Show me the money! The value in social business at Engage 2014

@sbeerendonk

Show Me the Money! The Value in Social Business

Sasja Beerendonk, e-office

@sbeerendonk

18-3-2014 @EngageUG #engageug

@sbeerendonk

About me

[email protected]

twitter.com/sbeerendonk

http://nl.linkedin.com/in/sbeerendonk

http://thoughtsoncollaboration.com



@sbeerendonk

Agenda

• ROI, why? and some social business ROI myths

• From social software to a social business

• Measure: usage versus effect

• Value of engagement

• Value of productivity

• Value metrics through use cases

• Quality


@sbeerendonk

ROI, why?


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What is the ROI of a phone?

• Should we measure the amount of calls?

• How does the phone help an employee do their work?

• Does use of other systems, such as email, decrease?

18-3-2014 @EngageUG #engageugSource: Return On Contribution (ROC): A

Metric for Enterprise Social Software, Muller

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Social business ROI myths

a metric = ROI

social business ROI is not measurable

measuring ‘likes’ and ‘followers’ = ROI


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From social software to a social business


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Social business creates value


find expertise

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Maslow’s hierarchy for enterprise 2.0

18-3-2014 @EngageUG #engageugMaslow’s Hierarchy of Enterprise

2.0 ROI, Hutch Carpenter, 2010

http://www.cloudave.com/631/maslow-s-hierarchy-of-enterprise-2-0-roi/

http://www.cloudave.com/author/bhc3/

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Measurement principles

• Define success

• Measure to inform and enhance

• Don’t fall for ‘easy measures’

• Better measures

• use cross-referencing and combining of metrics

• Measure regularly

• Increase organizational effectiveness, across borders, reducing duplication of effort

• # communities with active participation from employees from different offices

• # blog posts with comments from employees in other offices

• % projects (activities) with employees from different offices

18-3-2014 @EngageUG #engageugSource: Michael Sampson –

User Adoption Strategies 2nd ed.

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Measure: usage versus effect


@sbeerendonk18-3-2014 @EngageUG #engageug

Distinguish between the reach of social collaboration, and the resulting use of tools and the effect on individual work effectivity and organisation goals.

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Two ways to focus


Business process Collaboration process

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Value of engagement


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Employee engagement


be show

I share my knowledge and expertise

I react and reply

I am well informed

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1-9-90 rule on participation

18-3-2014 @EngageUG #engageughttp://en.wikipedia.org/wiki/1%25_rule_%28Internet_culture%29

http://en.wikipedia.org/wiki/1%25_rule_(Internet_culture)

http://en.wikipedia.org/wiki/1%25_rule_%28Internet_culture%29

@sbeerendonk

Engagement tool

• define ‘lurkers’ further:

• Creator

• Contributor

• Joiner

• Spectator

• Inactives


lurk

ers

Download the flyer of the e-office engage-o-meter

http://www.e-office.com/eog/nl/website2011.nsf/assets/e-office_engagement_tool/$file/flyer

@sbeerendonk

How to make sociale software a success?

On average 15% of employees is Creator and 20% is Contributor

… in order to create value these employees need to become more productive!


engagement pyramid

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Return on Contribution

18-3-2014 @EngageUG #engageugSource: Return On Contribution (ROC): A

Metric for Enterprise Social Software, Muller

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An example of ROC


Source: presentation Chris Sparshott -Evaluating the Success of an IBM Collaboration and Social Networking project

http://www.slideshare.net/sparkbouy/measuring-social-software-presentation

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What does the number 2.59 mean?


Source: presentation Chris Sparshott -Evaluating the Success of an IBM Collaboration and Social Networking project

Bookmark originator

bookmarks a resource

2.59 consumers benefir from the

work of each bookmark originator

http://www.slideshare.net/sparkbouy/measuring-social-software-presentation

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Value of productivity


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Sequential collaboration versus co-creation

Let’s make music!


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Sequential collaboration versus co-creation


Let’s make music!


Drums

Lead guitarRythm guitar

Bass

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Merge together


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True co-creation

29


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To be succesful, employees need to …


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• Collaboration: Email versus Files


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• Collaboration: Email versus Wiki


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Productivity wins


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Value metrics through use cases


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Organization goals

• Work more effectively across countries and timezones

• Bring together expertise from different offices/countries

• Decrease travel time

• Bring innovations to market faster

• Deliver projects on time

• Solve problems faster

• Secure expertise from employees who leave

• Faster onboarding

• Build communities of practice to share and enhance knowledge in key areas

• Hold on to good staff longer18-3-2014 @EngageUG #engageug

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How then?

