Arlington Mill Group Social Media Governance Linked In

Balancing Empowerment and Accountability  Social Media Governance in the Enterprise  June 2009  Copyright © 2009 Arlington Mill Group, LLC 

Social media offer the poten6al to add value at every stage of the customer  experience.  Benefits of Social Media in the Enterprise  Fulfillment and  Product Development  MarkeDng and Sales  Support  •  Crowd sourcing of new ideas  •  Improved targeDng  •  New opportuniDes for self‐ from exisDng and potenDal  capabiliDes  serve and lower cost‐to‐ customers  serve channels  •  New channels for markeDng  •  Efficient access to qualified   and distribuDon  •  Greater depth and breadth  test subjects  of customer interacDons  •  Viral mechanisms that  •  Increased ability to leverage  increase acquisiDon  •  Greater opportunity for  experDse and source ideas  efficiency and penetraDon  personalizaDon  across the organizaDon  rates  •  Fewer and more efficient  •  New revenue models and  handoffs  payment mechanisms  Copyright © 2009 Arlington Mill Group, LLC  June 2009  2 

Organiza6ons using social media quickly encounter lots of important ques6ons,  whose owners lie throughout the organiza6onal func6ons.   Organiza6onal Ques6ons Triggered by Social Media  Create and Deliver the Customer Experience  Fulfillment and  Product Development  MarkeDng and Sales  Support  Enable the Enterprise  Finance and  Customer  IT  HR  Legal and  Partners and  AccounDng  Insight  Regulatory  Vendors  •  Do I get value  •  How can we  •  How do we  •  How can we  •  How do we  from social  leverage data to  ensure  ensure  balance  media?  create value?  informaDon  consistent  empowerment  •  What is the  •  How should we  security?  customer  with risk?  business case?  partner with  •  How do we help  experiences?  •  Which  •  How will we  firms like  the business  •  How do we  regulaDons are  measure  Facebook and  choose among  scale social  relevant, and  performance?  TwiZer?  emerging tools?  media?  how will we  •  How can we  •  How do we  •  How will we  comply?  •  How will we  ensure an  idenDfy and  train our people  manage the  •  What policies  integrated view  promulgate best  to effecDvely  brand in all of  make sense,  of the  pracDces?  use social  this?  and how do we  customer?  media?  manage them?  Copyright © 2009 Arlington Mill Group, LLC  June 2009  3 

These cross‐func6onal ques6ons can be especially challenging because social media  are rela6vely immature and change constantly.  Challenges in the Current State of Social Media  Risk  •  Brand and regulatory risk  •  Ownership of data created within social media is o^en unclear  •  Your commitment to privacy may be diﬀerent than your social media partners  •  Absence of service level agreements from social media partners  •  But if you don’t start learning now, you may fall behind!!  Ease of Entry  •  Social media tools are usually free or very cheap to use  •  Technical requirements are usually very low to begin, as most uDliDes and tools are  delivered via web browser  •  Your employees are probably already interacDng with your customers within social media  Unclear  •  Lots of people have relevant experDse (PR, SEO, MarkeDng, IT, etc.)  Ownership  •  Social Media is new, cool and geeng investment dollars  Implied  •  Once customers become accustomed to interacDng with you via social media, stopping risks  Commitment  damage to your customer relaDonships  Con6nual  •  Your team must conDnually update their knowledge of available tools and evolving features  Evolu6on  •  The fact that informaDon is so readily available means that informaDon assets decay nearly  as rapidly as they accumulate.  Distributed  •  More employees will interact with customers – probably more frequently  Par6cipa6on  •  The goal is to achieve consistent behavior, linked back to the business vision, while  empowering creaDvity.  Copyright © 2009 Arlington Mill Group, LLC  June 2009  4 

