digital update usc #corpgov summit
TRANSCRIPT
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http://www.good.is/post/intermission-watch-the-recording-industry-s-demise-in-30-seconds/
© 2011 Risk for Good – Please do not duplicate or use for commercial purpose. For review only.
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What's New in the Digital World: A Director BriefingModerator Fay Feeney - CEO, Risk For Good
Colleen Cunningham - Global Managing Director, Resources Global Professionals
Robert Magnuson - CEO, Magnuson & Company
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“The Beginning is Near“The Internet has fundamentally changed the way people find,
discover, share, shop & connect.
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The Cloud: Transforming IT
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2011 GLOBAL SNAPHOT OF THE SOCIAL CUSTOMEREUROPE (EMEA)31% comment on blogs27% comment in forums20% uploaded a video online39% uploaded a photo online63% watch a video online13% actively blog
LATIN AMERICA49% comment on blogs
35% comment in forums41% uploaded a video online56% uploaded a photo online
74% watch a video online27% actively blog
ASIA PACIFIC42% comment on blogs43% comment in forums29% uploaded a video online50% uploaded a photo online65% watch a video online37% actively blog
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CEO CHALLENGES ON INTERNAL CHANGE
• The social brand has caused chaos and organizational anarchy in many companies
• Bring Your Own Technology
• Employees are operating their own equipment (mobile phones, Ipads, etc.) with little to no guidance, direction or governance
• Different geographies and business units are creating social communities externally and not sharing or communicating internally
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THE EVOLUTION OF SOCIAL BUSINESS
SOCIAL CUSTOMER
• Technology Innovation gives customers a voice
• They are Influential• Social Customers are
trusted amongst their peers as influence grows
SOCIAL BRAND
SOCIAL BUSINESS
• Companies and brands join Twitter, Facebook and create corporate blogs
• Engage with the social customer in various channels
• Social Media teams are forming slowly
• Organizational silos are torn down between internal teams to include social media
• Social becomes an essential attribute of organizational culture
• Governance models and social media policies are created
1995 to present
2003 to present
2008 to present
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Digital: IT, Social Business & CommunicationWhere is your Business? Where is your Board?
Where are You?
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Operational Execution
Suppliers
and
IT
Operational Execution
Suppliers
and
IT
People Attract &
Retain Talent
Compensation and
Benefits
People Attract &
Retain Talent
Compensation and
Benefits
Financial Reporting
Liquidity
Capital Structure
Financial Reporting
Liquidity
Capital Structure
Build
and
Nurture Brand
Build
and
Nurture Brand
Conflicts ofInterest,
Regulatory
and
Litigation
Conflicts ofInterest,
Regulatory
and
Litigation
Chief Operating Officer
Human Resources
Chief Legal Officer
Chief Financial Officer Sales and
Marketing
Strategy And
Reputation
Value Creation
Strategy And
Reputation
Value Creation
CEO,Senior
Management
How is Digital Managed?Who Bridges the Gaps?
Executive & Board Capabilities
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Who Should Fix the Boardroom?
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WHY DOES ALL THIS MATTER?
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Your Board’s Risk Map
1
2
3
Relative Uncertainty
Rela
tive
Impo
rtan
ce 6
5
Higher
Higher
Lower
47
8
9
1
Financial performance
Relevant Business Strategy
3
4
Board composition
5
6
Shareholder communications (proxy & disclosure )
7
Whistle blowing
2
XYZ Company
Management Integrity
8
Negative media/social media -Reputation & Crisis Mgt
9
10
Risk oversight
10 CEO comp – Say on Pay
Attracting, Retaining & Exiting of Mgt & Board
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Current Phase of Digital: SOCIAL
S : is for speed — everything is now happening faster
O: stands for open. If you don’t have an open environment inside your company or country, these new tools will blow you wide open
C: collaboration because this revolution enables people to organize themselves within companies and societies into loosely coupled teams to take on any kind of challenges — from designing a new product to taking down a government.
I: individuals, who are able to reach around the globe to start something or collaborate on something farther, faster, deeper, cheaper than ever before — as individuals
A : alignment
L : leadership that aligns
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Social BusinessListens
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Lesson’s Learned
The Goal:Crisis Prevention
“Values Audit”—Are you values aligned with your business? Ensure A Culture of Integrity Communicate Your Values
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Where is Your Reputation?
• Your message on: website, blog, etc.
• Content should be optimized for search w/terms that are relevant to your business
• Facebook status updates that promote blog content
• Content shared NEEDS to add value: conversation and community
Your Message
• Occasional tweets on promoting blog content
• Cross promoting other social channels, when relevant
• Youtube channel and new videos to link back to your message
• Videos can be shared on Facebook, YouTube
• Optimize Google+ page with relevant links and content back to other channels
• Unique content
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A Case Study
Print Media Missed The Digital Revolution
•Didn’t listen
• Failed to adapt
• Too little, too lateTotal Daily U.S. Newspaper Circulation (Million)0
50
100
150
200
250
55.7
124
31
240
20002010
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A Case Study
Print Media Missed The Digital Revolution
• Now The Business Is On The Ropes
• Old (Ad) Revenue Model Defunct
• New (Paid Content) Revenue Model A Tough Sell
Newspaper Classified Advertising Revenue ($B)05
101520253035404550 48.6
8
22.8 2620002010
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The Boardroom
Digital Business DisruptionImpact on your Business1. What is the most significant
impact digital has had on your business?
2. What is your CEO doing to lead the effort?
3. What is your board chairman doing to prepare your board to oversee the digital challenges?
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What about your Board? •Do you Know?
• Where your company stands on key digital issues?
•What is your Plan for 2011 – 2012?
• Reinforce values and brand equity
• Enhance shareholder & stakeholder communications
• Address Dodd-Frank Act specifics
• Messages the CEO & board’s qualifications and skills
Assessment
Plan
ResourcesActions
Evaluate and Enhance
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Start Learning About Digital Now! It is not too early to take action.
• Business Model Disruption• Social Business & Social Media• Board Visibility: Yahoo, News Corp &
HP
Understand how your business is being perceived by shareholders and stakeholders?
Who is going to talk to your CEO about digital and social business?:
Leading, managing, monitoring and crisis prevention
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THANK YOU!
(c) 2011 All Rights Reserved