Sales Teams And Value Of Social Software (IBM)

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Describes the impact of using social processes or tasks within larger business processes to create a map of where social software provides business value. …

Describes the impact of using social processes or tasks within larger business processes to create a map of where social software provides business value.

Executives like this because you are describing value in terms of processes that they know and understand, and simply replacing some (not all) steps with alternative or possibly better ways of doing things.

This was also shared at the IBM Beyond Web 2.0 conference 2009.

More in: Technology , Business
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  • Hi Rawn

    Very interesting. I am an author on High Performing Teams and I am interested in quantitative evidence that HPTs do better than other teams. There seems to be little published on this and I noted your reference on slide 8 to the '2006 Study on Effective Collaboration within S&D Sales Teams' but I cant find anything on it on the web - can you help?

    I am also very interested in the impact of social media on teams so I will read this carefully

    Best Regards

    KEN
    www.bioteams.com
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  • Thank you Walter and Wendy. Let me know if you have any questions.
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  • Wendy, amazing, I just read this the other day when googling Jeff Schick, then spoke with my local IBM people about Lotus Connect to check their plans for local promotion/deployment. It’s a good presentation, somewhat surprisingly put up here *2 years ago*! Walter @g2m http://xeesm.com/walter
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  • Its great to have a strong presentation to point to when talking to midsized businesses about using social software to make sales process more effective.
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  • 1. Sales Teams and the Business Value of Social Software
      • Gina Poole, Rawn Shah, Pam Nesbitt, Kate Ehrlich,
      • Michael Muller, David Singer, Hardik Dave, David Millen,
      • Michael Pazzaglini, Aaron Kim
      • December 2008
    Contact: rawn@us.ibm.com
  • 2. Agenda
    • Introduction
    • Background
    • Analysis
    • Conclusions
  • 3. I. Introduction
  • 4. Study Description
    • This is an express study to discover if it is possible to identify a correlation between social software usage and improved sales team effectiveness, given the metrics data sources available in IBM.
    • This work aims to lay the groundwork for a more extensive study on the effectiveness of social software in improving collaboration, team productivity and operational efficiency in established Sales teams.
  • 5. II. Background
  • 6. The Need to Demonstrate the Business Value of Social Software
    • 2007 Global Technology Outlook: Digital Communities
    • Implication: IBM should use digital communities technologies to enhance teamwork and collaboration within IBM and to reinvent how we support our business partner and customer ecosystem.
    • 12/07 Corporate Technology Team Study, IBM as a Socially Networked Enterprise, Gina Poole
            • Recommended Action: Define a more strategic, systematic, and targeted approach to capture organizational business value by role, by task, and by business objective.
    • Jeff Schick, VP Social Software, SWG Lotus
      • We need to present IBM as a case study of a socially networked enterprise, and describe the benefits, value and ROI of social software adoption.
  • 7. Why are Sales teams an appropriate population to study?
    • Teams are where value is generated in IBM.
    • Existing research shows high performance for sales teams correlates to a high degree of collaboration.
    • Sales productivity is highly relevant to IBM’s success.
    • SWG has a strong emphasis on improving the effectiveness of sales teams.
    • A salesperson’s time is limited; 2007 study on sellers shows saving time for sellers leads to increased performance.
    • Teams can benefit from both team- and individual-oriented social software, affecting a wider range of our software tooling.
  • 8. 2006 Study on Effective Collaboration within S&D Sales Teams … and has significantly better teamwork and performance ...with 15th attribute of denser Social Networks for collaboration High Performing Teams exhibit 14 key attributes of effective teamwork
    • Intense focus on team results
    • High focus on client interests
    • Team members accessible and responsive to one another
    • Diverse perspectives valued
    • Comfort with team members making decisions that affect other members
    • Mutual accountability for executing against commitments made
    • Shared strategy and purpose among team members
    • Team members’ roles and responsibilities well understood
    • Open and honest discussion of problems
    • Appropriate team member assumes leadership tasks for which one is best suited
    • Team communicates well on client activities/issues and how to respond
    • Team members seek ideas/expertise from people external to the team
    • Team members work together to ensure the client is successful
    • Team members collaborated on a client service plan