Social Media Governance can help organiza6ons coordinate cross‐func6onal efforts  and maximize business value from social media.  Components of Social Media Governance  Principles and  Process Model  Governance  Responsibility  Metrics  Enablers  Structure  Matrix  •  Model that  •  Processes that  •  Key leaders and  •  Roles and  •  Business  defines and  enable effecDve  parDcipants, and  responsibiliDes of  performance  describes inter‐ decisions and  their primary  primary and  metrics that  operaDon of  conDnual  responsibiliDes  supporDng  inform decisions  processes,  improvement  with respect to  parDcipants across  structure and  throughout  social media  organizaDonal  metrics to achieve  design,  funcDons  business goals  development and  through social  operaDon of social  media  media soluDons  Copyright © 2009 Arlington Mill Group, LLC  June 2009  5 

Each component of Social Media Governance supports internal champions of social  media by helping to answer the ques6ons triggered by social media.  Example Ques6ons Triggered by Social Media  Key Issues for Social  Relevant Governance  Media Champions  Components  •  Do I get value from Social Media?  How is social media  •  Governance Principles and  •  Is Social Media really helping my business?  aligned to the business?  Enablers  •  How will we ensure an integrated view of the customer?  •  Process Model  •  How can I get this key iniDaDve prioriDsed?  How should social media  •  Process Model  •  How can I ensure appropriate control over social media  decisions be made?  •  Governance Structure  spend and risk?  •  Responsibility Matrix  •  Are we invesDng our Dme and money appropriately?  •  What should be the social media spend this year?  How do we manage social  •  Process Model  •  Who owns social media?   media investments?  •  Governance Structure  •  Responsibility Matrix  •  How do I get funding for this new project?  What controls do we  •  Process Model  •  Who needs to approve this project?  need in place?  •  Responsibility Matrix  •  Who is accountable for social media results?  •  What happens when my experiment budget runs out?   •  What regulaDons are relevant and how do we comply?  •  Where do I want social media champions to focus?   How do we measure and  •  Performance Metrics  •  What service levels should I expect from social media  reward?  partners?    •  What areas of social media governance should I approve?   Copyright © 2009 Arlington Mill Group, LLC  June 2009  6 

For example, well‐defined and implemented Social Media Governance processes can  help to support social media objec6ves throughout the organiza6on.  Social Media Governance Processes  Achieve Business Objec6ves  IdenDfy, PrioriDze and Plan  Manage Social Media  Social Media Investments  Efforts and Track Benefits  Empower and Support the Business  Establish and  Develop Shared  Manage Social  Measure and  Manage Standards  Service Budgets  Media Partners  Improve  Copyright © 2009 Arlington Mill Group, LLC  June 2009  7 

Organiza6ons can begin by determining their current and desired level of social  media governance capabili6es.  Social Media Governance Maturity  Leading  •  ProacDve cross‐funcDonal  engagement   Sustained,  Higher Value  •  Established cross‐funcDonal  decision making bodies  •  Alignment of social media  Maturing  investments and business  prioriDes  •  MarkeDng and IT educate business  leaders about uses and beneﬁts of  •  Business value (business cases) as  Business Value  social media  primary driver  Created  •  IniDal formaDon of cross‐ •  Business leaders leverage social  funcDonal decision processes  media to support and enhance  their business strategies  •  Deﬁned organizaDonal roles and  Experimen6ng  responsibiliDes by funcDon or  •  Joint cross‐funcDonal prioriDzaDon  •  Informal operaDng processes and  major group   •  Social media governed by explicit  model  •  Established social media decision  performance criteria  •  Ad hoc decision making processes  making and escalaDon paths  •  Rewards Ded to value, key  •  Focus on delivering short term  •  Internal Service Level Agreements  measures consistently applied  resource needs  •  AcDvity‐based measurements and  •  Service Level Agreements with key  Inconsistent,  Lower Value  •  Limited performance tracking  limited reporDng capability  social media uDliDes  Basic  Leading  Social Media Governance Capabili6es  Copyright © 2009 Arlington Mill Group, LLC  June 2009  8 

Krim Stephenson  Chris Boudreaux  kstephenson@arlingtonmillgroup.com  cboudreaux@arlingtonmillgroup.com  415.730.5746  773.580.8541  San Francisco ● Washington, D.C. ● Seattle www.arlingtonmillgroup.com Copyright © 2009 Arlington Mill Group, LLC  June 2009  10 

Arlington Mill Group Social Media Governance Linked In

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