Developing & Measuring Open Leadership Strategies<br />Charlene Li<br />Altimeter Group<br />May 7, 2010<br />1<br />#open...
CMO: We need a blog and Twitter strategy. <br />VP Customer Service: We’ll just complaints.<br />VP Product Development: B...
Social technology forces you to be open		<br />3<br />When people get what they need from each other<br />“How open do I n...
Open Leadership<br />4<br />Having the confidence and humility to give up the need to be in control,<br />while inspiring ...
Identify a strategic goal to address.<br />Put in place learning systems to support that goal.<br />Determine which open-d...
Align openness with strategic goals<br />6<br />Examine your 2010 and 2011 goals<br />Pick one where open and social can h...
Four goals define your open strategy, but always start with learn<br />7<br />
Open learning adds to traditional tools<br />8<br />
Open learning adds to traditional tools<br />9<br />
Learn with basic monitoring tools<br />10<br />
Open learning adds to traditional tools<br />11<br />
Community insight platforms<br />12<br /><ul><li>CommunispaceNetworked InsightsPassengerUmbria</li></li></ul><li>Open lear...
Understand who that person is – in real time<br />Service Cloud w/social<br />LinkedIn in Lotus Notes<br />14<br />
Listen so you can respond appropriately<br />15<br />Is “lkilpatrick” an elite customer?<br />
The value of open learning<br />16<br />
Calculating the value of open learning<br />17<br />Spreadsheets online at open-leadership.com<br />
Finding the signal in the noise.<br />Analytics are still in infancy stages.<br />Insights are not always representative.<...
Dialog with your community<br />19<br />
Blogs establish thought leadership<br />20<br />Richard Edelman has been blogging since 2004.<br />
DellOutlet drives sales with Twitter<br />21<br />
Kohl’s has conversations on Facebook<br />22<br />
23<br />Curating<br />Engagement Pyramid: Focus on Watching and Sharing<br />Producing<br />Commenting<br />Sharing<br />W...
Engagement Pyramid Data<br />24<br />Source: Global Wave Index Wave 12 Trendstream.net, January 2010<br />
Engagement scores of 100 top brands<br />25<br />+18% revenue<br />+15% gross margin<br />growth<br />+5% revenue<br />+3%...
Calculating the value of open dialog<br />26<br />
Help your members support each other<br />27<br />
Solarwinds uses community for call deflection and product development<br />
Comcast made support proactive with indirect deflection<br />29<br />Took 3 minutes to notify entire system of off-air cha...
Cisco supported employees with open collaboration and social platforms<br />30<br />
Calculating the value of open support<br />31<br />
Innovate with customer feedback<br />32<br />
Dell’s IdeaStorm measures the health of its community, not value of ideas<br />33<br />13,000 ideas389 implemented<br />(1...
 quality of ideas
 rate of Dell’s response to ideas</li></li></ul><li>Starbucks involves 50 people around the organization<br />
P&G goes outside for innovation<br />35<br />P&G made outside-in innovation a priority<br />
Calculating the value of open innovation<br />36<br />
The new lifetime value calculation<br /><ul><li> Percent that refer
 Size of their networks
 Percent of referred people who purchase
 Value of purchases</li></ul>+ Value of purchases<br /><ul><li>Cost of acquisition</li></ul>____________________<br />= Cu...
 Frequency and value of the support</li></ul>+ Value of support<br />+ Value of ideas<br />Spreadsheets for call calculati...
Find more fans with large networks<br />Encourage fans to make more referrals<br />Use metrics to help make decisions<br /...
Identify a strategic goal to address.<br />Put in place learning systems to support that goal.<br />Determine which open-d...
#3 Understand how open you need to be<br />40<br />
Determine how open you need to be to meet your goals<br />41<br />More on openness metrics at open-leadership.com<br />
The Apple Factor<br />42<br />
Brilliant engineers and designers<br />Charismatic CEO<br />Brand that its customers love and support<br />Why Apple can a...
