CEC_Shift_to_Shared_Services_Model_Cisco (1)

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© 2013 The Corporate Executive Board Company.
All Rights Reserved. CEC5005613SYN
Function CommunicationsCorporate
Communications
Cisco Systems, Inc.
Industry: Computer Hardware
Cisco Systems is a global
provider of networking
equipment, IP telephony
and routers, based in San Jose,
California. It generates 60%
of its sales from the Americas.
Cisco adopts a
centralized, shared
service model to better
manage quality
and volume of
communications.
■■ Leveraging the CEC
resource allocation
benchmark, Cisco finds
it is overspending on key
communication services.
■■ A decentralized structure
means that communication
is duplicated multiple
times across functions and
messages are inconsistent.
■■ Only after centralization,
can Cisco begin evaluating
opportunities to scale services
without reducing value.
Source: Cisco Systems, Inc.; CEB, CEB Communications Executive Council, 2013.
Over-Consolidation of Services/Activities
Considerations based solely on cost lead to
communicators wrongly consolidating activities
that should be tailored to unique business or
regional needs.
Perceived Loss of Customization/Custom Support
Business partners and local communicators
feel unsupported to serve local audience needs.
Solution 1: Evaluate activities best suited to centralization
and service tiering
Cisco’s Tiered Shared-Service Model of Support
Solution 2: Complement centralization with customizable
support tools
Cisco’s Communications Resource Center
SHIFT TO SHARED SERVICES MODEL
Cisco’s Transition to a Centralized, Shared Service Internal Communications Model
Step 2: Identify and address the challenges brought about from a centralized, shared service model.
Step 1: Migrate to a centralized internal Communications organization, with shared services.
Challenges of Centralized Shared Service Models
Function Communications
(Executive, Program, Org Comms for all functions)
Employee Communications
(Employee, Leader, Program, Region Comms)
Professional Shared Services
NEW: Communications
Bureau
(Executive and
Organizational
Communications)
NEW: Communications
Resource Center
(Content, Training,
Templates, Graphics,
Web, Consulting)
Operations
(Budget/Planning, etc.)
Business Critical Comms
(Strategic Initiatives)
Functional
Communications
(e.g.: IT, Finance,
Marketing)
Employee
Communications
(Employee, Leader)
Sales Eng Ops HR
EMEA America APJC Global
OTHER: Functional Comms Orgs
IT HR Finance
OTHER: Employee Comms Orgs
De-centralized Internal Communications Centralized Internal Communications

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Tiered Shared Service Model of Support
Litmus Test for Activities to Migrate
to Shared Services
Three-Tier Shared Service Model
Executive Communications
Evaluation of Activities for Service Tiering
within Shared Service Model
Featured Examples from Cisco
Identify communication
activities prime for
shared service migration
based on cost saving
opportunity and business
needs.
■■ Following on the example
from Cisco’s Services
function’s successful
migration to a shared
service model for customer
assistance, Communications
applies a litmus test to
identify services that can
be scaled to cost and are
homogeneous (can be rolled
out in the same way in
multiple regions).
■■ Based on this exercise,
Communications identifies
spokesperson criteria for
dedicated support, and
develops a tiered service
model for executive
communications.
Activity/
Service
Cost Saving
Opportunity
Economies
of Scale
Biz Part-
ner Need
Diversity
Action
Graphics High High Low Move to
Resource
Center
Executive
Communi-
cations
High Medium High Tiered
Service
Model
Program
Communi-
cations
High Medium Low Tiered
Service
Model
Employee
Communi-
cations
Low Low Low Keep
Dedicated
Support
“Is our spend on this activity/service high or
low, compared to our industry benchmark?”
“Can we deliver this activity/service in the same
way across functions and geographies?”
“Are the business partner needs for this
service/activity homogeneous or diverse?”
Low High
Cost Saving Opportunity
HighLow Economies of Scale
HighLow Business Partner Need Diversity
Tier Service Delivery Approach
Tier1
Dedicated: Custom support through dedicated
communicators for identified spokespeople
with high volume, high customization need for
services.
■■ Services include: custom function and
organization communications, as well as
customer and other external communication.
■■ E/SVP-Level Executives (15% of executives)
Tier2
Shared: Consolidated support for identified
spokespeople with medium volume
and customization needs, through the
Communications Bureau.
■■ Services include: best practice processes for
executive and organization communications
that are repeatable across BUs.
■■ Additional services offered: communications
consulting on request; Pay to Play premium
services (e.g., customized graphics,
web, video).
■■ VP-Level Executives (25% of executives)
Tier3
Self-Service: Online portal, Communications
Resource Center, with access to tools and
templates for junior executives.
■■ Services include: key corporate messages
and talking points, graphics, customizable
templates, speaker coaching, consulting.
■■ VP-Level Executives (60% of executives) and
employees
Criteria for determining tier of support:
■■ Level of subject matter expertise
■■ Volume of internal/external comms
■■ Type of audience addressed
■■ Executive levelSource: Cisco Systems, Inc.; CEB, CEB Communications Executive Council, 2013.
Refer to Appendix pages at the
end for complete criteria and
examples of tiering activities.

