Social media, brands and culture in the finance sector

Social business design and management Beans and Pearls 2.0 Social business design for ﬁnance What it means for brands and corporate cultures Somesso Talk 2009

Beans and Pearls 1.0 ‘I believe we will survive and thrive in the new creaCve age only if we enlarge both our understanding and our delivery of creaCvity’ Sir MarCn Sorrell, D&AD President’s Lecture Nov 1996

Beans and Pearls 1.0 CreaCvity as a means of broadcast

‘I believe we will survive and thrive in the new crea3ve age only if we enlarge both our understanding and our delivery of crea3vity’ But the message isn’t gePng through

Beans and Pearls 2.0 The social environment re‐deﬁnes how to transact and behave to create value

Beans and Pearls 2.0 Permission, trust and loyalty as a means of involvement

How much do you trust businesses in each of the following industries to do what is right? Source: Edelman Trust Report ‐ US companies

In the UK, France and Germany, trust in banks, media companies, energy and automoCve has declined steeply Source: Edelman Trust Report ‐ European companies

Financial services companies have come oﬀ badly in terms of the perceived match between the promise they put out and the consumer experience. Source: Promise Index 2009

Social business design and management % of Top 100 banks in Forbes Global 2000 2009 that are acknowledged as having a presence in social media .

5% 5% Source: Forbes 2000 2009/AlCmeter Group/Visible Banking/Visceral Business/October 23rdt 2009

5% Source: Forbes 2000 2009/AlCmeter Group/Visible Banking/Visceral Business/October 23rdt 2009

Social business design and management % of Top 100 diversiﬁed ﬁnancial services companies in Forbes Global 2000 2009 acknowledged as having a presence in social media .

How many of the top 100 diversiﬁed ﬁnancial services companies in Forbes Global 2000 2009 9% are acknowledged as having a presence in social media? 9% . Source: Forbes 2000 2009/AlCmeter Group/Visible Banking/Visceral Business/October 23rdt 2009

How many of the top 100 diversiﬁed ﬁnancial services companies in Forbes Global 2000 2009 are acknowledged as having a presence in social media? 9% . Source: Forbes 2000 2009/AlCmeter Group/Visible Banking/Visceral Business/October 23rdt 2009

Social business design and management % of the 92 insurance companies within Forbes Global 2000 2009 acknowledged as having a presence in social media .

6% 6% Source: Forbes 2000 2009/AlCmeter Group/Visible Banking/Visceral Business/October 23rdt 2009

6% Source: Forbes 2000 2009/AlCmeter Group/Visible Banking/Visceral Business/October 23rdt 2009

It starts with the idenCty of the brand as a central organizing thread

Branding is a contact sport…the further apart you are from your audience, the less likely you are able to connect and have an impact with them.

Social business supports formaCve, generaCve experiences

IteraCve, adapCve ﬁts can be integrated into business design

Then Broadcast Now Involvement TradiConal media AeenCon IntenCon And markeCng based on purpose beyond product

ProtecConism in ﬁnance is strong

Opportunity to leverage intangible assets like culture

The economics of automated transacCon changes things

TransacCons

RelaConships

New types of behaviour

people amiable expressive analyCcal driver task ask Source: Keirsey Temperament Sorter tell

A brand is what people say about you when you’ve lef the room, social media is about being a part of that conversaCon and there is good news…

80% tacit communicaCon Source: Karen Stephenson Nehorm

gatekeepers hubs 80% tacit communicaCon pulsetakers Source: Karen Stephenson Nehorm

decision making strategy innovaCon 80% tacit communicaCon advice social learning Source: Karen Stephenson Nehorm

Beans and Pearls 2.0 Social business design and management Business returns being seen from Web 2.0 Benefits acknowledged by survey respondents (%) Source: McKinsey September 2009 Close to seven out of ten respondents (69%) report that their companies “have gained measurable business benefits, including more innovaCve products and services, more effecCve markeCng, beeer access to knowledge, lower cost of doing business, and higher revenues”. Increasing employee saCsfacCon 35% Decreasing travel costs 40% Increasing customer saCsfacCon 43% Increasing speed of access to internal experts 43% Increasing effecCveness of markeCng 52% Reducing communicaCon costs 54% Increasing speed of access to knowledge 68% 20% 40% 60% 80% 100%

A commercial evoluCon Social business design and management tangible assets intangible assets u3li3es industrial commercial social causes organiza3ons organiza3ons organiza3ons Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

A commercial evoluCon Social business design and management tangible assets intangible assets 1 2 3 4 5 who you are products skills culture mission and and and and and what you do services approach personality cause u3li3es industrial commercial social causes organiza3ons organiza3ons organiza3ons Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