    From 2007 Global Technology Outlook 9% 6% 17.2% High -34% -29% -2.7% Low Total 2005 Rev Growth Total 2004 Rev Growth Total CAGR ’01-’05 Team Perfor-mance 1 2 3 4 5 6 7 8 10 10 11 12 13 2 3 4 5 7 8 9 Low Performance High Performance “ Turns-to” Network
  • 9. Driving Social Software use across IBM
    • “ Volunteer Army” of Social Software Ambassadors IBMers helping other IBMers
    • Clinics – help individuals get started 1:1
    • “ Lunch & Learn” sessions – education on to how to use social software
    • “ Jumpstart” engagements - internal "consulting" to help enable team
    • Identify use cases, best practices, and tools – by role, by task
    • Make it easy to get started
    • Generate “buzz” & Share successes
    • Tap Early Adopters as grassroots evangelists
    Drive change tops down, bottoms up, sideways… encourage experimentation ...in 40 Countries 540+ Ambassadors...
  • 10. The Collaboration ecosystem Intranet Internet / world Public spaces Firewall Clients Partners Experts
    • Employees
    • Find and qualify
    • Know, contribute network
    • Discover information
    • Develop trust, credibility
    Social search
    • Clients and Partners
    • Find and qualify
    • Know, contribute, network
    • Discover information
    • Develop trust, credibility
    Profiles Public Conversations Communities and Teams Meetings Business Processes Experts Experts Social software adds value to client engagements Social media marketing generates leads and influences customers
  • 11. III. Analysis
  • 12. Fundamentals of Social Media Marketing Listen to what the audience is saying about IBM products and services Know and prioritize the key influencers and engage them as appropriate Reach new prospects by distributing key assets into the social media sphere Empower IBM customer advocates through communities and social media properties Understand and communicate the impact of social media investments
  • 13. Social Media Marketing Processes Aid Sales Monitor Engaging IBM Engaging the Market IBM analyzed 1.5 billion posts across dozens of languages within social networking sites, blogs, message boards, and online news. …discovered over 400,000 mentions for an IBM client… The client integrated these insights into their marketing strategy and engaged their own customers to advise the client how they use their product. Corporate Reputation and Brand Analysis Building Social Media Communities with Customers on ibm.com External-facing communities Maximize Distribution Identify & Engage Influencers Empower Advocates Sales prospecting and customer-facing interactions
    • Monitor online market conversations to develop valuable market feedback
    • Leverage information to identify new products, competitive weaknesses, sales opportunities
    Key Marketing Constituents (Product Managers, Market Mgrs) Working on sites beyond ibm.com IBMers & Clients sharing,communicating and collaborating around topics clients are interested in Empowering advocacy by clients on our behalf External communities
    • WebSphere® Smart SOA TM social network and outreach helped drive over 27K visits to SOA World Tour site
    • Distribution was compounded through syndication of the Smart SOA Widget
    Maximize coverage Influence the influencers IBM product manager provides briefings to industry influencers on announcements. Interest in coverage drives awareness of IBM products/services to targeted IT audience Communities on ibm.com®
  • 14. Social Software in Marketing and Sales processes Client Sales Engagement Processes Monitor Maximize Distribution Identify & Engage Influencers Empower Advocates Engaging the Market Engaging IBM Social Media Marketing Processes Identify & cultivate sales prospects Web Marketing Social Software Enablement Feeds Product / Service Offerings Development Feeds
  • 15. Overall Sales process Reviewing Customer Needs / Conducting Research Identifying Prospective Opportunities Preplanning call / Create call strategy Create Sales Activity Plans Initial Customer Calls Discuss/ Identify Customer Needs Identifying Key Decision- Makers Qualifying Opportunities Pre-sales Activities Designing Solutions & Proposals Identifying Internal Resources Coordinating Internal Resources Getting Price Approvals Design & Development Preparing Presentation Materials Presenting Solutions and Demos Negotiation & Objection Handling Close Sale/ Take Order Account Set-up Addressing Customer Service Issues Internally Monitoring Services / Solution Delivering Services / Solution Resolving Customer Service Issues Networking / Discussing Follow-up Sales Opportunities Solutions Review / Quality Assurance Gather Customer Feedback Post-sale Activities Engaging the Client Engaging IBM Engaging the Client Engaging IBM Engaging the Client Engaging IBM Team Learning & Review - Sharing Best Practices
  • 16. Social software adds value to client engagements Reviewing Customer Needs / Conducting Research Identifying Prospective Opportunities Preplanning call / Create call strategy Create Sales Activity Plans Initial Customer Calls Discuss/ Identify Customer Needs Identifying Key Decision- Makers Qualifying Opportunities ™ ™ ™ Engaging IBM Engaging the client Lotus® Connections® Activities
    • “ I adapted IBM Lotus Connections Activities and Notes® 8.0 as a new way to track to-dos, contacts, and communications for sales prospecting and client touches
