hsm global-madrid featuring charlene li
DESCRIPTION
Special management program on social media sponsored by HSM Global featuring Charlene Li. This was a day-long program on how to create a social media strategy, that took place in Madrid on 12 April 2011. More info available at http://es.hsmglobal.com/contenidos/charleneli.htmlTRANSCRIPT
Creating A Coherent Social Media Strategy
1
Charlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: [email protected]
© 2011 Altimeter Group
2
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It’s time to move past experiments3
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It’s about RELATIONSHIPS
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© 2011 Altimeter Group
Strategy Lead Prepare
Agenda5
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Strategy Lead Prepare
Agenda6
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Strategy Process Stages
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
7
© 2011 Altimeter Group
Strategy Process Stages
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
Set context • Determine key objectives• Level of strategy (corporate, biz unit, brand)• Identify key metrics• Assess readiness
8
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Align social with key strategic goals9
Examine your 2011 goals
Pick ones where social will have an impact
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Corporate
Risk managemen
t
Leadership development
& culture
Value metrics
Business unit
Consistency across brands
Social strategist &
COE
ROI metrics
BrandChannel focus
Community manager & education
Engagement metrics
Objectives differ by level10
© 2011 Altimeter Group
Ask the Right Questions about Value
“We tend to overvalue the things we
can measure, and undervalue the
things we cannot.”
- John Hayes, CMO of American
Express
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Use appropriate metrics at each level12
Corporate
LOB/Geo Stakeholde
rsSocial
Strategist/Community Manager
Business metrics: revenue, CSAT, reputation.
Social media analytics: Insights, share of voice, resonance, WOM.
Engagement metrics: fans, followers, clicks.
© 2011 Altimeter Group
Highlight where you are strong, where you need to develop.
Don’t create strategies that you can’t execute.
Demonstrate impact of strategic work. Categories for readiness assessment
Assess your readiness to be social13
• Communication
• Mindset
• Roles
• Stakeholders
• Monitoring
• Reporting
• Customer Profile
• Market Analysis
• Processes
• Organizational Model
• Education
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Benchmarking Social Readiness (Before)
14
December 2009
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Benchmarking Social Readiness (After)
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April 2010
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Strategy Process Stages - Discovery
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
Collect and prioritize strategic options• Metrics-based value assessment• Prioritize against objectives
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Impact• How does it
support an objective?
• What metrics matter?
Readiness• Are there
people who can do this?
• Is there budget?
Risks• What are the
risks if we do this?
• What if we don’t?
Priority• Does this
initiative enable other work?
Evaluate each initiative17
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Define Your Strategy With Objectives18
Learn
Dialog
Support
Innovate
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How does social media matter to B2B?
Chief stakeholders may not be using social media.• But lieutenants will be.
Social media is impacting how B2B decisions are being made.• Background research• Expertise• Search results impact
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Why care about social technologies?
• 62% read user ratings/reviews for business products/services
• 62% visit company profiles on social media sites
• 55% visit company blogs• 51% participate in online business
communities or forums• 49% ask questions on Q&A sites• 29% use Twitter to find or request business-
related information Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)
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People in B2B use social media for work
Use Twitter to find or request business information
Ask questions on Q&A sites
Participate in online business communities or forums
Visit company blogs
Visit company profiles on social media sites
Read user ratings/reviews for business products/services
29%
49%
51%
55%
62%
62%
21
Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)
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Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda22
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Track brand mentions with basic tools
23
What would happen if every employee could
learn from customers?
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Integrate monitoring with workflow24
From Radian 6, to be acquired by Salesforce.com
Other providers
AlterianBrandsEyeBuzzmetrics CymfonySysmosVisible Tech.
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Be sure to track the actual conversations, not just the tweets
25
@JaimieH is a top diabetics advisor who was talking with an insulin pump maker
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How KLM listened and surprised flyers
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No monitoring in place
Tracks brand mentions using basic tools (Google, Twitter)
Centralized monitoring but not actionable in business unites
Deep monitoring to prep & support campaigns
Monitoring & analytics support integrated into everyday workflow
Go beyond basic monitoring to analytics
27
Make course corrections nearly real-time.
Use predictive analytics to anticipate demand.
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Shoppers want to be “known”28
I walk into the store
And plans my visit
Store knows it’s me
Give me offers
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Community insight platforms29
» Communispace and Passenger offer
online focus groups solutions.
