Transforming Global Business Services [Cisco interview]

Ongoing transformation is critical for companies to sustain their competitive advantage and drive growth and innovation. In less than 12 months, Cisco created an innovative Global Business Services (GBS) organization, bringing together enterprise shared services and connected business operations. During this journey, a rigorous transformation capability was developed, which has become crucial in measuring tangible benefits. Vice President, Bene Werle gives SSON the lowdown on transformation, the value of metrics and the future of the transformation program. SSON: Why did Cisco bring Transformation into its organizational strategy? Bene Werle: Cisco’s senior leadership team created a formal transformation office and capability in the Fall of 2011 to ensure the company had a more formal mechanism to continually look at ways to drive growth and innovation for the long term. Based on internal and external benchmarking, we identified a number of ways to accelerate growth and innovation. After carefully reviewing the business and financial merits of these opportunities, we focused on areas that could deliver the greatest benefit to the company and allocated appropriate resources to these initiatives. A robust, scalable process was established from the very beginning, spanning the identification of ideas to the execution of changes that were prioritized by Cisco. Since this process was implemented, we have seen tangible financial and business benefits delivered to the company. Key progress has been made in building transformational capability across Cisco’s main functions, with business results sustained through initiatives including shared services implementation in the GBS organization. We track initiatives through a transformational portfolio so there is consistent rigor, governance and accountability across the company, and we can ensure these initiatives realize the intended results and deliver the committed business and financial benefits. SSON: How have you built Cisco’s functional transformation capabilities? Bene Werle: We have a small team that is focused on the overall management and governance of our company’s transformation portfolio – making sure the portfolio is aligned with overall corporate strategy and priorities, as well as overseeing portfolio governance and process. We are responsible for the oversight of everything, from ideas, to business case development, all the way to execution. In each major function of the company there are also transformation teams and we partner very closely with these senior leaders who have shared accountability for strategic decisions that are made around the portfolio, and the successful implementation and results of the portfolio initiatives. [inlinead] SSON: Why are metrics so important, and how do they impact the success of the GBS organization? Bene Werle: Metrics are imperative to ensuring critical opportunities and initiatives that the company is investing in stay aligned with corporate priorities and are delivering the intended benefits. Through the rigor of scorecards and regular operational reviews, senior leaders track the progress of the initiatives that we have invested in so progress is continuously monitored, results can be recognized and corrective actions can be taken early, if needed. SSON: What does the future hold for Cisco as a global business services organization, and what are its transformational capabilities? Bene Werle: We are passionate about operations and operational excellence as a means to transform a company or organization, so in the next year we would like to embed transformational capability so it becomes a real self-sustaining part of Cisco’s DNA. As one of the leading IT companies in the world, we will continue to focus on what we need to do to sustain our competitive edge and deliver value for our shareholders and also deliver the best experiences for our customers, partners and employees. Having an ongoing transformational capability and a scalable shared services model that support ongoing innovation and growth are both important to Cisco’s future, and are critical areas that the company is investing in. Furthermore, accelerating the delivery of shared services through an integrated end-to-end approach, converging business strategy and IT, is another important opportunity. [inlinead]

Transforming Global Business Services [Cisco interview]

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