Dreamforce 2011 presentation – Sheldrake

Influence Philip Sheldrake www.philipsheldrake.com @sheldrake<br />Author The Business of Influence: Reframing Marketing and PR for the Digital Age www.influenceprofessional.com Influence Crowd Meanwhile Intellect 6UK 1

The business of influence is broken The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/87055500 2

You have been influenced when you think in a way you wouldn’t otherwise have thought, or do something you wouldn’t otherwise have done The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/160365265 3

If you’re in business, indeed any type of organization, then you’re in the business of influence The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/5629452844 … marketing, advertising, public relations, internal communications, public affairs, customer service, customer relationship management, social media, copywriting and content, SEO, branding, branded apps and widgets, brand journalism … … web design, graphic design, direct marketing, packaging, merchandising, promotion, publicity, events, sponsorship, sales and sales promotion, marketing and market research, product and service design and development … … human resources, training and development, channel management, procurement and supplier management, facilities management … 4

http://www.flickr.com/photos/philip_sheldrake/104947731 //The rise of social media //The info tech explosion 3 things //The way we contemplate, design, communicate and execute strategy 5

//The rise of social media<br />ONE 6

The authors of the Cluetrain Manifesto asserted back in 1999 that the Internet allows markets to revert to the days when a market was defined by people gathering and talking among themselves about buyer and seller reputation, product quality and prices.This was lost for a while as the scale of organizations and markets outstripped the facility for consumers to coalesce. //The rise of social media The Cluetrain Manifesto – http://www.cluetrain.com The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/5724320736 7

But I get social, I get influence… //The rise of social media www.flickr.com/photos/iangallagher/490333150 8

But I get social, I get influence… err?! //The rise of social media www.flickr.com/photos/iangallagher/490333150 www.flickr.com/photos/jeremylevinedesign/2815977968 9

social / digital is not:– a new team or department– something to procure, design or manage separately //The rise of social media http://www.flickr.com/photos/philip_sheldrake/2642725725 social / digital does:– require new skills– bring new opportunities, and threats 10

If you could go back to the mid-90s and offer a marketer a little box that could sit on her desk and let her listen in on thousands of customer conversations and participate in those discussions regardless of geography or time zone, it would appear so far-fetched that she’d probably call security //The rise of social media The Social Web Analytics eBook 2008, Philip Sheldrake http://www.flickr.com/photos/philip_sheldrake/488935955 Social analytics 11

//The rise of social media<br />Influence Strategy and Execution, Philip Sheldrake, Marketing Magnified eJournal, June 2011, CMO Council http://www.marketingmagnified.com/2011/june http://www.flickr.com/photos/philip_sheldrake/5723483505 Perception is reality May have been a relevant axiom for 20th Century marketing and PR practice, but now… Reality is perception Real-time social marketing and PR must, by nature, be authentic. Real-time PR marks the death of ‘spin’. You can’t fake it. 12

//The rise of social media<br />Align Your Stakeholder-Facing Functions with an Influence Strategy, Philip Sheldrake, Balanced Scorecard Report, July-August 2011, Vol 13 No 4, Harvard Business Publishing http://www.flickr.com/photos/philip_sheldrake/107864510 No organization is an island Everything an organization does occurs in the context of a changing world, in a dynamic interplay with every entity around it Organizations must cultivate a sensitivity to the new dynamic (one that’s superior to competitors’) and sharpen their ability to interpret and respond to the myriad communication flows issuing from all sides 13

//The info tech explosion TWO<br />14

An illustrated history http://youtu.be/wp2eUSL4oHc http://www.philipsheldrake.com/2011/01/content-an-illustrated-history<br />15

Phones are the most personal of consumer electronic devices. They rank with keys and money when going out. They become an extension of their owner and their loss is mourned, literallyIt keeps you connected with those far away, and disengaged from strangers nearby //The info tech explosion The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/87041513 - address book - diary - digital messenger - web browser - games machine - music player - video player - navigator - video & stills camera ... and, of course, a phone 16

The Internet of ThingsA public and private nervous system for the planet //The info tech explosion Internetome Conference, London, 2010 The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/488970370 Electronic devices(washing machines, air conditioning units and cars)Electrical devices(lighting, electric heaters, and power distribution)Non-electrical objects(food and drink packages, clothes, and animals)Environmental sensors(measuring such variables as temperature, noise, moisture) 17

Data paucity was a problem of the 20th Century.Big data is the problem and opportunity of the 21st. //The info tech explosion The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/4326146564 I believe that a future where so much data is collected about me and owned by others is nothing short of dystopian. We need a new privacy framework. And we need streams banks. 18

Web 3.0 – the Semantic Web – is about the Web itself understanding the meaning of all the content and participation //The info tech explosion The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/4324972193 Indeed, the Web becomes a universal medium for the exchange of data, information and knowledge 19

