chambers and establishes the long term corporate strategy and allocation of corporate resources. Many other firms have neglected at facilitating cooperation across functions-particularly large organizations-but Cisco's system has been successful because the company remained committed to the system, demanded a consistent infrastructure while also allowing for flexibility, gave members decision making ability, and used council leaders who flourish in collaborative environments. The success of the council system resulted in the creation of 20 boards of "sub-councils" in 2007. The boards are charged with driving development efforts and customer reach further into the organization by addressing particular problems too narrow for the councils to address.
PUBLICATION DATE: January 06, 2009 PRODUCT #: 409062-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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