• Focus on organisation goals

• ‘Translate’ goals to use cases

• Work from activity-metrics to value-metrics


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Finding expertise

• Quickly locate the right people, or published content containing, the expertise needed to solve a problem

• Connect the best possible resources to effectively respond to customer needs

• Document and share reusable solutions to common issues

• Create highly-engaged and productive employees.

• Benefits

• 30% improvement in speed of accessing experts

• 55% increase in visibility of company’s subject matter experts on its public website

IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations

USE CASE


http://www.e-office.com/corporate/files/Whitepaper%20IBM%20on%20Social%20Business%20Patterns.pdf/$File/Whitepaper%20IBM%20on%20Social%20Business%20Patterns.pdf


@sbeerendonk

Gaining external customer insights

• Quickly learn customers’ opinions and preferences related to existing and potential products and services

• Identify and connect with key customer influencers to aid marketing efforts

Benefits

• Nearly 50% reduction in customer/agent service costs

• >50% decrease in time required to develop new services and features

• 20% reduction in man hours needed to create new product release information

USE CASE

IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations18-3-2014 @EngageUG #engageug



@sbeerendonk

Share knowledge

• More efficiently and effectively capture, share and access knowledge

• Increase innovation through wider reach of ideas

• Reduce excessive, unproductive time spent searching and exchanging information

Benefits

• 30% improvement in speed of accessing experts

• Productivity increases of 20-25% attributable to reduced need for status meetings

• Accelerated problem resolution due to more effective use of communication tools

• Improved employee engagement and satisfaction

USE CASE




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Recruiting and onboarding employees

• Collaboratively find and connect the right candidate to the right position

• Streamline assessment and hiring processes

• Better connect, engage and retain new hires

• Contextually recommend expertise to increase new hires’ productivity

Benefits

• 30% more candidate searches completed annually

• 25% reduction in time needed to fill open positions

• 2 day reduction in time to on-boarding new employees, 30% faster new hire time-to-value

• At least 20% increase in employee retention

USE CASE




@sbeerendonk

Use case example


support department needs to collaborate more effective across borders and time

Employees are able to locate colleagues with needed skills irrespective of their location

Subject matter coordinators blog regularly to share latest updates in their area

“How to” wikis are regularly updated by team members and are heavily used to find information

Activities are set up to enable small teams to work together across time zones to resolve problems

% profiles with skills updated# searches on profiles# reads of profiles

# blog entries added# blog authors# comments to blog entries# reads of blog entries

# wiki edits made# wiki authors, from different offices# comments to wiki entries# reads of wikis

# new activities started, with people from different offices# activity owners# activity members# reads of activities

Average time to close a customer request is reduced by x%

Customer satisfaction survey shows an improvement of y%

Staff satisfaction survey shows improvement in job satisfaction score of customer support staff

Staff turnover among customer support staff shows a reduction of z%

Average handling cost per customer request is reduced by x $USD

Annual customer support recruitment costs are reduced by x $USD

Metrics of creation,

consumption, membership etc

IBM Software Services for Lotus - White Paper, June 2010 Measuring the value of social software

http://www.e-office.com/eog/nl/website2011.nsf/assets/whitepaper_measuring_the_value_of_social_software/$file/White%20paper%20-%20Measuring%20the%20value%20of%20social%20software.pdf

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Wait … what about quality?


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Quality of collaboration


Does the result

get better?

Do people feel

more engaged?

Does the work

produce more

revenue?


@sbeerendonk

And now …

• Questions?

• Contact me

• More information ? • experience the business of

social software

• Read whitepaper• ‘Social Business’ (NL)

• Watch more webcasts and

live [email protected]

twitter.com/sbeerendonk

http://nl.linkedin.com/in/sbeerendonk



HYPERLINK%20%22http:/www.e-office.com/eog/nl/website2011.nsf/assets/flyer_social_business_expierence/$file/flyer%22www.e-office.com/eog/nl/website2011.nsf/assets/flyer_social_business_expierence/$file/flyer%C2%A0(file:/www.e-office.com/eog/nl/website2011.nsf/assets/flyer_social_business_expierence/$file/flyer)%C2%A0social%20business%20expierence.pdf

http://www.slideshare.net/humansoftware/whitepaper-social-business

http://www.e-office.com/corporate/index/webcasts

http://www.e-office.com/corporate/index/e-officewebinarwednesday

Show me the money! The value in social business at Engage 2014

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