//The way we contemplate, design, communicate and execute strategy THREE 20

20th Century business was built around tangible assets (land, plant & machinery) //The way we contemplate, design, communicate and execute strategy http://www.flickr.com/photos/philip_sheldrake/5632977212 The 21st Century business is more reliant on intangibles (intellectual property, brand, reputation, social dialogue) for which traditional accounting analyses are poorly designed 21

So that's one reason why Kaplan and Norton developed the strategy map tool for the alignment of operations with strategy, and the popular* Balanced Scorecard framework to augment the lagging (financial) indicators of business success with non-financial drivers of future financial performance. //The way we contemplate, design, communicate and execute strategy Balanced Scorecard: Translating Strategy into Action, Robert S. Kaplan and David P. Norton, ISBN: 9780875846514 * http://www.bain.com/publications/articles/management-tools-2011-balanced-scorecard.aspx http://www.flickr.com/photos/philip_sheldrake/2773203483 22

Return on investment //The way we contemplate, design, communicate and execute strategy The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/107865905 When vanity rules ‘We can afford it and it’ll be a testament to our time.’ When experience rules ‘Do you think the CMO’s background in advertising sways the budgeting process?’ When rules rule ‘Let’s treat it as three separate projects so each comes under the limit demanding cost justification.’ When paralysis rules ‘I just don’t know.’ And when all else fails – when cost rules ‘Just make a decision on a least-cost basis because this sort of thing never has a tangible ROI.’ When the boss rules ‘Look, I’m told we’re investing in this. Now we just need to work up the numbers to get it through finance.’ When efficiency rules ‘This investment will speed the process up.’ ‘Er, but it’s not actually a bottleneck.’ When the guru rules ‘Well the book’s at number 1.’ When last year rules ‘Well we did it this way last year ...’ When the competition rules ‘They’ve gone for it, so ...’ 23

Return on investment I prefer it when strategy rules... “The strategy map identifies the specific capabilities in the organization’s intangible assets – human capital, information capital, and organization capital – that are required for delivering exceptional performance in the critical internal processes.” And this applies to influence activities too. //The way we contemplate, design, communicate and execute strategy Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Robert S. Kaplan and David P. Norton, ISBN: 978-1591391340 http://www.flickr.com/photos/philip_sheldrake/107865905 24

//The Business of Influence The Six Influence Flows, Influence Scorecard and CInflO 25

You have been influenced when you think in a way you wouldn’t otherwise have thought, or do something you wouldn’t otherwise have done //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/160365265 26

Socializing the enterprise demands more than just procuring some social tools. It demands a CEO-led organizational redesign. //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/3504552777 27 It demands a new and simple model, devoid of ‘baggage’, to think about what we’re trying to achieve. A framework for all influence activities, for the social media, info tech and business strategy of the 21st Century.

The Six Influence Flows //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 28

We are more influenced by the 150 nearest to us than by the other six or so billion combined //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/3068588302 29

Influence(r)-centric //The Business of Influence<br />The Business of Influence, Philip Sheldrake, Wiley, 2011 * AVE – advertising value equivalence, a discredited measurement of media relations performance 30

Influence centricity 1. Focusing on the influenced Related to the emphases of Net Promoter Score (albeit focused on all stakeholders that have been influenced or influenced others, rather customers that would recommend us) Outcome rather than output oriented //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 31 Not hung up on finding ‘key influencers’, but rather it’s about: 2. Tracing influence Understanding and learning from how influence has happened

The Influence Scorecard How can we systematically learn from and manage influence flows? How do we define, develop, and execute a consistent and coherent influence strategy? How do we prioritize investments in influence-related human, information, and organizational capital? //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 32 Kaplan and Norton’s strategy map tool and Balanced Scorecard framework are well suited to these efforts.

The Influence Scorecard /2 The Influence Scorecard serves as both the methodology for defining influence strategy and the tool for executing it. It’s a subset of the Balanced Scorecard, containing all the influence-related objectives and metrics extracted from their functional silos. Helps management ensure that the potential to influence and be influenced is exploited cohesively and consistently throughout the organization. //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 33

The Influence Scorecard /3 Ultimately, the ease and effectiveness with which we manage and learn from influence flows is integral to the ways all stakeholders interact with organizations to broker mutually valuable, beneficial relationships. //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 34

The Chief Influence Officer Are you ambidextrous of mind (left- & right-brained)? Are you fluent in public relations excellence and other influence disciplines? Can you effect change in the face of entrenched organisational resistance? Then this is your perfect storm. You might be the new breed of influence professional, and perhaps Chief Influence Officer. //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 35

In conclusion Today, influence activities are: 36 – Spread, uncoordinated, across functional silos – Encompass only some aspects and subsets of the Six Influence Flows and the Influence Scorecard – Defined in the context of 20th Century technology, media, and articulation of and appreciation for business strategy

In conclusion Tomorrow, your influence strategy must: 37 – Socialize the enterprise, systematically – Take best advantage of new info technologies – Drive business performance management I recommend the Influence Scorecard.

The Business of Influence: Reframing Marketing and PR for the Digital AgePhilip Sheldrake, Wiley, May 2011ISBN 978-0470978627www.influenceprofessional.com#infpro 38