Chambers Network giant
Chambers Birth: 1949 / Education: Law degree, MBA MBA / Current Position: Cisco
Systems (Cisco), CEO and President / know-how to attract talent: I always put those
capable people to important tasks; otherwise insult them.
Chambers abnormal abundant energy, it seems never know what tired, he told me that
he used in the work of the time every day there are 12 to 18 hours. I believe him. I
met great people all have one common feature: the work of up and do not know what
When Chambers first visit to China in Beijing for two days and a half, I followed the
two and half days. In these two half days in that I know how much Chambers busy,
how energy is abundant. He has been arranged during the day time not only full, night
time is also quite full, even if the 11 pm to return to their homes to live, he will have
to open the computer, dealing with a lot of e-mail.
Followed up in two and half days, I truly understand the Chinese market, Cisco Wang
Lian, head of the arrangements for my interview why so difficult. Chambers attaches
great importance to customers, the days of his visit to China he generously gave most
of the time the customer, the customer had a turn into another speech, dialogue, while
the time for journalists to pull it very tight . To hundreds of journalists there is only
one hour in addition to any interview.
Later, Wang Lian desperate brains, I arranged for a time period that the Chambers met
in Zhongnanhai, after completion Wu Yi, in New Century Hotel from Zhongnanhai to
New] Division conference this way I can in the car Chambers interview.
Cisco I and several staff members at the door at the Zhongnanhai Chambers. I do not
know why, I felt a sudden abdominal pain, so I went to Zhongnanhai, the bathroom
door; went to the bathroom, I am not worse, so I ran out, they found all the staff of
Cisco gone. I thought about long grass, like: Oh, Chambers gone! I quickly took a taxi,
catch up with New Century Hotel, so I rushed to the press conference venue,
Chambers has been standing in front of hundreds of journalists began a speech.
Chambers presentation style is extremely casual, sometimes he above the ground from
a large portion of the stage, bounced off the stage, sometimes jump from the audience
on stage, sometimes in the audience seats in bar, and sometimes come last rows of
seats. Speech in the Chambers from time to time to use his forearm to make a variety
of arc nice gesture, gray eyes, full of good intentions without also full of concern.
Two half-day, the Chambers held a four speeches. Several speeches that were heard
me, he&#39;s speaking style is so very memorable. You will feel this has a
golden yellow hair, a very mild temperament, always smiling foreigner, although not
very tall, not very strong, but full of a force, this force is his natural and sincere.
Chambers finished a speech at Qinghua University, the leaves for some time for
students to ask questions. Tsinghua University in China deserves to be one of the most
famous institutions, the vast majority of students asking questions, they all directly in
English. However, when one student stood up and suddenly Baisheng Sheng of
Chinese in question, Chambers shouted &quot;Hi&quot; to call out the
sound, accompanied by violent twisting the body, waist and one leg bent down when
asked, his face full of pain-like. This is what angered teachers and students packed
laugh. See all this, who did not think that Chambers had suffered from fear of public
As everyone has weaknesses, like everyone not ring true, Chambers also had
weaknesses and not &#39;quality, but he has the courage to overcome their
weaknesses, will ring true as a kind of reference, this is his great for.
Write here what I have to take to thank Wang Lian, Wang Lian is a very dedicated
head feel. Take responsibility, it is far-sighted, passionate sincerity to buy the market
staff, marketing staff with these qualities are rare even in foreign companies. While at
the press conference I asked two questions, but not enough to paper used. Anxious to
see my face, Wang Lian was very understanding, the last day of visit to China in the
Chambers, he reminded me that there is a chance you may wish to try, because that
night at the China World Hotel Chambers to dinner Week corpse, after completing the
banquet, if you can Duzaimenkou, perhaps to the ghost of a chance to fight.
So, I was at the China World Hotel, 10 pm to wait until end of the banquet. When
Chambers came out to see me from the dining room, he and the people around him
exclaimed again. Chambers was I moved immediately to a very important decision to
work back late brief meeting to be interviewed. See Chambers to do so, and I was
very moved. Sincerity can move back to using the online world giants, although in the
business grinding on his bubble for years, but still live very human. His heart, not
fame, status, Money drowned.
