Musings on Efficiency

Many people may not be too aware of 'who' CISCO Systems [1] is. Today, there's a very good chance that 90% of your internet is delivered by a collection of CISCO products.

In a recent interview with McKinsey Quarterly [1], John Chambers outlines his view on expansion and dealing with expansion in good- and lean- times. Something he explains very well is the simple formula that lets companies like Samsung, Hyundai, Toyota or a Google take a new business into a market challenger or market leader in more than one industry [2].

In my book the lesson here is, before you try to get creative or invent your version of my-way; the basics are virtually immutable.

My focus on Chamber's key points are worth repeating . . .

1. Be honest and realistic about causes of the current circumstances and your situation.
   • How much stems from the macro- and market environment?
   • How much is self-inflicted?
2. Plan appropriately
   • How deep will the down-turn go?
   • How long will the down-turn last?
   • Usually a down-turn will go deeper, and last longer than you think.
3. Getting closer to your customer
   • Use the situation to learn about the customer
   • Use your advantages to expand in market-adjacencies
4. Implement strategy
   • Use your customer proximity to think
   • Innovate
   • If it works . . . build on that, when it doesn't -- Stop and fix it first.
5. Two of the biggest lessons from 'mistakes'.
   • Move too slow ... Meaning you need to be capable and agile.
   • Moving too fast ... Moving before you have the capacity and capability is a recipe for increasing your challenges.

-- John Chambers, CEO, CISCO Systems [1]

In the emerging economies[2] the key factor to get right is quality and processes. As Chambers puts it, having your processes right is an essential for growth, so the process must be scalable. Cisco being Cisco, look at the leverage available by networked enabled technologies.

So! What's do-able? The things you can reproduce, the things you can give to others to reproduce (i.e. out-source), etc.

I am thinking, of scaling as a potential "6th Maturity Challenge" after a superficial observed) five developmental pahses described by Griener's[3] -- Once we appreciate the existing situational elements of the business climate and the economy. That too falls to Chamber's comment to maintain integrity with-self.

For me, the future will be about keeping it together as you move further apart (global, time-zones, and cultures). I think it is more than something to keep in mind -- It looks like it is an essential if you are looking at some future oriented activity.

Will.

References ...

1. Chambers, John (2009) "McKinsey Conversations with global leaders: John Chambers" (CISCO), McKinsey Quarterly, San Jose, CA., May 2009 (accessed: 13-Jul-2009).
2. Li, J.-T. & Kozhikode, R.K. (2008) Knowledge management and innovation strategy: The challenge for Latecomers in Emerging Economies. Asia Pacific Journal of Management, 25, 3, pp. 429.
3. Greiner, L.E. (1978) Organization Practices in the five phases of growth. Harvard Business Review, 76, 3, pp. 61-62.

Labels: expansion, innovation, mistakes, process, recession

# posted by Will : 15:37  1 Comments