Introduction
Cisco Systems Inc. is a global leader in networking and technology solutions. The Cisco organizational culture is highly diversified and is built around creating opportunities for employees to take initiatives and implement them. Over the years, Cisco has utilized a delegated leadership style allowing individual leaders to make decisions on behalf of their teams. With this type of management, tasks are distributed in different directions. However, the company has faced numerous organizational problems leading to challenges in the execution of strategy and an overall lack of transparency. The delegated leadership approach has caused tension within the organization due to its lack of accountability and limited oversight of management decisions, alongside creating difficulties with communication and team collaboration due to its decentralized structure.
Company Overview
Cisco is a multinational technology conglomerate that designs, manufactures, and sells networking equipment. Headquartered in San Jose, California, Cisco is the largest networking company in the world. Founded by Leonard Bosack and Sandy Lerner in 1984, Cisco has grown to over 73,000 employees worldwide and has become an industry leader (Cisco Systems Inc, n.d). With operations in more than 100 countries and an annual revenue of over $48 billion, Cisco is a leader in providing products and services such as wireless routers, network security products, and cloud computing solutions (Cisco Systems Inc, 2022a). Cisco is thus a popular and successful company in various aspects. Cisco is committed to corporate social responsibility, with initiatives focusing on reducing its environmental impact, increasing access to education and technology, and supporting diverse and inclusive communities.
Cisco’s success is rooted in its commitment to innovation. The company invests heavily in research & development and has earned numerous awards for technological excellence over the years. Additionally, their engineering teams are constantly developing new technologies such as the Internet of Things (IoT), Software-Defined Networking (SDN), and Artificial Intelligence (AI). On top of that, Cisco also offers comprehensive professional services for customers ranging from consultation & design to implementation & support services for their products & services. In today’s digital age, it’s no surprise that Cisco dominates the market with its cutting-edge hardware & software solutions that help businesses stay connected and remain competitive.
Organizational Culture and Leadership Analysis
Cisco’s executive leadership team is significant; each member leads a specific area of the organization’s work. The management team includes the CEO, Chuck Robbins, and 11 executive vice presidents who lead various areas (Cisco Systems Inc., 2022b). In addition, each department has several divisions, each led by a senior leader. The delegation of managerial responsibilities allows for speeding up some business processes in the company since it eliminates the need to wait for a decision on any issues from the CEO. Most employee problems or requests are resolved at the department level (Zulfikar & Rahman, 2019). Moreover, this approach helps to raise employee satisfaction by meeting their needs.
Discussion and Analysis of the Problem
Despite the various success associated with the delegated leadership style, it can fail, reducing productivity and efficiency. This approach reduces control over business processes and the ability to track employee performance. Investigating the problem is essential to maintain the company’s leadership position in the market and ensure a favorable working environment for employees. First, this approach can negatively impact employee motivation and commitment (Zulfikar & Rahman, 2019). Secondly, the delegation of tasks often involves separate work of different departments, which practically do not interact with each other. This affects the team’s cohesion since each participant will focus on achieving their goals, not the company’s. Finally, the delegative leadership style is based on the trust and competence of each employee in their field (Cisco Systems, Inc., 2023). However, a person’s lack of professional skills necessary to perform the assigned tasks can lead to a decrease in the productivity of the organization and a decrease in employee motivation. Due to internal processes in the company, its ability to quickly adapt to changing market conditions is significantly deteriorating, which can mean a loss of competitiveness.
Recommendations
Create Transparent Corporate Culture and Values
Overcoming these problems is possible by creating a corporate culture to raise employees’ motivation and efficiency. The culture and values must be clearly defined and promoted within the company. For Cisco, the best option for this issue is creating a culture of support for innovation to increase the ability to quickly adapt to changing market (Organizational behavior, n.d.). The values in such a culture can be the equality of all employees, mutually beneficial cooperation, and initiative. In addition, the company needs to have artifacts, that is, tangible ways to realize these values. For example, Cisco focuses on “cultivating an inclusive work environment where employees can thrive” (Cisco Systems, Inc., 2023, para. 6). However, achieving this is possible through the company’s investment in the professional development and education of employees. Moreover, shared culture and values promote team building and teamwork to achieve the company’s global goals. Therefore, the company must promote and maintain communication between different departments to improve overall results and performance.
Increase Accountability and Oversight
To foster optimal organizational performance, it is essential to increase accountability and oversight in the company’s delegated leadership style. Accountability can be achieved through checks and balances to ensure strategic management decisions align with the company’s goals and values (Hristov et al., 2019). Clear performance metrics should be established for each department or manager to accomplish it effectively. Effective annual reviews, done independently by senior management and connected with corporate goals, facilitate monitoring progress toward targets. To guarantee success is reached quickly and effectively, remedial steps based on the results of these assessments must be taken immediately.
In addition, Cisco has to establish a committee of oversight responsibility for monitoring all the choices that managers and department heads make. The evaluation committee must comprise senior managers who are not connected in any way to the department being analyzed. This committee has to have the authority to either concur with critical choices that department heads and managers have made or to disagree with those choices and express their reasons for doing so. In addition, it should be able to investigate any concerns presented by workers or other stakeholders in the organization.
