Cisco IBSG
                                                                                                                           Horizons

                            T
                            M




   Decision-Driven Collaboration
   Insights from Cisco IBSG Horizons
   Collaboration Research

   October 2012



                                                                                                  Cisco IBSG
                                                                                                  Horizons

                                                                 For more information:
                                                                  http://cs.co/ibsg-ddc
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved.     Cisco Public   Internet Business Solutions Group        1
Cisco IBSG
                                                                                                                                  Horizons

      Horizons Collaboration Study




                             1,028                                                               993
                                      Executives                                        Middle Managers and
                                                                                       Individual Contributors
                       U.S. enterprises with 1,000+                                  U.S. enterprises with 1,000+
                        employees                                                      employees
                       18 industries represented                                     18 industries represented
                       All titles of director or above                               All titles of senior manager
                        (27% CXO)                                                      (managing < 5 reports) or
                       Responsible for making                                         below
                        “critical” company decisions                                  Knowledge workers only
       Source: Cisco IBSG, 2012
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Cisco IBSG
                                                                                                                                Horizons

      Quality of Decision Making
      Determines the Fate of Companies


                                                                      Frequency with which market
                                                                      incumbency is lost due to factors
      88%                                                             within a company’s control, rather
                                                                      than external causes




       Source: Matthew S. Olson and Derek van Bever, Stall Points, 2008; Cisco IBSG, 2012
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Cisco IBSG
                                                                                                                                Horizons

      The State of Decision Making

                                                                      Executives who consider their
        71%                                                           company’s decision making “good”
                                                                      or “excellent”

                                                                      Individual contributors rating company
        51%                                                           decision making “good” or “excellent”

                                                                      Percentage of firms who have been
       32%                                                            displaced in the Global 500 in the
                                                                      past decade
       Source: Cisco IBSG, 2012
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                                                                                                                                                       Horizons

      Denial of Risk and Peril
                                                                        Stage 3
                                                                      Denial of Risk
                                                                        and Peril
                                           Stage 2
                                                                                            Stage 4
                                   Undisciplined
                                  Pursuit of More                                        Grasping for
                                                                                          Salvation                                “Amplifying the
                                                                                                                                   positive and discounting
                                                                                                                                   the negative”
                                                                                                                                   “Big bets and bold
                                                                                                                                    goals without
   Stage 1                                                                                                 Stage 5                  empirical data”
Hubris Born                                                                                             Capitulation to
of Success                                                                                              Irrelevance or
                                                                                                             Death




       Source: How the Mighty Fall and Why Some Companies Never Give In, Jim Collins, 2009
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Cisco IBSG
                                                                                                                         Horizons

      Introducing Decision-Driven Collaboration

       What Is It?
        A management framework focused on connecting people to share
         information and ideas, but emphasizing the outcomes of collaboration
         (i.e., the quality of decisions) rather than just the volume of
         interactions
        An approach to empowering employees as decision makers and
         experts in their own right
        A strategy to harness employee-led innovation in a disciplined,
         aligned manner so that the overall decision-making intelligence of the
         business is increased

             Decision-Driven Collaboration ≠ Decision Making by Committee

       Source: Cisco IBSG, 2012
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                                                                                                                                          Horizons

      Three Key Elements of
      Decision-Driven Collaboration

              Collaborate to                                                         Identifying key contributors,
                                                                                     soliciting input, sharing
              Engage                                                                 ideas



                                Collaborate to                                              Shaping the matter to be
                                                                                            decided, considering
                                Evaluate                                                    viable alternatives



                                                 Collaborate to                                 Making a clear decision,
                                                                                                aligning the relevant parties,
                                                 Execute                                        putting it into practice




       Source: Cisco IBSG, 2012
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                                                                                                                         Horizons




       Collaborate to Engage




                                                                                                Cisco IBSG
                                                                                                Horizons



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                                                                                                                                     Horizons

      Decision-Driven Collaboration Targets
      the Full Lifecycle of How Work Is Done
                        Which of the Following Steps in the Process of Collaboration Do
                           You Think Is the Most Efficient in Your Company Today?