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Private communities give better control • Get input from specific communities• Can target specific hard-to-reach communities
But they are hard to create – and maintain• Who needs to be included? Excluded?• Provide non-monetary incentives/rewards for
participating in the community• Deserves and requires dedicated community
manager• Integrate into your company’s support and
innovation process
Pros and cons of private communities
30
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31
Learn also from your employees
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Go beyond traditional data to understand your customers
32
Demographic
Geographic
Psychographic
Behavioral
Socialgraphic
© 2011 Altimeter Group
1. Where are your customers online?
2. What social information or people do your customers rely on?
3. What is your customers’ social influence? Who trusts them?
4. What are your customers’ social behaviors online?
5. How do your customers use social technologies in the context of your products.
Socialgraphics asks key questions33
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Engagement Pyramid34
Curating
Producing
Commenting
Sharing
Watching
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Engagement Pyramid - Watching35
Curating
Producing
Commenting
Sharing
Watching
Watch videosRead blog posts
Listen to podcasts
Read tweetsRead discussion
forum posts
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Engagement Pyramid - Sharing36
Curating
Producing
Commenting
Sharing
Watching
Share a linkShare photosShare videosWrite a status
updateRetweet
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Engagement Pyramid - Commenting37
Curating
Producing
Commenting
Sharing
Watching
Comment on a blog
Write a reviewRate a productParticipate in a
discussion forum@Reply on
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Engagement Pyramid - Producing38
Curating
Producing
Commenting
Sharing
Watching
Write a blogCreate videos or
podcastsTweet for an
audience
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Engagement Pyramid - Curating39
Curating
Producing
Commenting
Sharing
Watching
Moderate a wiki or discussion
forumCurate a
Facebook fan page
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Spain Germany UKUnited States
Curating <1% <1% <1% <1%
Producing 30.3% 21.1% 52.7% 26.1%
Commenting
45.1% 31.9% 54.0% 34.4%
Sharing 58.6% 61.8% 79.3% 63.0%
Watching 82.2% 78.9% 89.3% 78.1%
Engagement Pyramid Data40
Source: Global Wave Index Wave 2, Trendstream.net, January 2010
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Conduct research to identify the social behaviors of your
target customer
Also identify:
• Where are they online: Surveys or brand monitoring
• Who do they trust: Surveys
• Who do they influence: Survey or brand monitoring
• How they use these tools in context of your products: Most often surveys.
When you first understand your customers, your marketing efforts will naturally unfold.
Putting socialgraphics to work
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Listen and learn from your customers.
Start with basic monitoring tools, but quickly evolve them.
Invest in analytics that matter. Use metrics that are relevant to your business.
Understand the socialgraphics of your customers.
Summary - Learn42
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Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda43
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Conversations, not messages
Human, not corporate
Continuous, not episodic
The New Normal44
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Blogs establish thought leadership45
CEO Richard Edelman has been blogging consistently since Setpember 2004.
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SonyEurope rewards Twitter followers with discount that drives significant sales
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SonyEuropes 10% off VAIO laptops deal to celebrate their 1,000
Twitter follower lead to over €1m worth of product ordered.
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VW inserted a tweet analyzing tool into their banner ad to suggest a specific model
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Spain Tourism used multiple channels to encourage dialog/sharing
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Kohl’s engages directly with customers
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B2B can also use Facebook50
• Develop relationships with job candidates, prospects, and current employees
• Insert your content into newsfeed of fans
• B2B is really people to people
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Encourage commenting to get into the Facebook news feed
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Premier Farnell supports engineers with community, and employees with “OurTube”
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Give out Flip cameras/smartphones• Set up an internal “OurTube”• Transcribe conversations into emails and posts
Ask people for best practices, reactions, advice, opinion in areas of passion.
Recognize key contributors.
Getting people to share within your company
53
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Tivo joined an existing community54
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Advocacy – A five-phase approach55
Phase 1: Internal
Readiness
Phase 2: Identify
Advocates
Phase 3: Build
Relationships
Phase 4: Put
Advocates First
Phase 5: Foster Growth
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Tesco engages influencer blogs56
Blog post series highlights & drives traffic to blogs by
Influencers. Twitter feed encouages engagement too.
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Have an authentic conversation with your customers that they want to have.
Engage across and through social communities
Engage off of your Web site. Recruit an army of customer advocates. Respond to your prospects and customers
in real time.
Summary - Dialog57
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It’s about RELATIONSHIPS
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Support and Innovate With Your Customers
59
Charlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: [email protected]
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda61
© 2011 Altimeter Group
Vodafone UK uses Twitter to proactively communicate with customers
Vodafone UK humanizes their Twitter account by
including pictures of their support team and
identifying different respondents by an “^”
and the team member’s initials.
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Ritz-Carlton managers monitor Twitter for real-time service
63
Property manager helped
unhappy honeymooners
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Support during a crisis64
Used #euva and #ashtag to
track conversations
Source: simplifying.com
© 2011 Altimeter Group
DellOutlet supports sales with Twitter
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Question & Answer sites provide opportunity
for support
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Q&A encourages dialog too
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iRobot ties discussion boards into customers support
68
iRobot escalates unanswered
questions into support centers
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Salesforce.com Service Cloud ties social channels back to customer data
69
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Solarwinds’ community is strategic70
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Retailer Best Buy has 2,500 employees providing support via Twitter
71
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Real-time isn’t fast enough. Integrate “social” support into your
support infrastructure. Scaling support to meet the
groundswell will require that you create your own groundswell.