    • Increased number of hours spent with client prospects
    • Increased number of client touches by several times”
    Jeannette Browning Client Rep S&D, ibm.com Sales prospecting and customer-facing interactions
    • Coordinating the Client Engagement Team
    • Sharing, communicating and collaborating around the client agenda
    • Focused on the team’s view of the client
    • Provides the “institutional memory of the client”, mostly as unstructured content
    ClientSPACES™ Client Team Enablement Brainstorming, Live Demos and Testing Scenarios with customers LotusLive virtual worlds Lotus Greenhouse
  • 17. Social software adds value to client engagements “ When clients … approached about IBM’s Virtual World leadership, it was urgent that he find an expert ... Randy turned to Atlas for Lotus Connections … found 100 experts in Virtual Worlds, …filtered down … to find Sandra Kearney , Global Director for Virtual Business. One introduction later, and Sandra was on a plane to … meet with two major clients .” Randy Frink , Americas Sales BUE IBM S&D, Software Sales Designing Solutions & Proposals Identifying Internal Resources Coordinating Internal Resources Getting Price Approvals Preparing Presentation Materials Presenting Solutions and Demos Negotiation & Objection Handling Close Sale/ Take Order Lotus Connections Activities Wikis Atlas for Lotus Connections™ Engaging IBM Engaging the client “ We've been using Lotus Sametime Unyte for our virtual enablement events …. What started as a pilot has greatly improved our ability to execute successful events . We never went back to our previous solution. …. Attendee satisfaction levels have gone up since there is no need to install special software or plug-ins and there is not a long lag to join a meeting or refresh a screen. It has allowed us to do more things, more effectively in our virtual events and allowed us to get the most out of our enablement budgets.” Jason Dumont WW Sales Enablement, IBM SWG Sametime Unyte LotusLive Lotus Sametime Unyte® Lotus Quickr™ LotusLive Virtual Worlds Lotus Greenhouse Lotus Connections Activities Lotus Connections Blog Lotus Sametime Lotus Sametime Unyte Lotus Connections Profile Lotus Connections™
  • 18. Social software adds value to client engagements Account Set-up Addressing Customer Service Issues Internally Monitoring Services / Solution Delivering Services / Solution Resolving Customer Service Issues Networking / Discussing Follow-up Sales Opportunities Solutions Review / Quality Assurance Gather Customer Feedback “ When I needed to jointly edit a client reference video script with marketing, I started by creating an [wordprocessor] document and emailing it to my marketing contact, but that was slow and cumbersome. I moved everything to a wiki and immediately saw a decrease in script development time .” Scott Kelly , AMS, Sales Enablement IBM GBS Wikis Team Learning & Review - Sharing Best Practices Lotus Connections Blogs Engaging IBM Engaging the client Lotus Connections Activities Lotus Connections Blogs Cattail LotusLive Lotus Quickr Communities on ibm.com Building Communities with Customers Sales Rep to Client collaboration environment Sales reps collaborating with customers in private communities on ibm.com Jolene Isdale Project Manager IBM S&D, ibm.com virtual worlds “ Since the army of contributors behind Cattail has been so helpful and saved me weeks' worth of selling time [in other engagements] , I've joined them by sharing files I've come across and found interesting. It's quick, easy, and gratifying to know other IBMers from Netherlands to Korea have downloaded my files -- and just maybe, found them useful.” Martin Chai , Lotus Sales IBM S&D, Software Sales Cattail TM ClientSPACES Lotus Sametime Lotus Atlas for Connections Lotus Sametime Unyte
  • 19. Seller pain points and targets to improve value Find Expertise Develop Relationships Discover Existing Knowledge Share Information Common Seller Pain Points Impacts steps in Impacts steps in Impacts steps in Impacts steps in Sellers complaints and Usability findings - Lotus User Experience team 2007 WW IBM S&D Sales Value Survey Update IBM SWG Social Software Enablement team IBM CIO Workplace Effectiveness Survey Q1, Q2 2008 DEVELOP PRE-SALES DEVELOP POST-SALES DEVELOP POST-SALES DEVELOP POST-SALES
  • 20. Value to Sellers and Business Impact Find Expertise Develop Relationships Discover Existing Knowledge Share Information Value to Seller Business Impact High-Performing Team Attributes Seller Activities / Pain Points Team members seek ideas/expertise from people external to the team Diverse perspectives valued Denser social networks Team members work together to ensure the client is successful Team communicates well on client activities/issues and how to respond Know where to look for expertise and aid Establish long term networks of expertise Discover and reuse existing knowledge, or expertise Become a network resource and get invited to collaborate on more deals Improve productivity; More time to focus on client success Build relationships to experts and resources; Demonstrate and proliferate IBM values Increase efficiency through knowledge reuse Reinforce value of Team IBM
  • 21. Methodology
    • Hypothesis :
      • Use of social software should improve the performance of software sellers, leading to enhanced team performance.