Interview Date: June 1998 in Beijing
Chambers Network giant
In 1996, when with a golden hair, a very mild temperament of John Chambers (John
Chambers) took Cisco (Cisco Inc.) President and Chief Executive Officer of Sceptre
already Biezulejin children when, according to with Cisco&#39;s big
&quot;throttle&quot; one foot in the past, they followed him along the
entire Cisco Internet mad or turn to: the way forward with the router crazy
&quot;Pave the Way&quot;, all the way crazy with buyout firms. Crazy
with the development of three results: Cisco annual turnover from 120 million U.S.
dollars pulled up to more than 100 billion dollars; staff development from 2,500 to
more than 50 countries with 17,000; from a simple router manufacturer (since the
router have occupied more than 80% global market share), extended to all aspects of
the Internet industry, and in several key areas of the network established industry
leader; more importantly, he is far throw off all the competitors, sit tight in the
network in the field of the top spot and become the fourth generation of computer
development in the history of upstart.
The &quot;hot&quot; hand holding five billion U.S. dollars in cash, before
joining the ranks of the world&#39;s top 50, too proud, horseshoe more diseases,
in large company stocks skidding all the time, Cisco has continued up breathing
children nez de boeuf, 1997, its market capitalization of 45 billion U.S. dollars, up
72.6 billion U.S. dollars in 1998, but by 1999 the market value of its stock actually
shot up to 300 billion U.S. dollars. Wall Street stock market, only General Electric,
Microsoft and Cisco three more than 300 billion U.S. dollars in market value.
Some analysts predicted that Cisco in the Nasdaq (the famous high-tech U.S. stock
exchange) on the stock market value may be more than one trillion U.S. dollars. A
recently published study reported that these may be expected within two years. And
about five years ago, the Nasdaq Stock Exchange market value of all listed companies
was the first time more than one trillion U.S. dollars.
Confused with entry, pull out clearly
Let this dark horse volley Cisco&#39;s Chambers has been born with 22 years
IT industry experience, he is an academic financial background, has won financial and
MBA degree, also won a law degree. First job, he naturally went to the operation of
the M &amp; A advisory company work, a friend told him later that there was a
specific selling solutions (Solution) company, called IBM, ready to introduce him to
this company, while Chambers was only &quot;solution&quot; is an interest,
then &quot;sleepwalk&quot; into IBM The world&#39;s largest
computer company, but he fell in love with information technology from the industry,
and with The industry had a close relationship. Chambers said to me: &quot;If
we had my friend told me IBM is a company selling the product I will never come,
I&#39;m really lucky.&quot;
Chambers did 6 years in IBM&#39;s sales. In 6 years, he felt the IBM attaches
great importance to users, including users of the technology and support on the
product. But later, IBM began to go for downhill away from the customers, making
Chambers lost confidence on the IBM, so IBM away from the Wang Corporation and
Wang Laboratories Inc. did for 8 years. &quot;6 and a half years before I did it
very successfully, over time, Dr. Wang An was still working, when I was vice
president of this company, this time, we attach great importance to customers, so we
can each year 40% of the rate of development . Dr. Wang An strengths is a great
visionary, will develop in different forms in different sectors, and his long-term plan
ways of doing things to make me a lot. &quot;
Later, Wang retired, his son succession, Wang direction of the company&#39;s
management changes, &quot;from the customer, is not properly take care of
various interests&quot; (Chambers English). Wang Chambers was in charge of
overseas business half of the company, one day he called to the office and was told
that he was transferred control U.S. operations, but there is a prerequisite that the first
laid off 4,000 people, &quot;This is me that is too painful, and this is simply to
kill me, I felt the company did not want, so the company finally left the Wang.
&quot;Companies on the rise period, the customer can be very conscientious and
made great achievements if they would forget the customer, they have forgotten
exactly what the user holding them up, nor are they out of the user, only sales come
down, so have layoffs. I watched IBM and Wang Laboratories Inc. of its decline from
its peak. &quot;(Chambers English)
Although Chambers is hurt heart to leave IBM and Wang Laboratories Inc., but the
life of the two companies really taught Chambers Chambers of today&#39;s
most critical lesson is this: we must focus on the customer, must be vision.
