© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13537_04_ Cisco Leadership 3.0 Randy Pond Senior Vice President Operations, Processes, and Systems May 17, 2007

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_2007 2

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_2007 3

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ “Managing in Chaos” Fortune Magazine, October 2, 2006 “…The forecast for most companies is continued chaos with a chance of disaster. The challenge is getting comfortable with it―especially hard because modern corporations were created explicitly to resist chaos.”

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Increasing Complexity Growing Business Volume Escalating Risk Growing Business Volume  Customers  Orders  Cases  Customers  Orders  Cases Increasing Complexity  Business models  Portfolio of offerings  Geography  Customer segments  Acquisitions  Business models  Portfolio of offerings  Geography  Customer segments  Acquisitions Escalating Risk  Geopolitical  “Once-in-a-lifetime” opportunities  Emerging technologies  Business resiliency  Geopolitical  “Once-in-a-lifetime” opportunities  Emerging technologies  Business resiliency “Continued Chaos” at Cisco Evolving Leadership Competency Needed to Succeed in Chaos Evolving Leadership Competency Needed to Succeed in Chaos

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ ’s –2004 Growth Total Experience Growth Total Experience Productivity Efficiency Cost Control Productivity Efficiency Cost Control Technology Productivity Efficiency Cost Control Productivity Efficiency Cost Control Technology Innovation RedefinedLeadership Redefined

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Leading in “Continued Chaos” Risk Opportunity

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Challenges for Cisco Leaders Scalability Agility Customer Experience

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Opportunity for Leadership Empowerment

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Collaboration Is Not About…. EgosPreconceived IdeasRule by ConsensusNostalgia

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Blueprint for Cisco Leadership 3.0 How do we engage customers as one Cisco? Total Cisco Experience Customer-Centricity Leadership Alignment Employee Commitment Operational Excellence How do we define and align to our business strategy? Communication and Collaboration How do we ensure our employees will grow and evolve with Cisco? Change Leadership How do we increase agility and productivity? Discipline of Continuous Improvement Total Cisco Experience Customer-centricity Communication and Collaboration Leadership Alignment Employee Commitment Change Leadership Operational Excellence

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Total Cisco Experience CustomerIntimacyBusiness Interactions and TransactionsOfferings

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Leadership Transformation 1 to 2 Year Journey Reward Educate Measure Enable

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Pulling On All Levers

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Operating Committee Operating Committee Councils Boards Working Teams (Task Forces, Tiger Teams, Program Management Offices, Etc.) Working Teams (Task Forces, Tiger Teams, Program Management Offices, Etc.) Communication Collaboration Accountability Business Process Operations Council (BPOC) Business Process Operations Council (BPOC) Commerce Business Transformation Office (CBTO) User Experience Business Services Integrated Capability Planning Policy Management Change Management & Communication Enterprise Release Management User Experience Business Services Integrated Capability Planning Policy Management Change Management & Communication Enterprise Release Management Process: Results through Councils and Boards

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Platform Building Blocks  Common technical services  Data management  Common technical services  Data management  Platform and technology  Infrastructure services  Platform and technology  Infrastructure services Platform Building Blocks  Common technical services  Data sources  Common technical services  Data sources  Experience technologies  Technology platform  Experience technologies  Technology platform  Infrastructure services Constituency-Role Based, Device User Experience Constituency, Role Based, One to Many, Many to Many User Experience Commerce Platform Collaboration Platform IT Enablement Architecture Hardware, Software, Service, Financing Business Models Business Capabilities Common Business Services  Access  Configuration  Access  Configuration  Customer data  Pricing  Quoting  Pricing  Quoting Business Processes  Develop  Market  Develop  Market  Sell  Order  Sell  Order  Service Communities, Geographies Business Models Business Capabilities Common Business Services  Department  Matrix  Department  Matrix  Access  Community  Budget  Community  Budget Business Processes  Communicate  Manage  Communicate  Manage  Collaborate  Deliver employee services  Collaborate  Deliver employee services  Innovate

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ People: Connecting the Dots Strategy Analysis Action Cisco Leadership 3.0 Behavior Assessment Gap Identification Gap Identification Education Experience Exposure Education Experience Exposure

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ People: Leadership Competency Model  Working across boundaries  Engaging others  Earning trust  Working across boundaries  Engaging others  Earning trust  Developing self  Developing others  Developing self  Developing others  Demonstrating passion  Empowering teams  Achieving results  Demonstrating passion  Empowering teams  Achieving results  Promoting innovation  Leading change  Promoting innovation  Leading change  Shaping strategy  Building capability  Shaping strategy  Building capability

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_ Lead Cisco into 3.0 It’s Our Time to… Seize the Opportunity Embrace the Risk

© 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential13533_04_