    • Prediction : We would expect
    • Sellers with high social software usage will appear on high-performing teams (upper right quadrant); and
    • Sellers with little or no social software usage will appear on low-performing teams (lower left quadrant).
    Sales Performance database Low- Performing High- Performing Social SW Users Non Users $ $ Social SW Users Non Users Low-perfoming SW sales teams High-perfoming SW sales teams $ Data from Wikis Internal Communities Social Tagging / Lotus Connections Dogear data
  • 22. Study Results
    • Our results show that members of high performing teams use social software more than their low performing counterparts.
    • The results of our analysis were close to proving statistical significance.
      • With additional data, we may be able to show conclusive evidence.
      • We need larger samples, more complete sales teams, and to track more applications.
    Cross-Service Statistically significant difference limits 23 Peo- ple 18 Peo- ple Need More Teams with Data 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% High Performing Low Performing Software Sales Team Performance % Teams with Members Participating in Communities Need More Data on Team Members 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% High Performing Low Performing Software Sales Team Performance % Community Membership per Person 13 Teams 10 Teams
  • 23. IV. Conclusions
  • 24. Conclusions Social software yields performance benefits in the client engagement process, but there is more to learn. 4 Current social software metrics collection systems focused on activity alone are inadequate. 3 Not all sellers understand how social software directly benefits them. 2 Social software is changing how sellers work. 1
  • 25. 1. Social software is changing how sellers work. Conclusions Conclusion: We must spread the message on how sellers are discovering value in social software to encourage greater adoption.
    • Some sellers are adding social software to their repertoire of tools and methods to support their jobs.
    • Sellers who adopt social software are discovering the value for themselves, in their own terms.
    • Sellers who adopt social software can explain how social software improves their effectiveness.
    “ We've been using Lotus Sametime Unyte for our virtual enablement events …. What started as a pilot has greatly improved our ability to execute successful events . We never went back to our previous solution. …. Attendee satisfaction levels have gone up since there is no need to install special software or plug-ins and there is not a long lag to join a meeting or refresh a screen. It has allowed us to do more things, more effectively in our virtual events and allowed us to get the most out of our enablement budgets.” Jason Dumont WW Sales Enablement, IBM SWG Sametime Unyte When clients … approached about IBM’s SecondLife Virtual World leadership, it was urgent that he find an expert ... Randy turned to Atlas … found 100 experts in Virtual Worlds, …filtered down … to find Sandra Kearney , Global Director for Virtual Business. One introduction later, and Sandra was on a plane … to meet with two major clients . Atlas Randy Frink , Americas Sales BUE IBM S&D, Software Sales Activities
    • Adapted Lotus Connection Activities and Notes 8.0 as a new way to track to-dos, contacts, and communications for sales prospecting and client touches
    • Increased number of hours spent with client prospects
    • Increased number of client touches by several times
    Jeannette Browning Client Rep S&D, ibm.com
  • 26. 2. Not all sellers understand how social software directly benefits them. Conclusions Conclusion: We must study how individual sellers demonstrate improvements in their productivity.
    • The adoption rate shows only a subset of sellers are utilizing social software.
    • Sellers need to be convinced that social software translates to improved productivity.
    • It is confusing to know which tool to use for which task.
    Identifying Internal Resources Coordinating Internal Resources Lotus Connections Activities Lotus Connections Blog Lotus Sametime Lotus Sametime Unyte Lotus Connections Profile
  • 27. 3. Current social software metrics collection systems focused on activity alone are inadequate. Conclusions Conclusion: We must develop relevant new metrics and find ways to automate and standardize metrics collection.
    • Challenges in attribution
      • High degree of difficulty in attributing social software usage to individuals, teams, job roles, or geographies.
      • The data is further limited after addressing privacy constraints that vary by countries and geographies.
    • Non-uniform metrics across distributed social software tools
      • Variations in types of metrics available in different social tools create gaps and disparities.
      • Accessing data for periods longer than a month often requires significant manual processing.
    • Usage / Activity metrics do not show outcomes nor relationships
      • Usage metrics do not show the nature of relationships between members, which is a key attribute of high-performing teams.
      • Usage metrics do not directly show the outcome or benefit to users, nor the user’s productivity from that activity.