                 Identifying colleagues with the right
                                                                                                           26%
                                experience and ideas

                               Contacting and meeting with
                                                                                                20%
                                               colleagues


                              Sharing ideas, feedback, and                                                                33%
                                                  opinions
                              Capturing, consolidating, and
                                           analyzing ideas                                14%


                      Executing the change or decision
                                                                                     8%
                                       that is identified




       Source: Cisco IBSG, 2012                                                                                             N = 459 executives
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                                                                                                                             Horizons

      Leveraging Employee Expertise?


                                                                      Executives who feel they
                      68%                                             regularly consult with experts of
                                                                      all levels when making decisions

                                                                      Individual contributors who feel
                       49%                                            they are not consulted when their
                                                                      expertise is called for



       Source: Cisco IBSG, 2012
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                                                                                                                                                            Horizons

      Usage Gap Inhibits Decision Making
      Value from Collaboration Tools
                                      Two-way business video via telepresence                                                                   83%
                                                                                                                     41%


                                     Two-way business video via mobile phone                                                                77%
                                                                                                               29%


                                                                      Web conferencing via PC                                                     86%
                                                                                                                       45%


                                                 Web conferencing via mobile phone                                                      71%
                                                                                                               30%

                 Unified communications across all communications                                                                              82%
                devices (e.g., office phone, mobile phone, tablet PC)                                                42%

                           Business social software (e.g., corporate social                                                                76%
                                  networking, expertise directory)                                              32%

                                                                                                0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

                                                        Helpful in making better decisions             Widely available, highly used


       Source: Cisco IBSG, 2012                                                                                                                               N = 604
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Cisco IBSG
                                                                                                                         Horizons




       Collaborate to Evaluate




                                                                                                Cisco IBSG
                                                                                                Horizons



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                                                                                                                                   Horizons

      Data-Analysis Tools Are in Place, and
      Considered Valuable…
                                                                      Agree executives are provided with data
       70%                                                            analysis technology

                                                                      Agree executives are trained to use data-
      67%                                                             analysis technology

                                                                      Agree executives are expected to use
      65%                                                             data-analysis technology

                                                                      Believe data-analysis tools can improve
      80%                                                             decision making

       Source: Cisco IBSG, 2012
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                                                                                                                                                       Horizons

      …But Are Also Under-Exploited
                                                                       Widely Available and Used by Executives


                       Real-time operations data                                                       35%


                               Decision dashboards                                                     35%


        Consolidated market intelligence                                                           34%                       Access and use by
                                                                                                                         individual contributors are
                                                                                                                          roughly half these levels
                   Online tools to locate SMEs                                                         37%


                                        Analytics and BI                                           34%


             Modeling and forecasting tools                                                       32%


                               Online listening tools                                            28%

                                                                      0%   10%   20%       30%         40%   50%   60%      70%        80%        90%   100%
       Source: Cisco IBSG, 2012
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Cisco IBSG
                                                                                                                         Horizons




       Collaborate to Execute




                                                                                                Cisco IBSG
                                                                                                Horizons



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Cisco IBSG
                                                                                                                           Horizons

      Key Decision-Making Challenges
      Affect Execution

                                       Top 2 Challenges:
                                                                      Analysis paralysis: decisions
                                          #1                          bogged down in details (43%)


                                                                      Decisions not well-
                                          #2                          communicated (32%)



       Source: Cisco IBSG, 2012                                                                                              N = 600
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                                                                                                                                Horizons

      Individual Contributors and their Bosses
      Diverge on Outcomes and Execution

                                                                      Individual contributors who feel
       36%                                                            there is not shared understanding
                                                                      with management of a “successful
                                                                      outcome” of a decision (77% of
                                                                      execs feel there is)
                                                                      Individual contributors who feel

       41%                                                            there is not shared understanding
                                                                      with management of what is
                                                                      “required to execute” a decision
                                                                      (78% of execs feel there is)
       Source: Cisco IBSG, 2012
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             2011                                                            Cisco Public   Internet Business Solutions Group        17
Cisco IBSG
                                                                                                                               Horizons

