Cisco Systems Connects in Hawaii
October 07, 2008
In creating a Chairman's Club incentive program, the tech giant discovers that face time with senior executives is the motivator its top sellers crave most
By Andrea Doyle
There, on the beautiful island of Lana'i, once known as the Pineapple Island for its fields of golden fruit, set on a protected marine sanctuary, a group of Cisco Systems' employees were gathered in meeting rooms in deep conversation, and there was no place they'd rather be. Originally slated for two-and-a-half hours, many of these round- tables went more than an hour over.
Working from a remote location has its perks, but can sometimes leave an employee feeling disconnected from the rest of the team, especially upper management. Cisco, a company focused on just that (connections), brought together the winners of its Cisco Premiere Sales Recognition Program, also known as the Chairman's Club, on its first-ever incentive trip, held at the Four Seasons Resort Lana'i at Manele Bay last November.
A leading supplier of networking equipment and network management for the Internet, San Jose, Calif.–based Cisco inducts only its top 1.5 percent of performers into the Chairman's Club. Last year's winners and spouses or partners were invited to a five-day, four-night trip to Lana'i, Hawaii, hosted by Cisco's executive staff.
Exhilaration was in the air, as this elite Cisco sales group congregated from all over the world, excited to spend five days at the Four Seasons resort in Lana'i, exchanging business perspectives with their global peers and Cisco's executive staff.
"Everyone got to know each other on a personal level. There were such inspiring conversations," says Christine Castle, Cisco Systems' director of global sales operations, incentives and engagement programs.
Several years ago, Cisco was in the beginning stages of implementing a global, multitiered sales incentive and recognition program for its direct sales force. It wanted to create a consistent worldwide sales reward and recognition system. Cisco placed an emphasis on embracing a globally consistent program, so that each region had the same opportunities to win. The idea was that a global program would be equally motivational across the sales force and easier to administer.
Cisco partnered with Maritz Inc., which helped it develop a structure to reinforce retention and loyalty of its top performers. Cisco also intended to increase sales force effectiveness and provide recognition for its best salespeople.
"We started getting feedback from our individual sales contributors that our recognition programs were lacking motivation and did not allow for a broad enough group of sales winners," explains Castle. "We went out and conducted benchmarking studies with other high-tech companies to build a solid strategy regarding sales recognition. As we looked at different compensation levers, we decided to focus more on incentives that get winners recognition from the leadership team."
The company came to the realization that focusing on rewards other than cash has significant merit and is more memorable for the sales representative.
The company polled the entire Cisco sales force both quantitatively and qualitatively about incentives and motivation. A new recognition program was rolled out that included not only the Chairman's Club top-tier incentive, but also other new incentive programs—all of which allowed the program to achieve an overall rating of 4.52, based on a five-point scale, the first year.
Requirements to make it into the Chairman's Club include: exceptional individual sales achievements, contribution to Cisco's overall revenue goals and exhibiting behaviors that support Cisco's cultural expectations, which focus on exceptional character. Winners excel at leadership, teamwork and collaboration, innovate new products and/or demonstrate exceptional response to a customer's needs that are outside the norm, such as how to provide a network infrastructure to a third world country in its entirety. Entry into the Chairman's Club is subjective, it's not just based on numerical requirements.
Two other levels of recognition were developed as well. Sales "achievers" consist of approximately the top 60 percent of the company's sales force, and sales "champions" consist of the top 10 percent. All salespeople attend the Cisco Global Sales Meeting where winners are recognized. This key celebration program is where Cisco delivers a motivational experience that will empower sales teams to generate future revenue through communication, motivation and recognition.
During this meeting, top-performing Cisco sales reps are recognized in front of thousands of executives and peers by making it in to one of the three tiered programs. Many winners have commented about the tremendous sense of pride they feel when they make their way to the victory podium as they are cheered on by the audience.
"My name was the first one to be announced on top of that entire [200-person] list, it was a fantastic feeling," says Manu Bansal, a Cisco account manager from India.
A Remarkable Walk
Another Cisco account manager, Shannon Scully, based in the United States, says "That was a pretty remarkable walk all the way around the auditorium in front of all of my peers and management team and to then walk up on stage and shake hands with John Chambers, Cisco's chairman and CEO. It was a remarkable experience," she says. "The advice I'd give to make it into Cisco Chairman's Club would be to be yourself and do the things that make us Cisco every day. Drive sales with the great Cisco suite of products behind us, and do it with honesty and integrity, and find opportunities within your customer to show them the success that we can bring together."
