Presentation at IBM Connect 2014. Going through better ways to emasure ROI on social business. Topics involved are: Measurement principles, Better measures such as: 1-9-90 rule of engagement, Return on Contribution (RoC), Return on productivity, Value of engagement, and Business patterns/use cases

1. BP305: Show Me the Money!
The Value in Social Business
Sasja Beerendonk, e-office
@sbeerendonk
© 2014 IBM Corporation

2. About me
sasja.beerendonk@e-office.com
twitter.com/sbeerendonk
http://nl.linkedin.com/in/sbeerendonk
http://thoughtsoncollaboration.com
@sbeerendonk

3. Agenda
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ROI, why? and some social business ROI myths
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From social software to a social business
•
Measure: usage versus effect
•
Value of engagement
•
Value of productivity
•
Value metrics through use cases
@sbeerendonk

4. ROI, why?
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@sbeerendonk

5. What is the ROI of a phone?
Should we measure the amount of calls?
How does the phone help an employee do their work?
Does use of other systems, such as email, decrease?
@sbeerendonk
Source: Return On Contribution (ROC): A
Metric for Enterprise Social Software, Muller

6. Social business ROI myths
social business ROI is not measurable
a metric = ROI
measuring ‘likes’ and ‘followers’ = ROI
@sbeerendonk

7. From social software to a social business
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@sbeerendonk

8. Social business creates value
find expertise
@sbeerendonk

9. Maslow’s hierarchy for enterprise 2.0
@sbeerendonk
Maslow’s Hierarchy of Enterprise
2.0 ROI, Hutch Carpenter, 2010

10. Measurement principles
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Define success
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Measure to inform and enhance
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Don’t fall for ‘easy measures’
•
Better measures
from employees from different offices
• use cross-referencing and combining of
# blog posts with comments from
metrics
•
Measure regularly
Increase organizational effectiveness, across
borders, reducing duplication of effort
# communities with active participation
employees in other offices
% projects (activities) with employees from
different offices
@sbeerendonk
Source: Michael Sampson –
User Adoption Strategies 2nd ed.

11. Measure: usage versus effect
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@sbeerendonk

12. Distinguish between the reach of social collaboration, and the resulting use of tools and the
effect on individual work effectivity and organisation goals.
@sbeerendonk

13. Two ways to focus
Business process Collaboration process
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@sbeerendonk

14. Value of engagement
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@sbeerendonk

15. Employee engagement
I share my knowledge and expertise
I react and reply
I am well informed
be
show
@sbeerendonk

16. 1-9-90 rule on participation
9%
1%
90%
@sbeerendonk
http://en.wikipedia.org/wiki/1%25_rule_%28Internet_culture%29

17. Engagement tool
• define ‘lurkers’ further:
• Creator
• Contributor
• Joiner
• Spectator
• Inactives
lurkers
@sbeerendonk
Download the flyer of the eoffice engage-o-meter

18. How to make sociale software a success?
on average
15% of employees is Creator and 20% is Contributor
… in order to create value
these employees need to become more
productive!
engagement pyramid
@sbeerendonk

19. Return on Contribution
@sbeerendonk
Source: Return On Contribution (ROC): A
Metric for Enterprise Social Software, Muller

20. An example of ROC
@sbeerendonk
Source: presentation Chris Sparshott Evaluating the Success of an IBM
Collaboration and Social Networking project

21. What does the number 2.59 mean?
Bookmark originator
bookmarks a resource
2.59 consumers benefit from the work of
each bookmark originator
@sbeerendonk
Source: presentation Chris Sparshott Evaluating the Success of an IBM
Collaboration and Social Networking project

22. Value of productivity
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@sbeerendonk

23. Sequential collaboration versus co-creation
Let’s make music!
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@sbeerendonk

24. Rythm guitar
Lead guitar
Bass
Drums
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@sbeerendonk

25. Merge together
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@sbeerendonk

26. http://www.youtube.com/watch?v=d9NF2edxy-M
True co-creation
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27. To be succesful, employees need to …
@sbeerendonk

