TALENT MANAGEMENT @ CISCO

By VRINDA MANJUNATH

“The only way to generate enduring profits is

to begin by building the kind of work
environment that attracts, focuses and keeps
talented employees.”
Marcus Buckingham and Curt
Coffman
Cisco Corporate Overview
Husband and wife Leonard Bosack and Sandy Lerner, both working for
Stanford University, wanted to link computer networks on campus
together, so they develop the first “multiprotocol”- 1984.

Cisco’s technologies open up the potential to link networks all the world

With an early foothold in the data networking equipment market, Cisco

became the market leader

Company’s product line had expanded to include a broad range of other

networking solutions to offer customers an “end-to-end” network
solution
Routers and Switches are still Cisco’s core product
Business strategy
•Assemble a broad product line in order to provide customers one- stop shopping for networking solutions.

•Systematize the acquisition process.

•Define industry-wide software standards for networking equipment

•Pick the right strategic partners
BUSINESS STRATEGY (2)
 An inherent part of Cisco’s
strategy was using
acquisition and
partnership to gain access
to new technologies
Areas of Talent management

R R
Cisco’s Manufacturing Philosophy and
Organization (2)
Cisco’s heavily dependent on outsourcing. It would
keep only the core business and outsource everything
else to alliance partners
About 25% of Cisco’s revenue and 50 % of its unit
volume was from external factories
Cisco did supply them to make sure that they met
Cisco’s standards.
Cisco’s acquisition strategy

E-R NPD ROI

Employee Retention
Cisco itself was the combination of 25 different
organizations.
Cisco specifics of the transition plan to the needs of
the acquired company’s employees. co’s HR
professionals went to great lengths to tailor
After the acquisition closed, Cisco’s HR team would
spend another six to sevens on-site executing the
transition plan.
For the employees of the acquired firm, working for Cisco
required a number of significant changes to their
compensation
Employee Retention (2)
Every redundant person had the opportunity to apply
for any Cisco job opening world-wide over 300-600 job
openings available at a given point of time.
Employee turnover rate for acquisitions was only 8
percent, the same level as for Cisco’s long-term
employees
About one in five Cisco employees and one-third
of Cisco’s top management positions were filled
by people who had come from acquired
companies
New product development
Cisco’s new product introduction(NPI) process
required both technical expertise and
management talent
Cisco found that the most effective way to do was for
the acquired company to adopt Cisco’s cross-
functional, systematic NPI process
Return on investment
With Cisco’s powerful sales organization and
third party distributors, they can sell the acquired
company’s product in two-to five times ramp up in
the acquired company’s volume.
This is the key driver behind the significant
growth in cisco’s revenue
TYPES OF ACQUISITIONS
Software companies

Pre-production hardware
companies

Small hardware companies

shipping products

Mature hardware
companies
Manufacturing Integration team

To manage the post acquisition process was to

appoint one of the senior managers in the acquired
company as the integration team leader
Buddy Systems Approach
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Manager of
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C.Staff & A. Staff

Integrated Talent Management
PLAN
ACQUIRE
RETAIN &ENGAGE

DEVELOP
LEAD & DEPLOY
People integration @Cisco
Art of integrating acquired companies into the Cisco fold. For the record, the
company states that more than 50% of its current employees are those
who have successfully transitioned from the acquired companies.

An oft-stated example of Cisco’s people integration skills is Charles

Giancarlo. Charles Giancarlo joined Cisco as a part of the acquisition of
Kalpana Inc in 1994.

Giancarlo went on to become the Chief Development Officer of the

company. Giancarlo had previously held the position of Vice President
(Marketing) at Kalpana Inc. Cisco’s documented strategy of only
acquiring companies which have a natural culture fit with the
organization helps the company tap and retain most of the senior
leadership from the acquired companies
Advantage of retention
The additional advantage of retaining
leaders/managers from acquired company is that
these are people who are already experienced with
rapid change (in the form of acquisition) and hence
are able to carry along the experience to the ever
changing landscape of the technology industry.
Leaders Past, present & future
Mi
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 collaborate

C-LEAD MODEL @ CISCO

Disrupt
SUCCESSFUL LEADERS
Few stars of the company like Mike Volpi (ex-SVP of
the Routing and Service Provider Technology Group)
and Charles Giancarlo (ex-Chief Development
Officer) all having had a successful stint in the
Business Development. The class of leaders during
these times can be classified as a mix of “Achiever”
and “Strategist”.
Cisco’ s success formula
Strategist vs Achiever.(stress on both productivity and
growth)
Integrating the leaders who identified new talent in
Acquired company.
{NTD +LD=Execute Strategy=
Achiever Productivity.}
Hiring for excellence
CISCO’S Value:
Competence.
Innovation and learning.
Team work.
Frugality(best value).
Adapt to market trends.
Culture
Stretch goals.
Fun and creating excitement (rewards and
recognition)
Teamwork.
Ability to drive change.
Giving back to community.(oneness)
Recruitment strategy
HR group ensures that culture is aligned with business
Strategy and continuously reinforced.
Non traditional methods.
Motto to attract highest caliber people
Passive job seekers.(happy & successful where they are)