I will make Cisco a generation dynasty
Wang came out from the company, Chambers, 48, unemployed for two months at
home, then join Cisco, it was in 1991. Four years later, he was CEO of the company
mentioned. Chambers became CEO, he vowed: &quot;no large-scale layoffs, I
will make Cisco a generation dynasty, I think Cisco can change the world.&quot;
IBM, Wang learned the two companies has been a memorable Chambers no iron teeth
training, if the technical staff to a bunch of random new technology blurred mirror
placed in front of Chambers, must be careful, because he did not believe blindly in
any new technologies, he only believe his client. In his two and half days to visit
China, the most frequently repeated phrase is &quot;to Cisco&#39;s
customer satisfaction is the most important thing.&quot; Chambers put the
customer at the most central part of the company, the customer needs of the corporate
Chambers not only most of the focus on customers, but also the formation of the
company system, such as reward and punishment on to the managerial level should be
linked with customer satisfaction. The Chambers their own key to the table every
night listening to the manager dealing with customers on the recording of telephone
message, &quot;I am in total with more than 10,000 customers have talked to
large-scale meeting will be participated in 200.&quot;
Another &quot;We also partner questionnaire and the Internet way reflect the
views of customers up. No matter which Cisco official major speech in China will
follow the audience satisfaction and other customer survey.&quot; I saw
hundreds of people during the speech, Chambers, also follow after their questionnaire
to the front of an audience. &quot;The key to the success of Cisco customers
first, if you can listen to our customers say, you will get good results, that is, must
understand the customer&#39;s desire to meet the customer&#39;s wishes,
this is the most important.&quot;
Even Cisco&#39;s strategic direction will follow the client&#39;s
instructions, such as the company&#39;s first acquisition of the causes of it
stems from its large customers Boeing and Ford&#39;s statement. In 1993,
Chambers in order to meet the future needs of both customer acquisition of a regional
network switching manufacturers Crescendo Inc., which makes Cisco has now
entered a new area of business.
Almost all companies are that the importance of the user, why only Cisco can achieve
such good results? When I toss this phrase John Chambers, He replied:
&quot;Many companies say customers first, which you ask a CEO of a company
would like me to pay 50% of the time to the customer? &quot;
To change the rules of the game
&quot;Paranoia is the key to Cisco&#39;s success&quot;, the
non-technical background of the Chambers in the technology business operations,
even the industry&#39;s role in understanding the operation was very profound,
he said: &quot;The information revolution has come, it will change all of our
will be our life and work order had all upset. If a large company not to adjust their
strategy will be merciless to those small firms eat. no matter what country you are,
what city, what areas of your face The sense would be a new round of global
competition, not only in a specific field within the military, not just confined to
Europe, North America or Asia to define a local scope. &quot;is sensational!
However, Chambers is sensational remarks of the first successful practitioners. In the
world, he is one of the first use of information technology have Rehmannia step Run
the enterprise people, which abandoned the traditional mode of operation of
enterprises, new models let enterprises in low-cost, high efficiency of fast running.
For example, the most troublesome problem for businesses is that excess inventory.
When a lot of product backlog at the Treasury, the cash flow is slow, businesses will
be carrying a heavy burden. Cisco does not have that headache of inventory problems,
because their machine inventory is zero. Not only that, their spare parts inventories
are almost zero, &quot;we put our parts suppliers are present there, order directly
through the network to the hands of the supplier, the supplier put together the
appropriate accessories, sometimes dubbed We need to switch, sent to our Testing
(Inspection) Department to do testing. &quot;(Thomas Lam, vice president of
Cisco China, language) is even more surprising is that in the course of this online
process, Cisco&#39;s products do not need 40% Cisco employees personally
handled by the online database to send a direct supplier of intelligent hand. Of course,
this type of products are generally relatively smaller, simpler, and those more complex
products, but also must do the final processing of Cisco employees.
This is in fact a prototype of a virtual company. Chambers said: &quot;This
virtual company to come forward with incredible speed and will affect a larger
business, suppliers and customers to break the barriers, so that they are entitled to the
information they want.&quot;
Cisco&#39;s approach in this regard so that all of the companies hold a candle.
In 1999 the United States &quot;Business 2&quot;&#39;s list of the
world&#39;s top 10 best e-commerce company, Cisco ranked first. Dell (Dell),
IBM, Intel (Intel), America Online (AOL), Amazon (Amazon) and other companies
have fallen subsequently.
