Open Leadership: The Upside Of Giving Up Control Charlene Li Altimeter Group March 13, For SXSW #open

© 2010 Altimeter Group

A culture of sharing

© 2010 Altimeter Group It’s about relationships

© 2010 Altimeter Group These new relationships are changing business Command & control New ways to get things done

© 2010 Altimeter Group 6 Why is social hard? Because real relationships require that you give up control

© 2010 Altimeter Group The need for open leadership 7 When people get what they need from each other “How open do I need to be?

© 2010 Altimeter Group Open Leadership 8 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 10 elements of openness 9 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 10

© 2010 Altimeter Group Four goals define your open strategy, but always start with learn 11 LearnDialogSupportInnovate

© 2010 Altimeter Group Learn with monitoring tools 12

© 2010 Altimeter Group Dialog with your community 13 LearnDialogSupportInnovate

© 2010 Altimeter Group Engagement Pyramid: Focus on Watching and Sharing 14 Curating Producing Commenting Sharing Watching

© 2010 Altimeter Group DellOutlet drives sales with Twitter 15

© 2010 Altimeter Group Help your members support each other 16 LearnDialogSupportInnovate

© 2010 Altimeter Group Social + open = competitive advantage 17 +2,200 Best Buy employees answer questions sent

© 2010 Altimeter Group Innovate with customer feedback 18 LearnDialogSupportInnovate

© 2010 Altimeter Group Fiat gathers product and market intelligence 19 Contributors submit ideas, and can include pictures and embed videos. Fiat gets valuable ideas for features and design, and marketing and advertising.

© 2010 Altimeter Group What to do first

© 2010 Altimeter Group #1 Align openness with strategic goals 21 Examine your 2010 goals Pick one where open and social can have an impact

© 2010 Altimeter Group 22 #2 Understanding the upside What’s the value? Of +5 million fans? Of karaoke? Photo by Chris Heuer

© 2010 Altimeter Group + Value of purchases - Cost of acquisition = Customer lifetime value + Value of new customers from referrals + Value of insights + Value of support The new lifetime value calculation, based on your goals 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 ideas

© 2010 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 metrics 24

© 2010 Altimeter Group #3 Support open leadership 25 PessimistOptimist Collaborative Independent

© 2010 Altimeter Group Convincing the curmudgeon 26 Lovisa Williams US State for 4 years Wrote first social media policy Who can best work with a Worried Skeptic?

© 2010 Altimeter Group #4 Manage risk with Sandbox Covenants 27

© 2010 Altimeter Group #5 Embrace failure 28

© 2010 Altimeter Group Buyer blog hit the right note 29

© 2010 Altimeter Group  New relationships require open leadership.  Find and support your open leaders: letting go will yield more results.  Get good a failure – you’ll have many. Summary 30

© 2010 Altimeter Group 31 Thank you 31 Charlene Li blog.altimetergroup.com Twitter: charleneli For slides, send an to Join me for a book signing at 6:20pm

© 2010 Altimeter Group About Us 32 Altimeter Group is a strategy consulting firm that provides companies with a pragmatic approach to disruptive technologies. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design. Visit us at or contact