SNCR new comm forum 2010

THE HYPER‐SOCIAL ORGANIZATION, AND UNDERSTANDING THE CHANGES CAUSED BY SOCIAL MEDIA PREPARED FOR NEWCOMM FORUM – SAN MATEO, APRIL 21 22 A 21,22

OVERVIEW WHAT IS ACTUALLY HAPPENING OUT THERE? UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA WHAT IS HYPER‐SOCIALITY, AND WHY NOW? S ? HOW DOES HYPER‐SOCIALITY SCALE? HOW DO HYPER‐SOCIAL ORGANIZATIONS THINK ABOUT THEIR BUSINESS? WHAT DO HYPER‐SOCIAL ORGANIZATIONS DO DIFFERENTLY, AND WHY? HOW DO HYPER‐SOCIAL ORGANIZATIONS GET STARTED AND SUCCEED? EXERCISE – AND WHERE DOES THIS ALL LEAD?

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

Why do people like to look like others? Because humans have mirror neurons

Why do we lie to market researchers? Because we lie to ourselves and others, and we Because we lie to ourselves and others and we tell people what we think they want to hear

Why there is no real (big) business in the long tail Because we are a herding species, and a self‐ Because we are a herding species and a self‐ herding one to boot

Why is status so important (and why do we hoard it)? Because it used to get us a better mate Because it used to get us a better mate – proceed with caution: status works both ways!

So to understand how to do business in a 2.0 world… You are better off understanding You do not need to understand the You do not need to understand the Human 1.0 – not as individuals, but as Web 2.0 technologies hyper‐social creatures

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 • g g Social framework of evaluating things vs. market framework So to the extent that we can basically be human with what we know, and • The role of fairness in assessing situations The role of fairness in assessing situations share it as freely as we y possibly can, I think we’ll go a long way towards gaining a higher or • The importance of looking cool and mimicking others stronger level of trust with the consumers. the consumers • Herding and self‐herding Barry Judge, CMO Best (early research shows that social behavior does not change when it scales) Buy http://www.cmotwo.com

WHAT IS HYPER‐SOCIALITY AND HOW DID IT SCALE? AND HOW IS IT IMPACTING BUSINESS?

What is Hyper Sociality, Why Now, and Why is it important to What is Hyper‐Sociality Why Now and Why is it important to Organizations? • Technology, connectivity, Moore’s Law allow our innate Hyper‐Sociality to scale • Mass media is no longer the only show in town • Organizations (and their functions like marketing, product development, sales, marketing product development sales customer support, knowledge management, HR) were structured in a Hyper‐Social vacuum. vacuum • The companies that can mirror their yp y constituents’ Hyper‐Sociality will be best positioned to succeed

Symbols, signs, rules, and culture let reciprocity scale Reciprocity scales beyond Dunbar’s 150 people because of signs, symbols, rules, and culture

SUCCESSFUL HYPER‐SOCIAL ORGANIZATIONS THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS Informed by Tribalization of Business Study: 2009 – 430 Companies took the survey (52% external communities, 32 hybrid, and 12 (52% t l iti 32 h b id d 12 internal)

In the old days Customer Support PR Marketing Hierarchies within organizations Hierarchies within organizations Mostly 1‐1 customer relationships M tl 1 1 t l ti hi Old: legal employee contracts Old: legal customer contracts

The new world order Green Green Enthusiasts CIO’s Business model tweak PR Customer support Product Idea Hierarchies within organizations Hierarchies within organizations Mostly 1‐1 customer relationships M tl 1 1 t l ti hi Old: legal employee contracts Old: legal customer contracts New: cross‐functional social contracts New: social contracts

Hyper‐Social companies think differently: a recap • 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 not their market characteristics • Think knowledge network – not information channel – The most important conversations in “…affinity groups communities happen in networks of people, not communities happen in networks of people not will quickly become will quickly become between the company 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 The human has to be at the center of everything economy, changing how we think about you do, not the company 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

HYPER‐SOCIAL ORGANIZATIONS WHAT IS IT THAT THEY DO DIFFERENT?