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Developing & Measuring Open Leadership Strategies

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Part 2 of four part series about the ideas in the book "Open Leadership" by Charlene Li. Presented on May 7, 2010. For more information about the book, visit open-leadership.com.

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  • Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals
  • Starbucks has a site where people can make suggestions on how they should improve. The key difference is that the suggestions are public, and people can vote for their favorite suggestions. Here’s an example of automatic ordering. Note that there is a status update here “Under Review”.
  • Developing & Measuring Open Leadership Strategies

    1. 1. Developing & Measuring Open Leadership Strategies<br />Charlene Li<br />Altimeter Group<br />May 7, 2010<br />1<br />#openleader<br />
    2. 2. CMO: We need a blog and Twitter strategy. <br />VP Customer Service: We’ll just complaints.<br />VP Product Development: But we need feedback and new ideas to beat the competition.<br />VP Sales: Competitors will steal the ideas and unhappy customers.<br />CMO: With reviews, we’ll know what’s wrong and can then fix it.<br />CEO: Negative reviews will kill sales.<br />VP Biz Dev: Dell does this<br />CEO: We’re not Dell. <br />Determining how open you will be<br />2<br />
    3. 3. Social technology forces you to be open <br />3<br />When people get what they need from each other<br />“How open do I need to be?<br />
    4. 4. Open Leadership<br />4<br />Having the confidence and humility to give up the need to be in control,<br />while inspiring commitment from people to accomplish goals<br />How to give up control, and be in command<br />
    5. 5. Identify a strategic goal to address.<br />Put in place learning systems to support that goal.<br />Determine which open-driven objective can help the most.<br />Gauge the need to be open.<br />Gauge your ability to be open. <br />Steps To Create Your Open Strategy<br />5<br />
    6. 6. Align openness with strategic goals<br />6<br />Examine your 2010 and 2011 goals<br />Pick one where open and social can have an impact <br />
    7. 7. Four goals define your open strategy, but always start with learn<br />7<br />
    8. 8. Open learning adds to traditional tools<br />8<br />
    9. 9. Open learning adds to traditional tools<br />9<br />
    10. 10. Learn with basic monitoring tools<br />10<br />
    11. 11. Open learning adds to traditional tools<br />11<br />
    12. 12. Community insight platforms<br />12<br /><ul><li>CommunispaceNetworked InsightsPassengerUmbria</li></li></ul><li>Open learning adds to traditional tools<br />13<br />
    13. 13. Understand who that person is – in real time<br />Service Cloud w/social<br />LinkedIn in Lotus Notes<br />14<br />
    14. 14. Listen so you can respond appropriately<br />15<br />Is “lkilpatrick” an elite customer?<br />
    15. 15. The value of open learning<br />16<br />
    16. 16. Calculating the value of open learning<br />17<br />Spreadsheets online at open-leadership.com<br />
    17. 17. Finding the signal in the noise.<br />Analytics are still in infancy stages.<br />Insights are not always representative.<br />Distributed, open learning threatens the market research department.<br />Example: CEO keeps repeating “insight” from a single tweet or blog post.<br />Market research reasserts its authority by being the enabler of open learning.<br />Aggregate and distribute with speed<br />Analyze and distill with deeper insights.<br />What’s hard about open learning?<br />18<br />
    18. 18. Dialog with your community<br />19<br />
    19. 19. Blogs establish thought leadership<br />20<br />Richard Edelman has been blogging since 2004.<br />
    20. 20. DellOutlet drives sales with Twitter<br />21<br />
    21. 21. Kohl’s has conversations on Facebook<br />22<br />
    22. 22. 23<br />Curating<br />Engagement Pyramid: Focus on Watching and Sharing<br />Producing<br />Commenting<br />Sharing<br />Watching<br />