      • Usage metrics alone does not show why a user prefers a social software tool for a particular task.
      • Social software metrics should be a factor in business diagnostics.
  • 28. 4. Social software yields performance benefits in the client engagement process, but there is more to learn. Conclusions Conclusion: We must conduct a more comprehensive analysis to establish quantitative value.
    • Qualitative value of social software applies to many points in the client engagement process
      • Lead adopter individual sellers find value.
      • High performing sales teams use it more.
      • These tools encourage seeking expertise outside their team (high-performing team attribute).
      • Social software reduces the barriers between teams.
    • Possible to show quantitative value (ROI), but requires deeper study
      • We are still in an early adoption stage among sellers.
      • A strength of social software is its use across many job roles, which makes it difficult to isolate a specific population.
      • Social software value is likely an intangible asset.
      • Value in social software grows as tools evolve and adoption increases.
    " None of these intangible assets has value that can be measured separately or independently .  The value of these intangible assets derives from their ability to help the organization implement its strategy…  Intangible assets such as knowledge and technology seldom have a direct impact on financial outcomes such as increased revenues, lowered costs, and higher profits.   Improvements in intangible assets affect financial outcomes through chains of cause-and-effect relationships .“
    • Robert S Kaplan (Harvard Business School) , David P Norton (Balanced Scorecard Collaborative),
    • “ Strategy Maps: Converting Intangible Assets into Tangible Outcomes”, Harvard Business School Press, (Boston, 2004)
  • 29. Reference Materials
  • 30. Does the team have the skills necessary to collaborate effectively? (e.g. technical, communication, people, business, etc) Skills Do we have methods or tools to collaborate? Mechanism Do I want to be approached? How do I approach this person? Access Why will I cooperate with this person? Am I motivated to work with this person? Motivation How can I develop my reputation as a trusted partner? Will this person help me? Benevolence (Trust) How can I advertise my expertise? Is this person competent? Competence (Trust) How can I become more known? How do I know who is out there? Awareness Contributors I am someone Seekers I need someone Critical Success Factors Relationship Factors Cultural Factors Collaboration infrastructure More than just a “way to collaborate” Can we assess the business value of these mechanisms? Measurement Background Critical Success Factors for Social Networking
  • 31. Applying the key tenets of social media marketing Discussion
    • Number of participating members (unique visits, etc.)
    • Volume of posts/questions
    • Decrease in support calls
    • Decrease email inquiries
    • Wikis
    • Communities
    • Ideation solutions
    • Social networks
    • Support forums
    Enable and empower your advocates to market on your behalf Build and foster brand loyalists and empower them to advocate on behalf of your brand. Empower Advocacy
    • Online buzz
    • Total distributions of asset
    • Downloads
    • Registrations
    • Natural search rankings
    • Embedding keywords
    • Effective tagging
    • Content push to key aggregators / syndicators
    • Viral (widgets, etc.)
    Drive awareness and evaluation of your product/service Maximize distribution and impact of key digital marketing assets Maximize Distribution
    • External search referrals
    • Inbound links from social media referrals
    • Prioritized list of influencers and impact
    • Keyword Search
    • Referral Traffic
    • Social networks
    • Blogrolls and blog search engines
    • Blogs
    Improve the market conversation around your product or service Identify and engage key influencers who are influencing the market conversation around your brand, product, or service. Identify and Engage
    • Volume of conversation
    • Expansion of conversation
    • Usage of key tags and keywords
    • Cobra (IBM)
    • Google News Alerts
    • Technorati
    Gather market intelligence Understand current market position Listen to the market conversation to better understand your current position in the marketplace. Monitor Metrics Tactics Marketing Goal Application TENET
  • 32. Legal Notices
    • The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM's current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.
    • References in this publication to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM's sole discretion based upon market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results.
    • IBM, the IBM logo, ibm.com, Lotus, Lotus Notes, Notes, Websphere and Sametime are trademarks of International Business Machines Corp. in the United States, other countries, or both. Unyte is a trademark of WebDialogs, Inc., in the United States, other countries, or both. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “ Copyright and trademark information ” at www.ibm.com/legal/copytrade.shtml.
    • © Copyright IBM Corporation 2008, 2009. All rights reserved. U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM Corp.