Each year, the global economy, as well as our specific industry, changes dramatically. We recognize that for our employees to excel at their work and advance in their careers at Cisco, cross-training, multidisciplinary skills, and knowledge sharing have become critical.

To support this personal and professional growth, Cisco provides employees with a wide range of training and development programs. In FY2006, 12 percent of our employees were promoted and 7 percent transferred to another group or changed job functions completely. Through continuous training, we are developing an agile and productive workforce that can respond to those changes.

We offer certification programs on our own technology, as well as numerous instructor-led and online workshops on topics ranging from general business and communications to specific functional responsibilities such as market and product positioning. Cisco also has a program in which we rotate select high-performance employees through a range of assignments to ensure that their skill sets are broadened. The company offers individuals who participate in rotational assignments a range of local positions and overseas opportunities so that they can choose the one that best matches their interests. These employees spend two to three years on each assignment, preparing them for eventual progression within the company.

Other programs include:

• Cisco Leadership Series: Designed specifically for employees with significant growth potential, five different leadership development programs are available for employees from the level of manager through to senior directors and vice presidents. During FY2006, Cisco employees participated in 33 instructor-led courses. These programs enhance the collective leadership capacity of our employees and allow for cross-functional collaboration.
• Cisco University: This program provides employees with flexible, online development opportunities and an online portal where they can manage their individual careers and all activities related to career development.

This year, Cisco University established an extensive curriculum in manager training. Cisco's internal surveys reveal that good managers are the primary reason employees remain committed to their jobs here. However, not all managers receive specialized management training as they advance in their careers. By using the tool for manager development on the Cisco University site, both new and experienced managers can focus on areas identified as the most important for their success. This tool cultivates management capabilities consistently throughout the company, which improves employee satisfaction and retention and raises the levels of employee productivity.