The Cisco recognition program definitely seems to motivate. Marc Donnelly, an account manager based in the United Kingdom, explains, "It means recognition amongst a team of thousands of people, being pulled out from that audience and recognized for the achievements that you've accomplished over the last twelve months." Duncan Haskins, a winner based in Australia, adds, "It's all about winning. It's all about the customer. And it's all about succeeding."
Each of the three programs recognizes sales employees who embody Cisco's values and culture, and who consistently produce superior results. Winning is very inspirational for Cisco sales employees, but providing customers with unprecedented value is a key part of the program. Entry into the Cisco recognition programs requires exceptional achievement and contribution to Cisco's revenue goals. But, even more, it means supporting cultural expectations and being superior in four key areas: leadership, teamwork & collaboration, innovation, and customer satisfaction.
"Chairman's Club isn't only about Cisco recognition, it's also about our customers. It's about selling with integrity, respect and passion. Because when they win, we win. Our recognition programs are the reward to those who demonstrate these traits while exceeding sales goals and contributing to the company's growth," explains William LePage, Cisco's senior vice president of global sales operations.
This November, the Cisco Chairman's Club is going back to Lana'i to enjoy the Four Seasons resort and all its amenities, including golf, tennis, spa appointments, shopping, snorkeling, ocean kayaking, nature hikes, horseback riding, deep-sea fishing, surfing and relaxing on the beach.
"Hawaii is an incredible destination for our program, so we've decided to return again this upcoming year. Our long-term goal is to move the trip around the world. It's a global forum, and we plan on a rotating schedule that will include the United States, a European destination, Asia and Latin America. Over time, we would like to get to all the different geographies to ensure that we embrace one of our core Cisco philosophies of globalization," says Castle.
The Value of Face Time
Although the group enjoyed these activities during its first Hawaiian incentive travel program, interestingly it was the face time with the leadership team that was valued the most, says Castle. Business roundtables were arranged that consisted of sales winners and two top-level executives. Business issues facing the sales force were identified beforehand, and the group was asked to come prepared to discuss these issues.
"It was the intimateness of the conversation that struck them. Individual contributors in this company of 65,000 people, working in remote offices in the field, were able to have business discussions with the executive team. These roundtables were rated as the thing that would incentivize them the most in the future," says Castle. The roundtables were so successful that more of them will be added to this year's program.
The winners themselves found the recognition programs to be of more value than they ever expected, both personally and professionally. As Cisco Chairman's Club winner, Marc Donnelly, notes, "One of the benefits you get from actually attending Chairman's Club is exposure to the key execs that run the company. But secondly, careerwise, it's really beneficial. I've already noticed my profile has been raised significantly."
Also this year, keeping true to Cisco's commitment to social responsibility (see sidebar p.18), a volunteer activity is being planned on the island that attendees will have the chance to partake in. "Last year was our first incentive trip and we were new to the process. We asked, 'How can we improve it?' and giving back was something we've decided to incorporate," says Castle.
Like most programs, the Cisco Hawaii incentive was not without a few tactical challenges. Thirty hours before the awards recognition dinner, Maritz received a call that the headliner act, a Grammy award-winning R&B singer, who was to play following the dinner, was going to have to cancel due to an illness that would not permit him to fly.
"The Maritz account executive and account manager were very proactive, one researching new entertainment options, and the other making standby travel preparations for the new, yet to be named, entertainer," Castle says. Cisco's needs were very specific in that they wanted an entertainer who could perform an acoustic concert, due to the intimate dinner setting. There was also limited production equipment available on the island.
"Although these limitations may have been seen as insurmountable obstacles for other companies, Maritz has strong relationships within the entertainment industry. They were able to find the perfect performer, who just happened to be on his honeymoon on the neighboring island of Kauai. Pat Monahan, the lead singer for the band Train, agreed to perform at the awards recognition dinner. The concert was an outstanding success," Castle says.
Rain covered the island one day, and some thought this day might be a complete washout. Just the contrary was true. It turned out to be a highlight for many. "There were some whales nearby, which forced all the dolphins into the bay," Castle says. "There were more than a hundred dolphins there swimming and jumping, and about seventy-five of our attendees went into the water to swim with them. It was one of those experiences you could never purchase. Our rain day turned into this amazing experience, courtesy of Mother Nature."
Editor's Note: For more on Cisco's incentive strategies, read "Cisco's Circle of Success" at www.incentivemag.com.
Send comments to feedback@incentivemag.com.
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