A work in progress on creating a social business scorecard to measure the success of Enterprise 2.0 / Social Business.

1. Towards a Social Business
Balanced Scorecard
Russell Pearson @theparallaxview, Jan 2011

2. ‘You can’t do it!’
This deck was inspired by a comment from Bob
Kaplan the inventor of the balanced scorecard
He said that when it comes to making a Social
Media scorecard “You can’t do it!”
I think you can...

3. The scorecard & ROI
This deck is a work towards such a social media
scorecard
A scorecard that focuses on social media known
as ‘Social Business’ or ‘E2.0’
It forms a foundation for working out the ROI of
social business projects in the enterprise

4. The E2.0 Paradox
We need to face the fact that measuring this is
not easy and is paradoxical
“The easier it is to measure, the less impact it has
on the overall success of the business. The harder
to measure, the greater the impact.”
However, with this in mind we can build up a
overall picture using a variety of data sources
This creates the balanced scorecard

5. Origins...
Origins were from a Forrester Report of 2004 for
IT
The Balanced Scorecard For IT: Value Metrics
Forrester’s scorecard show a range of activities
and metrics for IT activities
No single silver bullet

6. Forrester’s IT
Scorecard
“When it comes to IT value metrics,
there is no silver bullet, no single
metric that provides the appropriate
answer. However, with strong
alignment between business
strategy and IT strategy, it is
possible to start making the
necessary links between IT
investments and their business
value. We suggest using a number
of diverse, financially oriented
metrics to capture the breadth of IT
value delivered.”

7. & for Social Media...
Taking Forrester’s model we can align & track to
social activities:
1. Goal
2. Social Business Objectives and/or Activities
3. Candidate Social Business Metrics

8. Of how we might
measure
One of the key aims in many internal comms
projects is employee engagement
How might we look at using social media
channels for a strategically aligned internal
comms project?
We would look at the goal, the objectives and
the social business candidate metrics...

9. Goal: Employee
Engagement
Social Business Social Business
Objectives: Metrics:
Increase employee Employee Satisfaction via
engagement Survey and Polls
Alignment to the strategy Employee Understanding
via Surveys and Polls
Create genuine dialogue
and polyphonic Feedback from Social
communication channels Media Channels : Ratings,
Direct & Sentiment
Overcome Generational
Shift and apathy Churn ratios

10. Goal: Innovation
Social Business Social Business
Objectives: Metrics:
Increase level of Number of ideas
innovation via Innovation submitted
Wikis (e.g., Cisco I-Zone)
Number of successful
Social Ideation Modules ideas turned into pilots
Competitions and Number of pilots entering
‘wisdom of crowds’ the market as new
gathering of info products
activities.
Time to market ratios
Listening!

11. Goal: Internal Social
Connectedness
Social Business Social Business
Activities: Metrics:
Overcoming Geo/Time/Org
barriers - silo busting! Social Network Analytics,
(NodeXL) & Social
Synchronous and asynchronous Relation Analysis
comms and collaboration
Travel budget, Ratio of
Enterprise Social Network rollout:
Social Directories + 2.0 profiling flights/meetings vs online
engagement
Folksonomy and Tagging across
the Enterprise Time to search
Expert location
Cross silo connectedness

12. Goal: Learning
Social Business Social Business
Activities: Metrics:
Social Learning Cost of training
2.0 Training Number of courses taken/
passed
Collaborative training
Diversity of learning
e-learning programmes offerings
Social Education Degree of ‘Knowing what
Management Systems we know’ better

13. Goal: Improve
Customer Experience
Social Business Social Business
Objectives: Metrics:
Customer engagement Customer retention /
via social media channels satisfaction
& platforms
Customer inputs into
eCRM marketing process
Social Marketing Overall cost of marketing
$/£ per $/£ sale
Listening & dialogue
Brand insurance

14. Goal: Increased Sales &
Turnover
Social Business Social Business
Objectives: Metrics:
Social Software as Lead Generation
cumulative competitive
Advantage Sales / Revenue
Integrated Social Sales generated per
Marketing employee at employee
cost
Creating the Social Brand
% increase & contribution
in $/£ per employee

15. The aim is holistic
The Social Business scorecard is a tool to
encourage social media inside and outside the
firewall working together
It is not prescriptive or restrictive and can and
should include other Goals / Objectives
The overall aim is cumulative, holistic and
integrative
It is not a blueprint, but rather a journey

16. Social Brand
The journey is about articulating the brand in
new and more social ways
In joining up activities we create a more unified
brand, inside and out: the company doing inside,
what it espouses externally
This is essential in an increasingly transparent
world :‘walking the walk’ as well as ‘talking the
talk’ creates the Social Brand

17. This is an unfinished
project...
http://theparallaxview.com

18. Further Reading
Measuring Social Media ROI is a pipe dream
Determining the Value of Social Business ROI: Myths, Facts, and Potentially
High Returns
How To Calculate the ROI of Enterprise 2.0
The Balanced Scorecard For IT: Value Metrics
The rise of the networked enterprise: Web 2.0 finds its payday
Collaboration 2.0 – A Game-Changing 'Social Strategy' That Radically
Evolved Our Employee-Client Ecosystem
UBM Case Study shows cash benefits of social media