    23. 23. Engagement Pyramid Data<br />24<br />Source: Global Wave Index Wave 12 Trendstream.net, January 2010<br />
    24. 24. Engagement scores of 100 top brands<br />25<br />+18% revenue<br />+15% gross margin<br />growth<br />+5% revenue<br />+3% gross margin<br />growth<br />+10% revenue<br />+1% gross margin growth<br />-6% revenue<br />-11% gross margin growth<br />Source: EngagementDB.com<br />
    25. 25. Calculating the value of open dialog<br />26<br />
    26. 26. Help your members support each other<br />27<br />
    27. 27. Solarwinds uses community for call deflection and product development<br />
    28. 28. Comcast made support proactive with indirect deflection<br />29<br />Took 3 minutes to notify entire system of off-air channel<br />
    29. 29. Cisco supported employees with open collaboration and social platforms<br />30<br />
    30. 30. Calculating the value of open support<br />31<br />
    31. 31. Innovate with customer feedback<br />32<br />
    32. 32. Dell’s IdeaStorm measures the health of its community, not value of ideas<br />33<br />13,000 ideas389 implemented<br />(11/month, 3% of all ideas)<br />Metrics used:<br /><ul><li>% who comment
    33. 33. quality of ideas
    34. 34. rate of Dell’s response to ideas</li></li></ul><li>Starbucks involves 50 people around the organization<br />
    35. 35. P&G goes outside for innovation<br />35<br />P&G made outside-in innovation a priority<br />
    36. 36. Calculating the value of open innovation<br />36<br />
    37. 37. The new lifetime value calculation<br /><ul><li> Percent that refer
    38. 38. Size of their networks
    39. 39. Percent of referred people who purchase
    40. 40. Value of purchases</li></ul>+ Value of purchases<br /><ul><li>Cost of acquisition</li></ul>____________________<br />= Customer lifetime value<br />+ Value of new customers from referrals<br />+ Value of insights<br /><ul><li> Percent that provide support
    41. 41. Frequency and value of the support</li></ul>+ Value of support<br />+ Value of ideas<br />Spreadsheets for call calculations available at open-leadership.com<br />
    42. 42. Find more fans with large networks<br />Encourage fans to make more referrals<br />Use metrics to help make decisions<br />38<br />
    43. 43. Identify a strategic goal to address.<br />Put in place learning systems to support that goal.<br />Determine which open-driven objective can help the most.<br />Gauge the need to be open.<br />Gauge your ability to be open. <br />Steps To Create Your Open Strategy<br />39<br />
    44. 44. #3 Understand how open you need to be<br />40<br />
    45. 45. Determine how open you need to be to meet your goals<br />41<br />More on openness metrics at open-leadership.com<br />
    46. 46. The Apple Factor<br />42<br />
    47. 47. Brilliant engineers and designers<br />Charismatic CEO<br />Brand that its customers love and support<br />Why Apple can afford to be less open<br />43<br />
    48. 48. Define your objectives, and make sure they are aligned with your strategic goals.<br />Identify the most important key performance indicators already in use in your organization. <br />Identify open activities that support your KPIs.<br />Establish a baseline for your objectives and KPIs.<br />Optimize and adjust your KPIs and priorities.<br />Action Plan<br />44<br />
    49. 49. Finding & Supporting Your Open Leaders<br />Friday, May 14th, 10am PT (bit.ly/openleaderweb3)<br />How Open Leaders Embrace & Recover From Failure <br />Friday, May 21st, 10am PT (bit.ly/openleaderweb4)<br />Upcoming Open Leadership Webinars<br />45<br />
    50. 50. Focus on relationships. <br />Align your social strategy with strategic goals.<br />Support open leaders in your organization.<br />Be prepared for failure – you’ll encounter many.<br />Summary<br />46<br />
    51. 51. 47<br />47<br />Thank you<br />Charlene Li<br />charlene@altimetergroup.com<br />charleneli.com/blog<br />Twitter: charleneli<br />For slides, send an email to slides@altimetergroup.com<br />Learn more and buy the book at open-leadership.com<br />
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