The Business of Influence - Public Relations Society of Americaapps.prsa.org/.../Secure/2012_DI_BusinessOfInfluence.pdf · //The Business of Influence . The Business of Influence,

The Business of Influence Philip Sheldrake www.philipsheldrake.com

@sheldrake

Author of The Business of Influence:

Reframing Marketing and PR for the

Digital Age, Wiley, 2011

www.influenceprofessional.com

Founding Partner, Meanwhile

www.andmeanwhile.com

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The business of influence is broken

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/87055500

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You have been influenced when you

think in a way you wouldn’t otherwise have thought, or do

something you wouldn’t otherwise

have done

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/160365265

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If you’re in business, indeed any type of organization, then you’re in the business of influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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3 things

http://www.flickr.com/photos/philip_sheldrake/104947731

//The rise of social media

//The info tech explosion

//The way we contemplate,

design, communicate and

execute strategy

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//The rise of social media ONE

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An illustrated history

//The rise of social media

http://youtu.be/wp2eUSL4oHc

http://www.philipsheldrake.com/2011/01/content-an-illustrated-history

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We are more influenced by the 150 nearest to us than by

the other six or so billion combined

//The rise of social media

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/3068588302

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May have been a relevant axiom for 20th Century, but now…

//The rise of social media

Influence Strategy and Execution, Philip Sheldrake, Marketing Magnified eJournal, June 2011, CMO

Council http://www.marketingmagnified.com/2011/june

http://www.flickr.com/photos/philip_sheldrake/5723483505

Perception is reality

The real-time social enterprise must, by

nature, be authentic. You can’t fake it.

Reality is perception

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If you could go back to the mid-90s and offer a marketer a little box that could sit on her desk and let her listen in on thousands of customer conversations and participate in those discussions regardless of geography or time zone, it would appear so far-fetched that she’d probably call security.

//The rise of social media

The Social Web Analytics eBook 2008, Philip Sheldrake

http://www.flickr.com/photos/philip_sheldrake/488935955

Social analytics

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And yet in 2011:

“most CMOs pay more

attention to markets

than individuals.”

//The rise of social media

From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011.

http://www.ibm.com/cmostudy2011

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Key sources to understanding

individuals in yellow.

Everything an organization does occurs in the context of a changing world, in a dynamic interplay with every entity around it

//The rise of social media

Align Your Stakeholder-Facing Functions with an Influence Strategy, Philip Sheldrake, Balanced

Scorecard Report, July-August 2011, Vol 13 No 4, Harvard Business Publishing

http://www.flickr.com/photos/philip_sheldrake/107864510

No organization is an island

Organizations must cultivate a sensitivity to the new dynamic (one that’s superior to competitors’) and

sharpen their ability to interpret and respond to the myriad communication flows issuing from all sides

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//The info tech explosion TWO

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Phones are the most personal of consumer electronic

devices. They rank with keys and money when going out.

They become an extension of their owner and their loss is

mourned, literally.

It keeps you connected with those far away, and disengaged

from strangers nearby.

//The info tech explosion

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/87041513

- address book - diary

- digital messenger - web browser

- games machine - music player - video player

- navigator - video & stills camera

... and, of course,

a phone

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The Internet of Things A public and private nervous system for the planet

//The info tech explosion

Internetome Conference, London, 2010

The Business of Influence, Philip Sheldrake, Wiley, 2011

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Electronic devices (washing machines, air conditioning units and cars)

Electrical devices (lighting, electric heaters, and power distribution)

Non-electrical objects (food and drink packages, clothes, and animals)

Environmental sensors (measuring such variables as temperature, noise, moisture)

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Data paucity was a problem of the 20th Century. Big data is the problem and opportunity of the 21st.

//The info tech explosion

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/4326146564

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– when individuals can market their needs or desires, either directly or anonymously, to organizations interested in meeting that need or desire.

//The info tech explosion

The Social Web Analytics eBook 2008, Philip Sheldrake

http://www.flickr.com/photos/philip_sheldrake/6222250215

Buyer marketing

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Web 3.0 – the Semantic Web – is about the Web itself understanding the meaning of all the content and participation.

//The info tech explosion

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/4324972193

Indeed, the Web becomes a universal medium for the exchange of data, information and knowledge.

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“Most CMOs are

underprepared to

manage the impact of

key changes in the

marketing arena.”

//The info tech explosion

From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011.

http://www.ibm.com/cmostudy2011

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Data explosion & Social media

//The way we contemplate, design, communicate and execute strategy

THREE

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Kaplan and Norton developed the strategy map tool for the alignment of operations with strategy, and the popular* Balanced Scorecard framework to augment the lagging (financial) indicators of business success with non-financial drivers of future financial performance.

