Case study of making IT a strategic business partner

1. Strategic Business Partnership Ayelet Baron WW Sales Strategy & Planning March 2003

2. Agenda Case Studies Strategies For Success Q&A About Cisco Becoming A Strategic Partner

3. About Cisco

4. History of Cisco Systems Started at Stanford IPO; 192 Employees End-to-End Solutions Provider Cisco Routers Power the Internet; LAN/WAN Switching, Remote Access #1 Communications Equipment Supplier Shipped First Router $18.9 Billion Revenue; 34,000 Employees; IP Telephony, Security, Wireless, Networked Home 1998 1984 1986 1990 1994 2002 2003

7. Foundational Principles Profit Contribution Market Transitions Open Communication Empowerment Trust/Fair/Integrity/Giving Back Teamwork Drive Change Fun

8. CEC: Cisco Culture and Business Ownership Cisco University The New Cisco Employee Connection (CEC) – worlds coming together: Content, Tools, Communication and Technology

12. Key Cisco Frameworks © 2003 Cisco Systems, Inc. All rights reserved.

13. “ I’m never having kids. I hear they take nine months to download.”

15. Core and Context Core Context © 2004 Cisco Systems, Inc. All rights reserved. Mission Critical Non-Mission Critical Contributes Directly to Competitive Advantage Required to run the business and fulfill commitments Shortfall risks company's operations

17. Investment and Partnering Strategy Core Context © 2004 Cisco Systems, Inc. All rights reserved. Mission Critical Non-Mission Critical Invest Retain In-house Drive Productivity Strategic Partners (Few, Tightly Coupled) Focused Investment Specialist Partners Control Costs Vendor Management (SLAs Driven)

19. Becoming A Valued Partner

20. What is A Strategic Business Partner? Business Alignment Strategy Process Change Agent Trusted Advisor Productivity Customer, Employee and Shareholder Value

23. Case Study #1 Collaborative Problem Resolution

24. Business Problem Inconsistent global methodology to identify, prioritize and address complex business problems resulting in inefficiency, productivity loss and lack of cross-functional teaming, and issues not getting resolved Our Opportunity: Having the methodology in place to solve complex, cross functional business issues in a short window of time © 2003, Cisco Systems, Inc. All rights reserved.

27. Key Elements of CPR The 4P’s P latform P roblem P rocess P eople

32. Case Study #2 Cisco IT

35. Change Management Framework DESIRED STATE SPONSOR COMMITMENT SKILLS CULTURAL ALIGNMENT RESISTANCE P A I N COMMITMENT TIME SYNERGISTIC RELATIONSHIP R EM E D Y PLAN TRANSITION RISK AREAS Frame of Reference PRESENT STATE

37. Client Feedback IT Performance vs. Business Need Example 0.8 0.9 0.7 1.1 0.8 1.0

39. Internal Assessment Risk Area: Sponsorship IT Senior Staff ... IT Senior Staff Supports This Change... Example

44. Collaborating Across IT

46. Client Satisfaction Mean 4.2 Mean 3.8

47. Success Strategies

49. Engagement Model Business Partnership is a relationship of mutual trust and influence built on shared ownership of and complementary contributions to business results Ensure Successful Implementation Assess Business Needs & Gaps Identify key Initiatives Leverage Resources Create Actionable Game Plans

53. “… chance favors only the prepared mind.” — Louis Pasteur FY’04 FY’05 FY’06 FY’07

54. Q and A © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID