John Chambers, CEO and chairman of Cisco Systems, leads off our video interview series McKinsey conversations with global leaders. This ongoing project explores vital management issues, industry insights, and topical analysis with CEOs of today’s leading global companies.
In this video, Chambers explores approaches to decentralized management and leadership. He also provides perspective on the future of Web technology and the opportunity that an economic downturn provides for strategically minded companies. James Manyika, a director in McKinsey’s San Francisco office, conducted the interview in San Jose, California, in May 2009.
Watch the conversation in our video interactive, or read the transcript below.
McKinsey conversations with global leaders: John Chambers
The first in a series of CEO interviews on vital management issues.
The downturn: Positioning for opportunities
The Quarterly: Let me start with a topic that’s probably on everybody’s mind right now: the downturn and the current crisis. How do you see it?
John Chambers: Lots of people say, “What are you going to do in the next month or the next quarter?” And this is my fifth downturn over the last 20 years. We’ve always gained market share and emerged stronger than we went into it. Part of the reason that we did that is we don’t look short term. No one knows for sure. But we’re preparing ourselves for how we look, whether it’s six months out or 24 months out. Strategy doesn’t change. But if you push me, I’d say it feels like it’s starting to level out. My customers, for the first time, have something firm underneath their feet. That’s no guarantee that it won’t drop off again or stay flat for a long time, but you have to have a leveling off before you have an upturn.