John Chambers, After the Deluge

I'm a big believer in the Internet, but the people who work for me say our initiatives aren't paying off. They're cynical about the Web -- and I can't afford to get too far ahead of my organization.

"First, the CEO has to really determine whether he or she believes in survival. If the answer is yes, you've got to move. Second, by the time the majority of your staff gets it, it's too late. That's true here at Cisco. I wish I could tell you that when we move, I've got 99% compliance among my group, but the fact is, if I get up to 75% to 80%, that's as good as it gets."

I've got to listen to my shareholders, and right now, Wall Street hates anything Web related.

"I disagree. Wall Street gets it right in the long term. During periods of uncertainty, there is a tremendous focus on this quarter's earnings. So if you're investing in something with a payback in 6 to 18 months out, you've got to keep expectations in mind. Having said that, I think companies have an opportunity to reinvent themselves in a way they haven't done before. The dotcoms will be back. They'll be better funded and will have a better path to profitability. What we've got now is a reprieve for many companies in which they can use the Internet to gain even more competitive advantage. If they make the mistake of putting it on the back burner for 6 to 18 months, they will face both traditional and new competitors in a way that I think will shock people."

When I look at my customers, only 3% to 4% really use the Web site -- and 96% don't. I've got to spend more time on my pre-Web world.

"It's important to realize where different industries are in terms of acceptance of technology. You can't control all of that, but you can control how your employees function. So the place to start with an Internet initiative is internal. It's also important to make sure that the first few applications are quick paybacks that have high odds of success. Otherwise, you're fighting against naysayers.

"After that, you want to get your timing right in terms of your customers and suppliers. You can have influence over how quickly your suppliers come in line. We told suppliers nearly four years ago that if they didn't convert over to the Internet, they would not be a supplier to Cisco long-term. It was a very firm nudge, but it gave them a sufficient time frame to make the switch."