The “Tomorrow Economy”Â
Post by Blair Christie, SVP, Corporate Communications and Investor RelationsWhen will we know what the”Tomorrow Economy” will look like? Maybe when the credit markets stabilize or after the US Election? Perhaps when all of these bad mortgages are off the books-.but who knows? If it is always”tomorrow,” we may never have a clear picture.I hope it is soon -these past few weeks have been stressful! Not just at work, but at home, too. I am tired of filing my quarter 401k and portfolio statements away without opening them. It just doesn’t feel right-.But -it is what it is. And it is impossible today to visualize where the world will be as we go into 2009. So -while there is a lot we don’t know, we should not forget those things we do know.We know that innovation is going to be the key to moving the global economy forward. Innovation in business models, in technology and in human capital. We know that cash is still king. Granted, some cash is worth more than other cash these days, but in the long run, those who have it will be in pole position. That is why I am so comforted that Cisco has over $26B in cash and equivalents on our balance sheet.We know that experience pays in this environment. You learn the most about people when the going gets tough. Those that have seen tougher times, tend to lead through tougher times. Its not age -its experience.We also know that those who act quickly will succeed. As Darwin said”It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” Cisco has always operated in a very systematic manner when facing a challenging macro environment:First, decide if the current environment is market driven or a reaction to your own strategy. (I think we know the answer to that one.) Second, determine the length and depth of the current situation. (see Para 1) Finally, prepare for an upturn. That is the fun part.Fun? Maybe. Easy? No. But we will focus on the things we can control and that means going back to the two fundamental philosophies John Chambers has evangelized for Cisco since becoming CEO: 1) Have a maniacal focus on customers and 2) Identify/capture market transitions. Nothing could be more important than those right now. I like our chances.