Prior to its reorganization, Cisco Systems had a reputation for having a kind of “cowboy culture” in which people with the most aggressive and strong personalities pushed and shoved to try to gain John Chambers’s approval. Those who controlled the most resources had the most power, and they used that power for personal gain instead of the best interest of the company.60 Now the company exhibits a sense of pride in managers who do something to help others succeed, even if they don’t receive explicit or instant credit for it.
John Chambers will be the first to tell you that the current collaborative structure could not have emerged without the systems put in place to facilitate communication between employees spread across the globe. Cisco had to figure out a way to allow everyone to work together without hopping on a plane every time they needed a meeting. Therefore, the company developed a technology called “TelePresence,” which Chambers calls “a lifelike, ultra-high-definition videoconferencing system that enables meetings so realistic that they truly feel like everyone is in the same room even if they’re thousands of miles away.”61 The technology seems to provide a competitive advantage to Cisco, though for \($300,000,\) it will set up the very same system for anyone who wants one!
An issue that keeps popping up, however, is what happens when Chambers (who, at age 59, is recognized as one of the top CEOs in the world) retires. The current structure is mainly a result of his influence, though he also argues that the new structure minimizes his importance.
The succession plan remains up in the air.62 One thing is for certain though: The nimble decision-making ability of Cisco’s councils and boards might be put to use very shortly, because as of late 2009, Cisco had \($26\) billion in cash laying around, waiting to be spent.63

Questions:-

15.1 Given the technology available at Cisco, is it possible for other companies to emulate its organizational structure? What might prevent other companies from doing so?

15.2 Evaluate Cisco’s organizational structure in terms of its ability to compete effectively with its competitors. What specific advantages does it provide?
15.3 What types of employees is Cisco likely to attract with the structure it has put in place? Does this prediction bode well or ill for the future?