Building the next generation of leaders

CISCO SYSTEMS: BUILDING THE NEXT GENERATION OF LEADERS MARY ECKENROD VP, WORLD WIDE TALENT MANAGEMENT NCCI, WASHINGTON D.C. – OCTOBER 18, 2004

Cisco Worldwide

34,300+ employees in 70 countries

Average years of service 4.6

41% Engineering/IT, 27% Sales, 32% all others

All connected to common Internet tools

All are Cisco shareholders

© 2004 Cisco Systems, Inc. All rights reserved. San Jose, CA Richardson, TX Research Triangle Park, NC Boxborough, MA Toronto, Ontario London, UK Milano, Italy Bangalore, India Tokyo, Japan North Sydney, NSW, Australia Singapore

Cisco Acquisitions 2001-02 1996-97 1993-94-95 2000 1998-99 2003-04

Growth Stages for Great Companies Start-up Buy Talent Sustaining Build Leadership Maturity Market transition just accelerated our movement to next stage

Talent Management TALENT MANAGEMENT SOURCING ASSESSMENT REWARD DEVELOPMENT

Recruiting

Internal / External Balance

Succession Management

Talent Strategy

Options

Long & Short Term Incentive

Total Compensation

Executive Transition

Leadership / Talent Reviews

Development Planning

Cisco Leadership Series

Expectations of Leaders

Skills Inventory

Feedback 360, ePM, Pulse

Alignment, Integration, Simplification

Executive Transition

Cisco U Experience / Exposure / Education

Cisco’s 3E Development Framework E ducation E xperience E xposure

On the Job Tasks & Special Projects

Job Changes & Rotations

Special Assignments

Feedback

Role Models

Visibility Opportunities

C oaching and Mentoring

Instructor-Led Courses

E-Learning Programs

Selected Readings

Expectations of Cisco Leaders Foundation for Building Next Generation of Leaders Grow the Business Grow our Team Grow Yourself

Cisco’s Expectations of Leaders

Grow the Business

Customer Success

Focused on Profitability/Productivity

Business Knowledge

Grow Our Team

Teamwork & Collaboration

Vision & Alignment

Leading Change

Building Talent

Grow

Yourself

Integrity

Judgment & Perspective

Continuing Learning

Communication & Influence

Adaptability

Cisco Feedback Tools and Processes Feedback for Individuals Feedback for Groups Feedback for Leaders Feedback for Work Groups Review Talent Assessment Process 360 ° Cisco Pulse Survey

Development Feedback Effective network-enabled survey and reporting provides leading indicators and manager-focused results

360—Ratings

360 – Overview

360 – Highest/Lowest Scores

Executive Coaching Value Proposition at Cisco

Accelerated development of top talent directors and vice presidents focused on building leadership skills

Global, scalable solution with world-class coaches using consistent approach across Cisco

Contractually agreed-upon coaching outcomes

Measurement of results based coaching outcomes & ROI

Integrated and aligned with other Leadership processes (360, Performance Mgmt/Development, Leadership Reviews, other development programs)

Organizational trend analysis

FY’05 Cisco Leadership Series: Purpose & Target Audience

Purpose:

To increase Cisco’s leadership bench strength and build next generation leadership

Target Audience:

Cisco leaders with significant growth potential and projected business impact over the next 12 to 36 months

Cisco Education Focus Management Development Curriculum – Management Skills Global Business Program Emerging Leader Program Business Leadership Program Strategic Leader Program Executive Leadership Program Executive Education Partnerships Cisco Leadership Series Cisco University – Functional Skills & Development

Leadership Review Process 14

Leadership Review Process 15

Cisco Executive Integration: Key Elements Integration Plan Leadership Transitions Program Executive Quickstart Securing Early Wins On-Going Coaching and Feedback Setting Expectations Early New Manager Assimilation Process Vision and Priorities Executive Partner

Cisco Senior Leader Transition Process

On-Line Leadership Transitions Program

Meet key Stakeholders

Initial Strategy & Priorities Set

Secure Early Wins

Create Internal & External Networks

Creating Momentum

At 6-9 months consider 360 feedback

Consider nomination to Executive Leadership Program

Update Development Plan

Assess Progress & Plans

Assess Leader, Organization

& Fit

Create Integration Plan

Form Integration Team

Right from the Start

“ Going In Strategy”

Planning

HRM conducts New Manager Assimilation Process

Hiring Mgr & New Mgr set mutual expectations

Share Exec Quickstart

Mentoring & Coaching

Create Development Plan

Integration Begins

Integration team checks in with New Leader at 30, 60, 90 day intervals

Make mid-course corrections

Cisco Business Essentials

Learning & Building

Executive Integration Website

A New Corporate University Paradigm VISION Cisco University is a development network that transforms the way we work and learn, creating a stimulating development environment to follow business opportunities. An initiative, not an organization A company-wide, cross-functional effort that embraces all learning and development across Cisco The way employees will prepare themselves for success in Cisco’s future

Cisco University: Using the Network USING THE NETWORK TO CHANGE THE WAY WE LEARN Network-enabled knowledge sharing; employees are both learners and teachers All career activities connected in one place; linkages to feedback, job opportunities, coaching, training, mentoring Learning Anywhere, Anytime Single Focus for Career Development and Management Experience, Exposure, Education Traditional learning, on-line learning, gaming. All types and sources of learning and development

Linkages Between Development Tools Cisco University Experience, Exposure Education Employee Profile ePM “ Always open, always on”

External Recognition of Cisco Cisco Valued and Recognized for Leadership

Q & A