Dachis Social Business Summit - Open Leadership

Making The Case For Open Leadership

Charlene LiAltimeter GroupMarch 11, 2010

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For Dachis Social Business Summit

© 2010 Altimeter Group


A culture of sharing


It’s about relationships


These new relationships are changing business

Command & control

New ways to get things done


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Why is social business hard?

Because real relationships require that you give up control


The need for open leadership7

When people get what they need from each other

Having the confidence to give up control and still be in command


10 elements of openness8

• Explaining• Updating• Conversing• Open Mic• Crowdsourcing• Platforms

Information Sharing

• Centralized• Democratic• Self-managing• Distributed

Decision Making


Determine how open you need to be to meet your goals

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Platform

Crowdsourcing

Open Mic

Conversing

Updating

Explaining

Today


Social Strategy


Four goals define your strategy, but always start with learn

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Learn

Dialog

Support

Innovate


Learn with monitoring tools12


Dialog with your community13

Learn

Dialog

Support

Innovate


Engagement Pyramid: Focus on Watching and Sharing

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Curating

Producing

Commenting

Sharing

Watching


Focus on the relationship you want15

Richard Edelman writes or records his

blog posts – he doesn’t type.


DellOutlet drives sales with Twitter16


Help your members support each other

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Learn

Dialog

Support

Innovate


Premier Farnell supports engineers with community, and employees with “OurTube”

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Social + open = competitive advantage

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+2,200 Best Buy employees answer questions sent to @twelpforce


Innovate with customer feedback20

Learn

Dialog

Support

Innovate


Starbucks innovates across the company

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Fiat gathers product and market intelligence

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Contributors submit ideas, and can include pictures and embed

videos. Fiat gets valuable ideas for

features and design, and marketing and

advertising.


What to do first


#1 Align social with strategic goals24

Examine your 2010 goals

Pick one where social can have an impact


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#2 Understand the valueWhat’s the value of a fan or follower?

+4 million fans

16,965 followers


+ Value of purchases- Cost of acquisition

= Customer lifetime value

+ Value of new customers from referrals

+ Value of insights+ Value of support

The new lifetime value calculation, based on your goals

• Percent that refer• Size of their networks• Percent of referred

people who purchase• Value of purchases

• Percent that provide support

• Frequency and value of the support

+ Value of ideas


Fans

Large network

Refers

Doesn’t refer

Small network

Refers

Doesn’t refer

Find more fans with

large networks

Encourage fans to make

more referrals

Make decisions with metrics27


#3 Organize for different types of openness

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Organic- Natural growth requiring few resources- Deep adoption- Non-consistent- Eg. Humana, Microsoft

Centralized

- One department controls all efforts- Experimental, fast moving- Not spread or used broadly- Eg. Starbucks, Ford, Dell

Coordinated

- Sets rules, best practices, policies- Each department executes- Takes time, not cutting edge- Eg. HP, Red Cross


#4 Find and develop your open leaders

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Cautious Tester

Realist Optimist

Worried Skeptic

Transparent Evangelist

Pessimist Optimist

Collaborative

Independent


#5 Embrace failure30


Buyer blog hit the right note31


Build trust and manage risk 32

The Sandbox Covenant


Align your social business goals with your strategic goals.

Benchmark your progress based upon your business goals, not “engagement” data.

Change your mindset: letting go will yield more results.

Summary33


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Thank you

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Charlene [email protected]

m

blog.altimetergroup.com

Twitter: charleneli

For slides, send an email

[email protected]


About Us

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Altimeter Group is a strategy consulting firm that provides

companies with a pragmatic approach to disruptive

technologies. We have four areas of focus: Leadership and

Management, Customer Strategy, Enterprise Strategy, and

Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

[email protected].

Dachis Social Business Summit - Open Leadership

Business

value of ideas

value of purchases

social strategy

value of insights

customer lifetime value

social business goals

value of new customers

customer strategy