Cisco Business Councils (2007): Unifying a Functional Enterprise with an Internal Governance System Harvard Case Solution & Analysis

In response to the market downturn in 2001, Cisco Systems has implemented a major restructuring that has transformed the company from a decentralized to a centralized organization. Recognizing that a centralized, functional structure was needed to avoid layoffs products and resources, it also runs the risk of making the company less than customer-centric. To reduce this risk, Cisco implemented cross-functional system of the executive board level, which will bring together the leaders of the different functions work together and focus on the needs and concerns of specific groups of customers. Each council works "Three-in-Box" model of leadership, consisting of the executive leader of the engineering department or business technology, member-to-market team, and director of operations resource. Each board is also responsible for operating committee, which is chaired by CEO John Chambers and determines long-term corporate strategy and allocation of corporate resources. Many other companies have failed to promote cooperation between the functions, especially large organizations, but the system of Cisco, has been successful because the company remains committed to the system, you need to consistently infrastructure, and provides the flexibility to give the members of the decision-making body, and the use of the Leadership Council, who thrive in a collaborative environment. The success of the council led to the creation of 20 councils' sub-councils "in 2007. Fees will be charged with driving the development efforts and achieving further clients in the organization to address specific issues, too narrow for the Council to address. "Hide
by Ranjay Gulati Source: HBS 26 pages. Publication Date: 06 January 2009. Prod. #: 409062-PDF-ENG

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