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BUILDING HYPER-SOCIAL ORGANIZATIONS PREPARED FOR THE NATIONAL CIO BOARD – JUNE, 2011 @FGOSSIEAUX
In the beginning – all business was social Satisfaction results in positive or negative word of mouth which makes a difference 2
Then business started scaling …but the social could not scale and made no difference anymore – so it disappeared from business 3
And companies started to develop real bad habits Interrupting people, targeting people, segmenting people – it felt like going to war with customers (& employees) 4
But then came the Internet and Social Media Blogs, wiki’s, discussion boards, tags, social networks – a massive platform of participation 5
And because humans were hardwired to be social The social reentered business and commerce with a vengeance – employees, customers could once again behave the way they’re hardwired to behave: humanly, tribally. 6
So to understand how to do business in a 2.0 world You are better off understandingYou do not need to understand the Human 1.0 – not as individuals, but as Web 2.0 technologies hyper-social creatures 7
OVERVIEWA RECAP OF THE HYPER-SOCIAL ORGANIZATION UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA – HUMAN 1.0 HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS WHAT THEY DO DIFFERENTLY, AND WHYWHAT DOES THIS ALL MEAN TO THE WORLD OF A CIO HOW DO YOU GET STARTED? HOW DO YOU MEASURE ROI FOR THOSE “SQUISHY” BENEFITS? HOW DO YOU BUILD CONSENSUS INTERNALLY? HOW DO YOU DEAL WITH RISK? HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?
Why are social beings helping one another? Reciprocity = a Reflex
Why are people going out of their way to punish others? Humans have an innate sense of fairness = keeps reciprocal society working
How do we make decisions? Social Framework Market Framework
Why do people like to look like others? Because humans have mirror neurons and Tribes are one the two fundamental Human social instincts
Why is status so important (and why do we hoard it)? Because it used to get us a better mate – proceed with caution: status works both ways!
Culture – perhaps the most important Human 1.0 characteristicHumans created culture to deal with climate changes in the Pleistocene era – when they realized they could deal with change through culture they created their own change
What are the important Human 1.0 Hyper-Social Traits • Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters • The role of fairness in assessing situations • Social framework of evaluating things vs. market So to the extent that we framework can basically be human with what we know, and share it as freely as we • The importance of power and status possibly can, I think we’ll go a long way towards gaining a higher or • Herding and self-herding stronger level of trust with the consumers. • Culture – the most important Human 1.0 characteristic Barry Judge, CMO Best (early research shows that social behavior does not change when it scales) Buy http://www.cmotwo.com
SUCCESSFUL HYPER-SOCIAL ORGANIZATIONSHOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS Informed by Tribalization of Business Study: 2008-2010 – 1,000+ companies took the survey
Hyper-Social companies think differently • Think tribe – not market segment – We need to find groups of people who have something in common based on their behavior, not their market characteristics • Think knowledge network – not information channel – The most important conversations in “…affinity groups communities happen in networks of people, not will quickly become between your organization and the community. the dominant social force in the • Think human-centricity – not company-centricity emerging world – The human has to be at the center of everything economy, changing how we think about you do, not the organization markets, fads, social • Think emergent messiness – not hierarchical fixed movements, and, ultimately, power” processes – People will want to see responses to their - Tom Hayes, Jump suggestions, even if it does not fit your Point: How Network Culture is community goals – FAST Revolutionizing Business – 2008
Reuters…using Social Media to connect financial analysts
HYPER-SOCIAL ORGANIZATIONSWHAT IS IT THAT THEY DO DIFFERENTLY?
SUCCESSFUL HYPER-SOCIAL ORGANIZATIONSTURN THEIR BUSINESS PROCESSES INTO“SOCIAL” PROCESSESBY GETTING PEOPLE WHO’S JOB IT IS NOT TO DO SOMETHING TO HELP YOUDO IT ANYWAY
Turning a business process into a social process • IS NOT: – Running traditional programs using social media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc. • BUT IS: – Running programs based on human reciprocity and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc. – TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS
Process Before After Benefits Case Studies Sales One-to-one Many-to-many Sales is social Tibco, Zappos networking Product Innovation Constraint to a Includes all Reduce product failure Cisco, Netflix department employees, rates (now at 80%) customers, prospects and detractors Lead generation Interrupt-driven Become findable, be Leads that actually EMC, Dell generally helpful in want to buy public conversation something Customer Service Conducted by Conducted by Customers service as a SAP, Zappos employees employees and other revenue source customers instead of cost center Knowledge Top down process Federated and user- KM that works, IBM Management driven process changes in work habits Customer Mostly between Primarily among Reduced cost and Best Buy, Dassault Communications companies and customers, detractors increased Systemes, Fiskars customers and prospects effectivenessTalent Acquisition and Board, interrupt- Endorsed by the tribes Social context Monster.com Development driven and based on people belong to provides better weak ties WOM matches Employee Mostly within silos Cross enterprise Increased serendipity, IBM, FedEx, Cisco Communications increased support Market research Based on small groups Based on tribes and Much more accurate Eli Lilly, Pfizer, IBM, and financial social contract market data and Fiskars incentives increased success PR & Thought Rolodex based and Community/tribe Much more Microsoft, Intuit leadership focused on traditional based and focused on amplification of the media social media messages 23
WHAT DOES THIS ALL MEAN TOTHE WORLD OF A CIO?HOW DO YOU GET STARTED?HOW DO YOU MEASURE ROI FOR “SQUISHY” BENEFITS?HOW DO YOU BUILD CONSENSUS INTERNALLY?HOW DO YOU DEAL WITH RISK?HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?
