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The Business of Influence
      Philip Sheldrake
      www.philipsheldrake.com
      @sheldrake

      Author of The Business of Influence:
      Reframing Marketing and PR for the
      Digital Age, Wiley, 2011
      www.influenceprofessional.com
      Founding Partner, Meanwhile
      www.andmeanwhile.com




                                             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




                                                                     4
//The rise of social media

                                               //The info tech explosion

                                        //The way we contemplate,
3 things                                 design, communicate and
                                                   execute strategy


    http://www.flickr.com/photos/philip_sheldrake/104947731




                                                                 5
ONE

//The rise of social media



                             6

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PRSA Digital Impact Conference April 2012

  • 1. The Business of Influence Philip Sheldrake www.philipsheldrake.com @sheldrake Author of The Business of Influence: Reframing Marketing and PR for the Digital Age, Wiley, 2011 www.influenceprofessional.com Founding Partner, Meanwhile www.andmeanwhile.com 1
  • 2. The business of influence is broken The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/87055500 2
  • 3. 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
  • 4. 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 4
  • 5. //The rise of social media //The info tech explosion //The way we contemplate, 3 things design, communicate and execute strategy http://www.flickr.com/photos/philip_sheldrake/104947731 5
  • 6. ONE //The rise of social media 6
  • 7. An illustrated history //The rise of social media http://youtu.be/wp2eUSL4oHc http://www.philipsheldrake.com/2011/01/content-an-illustrated-history 7
  • 8. We are more influenced by the 150 nearest to us than by the other six or so billion combined //The rise of social media The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/3068588302 8
  • 9. Perception is reality May have been a relevant axiom for 20th Century, but now… Reality is perception The real-time social enterprise must, by nature, be authentic. You can‟t fake it. //The rise of social media 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 9
  • 10. Social analytics 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 10
  • 11. And yet in 2011: “most CMOs pay more attention to markets than individuals.” Key sources to understanding individuals in yellow. //The rise of social media From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011. http://www.ibm.com/cmostudy2011 11
  • 12. 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 //The rise of social media 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 12
  • 13. TWO //The info tech explosion 13
  • 14. - address book Phones are the most personal - diary of consumer electronic - digital messenger devices. They rank with keys - web browser and money when going out. - games machine They become an extension of - music player their owner and their loss is - video player mourned, literally. - navigator - video & stills camera It keeps you connected with those far away, and disengaged ... and, of course, from strangers nearby. a phone //The info tech explosion The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/87041513 14
  • 15. The Internet of Things A public and private nervous system for the planet 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) //The info tech explosion Internetome Conference, London, 2010 The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/488970370 15
  • 16. 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 16
  • 17. Buyer marketing – when individuals can market their needs or desires, either directly or anonymously, to organizations interested in meeting that need or desire. //The info tech explosion The Social Web Analytics eBook 2008, Philip Sheldrake http://www.flickr.com/photos/philip_sheldrake/6222250215 17
  • 18. Web 3.0 – the Semantic Web – is about the Web itself understanding the meaning of all the content and participation. Indeed, the Web becomes a universal medium for the exchange of data, information and knowledge. //The info tech explosion The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/4324972193 18
  • 19. Data explosion & Social media “Most CMOs are underprepared to manage the impact of key changes in the marketing arena.” //The info tech explosion From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011. http://www.ibm.com/cmostudy2011 19
  • 20. THREE //The way we contemplate, design, communicate and execute strategy 20
  • 21. 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. Useful for dealing with business based on tangible assets. Essential for those built on intangibles. //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 21
  • 22. Return on investment “The strategy map identifies the “… each investment or initiative is specific capabilities in the only one ingredient in the bigger organization‟s intangible assets – recipe. Each is necessary, but not human capital, information capital, sufficient. Economic justification is and organization capital – that are determined by evaluating the return required for delivering exceptional from the entire portfolio of performance in the critical internal investments in intangible assets processes.” that will deliver the ROI from [the strategic imperative].” 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 22
  • 23. And yet: “CMOs believe ROI on marketing spend [in isolation?] will be the number one method for determining the marketing function‟s success.” //The way we contemplate, design, communicate and execute strategy From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011. http://www.ibm.com/cmostudy2011 Square brackets added here. 23
  • 24. A new model //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/2772566046 24
  • 25. The Six Influence Flows //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 25
  • 26. Socialize the enterprise To adapt the way in which an organization delivers its mission and pursues its vision by designing the organization around influence flows, connecting: ‣ its people, partners, customers and other stakeholders; ‣ data and knowledge in and all around it more openly, productively and profitably with the application of social web and related information technologies. //The info tech explosion The Social Web Analytics eBook 2008, Philip Sheldrake http://www.flickr.com/photos/philip_sheldrake/6247305059 26
  • 27. Beware the definition Some consider „socialize the enterprise‟ along the lines of getting everyone on Facebook and Twitter. And an in-house sort of Facebook and Twitter. They‟re wrong. They‟re just mapping new tools on old ways of working, on 20th Century silos. Metaphorically, they‟re confusing learning to write with writing a novel – essential but insufficient. //The info tech explosion The Social Web Analytics eBook 2008, Philip Sheldrake http://www.flickr.com/photos/philip_sheldrake/7015450481 27
  • 28. Socializing the enterprise demands more than just procuring some social tools. 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 Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 http://www.flickr.com/photos/philip_sheldrake/3504552777 28
  • 29. 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? Kaplan and Norton‟s strategy map tool and Balanced Scorecard framework are well suited to these efforts. //The Business of Influence The Business of Influence, Philip Sheldrake, Wiley, 2011 29
  • 30. The Influence Scorecard /2 The Six Influence Flows prompts organizational redesign – structure, culture, people, policies and process – to execute influence strategy. The Influence Scorecard serves to translate influence strategy and help make it happen. It‟s a subset of the Balanced Scorecard, containing all the influence- related objectives and metrics extracted from their functional silos. Helps 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 30
  • 31. 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, 2011http://www.flickr.com/photos/philip_sheldrake/3820770698 31
  • 32. Are you an Influence Professional? //The info tech explosion The Social Web Analytics eBook 2008, Philip Sheldrake http://www.flickr.com/photos/philip_sheldrake/6619572765 32
  • 33. The Influence Professional Are you ambidextrous of mind (left- & right-brained, art & science)? Are you fluent in public relations excellence and other influence disciplines (such as customer service, CRM, HR, market research, internal communications, advertising)? Can you effect change in the face of entrenched organizational 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 33
  • 34. In conclusion Today, influence activities are: – 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. //The Business of Influence 34
  • 35. In conclusion Tomorrow, your influence strategy must: – Take best advantage of social media, new info technologies and best practice performance management – „Socialize the enterprise‟, systematically – Drive business performance. //The Business of Influence 35
  • 36. The Business of Influence: Reframing Marketing and PR for the Digital Age Philip Sheldrake, Wiley, May 2011 ISBN 978-0470978627 www.influenceprofessional.com #infpro @sheldrake 36