Developing & Measuring Open Leadership Strategies

Developing & Measuring Open Leadership Strategies
Charlene Li
Altimeter Group
May 7, 2010
1
#openleader

CMO: We need a blog and Twitter strategy.
VP Customer Service: We’ll just complaints.
VP Product Development: But we need feedback and new ideas to beat the competition.
VP Sales: Competitors will steal the ideas and unhappy customers.
CMO: With reviews, we’ll know what’s wrong and can then fix it.
CEO: Negative reviews will kill sales.
VP Biz Dev: Dell does this
CEO: We’re not Dell.
Determining how open you will be
2

Social technology forces you to be open
3
When people get what they need from each other
“How open do I need to be?

Open Leadership
4
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

Identify a strategic goal to address.
Put in place learning systems to support that goal.
Determine which open-driven objective can help the most.
Gauge the need to be open.
Gauge your ability to be open.
Steps To Create Your Open Strategy
5

Align openness with strategic goals
6
Examine your 2010 and 2011 goals
Pick one where open and social can have an impact

Four goals define your open strategy, but always start with learn
7

Open learning adds to traditional tools
8

9

Learn with basic monitoring tools
10

11

Community insight platforms
12
CommunispaceNetworked InsightsPassengerUmbria

13

Understand who that person is – in real time
Service Cloud w/social
LinkedIn in Lotus Notes
14

Listen so you can respond appropriately
15
Is “lkilpatrick” an elite customer?

The value of open learning
16

Calculating the value of open learning
17
Spreadsheets online at open-leadership.com

Finding the signal in the noise.
Analytics are still in infancy stages.
Insights are not always representative.
Distributed, open learning threatens the market research department.
Example: CEO keeps repeating “insight” from a single tweet or blog post.
Market research reasserts its authority by being the enabler of open learning.
Aggregate and distribute with speed
Analyze and distill with deeper insights.
What’s hard about open learning?
18

Dialog with your community
19

Blogs establish thought leadership
20
Richard Edelman has been blogging since 2004.

DellOutlet drives sales with Twitter
21

Kohl’s has conversations on Facebook
22

23
Curating
Engagement Pyramid: Focus on Watching and Sharing
Producing
Commenting
Sharing
Watching

Engagement Pyramid Data
24
Source: Global Wave Index Wave 12 Trendstream.net, January 2010

Engagement scores of 100 top brands
25
+18% revenue
+15% gross margin
growth
+5% revenue
+3% gross margin
growth
+10% revenue
+1% gross margin growth
-6% revenue
-11% gross margin growth
Source: EngagementDB.com

Calculating the value of open dialog
26

Help your members support each other
27

Solarwinds uses community for call deflection and product development

Comcast made support proactive with indirect deflection
29
Took 3 minutes to notify entire system of off-air channel

Cisco supported employees with open collaboration and social platforms
30

Calculating the value of open support
31

Innovate with customer feedback
32

Dell’s IdeaStorm measures the health of its community, not value of ideas
33
13,000 ideas389 implemented
(11/month, 3% of all ideas)
Metrics used:
% who comment
quality of ideas
rate of Dell’s response to ideas

Starbucks involves 50 people around the organization

P&G goes outside for innovation
35
P&G made outside-in innovation a priority

Calculating the value of open innovation
36

The new lifetime value calculation
Percent that refer
Size of their networks
Percent of referred people who purchase
Value of purchases
+ Value of purchases
Cost of acquisition
____________________
= Customer lifetime value
+ Value of new customers from referrals
+ Value of insights
Percent that provide support
Frequency and value of the support
+ Value of support
+ Value of ideas
Spreadsheets for call calculations available at open-leadership.com

Find more fans with large networks
Encourage fans to make more referrals
Use metrics to help make decisions
38

Identify a strategic goal to address.
Put in place learning systems to support that goal.
Determine which open-driven objective can help the most.
Gauge the need to be open.
Gauge your ability to be open.
Steps To Create Your Open Strategy
39

#3 Understand how open you need to be
40

Determine how open you need to be to meet your goals
41
More on openness metrics at open-leadership.com

The Apple Factor
42

Brilliant engineers and designers
Charismatic CEO
Brand that its customers love and support
Why Apple can afford to be less open
43

Define your objectives, and make sure they are aligned with your strategic goals.
Identify the most important key performance indicators already in use in your organization.
Identify open activities that support your KPIs.
Establish a baseline for your objectives and KPIs.
Optimize and adjust your KPIs and priorities.
Action Plan
44

Finding & Supporting Your Open Leaders
Friday, May 14th, 10am PT (bit.ly/openleaderweb3)
How Open Leaders Embrace & Recover From Failure
Friday, May 21st, 10am PT (bit.ly/openleaderweb4)
Upcoming Open Leadership Webinars
45

Focus on relationships.
Align your social strategy with strategic goals.
Support open leaders in your organization.
Be prepared for failure – you’ll encounter many.
Summary
46

47
47
Thank you
Charlene Li
charlene@altimetergroup.com
charleneli.com/blog
Twitter: charleneli
For slides, send an email to slides@altimetergroup.com
Learn more and buy the book at open-leadership.com

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Developing & Measuring Open Leadership Strategies

by Charlene Li on May 10, 2010

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Developing & Measuring Open Leadership Strategies — Presentation Transcript