Summary - Support72
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda73
© 2011 Altimeter Group
P&G uses reviews to improve products
74
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Danish bank ask for help to improve mobile banking on Facebook
75
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Finnish post created an idea exchange
76
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Fiat invites ideas for a new car77
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Archer collects product development ideas in a private community
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Starbucks involves 50 people around the organization in innovation
Over 100 ideas have been
implemented
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Dell taps employee ideas too
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P&G goes outside for innovation81
P&G made outside-in
innovation a priority
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P&G developed technology from diaper research
Reached out to competitor Clorox to form a new joint venture
Helped Glad become Clorox’s second largest brand
Success story: Glad Press’n Seal82
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ModCloth has customers merchandise new products
83
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Innovating can come from any customer or employee interaction.
Dedicated innovation communities require significant commitment and nurturing.
Extend your firewall to bring customers into your organization.
Summary - Innovating84
© 2011 Altimeter Group
Strategy Process Stages
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
Strategy statement• What you will do• What you won’t
doScenarios development• Implementation roadblocks• Company and leadership implications• Risk identification• Build resilience
85
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What’s the Next Big Thing?86
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Identify and prioritizing disruptions that matter
User Experience•Is it easy for people to use?
•Does it enable people to connect in new ways?
Business Model•Does it tap new revenue streams?
•Is it done at a lower cost?
Ecosystem Value•Does it change the flow of value?
•Does it shift power from one player to another?
© 2011 Altimeter Group
“How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.”
1) Likenomics (credit to Rohit Bhargava)
89
Understand the supply, demand, and thus, value of Likes as social currency
See http://bit.ly/rohit-likenomics for Rohit’s take
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Likenomics evaluation90
User experience impact - moderate• People with high social currency will enjoy
benefits, richer experiences, receive psychic income.
• People with low social currency will find ways to get it.
Business model impact – moderate• New economics create opportunity for people
who understand Likenomics to leverage gas.• The cost of accessing social currency will
increase, and raise barriers to entry. Ecosystem value impact – none
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2) Social Search – Beyond Friends to Interests
Social sharing rises as a search ranking signal, esp in the enterprise
Create a social content hub to gain traction
Use microformats to highlight granularity (e.g. hProduct & hReview)
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Social Search evaluation92
User experience impact - Moderate• Search becomes more useful, relevant to people.
Business model impact – Moderate• SEO takes on a different dimension, rewards
companies with social currency, personalized experiences.
Ecosystem value impact – Moderate• New power brokers are social data/profile
players who capture activity data and profiles.• Google has little of either.
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Social monitoring merges with Web analytics• HOT: Omniture, Coremetrics/IBM, Webtrends
Technology like Hadoop makes it easy for companies to tap “Big Data”• E.g. New York Times making its archives public• Twitter archived by Library of Congress• Facebook Cassandra, Amazon Dynamo, Google
BigTable Data visualization tools make it easy to
digest Balancing privacy and personalization
3) Big Data93
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Big Data evaluation94
User experience impact - Low• Most users won’t directly experience Big Data.
Business model impact – High• New businesses and initiatives can be started at
very low cost. Ecosystem value impact – Moderate
• Owners of Big Data repositories can assert control, demand payments for access.
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4) Game-ification
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TurboTax used “games” to encourage sharing and support
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Social design can enter training, collaboration, support, hiring
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Gamification evaluation97
User experience impact – High• Experiences get richer, more engaging
Business model impact – Moderate• Work gets done faster, cheaper.• New organizational structures and cultures
emerge. Ecosystem value impact – Low
• Service providers will remain focused, boutique firms.
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5) Curation
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Curation evaluation99
User experience impact – Moderate• User authority established from better curation,
better content is organized well. Business model impact – Moderate
• Easier for businesses to create their content. Ecosystem value impact – Moderate
• Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.
© 2011 Altimeter Group
User Experience
Business Model
Value Networks
Likenomics Moderate Moderate Low
Social Search
Moderate Moderate Moderate
Big Data Low High Moderate
Enterprise Soc Net
High Moderate Moderate
Gamification
High Moderate Low
Curation Moderate Moderate Moderate
Summary of disruptions100
© 2011 Altimeter Group
It’s about RELATIONSHIPS
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Leading The Open Organization
102
Charlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: [email protected]
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda104
© 2011 Altimeter Group
OUT of CONTROL?