PosiConing the brand Social business design and management tangible assets intangible assets 1 2 3 4 5 who you are products skills culture mission and and and and and what you do services approach personality cause u3li3es industrial commercial social causes organiza3ons organiza3ons organiza3ons mining retail mining energy charities housing pharma trade guilds councils and public services transport auto travel and leisure food and beverages membership organizations financial services consumer electronics fmcg media and cultural institutions technology government Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

Yochai Benkler Berkman Professor of Entrepreneurial Legal Studies at Harvard & Faculty co-director of the Berkman Center for Internet and Society ‘The personal computer changed the basic model of capitalizaCon of informaCon, knowledge, and cultural producCon. ComputaCon, communicaCons, storage, sensing, and capture devices are now widely distributed. These, in turn, enable the eﬀecCve deployment of the other core input into the global informaCon economy ‐ human creaCvity, wisdom, insight, and perspecCve.’ ‘Capital, Power, and the Next Step in Decentralization’ Essay, Sept 16th 2009

Strength of leadership Technological capability Market worth   Clarity of business intent   Channel reach, social capability,   Market capitalizaCon and openness of operaCons and type of engagement (Forbes/Fortune/FTSE metrics proﬁles and public analyst opinion)   The business has qualitaCve and quanCtaCve operaCng outcomes   Network mapping across the   Brand value and social as well as economic organizaCon’s hierarchies, beneﬁt communiCes of interest and   Human capital value, measured trust networks by the raCo of brand valuaCon   The business model is capable of to market capitalizaCon by integraCng co‐created innovaCon   Open innovaCon capability and employee acCviCes   The degree to which leadership is   ReputaCon and customer dispersed i.e. % of people within the   Real‐Cme open‐data saCsfacCon metrics organizaCon is engaged in social management capabiliCes media   Share of voice   Processes to measure proximity   Levels of senCment, inside and and collaboraCon   Media spend ROI (measuring outside the organizaCon the % of spend to return)   AudiCng processes, benchmark   Strength of reputaCon across sePng and listening   Average new revenue per products and services, capabiliCes customer and lifeCme value per innovaCon, workplace, customer governance, ciCzenship, leadership and performance   Churn, recruitment Cme and costs involved of employee acquisiCon Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

45% of all social ﬁnancial service organiza3ons are Credit Unions Source: Visible Banking www.visiblebanking.com

PosiConing the brand Social business design and management tangible assets intangible assets 1 2 3 4 5 who you are products skills culture mission and and and and and what you do services approach personality cause u3li3es industrial commercial social causes organiza3ons organiza3ons organiza3ons mining retail mining energy charities housing pharma trade guilds councils and public services transport auto travel and leisure food and beverages membership organizations financial services consumer electronics fmcg media and cultural institutions technology government Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

Social business design and management aﬃnity is stronger than structure Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

So the quesCon is: How do you connect with ‘the people formerly known as the audience’? Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

ReputaCon Statement of Account by Jason Tester 2004

The web makes trading more granular and accountable The EvoluCon of Social Sofware in IBM. Small Blue Research Study. hep://smallblueresearch.ibm.com

The value of each person in your address book is $948 When friends of your friends are not friends of each other or belong to the same social group = 276.64% increase in monthly revenues One strong link to your manager is worth $588.2/m One weak link to your manager costs $98.48/m Having managers in a project is correlated with team performance iniCally Too many managers in a project is negaCvely associated with team performance Strong Ces to execuCves is posiCvely correlated Aeributes of your network human capital, power and status have a unique relaConship with work performance. A place where personal worth and corporate worth combine The EvoluCon of Social Sofware in IBM. Small Blue Research Study. hep://smallblueresearch.ibm.com

‘all value is perceived value, and persuasion is more eﬀecCve than compliance’ Rory Sutherland, Chairman IPA, TED Oxford June 2009 Back to behavioural economics

‘you can’t fake community, you can’t force it, either’ Chris Brogan

Involvement pwns broadcast ‘People will forget what you said, they’ll forget what you did, but they’ll never forget how you made them feel and what you inspired them to do.’

credible and compelling

geek hero credible credible and compelling loser poser compelling

Your business must be aware of, and be leveraging, its authenCc DNA

And realize cultural value as part of social business design

Social business design and management Consumer‐centric business models

Social business design and management A business model to describe the way you intend to make money by creaCng and delivering value collecCvely. Alex Osterwalder – Business Model GeneraCon hep://www.businessmodelgeneraCon.com