28. Collaboration: Email versus Files

29. Collaboration: Email versus Wiki

30. Productivity wins
@sbeerendonk

31. Value metrics through use cases
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@sbeerendonk

32. Organization goals
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Work more effectively across countries and timezones
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Bring together expertise from different offices/countries
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Decrease travel time
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Bring innovations to market faster
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Deliver projects on time
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Solve problems faster
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Secure expertise from employees who leave
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Faster onboarding
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Build communities of practice to share and enhance knowledge in key areas
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Hold on to good staff longer
@sbeerendonk

33. How then?
•
Focus on organisation goals
•
‘Translate’ goals to use cases
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Work from activity-metrics to value-metrics
@sbeerendonk

34. Finding expertise
USE CASE
• Quickly locate the right people, or published content containing, the expertise
needed to solve a problem
• Connect the best possible resources to effectively respond to customer needs
• Document and share reusable solutions to common issues
• Create highly-engaged and productive employees.
Benefits
• 30% improvement in speed of accessing experts
• 55% increase in visibility of company’s subject matter experts on its public website
@sbeerendonk
IBM Whitepaper (2013)
Patterns in achieving social business success
by leading and pioneering organizations

35. Gaining external customer insights
USE CASE
• Quickly learn customers’ opinions and preferences related to existing and potential
products and services
• Identify and connect with key customer influencers to aid marketing efforts
Benefits
• Nearly 50% reduction in customer/agent service costs
• >50% decrease in time required to develop new services and features
• 20% reduction in man hours needed to create new product release information
@sbeerendonk
IBM Whitepaper (2013)
Patterns in achieving social business success
by leading and pioneering organizations

36. Share knowledge
USE CASE
• More efficiently and effectively capture, share and access knowledge
• Increase innovation through wider reach of ideas
• Reduce excessive, unproductive time spent searching and exchanging information
Benefits
• 30% improvement in speed of accessing experts
• Productivity increases of 20-25% attributable to reduced need for status meetings
• Accelerated problem resolution due to more effective use of communication tools
• Improved employee engagement and satisfaction
@sbeerendonk
IBM Whitepaper (2013)
Patterns in achieving social business success
by leading and pioneering organizations

37. Recruiting and onboarding employees
USE CASE
• Collaboratively find and connect the right candidate to the right position
• Streamline assessment and hiring processes
• Better connect, engage and retain new hires
• Contextually recommend expertise to increase new hires’ productivity
Benefits
•
30% more candidate searches completed annually
•
25% reduction in time needed to fill open positions
•
2 day reduction in time to on-boarding new employees, 30% faster new hire time-to-value
•
At least 20% increase in employee retention
@sbeerendonk
IBM Whitepaper (2013)
Patterns in achieving social business success
by leading and pioneering organizations

38. Use case example
support department needs to
collaborate more effective
across borders and time
Metrics of creation,
consumption, membership etc
Employees are able to locate colleagues with
needed skills irrespective of their location
% profiles with skills updated# searches on
profiles# reads of profiles
Average time to close a customer request is
reduced by x%
Subject matter coordinators blog regularly to
share latest updates in their area
# blog entries added
# blog authors
# comments to blog entries
# reads of blog entries
Customer satisfaction survey shows an
improvement of y%
“How to” wikis are regularly updated by team
members and are heavily used to find
information
Activities are set up to enable small teams to
work together across time zones to resolve
problems
# wiki edits made
# wiki authors, from different offices
# comments to wiki entries
# reads of wikis
# new activities started, with people from
different offices
# activity owners
# activity members
# reads of activities
@sbeerendonk
Staff satisfaction survey shows
improvement in job satisfaction score of
customer support staff
Staff turnover among customer support staff
shows a reduction of z%
Average handling cost per customer
request is reduced by x $USD
Annual customer support recruitment costs
are reduced by x $USD
IBM Software Services for Lotus - White Paper,
June 2010 Measuring the value of social software

39. •
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Access Connect Online to complete your session surveys using any:
– Web or mobile browser
– Connect Online kiosk onsite
@sbeerendonk

40. And now …
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Questions?
•
Contact me
•
More information ?
– experience the business of
social software
•
Read whitepaper
– ‘Social Business’ (NL)
•
sasja.beerendonk@e-office.com
twitter.com/sbeerendonk
http://nl.linkedin.com/in/sbeerendonk
http://thoughtsoncollaboration.com
@sbeerendonk
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