Whats New in the DigitalWorld: A Director BriefingModerator Fay Feeney - CEO, Risk For GoodColleen Cunningham - Global Managing Director,Resources Global ProfessionalsRobert Magnuson - CEO, Magnuson & Company
“The Beginning is Near“The Internet has fundamentally changed the way people find,discover, share, shop & connect.
2011 GLOBAL SNAPHOT OF THE SOCIAL CUSTOMER EUROPE (EMEA) 31% comment on blogs 27% comment in forums 20% uploaded a video online 39% uploaded a photo online 63% watch a video online 13% actively blog ASIA PACIFIC 42% comment on blogs LATIN AMERICA 43% comment in forums 49% comment on blogs 29% uploaded a video online 35% comment in forums 50% uploaded a photo online 41% uploaded a video online 65% watch a video online 56% uploaded a photo online 37% actively blog 74% watch a video online 27% actively blog
CEO CHALLENGES ON INTERNAL CHANGE• The social brand has caused chaos and organizational anarchy in many companies• Bring Your Own Technology• Employees are operating their own equipment (mobile phones, Ipads, etc.) with little to no guidance, direction or governance• Different geographies and business units are creating social communities externally and not sharing or communicating internally
THE EVOLUTION OF SOCIAL BUSINESS 2008 to present 2003 to present SOCIAL BUSINESS 1995 to present SOCIAL BRAND SOCIAL CUSTOMER • Technology Innovation • Companies and brands • Organizational silos are gives customers a voice join Twitter, Facebook torn down between • They are Influential and create corporate internal teams to include blogs social media • Social Customers are trusted amongst their • Engage with the social • Social becomes an peers as influence customer in various essential attribute of grows channels organizational culture • Social Media teams are • Governance models and forming slowly social media policies are created
Digital: IT, Social Business & CommunicationWhere is your Business? Where is your Board? Where are You?
How is Digital Managed? Who Bridges the Gaps?Operational Conflicts of Financial Build People Strategy Execution Interest, Reporting Attract & And Retain Talent Regulatory and Suppliers Liquidity Reputation and and Compensation Capital Nurture Value Creation and Litigation Structure Brand IT Benefits Human Chief Legal Chief Financial CEO, Chief Operating Resources Officer Officer Sales and Senior Officer Marketing Management Executive & Board Capabilities
Your Board’s Risk Map XYZ Company Higher Management 3 1 7 Integrity 4 1 2 Financial performanceRelative Importance 6 2 3 Whistle blowing 5 Shareholder communications 4 (proxy & disclosure ) 9 5 Risk oversight 8 10 6 CEO comp – Say on Pay Negative media/social 7 media -Reputation & Crisis Mgt 8 Relevant Business Strategy Higher Lower Relative Uncertainty Attracting, Retaining & 9 Exiting of Mgt & Board 10 Board composition
Current Phase of Digital: SOCIALS : is for speed — everything is now happening fasterO: stands for open. If you don’t have an open environment insideyour company or country, these new tools will blow you wide openC: collaboration because this revolution enables people to organizethemselves within companies and societies into loosely coupledteams to take on any kind of challenges — from designing a newproduct to taking down a government.I: individuals, who are able to reach around the globe to startsomething or collaborate on something farther, faster, deeper,cheaper than ever before — as individualsA : alignmentL : leadership that aligns
The Goal: Crisis Prevention“Values Audit”—Are you valuesaligned with your business? Lesson’s LearnedEnsure A Culture of IntegrityCommunicate Your Values
Where is Your Reputation?• Facebook status updates that promote blog content • Youtube channel and new Your videos to link back to your• Content shared NEEDS to add Message message value: • Videos can be shared on conversation and Facebook, YouTube • Your message on: community website, blog, etc. • Content should be optimized for search w/terms that are relevant to your business• Occasional tweets • Optimize Google+ page on promoting blog with relevant links and content content back to other• Cross promoting channels other social • Unique content channels, when relevant
Print Media MissedThe Digital Revolution A Case Study 240 250 200 150 31 124 100 55.7 2000 50 2010 0 Total Daily U.S. Newspaper Number of •Didn’t listen Circulation Americans Using the Internet • Failed to adapt (Million) (Million) • Too little, too late
Print Media MissedThe Digital Revolution A Case 48.6 Study 50 40 22.8 26 30 20 2000 10 8 2010 0 Newspaper Online Classified Advertising • Now The Business Is On The Ropes Advertising Revenue ($B) Revenue ($B) • Old (Ad) Revenue Model Defunct • New (Paid Content) Revenue Model A Tough Sell
Digital Business Disruption Impact on your Business The 1. What is the most significant impact digital has had on your Boardroom business? 2. What is your CEO doing to lead the effort? 3. What is your board chairman doing to prepare your board to oversee the digital challenges?
What about your Board?•Do you Know? •Where your company stands on key digital issues? Assessment•What is your Plan for 2011 – 2012? Evaluate and Plan •Reinforce values and brand equity Enhance •Enhance shareholder & stakeholder communications Actions Resources •Address Dodd-Frank Act specifics •Messages the CEO & board’s qualifications and skills
Start Learning About Digital Now!It is not too early to take action. • Business Model Disruption • Social Business & Social Media • Board Visibility: Yahoo, News Corp & HPUnderstand how your business is beingperceived by shareholders and stakeholders?Who is going to talk to your CEO aboutdigital and social business?: Leading, managing, monitoring and crisis prevention