November 22, 2004
Culture Drives Cisco Philosophy
by Niti Dalal
Twenty years ago, Cisco Systems did not exist. Today, the company has more than $20 billion in revenues with nearly 36,000 employees around the world. Chairman of the Board John Morgridge believes his company’s culture has played a major role in its success.
According to Morgridge, the Cisco culture strives to empower employees and emphasize customer service without sacrificing frugality, ethics or social responsibility. No one in the organization can claim to work beyond its reach.
“On a trip to New York once, I walked out of the airport and saw a limo driver holding a sign with my name,” Morgridge said. “When I walked up to him, he said, ‘Here’s your subway ticket’ and pointed me in the right direction.”
That’s the way it should be, Morgridge asserted. To be truly frugal, management should use the same means of transportation as the rest of the employees because everyone’s actions define the corporate culture.
Morgridge shared his ideas on corporate culture and philanthropy while talking to students as part of the VIP Distinguished Speaker Series at the McCombs School of Business Nov. 16.
He placed particular emphasis on ethics and values.
“Ethics without values are meaningless. Values are established very early in life and are rooted in parental actions, sense of community, education, work experiences and faith,” he said.
But according to Morgridge, one of the most telling aspects of the company’s culture is its corporate philanthropy. He explained that there are three tenets to Cisco’s contributions: the importance of being a part of the community, the importance of education and the desire to be a respected citizen.
“To be successful, make sure that your philanthropic objectives are aligned strategically with your business objectives,” Morgridge said.
One of the “sweet spots,” Morgridge says, between Cisco’s philanthropic and business objectives is furthering information technology education globally. In a response to this need, Cisco established the Networking Academy Program, a comprehensive e-learning opportunity for students to gain Internet technology skills. The program delivers Web-based content, online assessment, student performance tracking, hands-on labs and instructor training and support.
The Cisco Systems Foundation presents another major philanthropic investment for the company. The foundation provides grants to nonprofit organizations in communities where Cisco has a significant business presence.
“We could have bought a stadium or sponsored the Olympics, but philanthropy is more effective than advertisements and promotions,” Morgridge said. “Every contribution counts and makes a difference in someone’s life.”
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