Not only in the business model, e-commerce, Cisco walk in the forefront of the times,
that is, training employees and customers they are at the forefront.
&quot;IT has gone through four generations, the first generation is the
mainframe era, IBM sang lead; second generation minicomputer era, DEC was once
occupied protagonist; third generation is the era of PC and LAN, Intel and Microsoft
sing a leading role; s fourth generation is the Internet Age, Cisco will play a key role.
We have the ability in the fourth age play a leading role. &quot;(Chambers
And let the upstart Cisco to become the fourth generation is what Chambers himself.
The &quot;hot&quot; the leader, the prime minister had six countries and
two countries, when the President in building its Internet web comments.
&quot;Compared with other companies, if we have any unique, then our
company is the largest Internet users, we occupy 50% of the Internet market share in
large networks occupy 80-90% of the share, a year growth rate is 40%, so only our
company can really understand how to go beyond the existing technology.
M is the struggle of people
Chambers said: mergers and acquisitions mainly for professionals. He said:
&quot;Many companies in the acquisition of knowledge when the confusion on
this point leads to the failure of mergers and acquisitions, mergers and acquisitions
actually purchased only when you really talent. Most companies start after the
completion of the acquisition to reduce the acquired company&#39;s employees,
and We retain the acquired company in the staff spare no effort, and sometimes we
have important people often arranged in key positions. We measure the success of an
acquisition criteria: first, the continued acquisition employees leave rate, followed by
new products development and, finally, the investment rate of return. &quot;
Once Cisco would like to buy a very very optimistic about the company, not only
product right path and the prices are right, but soon become a division of the initial
product portfolio, the staff no longer need the original, so Chambers finally gave up,
he said, : &quot;We finally did not buy the company, because, although
promising, but we have to dismiss employees.&quot; Another time, Cisco is
simply a result of the acquisition of three personnel placement and stranded.
Another reason for Cisco&#39;s success is because of the success of its mergers
and acquisitions, Chambers took over the head of the mace in the first year he was
CEO of John Morridge (current chairman) and chief technical officer, Mr. EDKozel to
design the take-off program. &quot;Without the long-term plan, Cisco will never
be today&#39;s development.&quot;
Cisco is now conducting mergers and acquisitions every year, up to a year to M 8-12,
since 1993, acquired a total of more than 30 companies. Although the rapid expansion
of corporate mergers and acquisitions is a panacea, but if the indigestion, but the
opposite is often also to choke. Cisco&#39;s success is that it does not suffer
from indigestion. The secret here is compatible with corporate culture.
Cisco compatibility is often surprised people feel, for example, if the good
performance of the company being acquired, he would not send someone from
headquarters, but let the company maintain the original troops and management style.
The acquired companies have compatible cultures, Chambers acquisition is a
mainstream factor to consider. Chambers check whether the acquirer is compatible
with culture: look at the distribution of acquirer stock in the hands of a few investors
or the top manager of the hands? How they treat employees? How to look for staff
management? Jia-Bin Duh, president of Cisco, said the China, Cisco is a very
interesting company, because the total M &amp; A, it is a different color with
different companies were formed, but these people get along very well.
Chambers on the merger. Another golden rule is to keep Los: never buy a company
with similar size, will not acquire a company located far away, not M &amp; A
values and culture of different companies with Cisco, a major business acquisition is
not based on much difference with your own far companies.
Go for a bigger cake
Chambers is an ambitious person, not only on the current market of 200 million
Internet industry &quot;ambitious&quot;, a huge market on the other also
&quot;coveted,&quot; that each year 250 billion U.S. dollars of
telecommunications equipment market that is, data, voice, video, the combination of
so-called second-generation Internet network, &quot;The market may be 5 times
the data networking market.&quot; (Chambers English)
With the rapid data communication traffic amplification, three are integrated
accelerating trends, telephone companies are in the update of the equipment is out of
the old equipment can only be replaced by voice to voice, video and computer files of
the new network equipment. This is a need for new fuel market, if the data network,
Cisco holds a 50% market share, then the &quot;add data and voice network in
the market, it is less than 10% market share.&quot;
Lucent, Nortel, Alcatel, Ericsson and IBM and other companies are preparing to enter.