Alex Osterwalder – Business Model GeneraCon hep://www.businessmodelgeneraCon.com

Business model co‐creaCon Alex Osterwalder – Business Model GeneraCon hep://www.businessmodelgeneraCon.com

Business model innovaCon Social business design and management Alex Osterwalder – Business Model GeneraCon hep://www.businessmodelgeneraCon.com

Business model innovaCon Alex Osterwalder – Business Model GeneraCon hep://www.businessmodelgeneraCon.com

high number of channels bueerﬂies mavens wallﬂowers selecCves low low frequency of use Source: AlCmeter Group high

high intellectual understanding bystanders champions weak links loose cannons low low emotional commitment high

Social business design and management Strength of leadership Market worth creaCve vision, value to the reputaCon, task ecosystem (work) (social) Technological capability capacity to connect and evaluate in real Cme 3 core KPI’s Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com

Social business design and management A biological organizaCon

Social business design and management And also an insurance policy and safety net

Social business design and management CollaboraCon creates new dimensions of value across an organizaCon Your organizaCon has a unique DNA and culture worth culCvaCng Connect with the business case strategically, go beyond tools and channels There is no internal and external in the social organizaCon Social leadership skills and management capabiliCes are core to success Establish pools of interest around your business capable of generaCng aeenCon, contribuCon and wanCng to connect.

Anne McCrossan Website – www.visceralbusiness.com Blog – www.visceralbusiness.com/blog Email – anne@visceralbusiness.com @Annemcx (+44) 203 355 0582 (+44) 7508 021951 Slides will be available at http://slideshare.net/Annemcx Copyright © 2009 Visceral Business

Photos and credits Slide 1 : Coffee beans by Incasa Coffee hep://bit.ly/1NvtHh Slide 1 : Pearl farming 02 by nataliebehring.com hep://bit.ly/4vOuvM Slide 19: Rope‐pulling by vavara lozenko hep://bit.ly/4Au1SF Slide 21: Arm wrestle 2 by deejaynye hep://bit.ly/2SvFd Slide 22: We’ll walk hand in hand some day! by Werner Schnell (1.stream) hep://bit.ly/3TIMJ6 Slide 24: Image Visceral Business Slide 25: Bank Vault – 003 by Jason Bethchel hep://bit.ly/29iDYW Slide 26: Where is going the stock market ????? by pfala hep://bit.ly/4zUR86 Slide 27: Image source not known Slide 31: Smile by jiggskykeken hep://bit.ly/2cvjqJ Slide 31: Work in Progress by Katherine Treffinger hep://bit.ly/FfT0u Slide 31: Post Office by Suzy Pym hep://bit.ly/FW8nD Slide 31: Driving light by Crankydragon hep://bit.ly/19jNBC Slide 32: Image not aeributed taken from Seth Godin’s Tribes presentaCon Slide 33: Saving by Ken Wilcox hep://bit.ly/1YJkmb Slide 43: Managing the Brand by Tom Fishburne hep://bit.ly/t2RjE Slide 49: ReputaCon Statement of Account by Jason Tester 2004 Slide 50: ContribuCon text via @Sparkbouy and IBM Slide 50: P1050180.JPGby l.million hep://bit.ly/2FBEOa Slide 56: New spectacles by Steve Green hep://bit.ly/LvyNa Slide 56: Time to play by qcomplex5 hep://bit.ly/e0qsD Slide 56: 4 by 3lieleboyz hep://bit.ly/2R5asI Slide 56: My Name is Not Clark Kent! Carlos Norbero hep://bit.ly/JFlIl Slide 58: Slide 26: Where is going the stock market ????? by pfala hep://bit.ly/4zUR86 Slides 61 – 72 taken from Business Model GeneraCon by Alex Osterwalder Slide 73: I ate 6 by Farl hep://bit.ly/4sMMZQ Slide 73: Bueerflies in my head by Kees Straver hep://bit.ly/ooIpN Slide 73: Wallfower by CogniCve AmbiCon hep://bit.ly/YcOjV Slide 73: Rainbow Coloured 319 by CrashCalloway hep://bit.ly/2sTaGJ Slide 74: Passively bystanding by Lo Li hep://bit.ly/odsab Slide 74: The weakest link by Darwin Bell hep://bit.ly/FAPcN Slide 74: Target Day 2 by Mikey Sachs hep://bit.ly/O09Os Slide 76: Image source not known Slide 77: Web 2 by Aldo Trim hep://bit.ly/2aNQ0b

Social media, brands and culture in the finance sector

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Notes on slide 1

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