      Employees Have Little Say
      About Execution

                                                                      Individual contributors who do
          57%                                                         not feel empowered to offer
                                                                      constructive dissenting views

                                                                      Individual contributors who have
                                                                      “little” or “no opportunity” to
       48%                                                            improve decision-making
                                                                      process
       Source: Cisco IBSG, 2012
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Cisco IBSG
                                                                                                                         Horizons




       Enabling Decision-Driven
       Collaboration



                                                                                                Cisco IBSG
                                                                                                Horizons



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                                                                                                                                     Horizons

             Decision-Driven Collaboration Enablers
              Collaborate to
              Engage

                a) Foster an Inclusive                                 Encourage any information sharing that can improve
                   Business
People




                                                                        a decision outcome
                   Environment                                         Enable employees to make their voices
                                                                        heard, irrespective of function, geography

                b) Unbundle                                            Facilitate access to expertise at point of business
Process




                   Traditional Teaming                                  need
                   Structures                                          Enable virtual teaming and clusters of experts
Technology




                c) Provide a Platform                                  Drive inclusiveness and opportunities to problem-
                   for Interaction                                      solve
                                                                       Enable information-rich, context-aware interactions
                                                                        through technology


             Source: Cisco IBSG, 2012
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                                                                                                                                      Horizons

             Decision-Driven Collaboration Enablers
               Collaborate to
               Evaluate

                 d) Nurture a Culture of                               “Democratize” analytics—move analysis beyond the
                    Analysis                                            preserve of executives and “number crunchers”
People




                                                                       Bring analysis to bear closer to the point of business
                                                                        need

                 e) Require True                                       Constructively challenge entrenched assumptions
Process




                    Alternatives                                        with fact-based empirical data
                                                                       For all major decisions, insist on at least two viable
                                                                        alternatives with quantified business cases
Technology




                 f) Create a Listening                                 Use technology to collect information proactively
                    Infrastructure                                      from customers, partner ecosystem, employees, etc.
                                                                       Capitalize on the cloud to capture and distill insights
                                                                        from all angles


             Source: Cisco IBSG, 2012
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Cisco IBSG
                                                                                                                                    Horizons

             Decision-Driven Collaboration Enablers
               Collaborate to
               Execute

                 g) Promote Invested                                   Create a pervasive understanding of how the
                    Execution
People




                                                                        organization creates value and allow everyone to
                                                                        make the best possible decision with this in mind
                                                                       Make decisions “stickier”

                 h) Measure How You                                    Drive clarity and accountability by embedding metrics
Process




                    Manage                                              and analytical capabilities throughout decision
                                                                        lifecycle
                                                                       Assess decision-making success, quality of execution
Technology




                 i)        Harness                                     Free up employee creativity to re-imagine how
                           Employee-Led                                 results can be achieved on their terms (BYOD)
                           Innovation                                  Leverage innovation and engagement, and direct it
                                                                        to strategic priorities


             Source: Cisco IBSG, 2012
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Cisco IBSG
                                                                                                                         Horizons

      Conclusion: Millions of Better Decisions

        Top-down innovation tends to be “orderly but dumb”;
         bottom-up innovation is “chaotic but smart”—can we have
         the best of both worlds?
        Recognize that every single employee is a decision
         maker—increase the intelligence of every decision taken in
         the business, unfetter innovation
        Go beyond connecting and communicating to empowering
         smarter evaluation and stronger execution
        Steer collaboration at every layer of management to yield
         millions of better decisions

       Source: Cisco IBSG, 2012
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Cisco IBSG
                                                                                                                           Horizons




                                                                 For more information:
                                                                  http://cs.co/ibsg-ddc
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved.     Cisco Public   Internet Business Solutions Group        24