HOW DO YOU GET STARTED?1. UNDERSTAND YOUR CUSTOMER AND EMPLOYEE CULTURES2. MAKE FRIENDS WITH THE CMO AND JOINTLY REPRESENT THE VOC3. DEPLOY INFRASTRUCTURE THAT WILL SUPPORT THE NEW SOCIAL PROCESSES4. THINK OF INNOVATION AT THE SEAMS5. THINK HUMAN
UNDERSTAND OF THE RISK OF DOING NOTHING “IN MANY INDUSTRIES, NEW COMPETITIVE BATTLE LINES MAY FORM BETWEEN COMPANIES THAT USE THE WEB IN SOPHISTICATED WAYS AND COMPANIES THAT FEEL UNCOMFORTABLE WITH NEW WEB-INSPIRED MANAGEMENT STYLES OR SIMPLY CAN’T EXECUTE AT A SUFFICIENTLY HIGH LEVEL” – MCKINSEY QUARTERLY, THE RISE OF THE NETWORKED ENTERPRISE, WEB 2.0 FINDS ITS PAYDAY, DEC 2010https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
HOW DO YOU MEASURE ROIFOR SQUISHY BENEFITS?1. MEASURE THE IMPACT OF SOCIAL PROGRAMS THE SAME WAY AS YOU MEASURE THE IMPACT OF TRADITIONAL PROGRAMS2. START MEASURING NEW METRICS – CLV, CUSTOMER EQUITY, PASSION, WOM, TALENT ACQUISITION AND DEVELOPMENT, KNOWLEDGE ACQUISITION AND REUSE, ETC.3. THINK HUMAN
The power of passion Passionate people 2X as energized with unexpected challenges
The power of passion Passionate people 2X as likely to connect with outsiders
The benefits that companies derive are for realhttps://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
The benefits are amazing Benefits differences are measured by a factor 2-6Xhttps://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
Overall company metrics are correlated as well https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
HOW DO YOU ACHIEVECONSENSUS1. AGREE ON EASY-TO-UNDERSTAND VALUES2. DEVELOP SOCIAL MEDIA GUIDELINES AND GUIDERAILS3. GET PEOPLE INVOLVED IN THE BEGINNING OF THE PROCESS4. TREAT IT AS A CENTER OF EXCELLENCE VS. ONE GROUP OWNING THE SHOW5. FOCUS ON BUILDING TRUST BY FOCUSING FIRST ON THE DIFFERENT TYPES OF PEOPLE IN THE GROUP AND THEN FOCUS ON THE WORK6. ROTATE TEAM LEADS7. GET EVERYONE’S DESIRED GOALS, OUTCOMES AND MOTIVATIONS OUT ON THE TABLE FIRST8. THINK HUMAN
HOW DO YOU DEAL WITH RISKS?1. TAKE A HOLISTIC, NON-SILOED APPROACH TO RISK2. EDUCATE PEOPLE ON HOW TO AVOID RISKS3. SET UP GUIDELINES AND GUIDERAILS4. PROVIDE CASE STUDIES5. BE TOLERANT OF THE 1% OF THE TIME SOMEONE MESSES UP6. DEFINE CRISIS MANAGEMENT PLANS AND TRIAGE APPROACH7. THINK HUMAN
HOW TO DEAL WITHCONSUMERIZATION OF IT?1. EMBRACE THE NEW ARTISAN WORKFORCE AND THE TOOLS THEY BRING2. BRING BACK TRUST AS THE MAIN BUSINESS CURRENCY3. THINK HUMAN
A FINAL WORD OF ADVICE…FOCUS ON ADOPTION OF TECHNOLOGIES THAT WILL SUPPORT DESIREDSOCIAL BEHAVIOR INSTEAD OF DEPLOYMENT OF TECHNOLOGIES TO CHANGEBEHAVIORS…IT’S ALL ABOUT BEING HUMAN IN BUSINESS ONCE AGAIN
Any questions? Francois Gossieaux Partner, Human 1.0 e. firstname.lastname@example.org w. http://www.human1.com p. http://www.cmotwo.com b. http://www.emergencemarketing.com Our new book: The Hyper-Social Organization http://www.hypersocialorg.com 37