The Impact Of Social Media In Your Organization Charlene Li Altimeter Group December 3, 2009 For slides, send an email to [email protected].

The Impact Of Social Media In Your Organization

Charlene LiAltimeter GroupDecember 3, 2009

For slides, send an email [email protected]

Meet Dave Carroll

Source: davecarrollmusic.com

Success in the groundswell requires Open Leadership

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When people get what they

need from each other

Have the confidence to let go and still inspire

commitment

Open Leadership

Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals.

Photo: Kantor, http://www.flickr.com/photos/kantor

It’s about relationships

7A culture of sharing

10 Elements of Openness

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

Information Sharing

• Centralized• Democratic• Self-managing• Distributed

Decision Making

Explaining strategic decisions

9

Open book management

Managing leaks

Updating with every day stuff

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Conversing: Vodafone on Facebook

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Open Mic: When people contribute

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Crowdsourcing new Walkers flavour

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Platform extends Guardian’s data

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Database of nuclear arms’ location

Decision-making models

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Centralized Democratic

Consensus Distributed

Theme

Social will be like air

Facebook Connect extends

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See what friends

read/comment on

Your site as you know it

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Your site with Google Sidewiki

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Reviews from people I know

Source: RazorfishNote: This is a mock-up, not an actual product

New ways of targeting

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Demographic

Geographic

Psychographic

Behavioral

Socialgraphic

Getting Started

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#1 Goals define your open strategy

Learn

Dialog

Support

Innovate

Learning humanizing customers

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Commenters

Sharers

Watchers

Plan dialog with the Engagement Pyramid

Producers

Curators

Ritz-Carlton exemplifies service

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Starbucks innovates across the organization

#2 Understand the benefits of openness

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“We tend to overvalue the things we can measure, and undervalue the things we cannot.”

- John Hayes, CMO of American Express

Fans have value only if they do something

294 million fans

Buy more CokeTell others how much they

love Coke

Use metrics to manage openness

How likely are you to recommend this to someone you know?

Net Promoter Score

Lifetime revenueCost of acquisitionCost of retentionCustomer referral value (CRV)

Lifetime Value

Making decisions with metrics

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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

Engagement scores of 100 brands

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+18% revenue+15% gross margin

growth

-6% revenue-11% gross margin

growth

+10% revenue+1% gross margin

growth

+5% revenue+3% gross margin

growth

Source: EngagementDB.com

The Sandbox Covenant

#3 Build trust and manage risk

#4 Orchestrate openness

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Workflow

Stakeholders

Org

structure

Roles Training Measurement

Create new workflows

i.e. Customer service monitors and responds to tweets directly

Organizational models for openness

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Distributed- Organic growth- Authentic- Experimental- Not coordinated- Eg. Sun

Centralized

- One department controls all efforts- Consistent- May not be as authentic- Eg. Ford

Coordinated

- Sets rules, best practices, policies- Spreads widely around the org- Takes time- Eg. HP

#5 Find and nurture Open Leaders

Cautious Tester

Realist Optimist

Fearful Skeptic

Transparent Evangelist

Pessimist Optimist

Collaborative

Independent

#6 Plan to fail well

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Identify the top 5-10 worst case scenarios.

Encourage risk taking and forgive failures.

New rules of open leadership

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Respect that your customers and employees have power

Embody sharing to build trust

Nurture curiosity and humility

Hold openness accountable

Forgive failure

Thank You

Charlene LiAltimeter Group

[email protected]

Twitter: @charleneli

For slides, send an email [email protected]

Copyright © 2009 Altimeter Group40