CISCO SYSTEMS DEVELOPS A COLLABORATIVE APPROCH TO ORGANIZING
CHAPTER 13
Implementing Strategy in Companies That Compete Across Industries and Countries
CLOSING CASE cisco systems develops a collaborative approch to organizing
Cisco Systems, famous for developing the routers and switches in which the Internet is built, is faced with reexamining its organizing approach in order to improve how its teams and divisions work together. Despite still making billions in revenues, John Chambers, CEO, recognized that his mechanistic approach would not be enough to overcome Cisco’s shrinking market value. Thus, implementing a “collaborative approach,” and organic culture that would allow everyone to be involved in decision making was thought to be the answer. Chambers created cross-functional teams, identified measurable goals both short and long term, and emphasized speedy product development. Cisco and Chambers are confident that the organizational approach will make them a global leader in both communications technology and Internet-linked IT hardware and help them bring innovation to the market more quickly than the competition.
Teaching Note:
This case illustrates the need for more organic organizational structures to improve performance. Going from mechanistic and hierarchical to collaborative and organic has improved relationships and decision making at Cisco. You may want to ask students how Cisco should use its IT to improve a shrinking market demand for its products. Will this organic approach be enough to sustain and keep Cisco competitive?
ANSWERS TO CASE DISCUSSION QUESTIONS
. How has Cisco changed its structure and control systems?
Cisco moved from a mechanistic control to and organic structure which allowed for more collaboration and involvement in decision making. Essentially, controls were more loose with teams and divisions, both, planning long-term strategies, developing new products, and sharing technology. Instead of a select group of managers controls the direction of the organization, now,
Implementing Strategy in Companies That Compete Across Industries and Countries
CLOSING CASE cisco systems develops a collaborative approch to organizing
Cisco Systems, famous for developing the routers and switches in which the Internet is built, is faced with reexamining its organizing approach in order to improve how its teams and divisions work together. Despite still making billions in revenues, John Chambers, CEO, recognized that his mechanistic approach would not be enough to overcome Cisco’s shrinking market value. Thus, implementing a “collaborative approach,” and organic culture that would allow everyone to be involved in decision making was thought to be the answer. Chambers created cross-functional teams, identified measurable goals both short and long term, and emphasized speedy product development. Cisco and Chambers are confident that the organizational approach will make them a global leader in both communications technology and Internet-linked IT hardware and help them bring innovation to the market more quickly than the competition.
Teaching Note:
This case illustrates the need for more organic organizational structures to improve performance. Going from mechanistic and hierarchical to collaborative and organic has improved relationships and decision making at Cisco. You may want to ask students how Cisco should use its IT to improve a shrinking market demand for its products. Will this organic approach be enough to sustain and keep Cisco competitive?
ANSWERS TO CASE DISCUSSION QUESTIONS
. How has Cisco changed its structure and control systems?
Cisco moved from a mechanistic control to and organic structure which allowed for more collaboration and involvement in decision making. Essentially, controls were more loose with teams and divisions, both, planning long-term strategies, developing new products, and sharing technology. Instead of a select group of managers controls the direction of the organization, now,