Strength of several large telecommunications companies also can not be
underestimated, as this first telecommunications Lucent is the elephant in the number
of 10 times, 50 times its turnover.
In addition, the Cisco strategy even greater challenge is to bundle data, voice and
video services will not lose its roots? These are threats to Cisco&#39;s Achilles
heel. But this do not seem to Chambers, he said he size of the organization and
product technology is not worried because they had ready, &quot;this year we
have at least 1 / 3 or half of all mergers and acquisitions will occur in the data, voice
and video integration on. Our strategy is simple. We will be changing to seize the
opportunity to help those companies will be data, voice and video integration.
&quot;I am in 1998, visited a total of 100 world&#39;s largest phone
company in 90, if you ask the president of Lucent&#39;s biggest backers them,
his answer is certainly Cisco. But we have not found the biggest competition
opponent, today, Internet economy has emerged, in this economic environment, the
rules of the game no longer is victory over the small, strong bullying the weak, but the
speed of the contest. now I most fear is that Cisco will not be far in the future from
Do not play balance
Leaders do? There is a very &quot;market&quot; argument: the leadership
is playing balance. If the word game from the perspective of this sentence, it seems
understandable. But as long as deep in to think about: how to play well this balance?
Because the total amount of salaries and bonuses to so many, in the hands of official
posts, the U.S. poor are limited, how to distribute these limited resources? From the
balance point of view, and then the great entrepreneurs can not walk this balance
beam. If the benefits of those who give a mediocre performance, the performance will
highlight the imbalance of those heart; contrary, if the benefits to the outstanding
performance over those who mind mediocre performance will not balance.
Unfortunately, in our reality, are often either poor performance or the performance of
good people who are often filled with unbalanced mind. This is the balance of play
out of the leadership to play a fatal situation.
Although the leadership need to &quot;play&quot; balance, but not to
&quot;play&quot; in the management of people, but to
&quot;play&quot; in the products and customers,
&quot;play&quot; between the inputs and outputs. The current head of
Hewlett-Packard, Ms. Fiorina said: &quot;HP&#39;s challenge is to
maintain superiority on the one hand, one should consider the relevant aspects of the
balance, a balance between products and customers.&quot;
If the leadership of the management of people play on balance, on the playing side,
because the boss in the enterprise is driving the biggest role in a kind of culture,
which is to examine the quality of management, a boss of their own greatest leverage.
Boss with different style of work out is enormous. Good because the King of Chu Chu
good slender waist. Chambers attaches great importance to customers, so companies
have formed the focus on the customer&#39;s good atmosphere; Chambers loves
people, on the popular talent, he would pay the annual salary of two million U.S.
dollars to the high price. Each employee&#39;s annual salary from 500 thousand
to 2 million U.S. dollars. This made him popular not only attracted the attention of
technology talent, has also attracted the attention of other staff. Cisco voluntary staff
turnover rate of only 6%. &quot;I am competent staff who are always an
important appointment, otherwise it would be an insult to them.&quot;
Not only in money, tasks, Chambers does not play a balanced, even in the work
environment, he does not play balance, Cisco did a good job who can even be free.
In the management of their staff on the team can not play with balance. Chambers in
this imbalance is driven on an upward trend, in line with all the performance, all in
line to the ability, all the customers in line, in such an atmosphere, the one who said
that the staff work hard. Will not emerge from? Who can say that efforts to serve the
customer&#39;s staff will not emerge from?
Good atmosphere all the staff will bring a healthy competition and good direction in
I asked Chambers: &quot;Do you the most good in the management of what
is?&quot; He said: &quot;I am best at three areas, one focused on
customers; second is to think of ways to the] talented people; Third, as the same
training to train their own employees. &quot;
Cisco is the high-quality team that brought out the company&#39;s development
also will rapidly spinning wheel.
If Chambers were playing on balance, Cisco would not have today&#39;s rapid
development. Plain boiled water balance management style is actually a harmful
enterprise chaotic management and healthy development, which will ultimately lead
to a conclusion: The overall team will be positive of paralysis, capable elite have fled,
shrimp are all soldiers will be left disabled.
Chambers did not play balance, is a great blessing Cisco employees, but also a great
blessing of his own.