Strategy 1.
Identify the kind of people required.
Create focus group with ideal recruitment targets.
Recruitment strategy (2)
Reach the focus group by art fairs and microbrewery festivals
Annual home and garden show(attract young achievers at
successful high technologies.)
Strategy 2:
Place newspaper adds featuring internet address and
invitation to apply.( leverage technology)
Why job posting on net?
To track the prospectus workplace.
Top 10% of the highest-performing employees are reached
through net.
E- RECRUITMENT
Cisco search engine to match one skills with job
openings.
Resume builder.
Easy software with download profiles & screen
disguise.(People look for jobs on company time.)
“Make friends @ cisco” (100 -150 a week friend request
to pair potential recruit with a volunteer friend within
the company.)
Referral (huge fees twice the industry norm of 500 to
2000$ and free trip to Hawai).
Talent Development
Stellar Track Record (indicates potential leaders
in the company)
Cisco follows “Grow Model” for desirable traits of future leaders (customer
relationship, focus on productivity, business knowledge, integrity, and
judgment.)
Cisco heavily emphasis on Transformational Leadership
 All the top leaders are expected to handle transformation smoothly
skill includes the ability to disrupt
(willingness to constructively challenge common practices as well as have the
courage to share new ideas.)
Diversity Initiatives at CISCO
Believes in diversity for new ideas, understanding customers
and better decision making.
Encourages network to connect with other employees who share
cultures, identities, or career.(71% USA, 15% in Europe & Middle
East, 9% Asia, 2% Japan.)
Gender Initiatives
Gender initiatives 2000 to develop Professional roles for women
in technology industry.
E- WAN(employee Women Access Network) mentoring,
networking and career development across throughout Cisco
global operations & capitalize talents in students in universities
and professional at work places.
CISCO ‘S Methods
TWO IN A BOX
 key to development of
younger leadership in the
company.
 The Two-In-A-Box
framework consists of one
younger leader and another
more experienced one.
 This provides opportunity for
the newer leader to learn
first-hand from the senior
one.
Advantages
 It eases transitions.
 Can be used in jobs that
require multiple skills.
 Increases the availability of
senior management at the
home office (when the other
manager may be travelling)
 Offers customers more access
to senior management.
 Helps in the role of mentoring.
Executive development
Programs Advantage
 Executive Action  14-week process helps align
Development Forum the vice-presidents to the
strategic priorities of Cisco
 gain a better understanding
of market transitions.
 understand the disruptions
necessary to successfully
execute the new strategic
priorities.
Action Learning Forum
 The program emphasizes an action-
learning approach in which
participants develop financial
models and go-to-market strategies
for various business ideas in support
of our emerging technologies group
 The program costs approximately
$10,000 per employee
 the chance to strengthen their skills
in leadership, strategic
management and team
development while working on
real, high-profile business
problems and start-up projects
that are strategic to Cisco's
operation
Advantage
 It brings together high-
potential directors for 16 weeks
of intense discussions. Working
in teams, they develop
strategies for new products,
markets, and technologies,
some of which result in new
Cisco business units
 it is projected to bring in $10
billion of revenue over the
next five years. by Cisco
executives and faculty
from MIT and Stanford.
4 series of leadership program
PROGRAMS OUTCOME
 To enhance the global mindset of the
managers. It helps translate the Cisco’s
 Global Leader Program global priorities into organizational
goals, focuses on developing business-
oriented technical leader
 For manager-level employees, the
Business Leader Program in the Cisco
 Global Technical Leader Program
Leadership Series aims at
strengthening knowledge in key
 Global Business Leader Program For
business areas.
manager-level employees, the Business
Leader Program in the Cisco Leadership Series
 It helps entry-level managers build their
 Emerging Leader Program The Emerging capabilities for personal leadership,
Leader Program in the Cisco Leadership Series teamwork, and staff development
Take home lessons.
Cisco is a classic example for a successful employer of
choice.
Perfect synergy between business strategy &
employee centric model.
Innovation in hiring creative workforce globally,
developing talent and leadership.
Excellent in inculcating and reinforcing organization
culture fit across diversity.