Open Leadership: How Social Technology Can Transform The Way You Lead Charlene Li Altimeter Group May 6, #openleader

© 2010 Altimeter Group

More people visit Facebook than Yahoo!

© 2010 Altimeter Group 4 It’s about relationships

© 2010 Altimeter Group 5 Why is social hard? Because real relationships require that you give up control

© 2010 Altimeter Group The need for open leadership 6 When people get what they need from each other “How open do I need to be?

© 2010 Altimeter Group Defining Open Leadership 7 Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals How to give up control, and be in command

© 2010 Altimeter Group Best Buy’s First Social Media Experts 8 Steve Bendt & Gary Koelling

© 2010 Altimeter Group They harnessed Best Buy’s biggest asset 9 The Blue Shirts

© 2010 Altimeter Group 10 BlueShirtNation.com supported Best Buy’s front line employees

© 2010 Altimeter Group Steve & Gary had an executive sponsor 11 Barry Judge CMO of Best Buy

© 2010 Altimeter Group They kept telling him one thing… 12 “Barry, you gotta get a blog!”

© 2010 Altimeter Group Barry’s first post 13 “I was so relieved when it was over—it was just two sentences to get started.”

© 2010 Altimeter Group The Premier Black Fiasco million s sent instead of 1,000 test

© 2010 Altimeter Group Barry’s response 15 “…we screwed up the execution which makes me feel sick about the customer trust that we have impacted.”

© 2010 Altimeter Group Openness became a strategy 16 Open market testing of new logo

© 2010 Altimeter Group +2,200 Best Buy employees provide support on Twitter 17

© 2010 Altimeter Group Focus on relationships, not technologies What kind of relationship do you want? Transactional Occasional Impersonal Short-term Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal Passionate Constant Intimate Loyal

© 2010 Altimeter Group Four goals define your open strategy, but always start with learn 19 LearnDialogSupportInnovate

© 2010 Altimeter Group Go beyond traditional customer data 20 Demographic Geographic Psychographic Behavioral Socialgraphic

© 2010 Altimeter Group Engagement Pyramid: Focus on Watching and Sharing 21 Curating Producing Commenting Sharing Watching

© 2010 Altimeter Group Dialog with your community 22 LearnDialogSupportInnovate

© 2010 Altimeter Group DellOutlet drives sales with Twitter 23

© 2010 Altimeter Group Help your members support each other 24 LearnDialogSupportInnovate

© 2010 Altimeter Group Social moves into enterprise apps Salesforce Chatter LinkedIn in Lotus Notes 25 Service Cloud w/social

© 2010 Altimeter Group Innovate with customer feedback 26 LearnDialogSupportInnovate

© 2010 Altimeter Group Starbucks involves 50 people around the organization

© 2010 Altimeter Group What to do first

© 2010 Altimeter Group #1 Align openness with strategic goals 29 Examine your 2011goals Pick one where open and social can have an impact

© 2010 Altimeter Group 30 #2 Understanding the value Value of +5 million fans? “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express

© 2010 Altimeter Group + 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 Learn more: Webinar this Friday 5/7 bit.ly/openleaderweb2

© 2010 Altimeter Group #3 Understand how open you need to be 32 Explaining Updating Conversing Open Mic Crowdsourcing Platforms Information Sharing Centralized Democratic Self-managing Distributed Decision Making

© 2010 Altimeter Group Determine how open you need to be to meet your goals 33

© 2010 Altimeter Group #4 Find and develop you open leaders 34 PessimistOptimist Collaborative Independent

© 2010 Altimeter Group #5 Prepare your organization 35 Ideally, you should be at “4.0” for launch. Area of opportunity.

© 2010 Altimeter Group Social media triage 36 Can you add value? Evaluate the purpose Respond in kind & share Thank the person Unhappy Customer? Dedicated Complainer ? Comedian Want-to-Be? NegativePositive YesNo 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 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 No Yes Assess the message

© 2010 Altimeter Group Create a culture of sharing

© 2010 Altimeter Group #^ Embrace failure 38

© 2010 Altimeter Group Buyer blog hit the right note 39

© 2010 Altimeter Group Manage risk with Sandbox Covenants 40

© 2010 Altimeter Group What the future will bring 41 Social networks will be like air

© 2010 Altimeter Group  Focus on relationships.  Align your social strategy with strategic goals.  Support open leaders in your organization.  Be prepared for failure – you’ll encounter many. Summary 42

© 2010 Altimeter Group 43 Thank you 43 Charlene Li charleneli.com/blog Twitter: charleneli For slides, send an to Learn more and buy the book at open-leadership.com