//The way we contemplate, design, communicate and execute strategy

Balanced Scorecard: Translating Strategy into Action, Robert S. Kaplan and David P. Norton, ISBN:

9780875846514

* http://www.bain.com/publications/articles/management-tools-2011-balanced-scorecard.aspx

http://www.flickr.com/photos/philip_sheldrake/2773203483 21

Useful for dealing with business based on tangible assets. Essential for those built on intangibles.

Return on investment

//The way we contemplate, design, communicate and execute strategy

Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Robert S. Kaplan and David P.

Norton, ISBN: 978-1591391340

http://www.flickr.com/photos/philip_sheldrake/107865905

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“The strategy map identifies the specific capabilities in the organization’s intangible assets – human capital, information capital, and organization capital – that are required for delivering exceptional performance in the critical internal processes.”

“… each investment or initiative is only one ingredient in the bigger recipe. Each is necessary, but not sufficient. Economic justification is determined by evaluating the return from the entire portfolio of investments in intangible assets that will deliver the ROI from [the strategic imperative].”

And this applies to influence activities too.

//The way we contemplate, design, communicate and execute strategy

From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011.

http://www.ibm.com/cmostudy2011

Square brackets added here.

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And yet: “CMOs believe ROI on marketing spend

[in isolation?] will be the number one method for

determining the marketing function’s success.”

A new model

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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The Six Influence Flows

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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To adapt the way in which an organization delivers its mission and pursues its vision by designing the organization around influence flows, connecting:

//The info tech explosion

The Social Web Analytics eBook 2008, Philip Sheldrake

http://www.flickr.com/photos/philip_sheldrake/6247305059

Socialize the enterprise

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‣ its people, partners, customers and other stakeholders; ‣ data and knowledge in and all around it

more openly, productively and profitably with the application of social web and related information technologies.

Some consider ‘socialize the enterprise’ along the lines of getting everyone on Facebook and Twitter. And an in-house sort of Facebook and Twitter. They’re wrong. They’re just mapping new tools on old ways of working, on 20th Century silos. Metaphorically, they’re confusing learning to write with writing a novel – essential but insufficient.

//The info tech explosion

The Social Web Analytics eBook 2008, Philip Sheldrake

http://www.flickr.com/photos/philip_sheldrake/7015450481

Beware the definition

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//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/3504552777

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Socializing the enterprise demands more than just procuring some social tools.

A framework for all influence activities, for the social media, info tech and business strategy of the 21st Century.

It demands a new and simple model, devoid of ‘baggage’, to think about what we’re trying to achieve.

The Influence Scorecard

How can we systematically learn from and manage influence flows?

How do we define, develop, and execute a consistent and coherent

influence strategy?

How do we prioritize investments in influence-related human,

information, and organizational capital?

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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Kaplan and Norton’s strategy map tool and Balanced Scorecard

framework are well suited to these efforts.

The Influence Scorecard /2

The Six Influence Flows prompts organizational redesign – structure,

culture, people, policies and process – to execute influence strategy.

The Influence Scorecard serves to translate influence strategy and

help make it happen.

It’s a subset of the Balanced Scorecard, containing all the influence-

related objectives and metrics extracted from their functional silos.

Helps ensure that the potential to influence and be influenced is

exploited cohesively and consistently throughout the organization.

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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The ease and effectiveness with which we manage and

learn from influence flows is integral to the ways all

stakeholders interact with organizations to broker

mutually valuable, beneficial relationships.

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley,

2011http://www.flickr.com/photos/philip_sheldrake/3820770698

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Are you an Influence Professional?

//The info tech explosion

The Social Web Analytics eBook 2008, Philip Sheldrake

http://www.flickr.com/photos/philip_sheldrake/6619572765

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The Influence Professional

Are you ambidextrous of mind (left- & right-brained, art & science)?

Are you fluent in public relations excellence and other influence

disciplines (such as customer service, CRM, HR, market research,

internal communications, advertising)?

Can you effect change in the face of entrenched organizational

resistance?

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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Then this is your perfect storm. You might be the new breed of

influence professional, and perhaps Chief Influence Officer.

In conclusion

Today, influence activities are:

//The Business of Influence

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– Spread, uncoordinated, across functional silos

– Encompass only some aspects and subsets of the

Six Influence Flows and the Influence Scorecard

– Defined in the context of 20th Century technology,

media, and articulation of and appreciation for

business strategy.

In conclusion

Tomorrow, your influence strategy must:

//The Business of Influence

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– Take best advantage of social media, new info

technologies and best practice performance

management

– ‘Socialize the enterprise’, systematically

– Drive business performance.

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The Business of Influence: Reframing Marketing and PR for the Digital Age Philip Sheldrake, Wiley, May 2011 ISBN 978-0470978627 www.influenceprofessional.com #infpro @sheldrake