For the most part, I would probably not want to work at Cisco. The convoluted structure devalues individual responsibility, which to my mind removes incentive for individual excellence. A manager's output is dependent on others, but there does not appear to be a mechanism to hold underperforming managers responsible. When the team is entirely comprised of internally motivated individuals, Cisco's system will work brilliantly. However, the system encourages managers to be passengers, allowing the best managers to carry the teams to everybody's benefit. The result of this is that over time managers will be encouraged to be passengers and elite managers will leave for organizations where their compensation is more directly tied to their own abilities.
While the textbook description of Cisco's culture does not explicitly outline a problem to be solved, Cisco has to consider the long-term impacts of its current organizational culture and structure. The collaborative approach has increased organizational complexity substantially and but it has also reduced individually accountability. In the short-run, the company has been able to move quickly and expand rapidly. In the long-run, maintaining that organizational vitality is going to be challenging. With reduced accountability, the company may attract or retain underperformers. In addition, this system appears to work only when high levels of energy are present. As products and markets mature, Cisco will have trouble finding that energy internally.
It is also indicated that Cisco wants to move quickly and spent some of its capital. This is not necessarily the best approach. Spending money and making investments should not be the ultimate goal of the organizational structure and culture. Spending in the wrong areas either reduces the return on investment for the firm or introduces distractions such as unrelated businesses. Managers may be encouraged to focus on pet projects, simply because the current structure allows them to do...
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