1. The Impact Of Social Media In Your Organization Charlene Li Altimeter Group December 3, 2009 For slides, send an email to info@altimetergroup.com

2. Meet Dave Carroll Source: davecarrollmusic.com

4. 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

5. 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, http://www.flickr.com/photos/kantorhttp://www.flickr.com/photos/kantor

6. It’s about relationships

7. 7 A culture of sharing

8. 10 Elements of Openness 8 Explaining Updating Conversing Open Mic Crowdsourcing Platforms Information Sharing Centralized Democratic Self-managing Distributed Decision Making

9. Explaining strategic decisions 9 Open book management Managing leaks

10. Updating with every day stuff 10

11. Conversing: Vodafone on Facebook 11

12. Open Mic: When people contribute 12

13. Crowdsourcing new Walkers flavour 13

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

15. Decision-making models 15 CentralizedDemocratic Consensus Distributed

16. Theme Social will be like air

17. Facebook Connect extends 17 See what friends read/comment on

18. Your site as you know it 18

19. Your site with Google Sidewiki 19

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

21. New ways of targeting 21 Demographic Geographic Psychographic Behavioral Socialgraphic

22. Getting Started 22

23. #1 Goals define your open strategy LearnDialogSupportInnovate

24. Learning humanizing customers 24

25. Plan dialog with the Engagement Pyramid Producers Curators

26. Ritz-Carlton exemplifies service 26

27. Starbucks innovates across the organization

28. #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

29. Fans have value only if they do something 29 4 million fans Buy more Coke Tell others how much they love Coke

30. 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

31. 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

32. Engagement scores of 100 brands 32 +18% 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

33. The Sandbox Covenant #3 Build trust and manage risk

34. #4 Orchestrate openness 34 WorkflowStakeholdersOrg structureRolesTrainingMeasurement

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

36. 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

37. #5 Find and nurture Open Leaders PessimistOptimist Collaborative Independent

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

39. 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

40. Thank You Charlene Li Altimeter Group charlene@altimetergroup.com blog.altimetergroup.com Twitter: @charleneli For slides, send an email to info@altimetergroup.com Copyright © 2009 Altimeter Group 40