Decision-Driven Collaboration

  • 1.
    Cisco IBSG Horizons T M Decision-Driven Collaboration Insights from Cisco IBSG Horizons Collaboration Research October 2012 Cisco IBSG Horizons For more information: http://cs.co/ibsg-ddc Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1
  • 2.
    Cisco IBSG Horizons Horizons Collaboration Study 1,028 993 Executives Middle Managers and Individual Contributors  U.S. enterprises with 1,000+  U.S. enterprises with 1,000+ employees employees  18 industries represented  18 industries represented  All titles of director or above  All titles of senior manager (27% CXO) (managing < 5 reports) or  Responsible for making below “critical” company decisions  Knowledge workers only Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2
  • 3.
    Cisco IBSG Horizons Quality of Decision Making Determines the Fate of Companies Frequency with which market incumbency is lost due to factors 88% within a company’s control, rather than external causes Source: Matthew S. Olson and Derek van Bever, Stall Points, 2008; Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3
  • 4.
    Cisco IBSG Horizons The State of Decision Making Executives who consider their 71% company’s decision making “good” or “excellent” Individual contributors rating company 51% decision making “good” or “excellent” Percentage of firms who have been 32% displaced in the Global 500 in the past decade Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 4
  • 5.
    Cisco IBSG Horizons Denial of Risk and Peril Stage 3 Denial of Risk and Peril Stage 2 Stage 4 Undisciplined Pursuit of More Grasping for Salvation “Amplifying the positive and discounting the negative” “Big bets and bold goals without Stage 1 Stage 5 empirical data” Hubris Born Capitulation to of Success Irrelevance or Death Source: How the Mighty Fall and Why Some Companies Never Give In, Jim Collins, 2009 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 5
  • 6.
    Cisco IBSG Horizons Introducing Decision-Driven Collaboration What Is It?  A management framework focused on connecting people to share information and ideas, but emphasizing the outcomes of collaboration (i.e., the quality of decisions) rather than just the volume of interactions  An approach to empowering employees as decision makers and experts in their own right  A strategy to harness employee-led innovation in a disciplined, aligned manner so that the overall decision-making intelligence of the business is increased Decision-Driven Collaboration ≠ Decision Making by Committee Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6
  • 7.
    Cisco IBSG Horizons Three Key Elements of Decision-Driven Collaboration Collaborate to Identifying key contributors, soliciting input, sharing Engage ideas Collaborate to Shaping the matter to be decided, considering Evaluate viable alternatives Collaborate to Making a clear decision, aligning the relevant parties, Execute putting it into practice Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7
  • 8.
    Cisco IBSG Horizons Collaborate to Engage Cisco IBSG Horizons Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 8
  • 9.
    Cisco IBSG Horizons Decision-Driven Collaboration Targets the Full Lifecycle of How Work Is Done Which of the Following Steps in the Process of Collaboration Do You Think Is the Most Efficient in Your Company Today? Identifying colleagues with the right 26% experience and ideas Contacting and meeting with 20% colleagues Sharing ideas, feedback, and 33% opinions Capturing, consolidating, and analyzing ideas 14% Executing the change or decision 8% that is identified Source: Cisco IBSG, 2012 N = 459 executives Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 9
  • 10.
    Cisco IBSG Horizons Leveraging Employee Expertise? Executives who feel they 68% regularly consult with experts of all levels when making decisions Individual contributors who feel 49% they are not consulted when their expertise is called for Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 10
  • 11.
    Cisco IBSG Horizons Usage Gap Inhibits Decision Making Value from Collaboration Tools Two-way business video via telepresence 83% 41% Two-way business video via mobile phone 77% 29% Web conferencing via PC 86% 45% Web conferencing via mobile phone 71% 30% Unified communications across all communications 82% devices (e.g., office phone, mobile phone, tablet PC) 42% Business social software (e.g., corporate social 76% networking, expertise directory) 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Helpful in making better decisions Widely available, highly used Source: Cisco IBSG, 2012 N = 604 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 11
  • 12.
    Cisco IBSG Horizons Collaborate to Evaluate Cisco IBSG Horizons Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 12
  • 13.
    Cisco IBSG Horizons Data-Analysis Tools Are in Place, and Considered Valuable… Agree executives are provided with data 70% analysis technology Agree executives are trained to use data- 67% analysis technology Agree executives are expected to use 65% data-analysis technology Believe data-analysis tools can improve 80% decision making Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 13