Improve Communication and Collaboration
Another recommendation is to enhance organization-wide communication and cooperation. While employees and supervisors operate in silos, a decentralized organization can cause problems with communication and collaboration. This can lead to redundant efforts, missed opportunities, and lower productivity. To increase communication, Cisco should develop clear communication routes between departments and supervisors. These channels should be backed by technological platforms allowing easy and rapid communication. Workers should be encouraged to offer their thoughts and perspectives on organizational challenges, and the management team should take their comments carefully. In addition, Cisco should develop departments-spanning cross-functional teams. These teams should collaborate to achieve common objectives, share expertise, and foster an organizational culture of cooperation. The organization should also train staff on effective communication and collaboration to improve teamwork.
Implement A Performance Management System
A lack of accountability is one of the difficulties of delegated leadership. Measuring and evaluating managers’ performance is challenging without a suitable performance management system. Cisco Systems, Inc. should establish a performance management system that matches manager performance with the organization’s goals and objectives. This system should be developed to offer managers frequent feedback, identify areas for development, and recognize high-performing managers. Consequently, Cisco Systems Inc. will guarantee that managers are accountable for their actions and enhance responsibility.
Cisco should explain Performance Expectations as part of its performance management system implementation. Further, Cisco should create clear expectations for the roles and duties of each employee, as well as the expected objectives and performance measures. This should be accomplished through job descriptions, performance targets, and key performance indicators (KPIs) connected with the organization’s strategic objectives. By establishing these standards, employees will have a more precise knowledge of their responsibilities and what is expected of them.
In addition, the organization should conduct performance reviews regularly to monitor success compared to expectations, provide feedback, and determine areas in which improvements are needed. The evaluations ought to be carried out yearly, but it is possible that more regular assessments may be required for high-risk jobs or when there is a considerable amount of change. Performance evaluations must be carried out to place a greater emphasis on mentoring and education than on reprimanding or casting blame (Soltani & Wilkinson, 2020). Regular performance reviews thus play an essential role in dealing with problems associated with delegated leadership.
In addition, continuous feedback should be offered throughout the year. This feedback can come from peers, subordinates, and superiors, and it can be provided through regular one-on-one meetings or in the moment via informal feedback channels. This feedback should be detailed, timely, and actionable, emphasizing strengths and opportunities for development. Likewise, Cisco should engage in training and development initiatives to guarantee that its staff has the skills and knowledge necessary to achieve performance objectives. These programs may be tailored to an individual’s requirements and provided in a number of forms, such as in-person training, online learning, and coaching.
Lastly, Cisco should implement a performance recognition and rewards program to identify and promote high-performing personnel. It can be accomplished through bonuses, promotions, and non-monetary incentives such as increased vacation time or public recognition. This program should inspire and incentivize staff to reach their performance targets. By establishing a performance management system emphasizing these critical areas, Cisco can successfully manage performance in an environment of delegated authority. The system should give clarity, accountability, feedback, and recognition while fostering employee development and advancement.
Invest In Leadership Development
Cisco Systems Inc.’s approach to delegated leadership has created challenges for managers expected to make independent judgments. To solve this difficulty, the organization should engage in leadership development to strengthen the decision-making abilities of its managers. Leadership development may be accomplished through training programs, mentoring, and coaching. By doing so, Cisco Systems Inc. will guarantee that its managers have the knowledge and skills to make decisions that align with the organization’s objectives and goals.
To invest in leadership development, Cisco should establish a leadership development plan, provide training, offer coaching and mentoring, and promote continuous learning. A comprehensive plan can aid in identifying leadership skill gaps and developing the relevant competencies. The strategy should include chances for evaluations, training, mentoring, and coaching. Communication, problem-solving, and decision-making are crucial leadership abilities that may be honed through training programs. Continuous training should allow leaders to acquire new skills and remain current on industry best practices. Coaching and mentoring programs can assist leaders in gaining insight into their leadership styles and identifying opportunities for development (Tureski et al., 2020). In addition, they can obtain input from seasoned leaders who can coach them through difficult situations. Cisco may encourage executives to investigate continuous education opportunities, attend conferences, and participate in networking activities. Leaders may position their teams for tremendous success by remaining current on industry trends. Cisco can build a more engaged and productive team by establishing leadership development programs that address these concerns.
Conclusion
If executed effectively, delegated leadership can be an effective management style. Nevertheless, it can also result in problems such as a lack of responsibility and insufficient oversight of management decisions. To solve these challenges, Cisco should establish clear performance criteria and an oversight committee and strengthen responsibility and supervision. Cisco should establish a company-wide culture and values, implementing them via observable actions. Also, the organization should increase communication and cooperation by establishing clear communication channels, cross-functional teams, and staff training. These recommendations can assist Cisco in enhancing its style of delegated leadership, improving its organizational performance, and achieving its strategic objectives. Hence, despite their substantial benefits, Cisco’s organizational structure and leadership style might limit the productivity and efficiency of employees.
References
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Cisco Systems Inc. (2022b). Executive team. Web.
Cisco Systems Inc. (n.d) 8 things you didn’t know about Cisco Systems. Web.
Cisco Systems, Inc. (2023). Corporate Social Responsibility. Web.
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Soltani, E., & Wilkinson, A. (2020). TQM and performance appraisal: complementary or incompatible? European Management Review, 17(1), 57-82. Web.
Turesky, E. F., Smith, C. D., & Turesky, T. K. (2020). A call to action for virtual team leaders: practitioner perspectives on trust, conflict and the need for organizational support. Organization Management Journal, 17(4/5), 185-206. Web.
Zulfikar, V. A., & Rahman, R. S. (2019). Effect of Delegative Leadership on Achievement Motivation and Continuous Commitment. Kontigensi: Jurnal Ilmiah Manajemen, 7(2), 44-53. Web.