In Focus

The Cisco Kid

When the Chicks met in Phoenix early last year, we were assigned CEO oral reports. At the last minute, Chick Lorene couldn't attend and I was handed her report to deliver. (That's right, give it to the actress -- she loves to perform!) This was my first introduction to John Chambers, CEO of mega-company, Cisco. I was struck by how great a guy he seemed to be, yet in such an ordinary way. In fact, I remember exactly what it was that gave me that extraordinary feeling about him. When asked what "other love" he had, beyond work, his answer was "family." He spoke proudly of his father, a doctor in Virginia who had brought 6,000 babies into the world and never had a patient not come back. His father is also his best friend. What can I say, I'm a sucker for that stuff! When asked about his personal goals, he replied with two. First, to see his children grow up into happy and healthy adults with families of their own. And second, he wanted to teach leaders in business, government and education, about how the internet can dramatically improve the quality of our children's education. This is a man who cares about the world we live in.

Clearly, the world cares about John Chambers. He has been praised by government leaders and numerous publications alike. Some of those include Worth Magazine recently ranking him #1 on their top 50 CEOs list. ABC's 20/20 spotlighting him as the "Best Boss in America," Time Digital listing him in the "top 10 most influential leaders shaping technology today" and Business Week naming him as one of the "top 25 executives worldwide." Business Week has also given him the title "Mr. Internet." And I swear that was only a partial list of his accolades!

A few other things set John Chambers apart from the rest of his peers. Unlike Larry Ellison (Oracle), Bill Gates (Microsoft), and Henry Nicholas (Broadcom), he did not found the company. In fact, he admits that he really doesn't have a deep technical understanding of his company's products. Granted, he knows what he needs to know! Even more amazing, Cisco has only been a publicly traded company for ten years and Chambers has served as President and CEO for only the last five. Both the company and the man have enjoyed enormous success: if you had invested a measly $100 into Cisco's IPO in 1990, your shares would now be worth a whopping $100,000! Now, tell me that wouldn't add a nice cushion to any club's nest! No wonder there was such an IPO craze in the tech industry -- investors were looking for that same lightening bolt to strike again.

Although born in Ohio, Chambers was raised in West Virginia. He received a J.D. degree and a B.S./B.A. degree in business from West Virginia University. He also attended Indiana University for his MBA in finance and management. As I intimated earlier, he's more of a "suit" than a scientist. He spent eight years in sales at Wang Laboratories and six years with IBM. He joined Cisco in 1991 as Senior VP of Worldwide Sales and Operations. In January of 1995, when Chambers took over the reins as CEO, the company was bringing in 1.2 billion dollars in annual revenues. During his tenure, that number has rocketed as high as 26.1 billion! Cisco is credited as being the fastest growing company in the history of the computer industry. If asked his greatest assets as a leader, Chambers would probably credit his healthy paranoia of competition, his ability to empathize, and an obsessive focus on customers (he spends roughly 30-50% of his time with them!). Others might cite his visionary strategy, warm-hearted, straight-talking approach and his evangelistic style. In fact, at age 50, with his school-boy good looks, he sort of resembles a minister!

Chambers' real forte has been with acquisitions. He is a master at assimilating. For many companies, a single acquisition might be enough to tear it apart -- Cisco acquired at least 21 companies last year alone! In addition to adding new companies to his own, and buying out his competitors, Chambers reinforces the value of the teams of people that come with those companies. Maybe that's why he's so successful at acquisition, his new employees feel appreciated. These acquisitions have resulted in two clear benefits for Cisco. One, they are too big to be bought and two, their ability to keep pace with the whims of the tech industry are vastly increased. In fact, buying new technologies and widening its product base is one reason Chambers feels so optimistic about the future. Another reason is the fact that he believes so solidly in his company. He feels that the productivity and value created by the internet, which is becoming synonymous with Cisco, is changing the world. Along with his company, John Chambers is affecting our world. He recently served on George W. Bush's transition team as a member of the Education Committee. And before you get your bipartisan panties in a twist, he also served as a member of Clinton's committee for Trade Policy. Why does that not surprise me?

Maybe nice guys do finish first!