  • 14.
    Cisco IBSG Horizons …But Are Also Under-Exploited Widely Available and Used by Executives Real-time operations data 35% Decision dashboards 35% Consolidated market intelligence 34% Access and use by individual contributors are roughly half these levels Online tools to locate SMEs 37% Analytics and BI 34% Modeling and forecasting tools 32% Online listening tools 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 14
  • 15.
    Cisco IBSG Horizons Collaborate to Execute Cisco IBSG Horizons Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 15
  • 16.
    Cisco IBSG Horizons Key Decision-Making Challenges Affect Execution Top 2 Challenges: Analysis paralysis: decisions #1 bogged down in details (43%) Decisions not well- #2 communicated (32%) Source: Cisco IBSG, 2012 N = 600 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 16
  • 17.
    Cisco IBSG Horizons Individual Contributors and their Bosses Diverge on Outcomes and Execution Individual contributors who feel 36% there is not shared understanding with management of a “successful outcome” of a decision (77% of execs feel there is) Individual contributors who feel 41% there is not shared understanding with management of what is “required to execute” a decision (78% of execs feel there is) Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. 2011 Cisco Public Internet Business Solutions Group 17
  • 18.
    Cisco IBSG Horizons Employees Have Little Say About Execution Individual contributors who do 57% not feel empowered to offer constructive dissenting views Individual contributors who have “little” or “no opportunity” to 48% improve decision-making process Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 18
  • 19.
    Cisco IBSG Horizons Enabling Decision-Driven Collaboration Cisco IBSG Horizons Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 19
  • 20.
    Cisco IBSG Horizons Decision-Driven Collaboration Enablers Collaborate to Engage a) Foster an Inclusive  Encourage any information sharing that can improve Business People a decision outcome Environment  Enable employees to make their voices heard, irrespective of function, geography b) Unbundle  Facilitate access to expertise at point of business Process Traditional Teaming need Structures  Enable virtual teaming and clusters of experts Technology c) Provide a Platform  Drive inclusiveness and opportunities to problem- for Interaction solve  Enable information-rich, context-aware interactions through technology Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 20
  • 21.
    Cisco IBSG Horizons Decision-Driven Collaboration Enablers Collaborate to Evaluate d) Nurture a Culture of  “Democratize” analytics—move analysis beyond the Analysis preserve of executives and “number crunchers” People  Bring analysis to bear closer to the point of business need e) Require True  Constructively challenge entrenched assumptions Process Alternatives with fact-based empirical data  For all major decisions, insist on at least two viable alternatives with quantified business cases Technology f) Create a Listening  Use technology to collect information proactively Infrastructure from customers, partner ecosystem, employees, etc.  Capitalize on the cloud to capture and distill insights from all angles Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 21
  • 22.
    Cisco IBSG Horizons Decision-Driven Collaboration Enablers Collaborate to Execute g) Promote Invested  Create a pervasive understanding of how the Execution People organization creates value and allow everyone to make the best possible decision with this in mind  Make decisions “stickier” h) Measure How You  Drive clarity and accountability by embedding metrics Process Manage and analytical capabilities throughout decision lifecycle  Assess decision-making success, quality of execution Technology i) Harness  Free up employee creativity to re-imagine how Employee-Led results can be achieved on their terms (BYOD) Innovation  Leverage innovation and engagement, and direct it to strategic priorities Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 22
  • 23.
    Cisco IBSG Horizons Conclusion: Millions of Better Decisions  Top-down innovation tends to be “orderly but dumb”; bottom-up innovation is “chaotic but smart”—can we have the best of both worlds?  Recognize that every single employee is a decision maker—increase the intelligence of every decision taken in the business, unfetter innovation  Go beyond connecting and communicating to empowering smarter evaluation and stronger execution  Steer collaboration at every layer of management to yield millions of better decisions Source: Cisco IBSG, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 23
  • 24.
    Cisco IBSG Horizons For more information: http://cs.co/ibsg-ddc Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 24

Editor's Notes

  • #2 For more information:http://cs.co/ibsg-ddc
  • #25 For more information:http://cs.co/ibsg-ddc