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COMMUNICATOR SELF-SERVICE TOOLS
Cisco’s Communications Resource Center
Mitigate the loss of
customization due to
the shared service model
by providing tools and
resources.
■■ To compensate for
the loss of customized
Communications support
for executives in the shared
service model, Cisco creates
a self-service resource
center.
■■ The resource center
provides just-add-water
templates, tools, training,
and expert consulting to
enable executives to create
their own presentations and
collateral.
■■ Graphics and web—
previously free, dedicated
services—are now offered at
a premium within the shared
service model (through the
Services tab).
■■ Free consultation—where
Communications can
educate executives on
how to use the portal—
helps successfully migrate
executives who previously
received customized content
creation.
Ease of Access: Resources and templates
are mapped based on the specific activity
the user has come to the portal for.
Gradual Transition: Free consultations, chat, and discussion forums
help re-educate executives and ease their transition to the new self-
service and premium resource model.
Ready-to-Use Content: Collateral from across the
organization is featured in one central place, so business
partners can easily customize internal and external messages.
Social Proof: Showcasing most popular
tools creates peer reinforcement on the
value of the resource center.

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ResultsThe shared service model
has been well received by
business partners and will
bring a 30% cost savings.
■■ The tiered model for
executive communications
has resulted in 50% fewer
executives being supported
through a dedicated model,
with very positive feedback
from executives.
■■ The shared service model
in executive communications
is projected to result in a
30% cost saving within the
two-year planned timeline
for the transition.
■■ Since the launch of the
resource center in November
2012, the portal’s number
of unique visitors has
quadrupled and the resource
center team receives a
steady flow of consultation
requests, chat and forum
discussions.
■■ Further, Cisco reduced web
and graphics costs by 40%,
by moving these services
into a global shared service
model.
Increase in Unique Visitors
to the Resource Center,
Indexed
Cost Savings from Web
and Graphics Consolidation,
Indexed
Business Partner Satisfaction Successes in the Communications Resource Center
Number of Executives Successfully Migrated to
the Tiered Model To-Date
Projected Cost Savings from Centralized,
Shared Service Model in Internal and Executive
Communications
Indexed
0
50
100
100
70
July 2012 July 2014
(Expected)
∆ = 30%
“The Bureau model is the best thing that
happened to me. Bottom line: I have never
been more relaxed about my messages
for external events as I have been now in
[this shared service model].”
VP, Services, Cisco
0
75
150
0
75
150
150
23
75
70
Number of
Executives,
Before Tiering
November
2012
November
2012
Number of
Executives,
After Tiering
March
2013
March
2013
Dedicated Model
Shared Model
207%
40%

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Appendix 1: Criteria for Tiered Executive
Communications Support
Support Type Criteria Support Model
Dedicated Global/Industry Expertise
■■ Seen as critical company spokesperson by Global Corporate Communications and Function / Region Head
■■ Seen as a global business and industry thought leader, expert at priorities, transformation company initiatives,
business strategy
■■ Impacts Cisco’s brand recognition
■■ Complex content development and customized communications deliverables required for most/all audiences
Volume
■■ ~3 to 4+ communications per week and/or 36-48 per quarter
■■ Same-day communications required for large % of work
Audience/Type
■■ > 3+ audiences addressed on a regular basis with >30% external focus excluding customer meetings
Executive Level
■■ Vice President or above2
Function
Communications
(Tier 1)
Shared Function/Theater Expertise
■■ Seen as critical company spokesperson by functional/region HVP
■■ Speaks to functional priorities and/or initiatives, able to leverage company and functional core messaging
■■ Limited customized communications required
Volume
■■ ~1 to 2 communications per week and/or ~12–24 communications per quarter
■■ Limited to no same-day communications required
Audience/Type
■■ 1 to 2 audiences addressed on regular basis, typically large groups of employees, some customers and/or partners,
>10% and <30% external focus excluding EBCs
Executive Level
■■ Vice President or above1
Communication
Services Bureau
(Tier 2)
Self Service Communication
Resource Center
(Tier 3)
1 Not mutually exclusive criteria. Spokesperson must meet all criteria for support.

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Appendix 2: Evaluation of Tiered Support
for Cisco Executive
Case Example

CEC_Shift_to_Shared_Services_Model_Cisco (1)

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