This paper examines Cisco's team-based management structure and the challenges it faces during economic downturns. The analysis identifies key problems with the company's heavy reliance on team-based compensation and the burden of employees serving on multiple teams simultaneously. The paper proposes several alternatives, ultimately recommending a company-wide evaluation via employee questionnaires to guide team consolidation. It outlines an implementation plan for restructuring teams based on employee feedback and skill sets, and concludes that the proposed strategy will help Cisco maintain its organizational effectiveness while adapting to a difficult economic climate.
Cisco is a well-managed company that has successfully navigated downturns through a management structure that encourages teamwork. Although the teamwork model has been successful, it took a great deal of time for many employees to adapt to the new structure, including changes to the compensation model, which is now heavily based on meeting organizational goals through teamwork. At present, there is some question as to whether the current economic climate will allow the company to continue utilizing its teamwork strategy.
The problem facing Cisco could be addressed appropriately by making some straightforward adjustments that will help employees feel more confident with the arrangement. For instance, the company could lower the percentage of compensation that is reliant on teamwork outcomes. Other alternatives might include the consolidation of some teams so that each employee serves on only a limited number of them. In addition, a company-wide evaluation should take place so that management can determine what types of changes need to be made.
Cisco must be willing to listen to employee concerns and make changes accordingly. To this end, the company should conduct a company-wide evaluation designed to ensure that employee concerns are taken into consideration as the company works to improve its current structure. This evaluation is recommended because it will reveal all of the factors that must be addressed and will assist management in finding a proper balance — one that will ensure Cisco continues to be successful well into the future.
The evaluations will take the form of a questionnaire distributed via email. All relevant employees will be asked to complete the questionnaire and return it within three days. With respect to the idea of consolidation specifically, the evaluations will assist managers in determining which teams hold the most value for the company so that changes can be made accordingly. The company should make clear to employees that their opinions matter and that they will play an instrumental role in improving the current system. As noted in research on team-based organizational models, employee buy-in is critical to the success of any restructuring initiative.
"Questionnaire analysis guides team consolidation and reassignment"
"Consolidated teams improve focus and company resilience"
Always verify citation format against your institution’s current style guide requirements.