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

Meet Dave Carroll Source: davecarrollmusic.com

Success in the groundswell requires Open Leadership 4 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,

It’s about relationships

7 A culture of sharing

10 Elements of Openness 8 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 10

Conversing: Vodafone on Facebook 11

Open Mic: When people contribute 12

Crowdsourcing new Walkers flavour 13

Platform extends Guardian’s data 14 Database of nuclear arms’ location

Decision-making models 15 CentralizedDemocratic Consensus Distributed

Theme Social will be like air

Facebook Connect extends 17 See what friends read/comment on

Your site as you know it 18

Your site with Google Sidewiki 19

Reviews from people I know Source: Razorfish Note: This is a mock-up, not an actual product

New ways of targeting 21 Demographic Geographic Psychographic Behavioral Socialgraphic

Getting Started 22

#1 Goals define your open strategy LearnDialogSupportInnovate

Learning humanizing customers 24

Plan dialog with the Engagement Pyramid Producers Curators

Ritz-Carlton exemplifies service 26

Starbucks innovates across the organization

#2 Understand the benefits of openness 28 “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 29 4 million fans Buy more Coke Tell 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 revenue Cost of acquisition Cost of retention Customer referral value (CRV) Lifetime Value

Making decisions with metrics 31 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 % 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 34 WorkflowStakeholdersOrg structureRolesTrainingMeasurement

Create new workflows i.e. Customer service monitors and responds to tweets directly

Organizational models for openness 36 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 PessimistOptimist Collaborative Independent

#6 Plan to fail well 38 Identify the top 5-10 worst case scenarios. Encourage risk taking and forgive failures.

New rules of open leadership 39 Respect that your customers and employees have power Embody sharing to build trustNurture curiosity and humilityHold openness accountableForgive failure

Thank You Charlene Li Altimeter Group blog.altimetergroup.com For slides, send an to Copyright © 2009 Altimeter Group 40