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Name and title: Mark Chandler, senior vice president, general counsel and secretary Age: 50 Company profile: Cisco Systems Inc., based in San Jose, Calif., produces the Internet protocol-based networking services at the core of the routing and switching systems used by the world’s largest telecommunications companies. In 2006, Cisco tallied sales of $32.8 billion, placing it at No. 60 on the Fortune 500 list. The company typically brings about 25% of revenues to the bottom line, boasts $19.5 billion in cash and has purchased $37 billion of its own stock in the past five years. It employs 51,000 people in 80 countries. Legal team: The law department includes 120 lawyers and 40 contract negotiators, paralegals and support staff. About 75% of the staff works at the San Jose headquarters; other Cisco attorneys support sales in 16 countries in the Americas, Europe and Asia. Chandler is keenly focused on applying technology, some developed by Cisco and some that it has purchased, to lower in-house legal costs on repetitive but crucial work. “If you are dealing with a compliance matter that will affect how the company is perceived, you have to get it perfect, but other times very good is good enough,” he said. “There are areas where you want to make sure you are doing the best you can, but you also want to be very efficient at the way you do it.” Cisco has developed a Web-based question-and-answer system that allows sales staff to write the nondisclosure agreements needed when introducing products to customers. The process flags issues requiring legal department involvement, but that rarely happens. “Previously, every form was sent to the legal department for review, but virtually never did the legal department make a change,” Chandler said. Other Cisco technology oversees the company’s 4,000 pending patent applications and searches the company archives to answer discovery demands, drastically lowering costs. “The discovery process in litigation can be very, very expensive,” Chandler said. “We have built electronic tools that mine all the documents that exist in the company, collect them and eliminate the stuff that is not responsive. Most outside counsel embrace that. Some still prefer to do everything by hand, using armies of associates. We have not seen quality differences between those two models, but there is a giant cost difference.” Even with the focus on continually improving efficiency, Cisco in-house lawyers often are freed for pro bono work. “We regularly circulate requests for pro bono work,” Chandler said. “I put pro bono work in the category of having a full, rich life.” Outside counsel: TurboTax can replace the tax preparer and Travelocity allows anyone with a computer to become his or her own travel agent. The same forces are engulfing the legal profession. “Fundamentally, service businesses like law are not dissimilar from any other industry,” Chandler said. For example, Fenwick & West of Mountain View, Calif., which does nearly all of Cisco’s corporate, securities and mergers and acquisitions work, notified Chandler last year that its hourly rates were going up. He replied that he planned to pay Fenwick 5% less in 2007 than he had the year before. “To do that, I wanted them to figure out what was the 10% of their work that was the least value-added,” Chandler said. “We found they had lawyers billing us $400 to $500 an hour doing fairly routine work filling out forms associated with some of our acquisitions.” Chandler and Fenwick came to an agreement. Cisco is adding a paralegal to fill out the forms and will save $400,000, but it is reducing its payments to Fenwick by just $250,000. “The change is designed to allow them to increase their profitability at the same time that I saved money. There [are] enough savings for everybody. It is not a zero-sum game,” he said. Morgan, Lewis & Bockius handles litigation for Cisco, and Chandler said he is well satisfied with the results. Still, to hold down costs he has worked out a fixed fee with the firm. “Whatever comes in, they take it. What’s happened is they have become very proactive at avoiding litigation.” Cisco is part of the corporate movement to encourage greater diversity in the ranks of lawyers at its outside firms, Chandler said. “We try to drive diversity both internally and externally,” he said. “We are cognizant of that when hiring outside counsel.” Daily duties: “I do three things. The first is to anticipate what the opportunities are for my team to play a role in growing the company or, alternatively, to anticipate things that could go wrong so we take action early to avoid problems.” Second is to take care of his staff. “They need questions answered quickly, they need the tools to do their jobs right and they need to know I care about career development. The third thing I do as general counsel is play an active role in litigation strategy.” Route to present position: Chandler was general counsel at StrataCom Inc., when it was acquired by Cisco in July 1996. He joined Cisco as managing attorney for Europe, the Middle East and Africa and was promoted steadily until being named general counsel in May 2003. Chandler graduated with a bachelor’s degree from Harvard University in 1978. Following graduation from Stanford Law School in 1981, he clerked for Special Master J. Keith Mann in U.S. v. Alaska, a U.S. Supreme Court case that established the federal government’s control over submerged land and oil drilling rights off the state’s Arctic coast. Chandler practiced in the Law Office of James E. Baer, a three-attorney firm in Palo Alto, Calif., from 1983 to 1985. He was a Robert Bosch Foundation fellow in Germany in 1985 and 1986, then worked for two years in the marketing department at Siemens Capital Corp., in the United States and Germany. In 1988, he joined Maxtor Corp., which manufactured data storage devices, serving as vice president for corporate development and general counsel until joining StrataCom in 1994. Personal: Chandler and his wife, Chris Kenrick, have two daughters and a son. He is active in civic affairs, runs for exercise and has a passion for the kitchen. “I love to cook almost anything. I will just randomly find things I have never made before and make them,” he said. “I lived in France for 2 1/2 years in the late ’90s. My last six weeks there I took off and went to cooking school.” Last book and movie: Team of Rivals, by Doris Kearns Goodwin, and A Prairie Home Companion.

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