Communicating Your Vision, Strategy, and Execution

1. Communicating Your Vision, Strategy, and Execution Corporate Positioning October 2007

2. Why VSE?

3. Why Vision, Strategy, and Execution Vocabulary? • Facilitates alignment of strategic messaging • Accelerates delivery and understanding of strategic messaging • Works well in a culture of collaboration, where everyone must understand shared goals…both short and long term • Gets everyone on the same page • Forms basis for broad agreement • Minimizes ambiguity

4. Collaboration and Teamwork Command and Control SEGMENTED GO TO MARKET COM SP ENT Why is this Important? Line of Business Command / Control BusinessDevelopment / Alliances Technology Finance / Legal / HR Manufacturing Services / Support Marketing Sales Channels IBSG Business Development / Alliances Technology Finance / Legal / HR Manufacturing Services/ Support Channels Marketing Sales IBSG COLLABORATION and TEAMWORK

5. Why is this Important? Because… Cisco is Evolving into a Company Run On Collaboration

6. And Getting 60,000+ People to Collaborate… Requires One ‘Song Sheet’ That Can Reach All … It is Read, Relevant, Understood, and Shared

7. The Vision, Strategy and Execution Model… is Cisco’s Song Sheet

8. Developing Your VSE

9. Go to C-Change: http://wwwin.cisco.com/exec/comm/cchange/ Click “Common Vocabulary” and watch the videos under “Learn” Vocabulary Training: Vision, Strategy & Execution, Part 1 (Video - 00:04:53) Vocabulary Training: Vision, Strategy & Execution, Part 2(Video - 00:05:01) (1) Watch the C-Change VSE White Board Session …Teaches what you need to know in under 10 minutes

10. (2) Carefully Review the Content on the Next Slide …Helps with the “work behind the words”

11. BASED ON ANALYSIS/ OPERATIONAL DATA COMMON VOCABULARY COMMUNICATED AS… Informational Only: Guidelines to help you develop your VSE DEFINED AS • The value proposition Cisco will deliver to customers over the next 3-5 years to achieve ‘Network as Platform’ vision • (Where We Are Headed) • Market Transition Predictions Based on Real-world Data • Customer insight • Market consolidation analysis • External thought leadership • Internal and external research/business intelligence AN END RESULT • What is the end result we want to accomplish? • How are customers going to leapfrog markets/ Industries/countries? • Why is the Network the Platform to achieve this? • What is the Future Revenue Potential ($1B - $10B) • How is this a company-changing Process or Culture? VISION GUIDING PRINCIPLES • Changing the way we work / live / play / learn • Network becomes the Platform… IIN • All forms of communication /IT into network • Enabling New: Business Models / Productivity / Entertainment DEFINED AS • The key strategic actions required to sustain our differentiation over multiple generations of products/services. Goes beyond the next 12-18 months • (How We Will Get There) • SWOT Analysis (Cisco Sustainable Competitive Differentiation) • Cross-functional resource allocation requests/ agreements • Integrated GTM plan • Future technology requirements analyzed and agreed to • Competitive Strategy Analysis A MARKET TRANSITION(S) • What market transition is this positioning Cisco/ customers/partners for and how? …THAT REQUIRES CROSS-COMPANY INTEGRATION… • What are required cross-functional strategic integration / combinations (i.e., CDO, CA, marketing, channels, HR, finance, operations/process, IT, etc.). • With whom/what do we need to Build, Buy, Partner? …FOR SUSTAINABLE DIFFERENTIATION • How is this a sustainable differentiator for Cisco? • Why can “only Cisco” do this -- architecturally? STRATEGY GUIDING PRINCIPLES • Market Transitions… Customer Driven • Innovation… Build / Buy / Partner / Collaborate • Technology and Business Architecture • Cross Functional Teamwork / Prioritization • Revenue forecast • Market-share forecast • “10”-point Plan • Competitive Product/Technology Analysis • Cultural implications identified and measured DEFINED AS • The activities we will do and measure over the next 12-18 months for success • (What We Are Doing) ACTIVITIES • Where are we aligning resources • How/where are we changing/improving/evolving process • How is this impacting bookings, revenue, growth, margin • How is this impacting market share, mind share EXECUTION GUIDING PRINCIPLES • #1 Product Leadership • Lead Layer 1-7 Convergence… • Leader in all customer segments • Quad Play Everywhere… UC • Leader in Collaboration / Web 2.0

12. This is the only required VSE slide. It should have full speaker notes so anyone on your team can deliver /interpret it. Higher Speed / Level Requires New ApproachVision / Strategy / Execution Value Proposition End Result SustainableDifferentiation Differentiator 12-18 monthActivities Revenue / Share Execution Strategy Vision

13. This is version 1 of 2 optional slides. Many teams like it as they can add more context around their VSE. If you use it, it should have full speaker notes so anyone on your team can deliver /interpret it. STRATEGY VISION How Cisco Sustains Differentiation How Cisco’s Value Proposition Evolves Over 3-5 Years EXECUTION How Cisco Measures Success

14. This is version 2 of 2 optional slides. Many teams like it as they can add more context around their VSE. If you use it, it should have full speaker notes so anyone on your team can deliver /interpret it. STRATEGY VISION How Cisco Sustains Differentiation How Cisco’s Value Proposition Evolves Over 3-5 Years TITLE(Initiative, Mkt Segment) EXECUTION 12-18 Month Actions Required and How Cisco Measures Success

15. EXAMPLE: Cisco’s Company V, S, E STRATEGY VISION • Market Transitions… Customer Driven • Innovation… Build / Buy / Partner Collaborate • Technology and Business Architecture • Cross Functional Teamwork / Prioritization • Network Changes Way We Work / Live / Play / Learn • Network Becomes the Platform… IIN • All Forms Communication / IT Into Network • Enabling New… Business Models Productivity Entertainment EXECUTION • #1 Product Leadership • Lead Layers 1-7 Convergence… • Leader In All Customer Segments • Quad Play Everywhere… UC • Leader in Collaboration / Web 2.0

16. Cisco GlobalisationVision/Strategy/Execution EXAMPLE: India as a Platform for Globalisation Global Collaboration Innovation Model Value Proposition Globalisation Centre Differentiator India / PartnershipWorkforceCustomersPartnersGovernment Resources Vision Execution Strategy

17. EXAMPLE: Green GNA Empowers People to Heal the Planet GNA The Green Network Architecture Enable Green Products/ Solutions Cisco Green V/S/E Enhanced Value Proposition Sustainable Differentiation Revenue/ Share Strategy Vision Execution

18. EXAMPLE: Green Green Network Architecture STRATEGY VISION Green Networks Green Networks Business Architecture Green Networks Technology Architecture policy, process innovation, ecosystem development architectural standards for IP-enabled products, solutions and services Empowering People to Heal the Planet EXECUTION End Result: The network as the platform to deliver net-negative GHGs to offset total ICT impact to environment by 2015 Launch Open Green Network Architecture 12-18 Months