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How to give up control
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but still be in command
108
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Open Leadership109
Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals
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10 elements of openness110
• Explaining• Updating• Conversing• Open Mic• Crowdsourcing• Platforms
Information Sharing
• Centralized• Democratic• Consensus• Distributed
Decision Making
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Explaining strategic decisions111
Open book management
Managing leaks
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112
Updating with every day stuff
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Kohl’s has conversations on Facebook
113
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Open Mic: When people contribute114
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Crowdsourcing new Walkers flavour115
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Open platforms make it easy to partner and share
116
Open architecture Open data access
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117
Centralized Democratic
Consensus Distributed
Decision making models
© 2011 Altimeter Group
170 employees 100 modules with
“module owners” One person makes
the final decision in each module
Social technologies make distributed decision making possible
118
Manage complex tasks Organizing for speed
65,000 employees 16 Councils,
50 Boards make strategic decisions
Joint leadership of each group
© 2011 Altimeter Group
Determine how open you need to be with information to meet your goals
119
Openness audit available at http://bit.ly/opennessaudit
© 2011 Altimeter Group
Complete the Openness Audit120
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Traits of Open Leaders121
Authenticity Transparency
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Transparency as an imperative122
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How Best Buy became open and social
123
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Best Buy’s First Social Media Experts124
Steve Bendt & Gary Koelling
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The Executive Advocate125
Barry Judge CMO of Best Buy
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Barry’s first post126
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The Premier Black Fiasco127
6.8 million emails sent instead of 1,000 test
© 2011 Altimeter Group
Developing Open Leaders
© 2010 Altimeter Group
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“You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.”
- Marc Benioff, CEO of Salesforce.com
© 2010 Altimeter Group
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda130
© 2011 Altimeter Group
#1 Create a Culture of Sharing131
© 2011 Altimeter Group
#2 Discipline is Needed to Succeed
Can you add value?
Evaluate the
purpose
Respond in kind & share
Thank the person
Unhappy Customer?
DedicatedComplainer
?
Comedian Want-to-
Be?
NegativePositive
Yes No
Do you want to
respond?
No Response
No
Yes
Take reasonable action to fix issue and let customer know action taken
Are the facts
correct?
Gently correct the facts
No
No
No
Yes
Are the facts
correct?
Does customer need/deserve
more info?
Yes
Explain what is being done to
correct the issue.
Yes
Is the problem
being fixed?
Yes
Let post stand and monitor.
No
Yes
NoYes
Yes
Assess the message
Adapted from US Air Force Comment Policy
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Five ways companies organize around social media133
© 2011 Altimeter Group
#3 Ask the Right Questions about Value
“We tend to overvalue the things we
can measure, and undervalue the
things we cannot.”
- John Hayes, CMO of American
Express
© 2011 Altimeter Group
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+ Value of purchases- Cost of acquisition
____________________
= Customer lifetime value
The new lifetime value calculation
• 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 new customers from referrals
+ Value of support+ Value of ideas
+ Value of insights
Spreadsheets for all calculations available at open-leadership.com
© 2011 Altimeter Group
35% increase in LTV captured136
Year 1 Year 2 Year 3
Number of customers 10,000 5,000 3,500
Gross profit of purchases $400,000 $200,000 $140,000
Cost of acquisition $150,000 $25,000 $17,500
Net profit $250,000 $175,000 $122,500
Traditional LTV/customer $74.89
Value of referrals $30,000 $45,906 $45,287
Value of insights $10,000 $5,438 $4,080
Value of support $5,438 $8,156 $6,120
Value of ideas $2,000 $1,000 $1,000
Net profit and value $297,438 $235,500 $178,986
Revised LTV per customer $101.48
© 2011 Altimeter Group
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 metrics137
© 2011 Altimeter Group
No relationships are perfect
Google’s mantra: “Fail fast, fail
smart”
#4 Prepare for Failure
© 2011 Altimeter Group
138
© 2011 Altimeter Group
Create
Sandbox
Covenants
© 2011 Altimeter Group
139
© 2011 Altimeter Group
Structure your risk-taking and failure systems to create resilience
140
1. Conduct pre- and post-mortems.• E.g. Johnson & Johnson after Motrin Moms.
2. Identify the top 5-10 worst case scenarios.• Develop mitigation and contingency plans.• E.g. Ford’s “lost” Fiesta.
3. Build in responsiveness.• E.g. Best Buy’s Black reward card.
4. Prepare yourself for the personal cost of failure.
© 2011 Altimeter Group
Audit the last few failures you and your organization experienced.• 25% - what happened.• 25% - what you learned.• 50% - what you will do next.
Keep a failure file. Identify risk-taking training needs. Build failure into your planning and
operating processes. Create support networks for the inevitable
failures.
Action plan to prepare for failure141
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
AND STILL BE IN COMMANDGive Up Control
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© 2011 Altimeter Group
Charlene Li
charleneli.com/blog
Twitter: charleneli
For slides, send an email to
For more information & to buy the
book
visit open-leadership.com
© 2011 Altimeter Group