Hyper‐Social Orgs – Leveraging Social Business Processes • Successful Hyper‐Social organizations turn their business processes into “social” processes – Why? • Scale • Increased quality • Increased passion Increased passion • Increased WOM

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 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 g j 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. 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 employees and other revenue source 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 y Primarily among y g Reduced cost and Best Buy, Dassault y, Communications companies and customers, detractors increased Systemes, Fiskars customers and prospects effectiveness Talent 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 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 21

HYPER‐SOCIAL ORGANIZATIONS HOW DO THEY GET GOING?

Many paths to success (and many paths to failure too) • Assess Hyper‐Social readiness (plan is to get benchmarking info on this from 2010 Tribalization of Business Study) • Find the tribes and their leaders – internally and Compared to other externally: CMO’s I consider myself lucky. Dell Hell – Who are they, what makes them tick, what is their put our brand under pressure and so to d t language, what is their shared symbolism, where engage in social do they hang out, etc. media was actually a question of • Start pilots that matter ‐ and measure them the same survival….you cannot y way you would measure the impact of any other get into social media by just putting a toe in program the water ‐ you are • Set up infrastructure to: either all in and it becomes part of your becomes part of your – Measure cross‐functional impact of programs culture, or you’re not. Erin Nelson, CMO Dell – Scale the program to where it makes a difference (cmotwo.com) in business

Further down the line • Look at new measurements – e.g., customer equity measurements to better reflect impact of WOM • Monitoring and understanding the behavior of active lurkers – the largest active member group of any community (32% of companies are starting to measure) • Think of expanding your employee pool by encouraging more people to participate • Recruit for a Hyper‐Social future – Different talent – Different leadership Different leadership

Smaller questions to ask yourself • Are your marketing/employee programs reciprocal? • Would you send collateral to a friend of yours? • Do you know what 20% of your collateral gets used? y y g • Are you recruiting for skill or behavior? • Are you ensuring diversity in the recruiting process? • Are you tapping in the social realm to recruit? Are you tapping in the social realm to recruit? • Is your KM extending to your customers? • Is your CRM customer‐centric or account‐centric? • Is it focused on transactions or relationships? • Is it focused on the past/present or the present/future?

Legal Considerations • What’s legal good for anyway? h ’ l l df ? • Key Hyper‐Social legal issues: – Hiring (unlawful background checks, lawful off‐duty conduct) ) – Disclosure of trade secrets and/or proprietary information – Privacy (employers may run afoul of SCA; waiters) – Harassment – Wrongful termination – Defamation (of company by employees?) – Disclosure of nonpublic material information p triggering securities law issues – Negligent referral based on social network references – Unauthorized use of company logos, trademarks and copyrighted – Material (employees posting other people’s content to corporate site) – Labor laws Derived from Morgan Lewis analysis at http://www.pli.edu/product_files/EN00000000081353/49749.pdf

Brainstorm exercise • You are Social Media Experts (and we are not) – How would you define social businesses? • We always overestimate the short term impact of change and underestimate the long term impact of change – but if you were to extrapolate the g y p changes moving forward, what would you predict the big changes would be? • Think about your corporate culture – which elements of it further Hyper‐Sociality, and which are an impediment? p

Any questions? Francois Gossieaux Partner, Beeline Labs e. francois@beelinelabs.com f i @b li l b w. http://www.beelinelabs.com b. http://www.emergencemarketing.com c. http://www.marketingtwo.net p // g p. http://www.cmotwo.com Ed Moran e. emoran@deloitte.com e emoran@deloitte com w. http://www.deloitte.com Our new book: The Hyper‐Social Organization http://www.hypersocialorg.com 28

SNCR new comm forum 2010

by Francois Gossieaux on Apr 21, 2010

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