The Business of Influence Philip Sheldrake www.philipsheldrake.co m @ 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 1
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The Business of Influence – ESOMAR 3D Digital Dimensions Conference 2011
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The Business of Influence
Philip Sheldrakewww.philipsheldrake.com
@sheldrake
Author of The Business of Influence: Reframing Marketing and PR for the Digital Age, Wiley, 2011
The authors of the Cluetrain Manifesto asserted back in 1999 that the Internet allows markets to revert to the days when a market was defined by people gathering and talking among themselves about buyer and seller reputation, product quality and prices.
This was lost for a while as the scale of organizations and markets outstripped the facility for consumers to coalesce.
//The rise of social media
The Cluetrain Manifesto – http://www.cluetrain.com
The Business of Influence, Philip Sheldrake, Wiley, 2011
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
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
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)
– when individuals can market their needs or desires, either directly or anonymously, via a streams bank or other broker, to organizations interested in meeting that need or desire.
//The info tech explosion
The Social Web Analytics eBook 2008, Philip Sheldrake
//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
“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].”
The Business of Influence, Philip Sheldrake, Wiley, 2011
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Comparing market research and continuous engagement
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011, Table 5.4
Market research Continuous engagement
Ad hoc or regular intervals Continuous
One-way (and often needs the carrot of a prize, gift or payment)
Two-way (mutually rewarding)
Unemotional Emotional
Independent of loyalty Inculcates brand loyalty
Tight focus Wide focus
Sequential parameters Multi-parametric
Designed to achieve statistical confidence
Emphasis on detecting weak signals
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Influence-centricity
1. Focusing on the influenced
Related to the emphases of Net Promoter Score (albeit focused on all stakeholders that have been influenced or influenced others, rather customers that would recommend us).
Outcome rather than output oriented.
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
The term ‘the influenced’ means those who have done something they otherwise wouldn’t have done (e.g. buy your product) and is not a contraction of ‘the positively influenced’, i.e. those who have come round to our point of view, as it might be in more casual parlance.
2. Tracing influence
Understanding and learning from how influence has happened.
Not hung up on finding ‘key influencers’, but rather it’s about:
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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
Kaplan and Norton’s strategy map tool and Balanced Scorecard framework are well suited to these efforts.
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The Influence Scorecard /2
The Influence Scorecard serves as both the methodology for defining influence strategy and the tool for executing it.
It’s a subset of the Balanced Scorecard, containing all the influence-related objectives and metrics extracted from their functional silos.
Helps management 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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In conclusion
Today, influence activities are:
//The Business of Influence
– 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.
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In conclusion
Tomorrow, your influence strategy must:
//The Business of Influence
– Take best advantage of social media, new info technologies and best practice performance management
– Integrate marketing research, systematically
– ‘Socialize the enterprise’, systematically
– Drive business performance.
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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