- Use the competing values framework to diagnose Cisco’s culture. To what extent does it possess characteristics associated with clan, adhocracy, market, and hierarchy cultures? Discuss.
I feel that Cisco Systems use a clan and adhocracy culture rather than a market and hierarchy. It really depends on the company and what it values as important because some companies like Home Depot focus on competition and has to have a strong market culture to survive. I really like the way how Cisco Systems works it company by allowing everyone to be a part of something like a team and of course there is no ‘i’ in team. A clan culture consists of an internal focus and values flexibility. It is very “employee-focused” and achieves effectiveness by encouraging collaboration between employees. This is expressed in Cisco by having all the employees working with each other to get more perspective and make faster decisions thus leading to more business and finially leading to high morale and commitment from the workers. Cisco also empowes an adhocracy culture which has external focus and fosters the creation of innovative products and service by being adaptable, creative, and fast to respond to changes in the marketplace. Due to a $2.2 billion loss, the CEO of Cisco Systems, John Chambers, had to move from a market and hierarchy culture to a clan and adhocracy culture to adapt to the economy. In the beginning, it took a while to get a grasp of the new style of management but Cisco Systems succeeded, by it being abe to enter new lines of business due to the diversity of its groups and system of thought.
- Begin by looking up Cisco’s mission or vision statement on the company’s Web site. Now answer the following question: To what extent is the culture type you identified in question 2 consistent with the accomplishment of this misssion or vision?Explain.
Cisco’s mission statement: Shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners (). Their mission statement can relate to their culture style, clan and adhocracy, by them working not only for the benefit of its customers but as well as its employees. This statement also shows how the company will ‘shape the future’ by its commitment to change and have new ideas to open new and better doors. I really like how their mission statement was written; it basically gave a synopsis of what their core beliefs are and it refers exactly to their culture type. Cisco’s vision is a little bit shorter but a little more powerful. In a few words, Cisco was able to grasp a hold of not only the investor or the customer but as well as the workers for the company. The vision of Cisco is, Changing the Way We Work, Live, Play, and Learn, and makes a statement of the company of which it is always changing to the better. This one line sums up flexibility as it is willing to change everything no matter what. I feel that having a very powerful mission and vision statement is key for a company to strive for what it actually backs and supports.
- What techniques for changing organizational culture has Cisco used to form its culture? Discuss.
Edgar Schein, a well-known OB scholar, notes that changing organizational culture involves a teaching process (Kreitner and Kinicki,2010, pg.77). Cisco has used a couple of techniques to change its organizational culture. It assumes from the reading that Cisco was a market or hierachy type of culture and due to a massive loss of revenue, the CEO had to restructure its work system. So the first technique used by Cisco is a change, in the workflow and organizational structure. John Chambers decided to break its company up and group different executives together to form one group, which is breaking down the totem pole to help improve decision making and profit. The second technique is explicit rewards, status symbols, and promotion criteria. Cisco was very keen on making everyone, even the bigwigs, earn their money by supporting and help improving the company. One senior vice president’s compensation was based mostly on meeting the revenue targets and collaborating about it. Finially, Cisco uses slogans, language, acronyms , and sayings to improve the outlook of the company. One describes the benefits of its management system as “speed, skill, and flexibility.”
- Would you like to work at Cisco? Explain your rationale.
I really like what Cisco Systems is doing for both its employees and customers as the economy and market is constantly changing. I never knew of this clan/adhocracy type of culture until reading this book and see how a company like Cisco operates. I thought it was very interesting to see how companies change to a problem and find solutions that improve and make the most efficiency out of it. I would definetely like to work at Cisco not only because of its stock price and dividends but because of the way the organization as a whole is runned. Cisco learned how to use its culture for the best competitive advantage and that is why Cisco is one of the few companies ready for the next problem to occur or is just changing to improve its products.
References:
"Cisco Systems - Questions & Contacts." Cisco Systems - Investor Relations. Web. 18 Nov. 2011. <http://investor.cisco.com/contacts.cfm>.
Kreitner, R & Kinicki, A. (2010).Organizational Behavior. w York, NY. McGraw-Hill Irwin
