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
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2. The business of influence
is broken
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/87055500
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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
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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
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6. ONE
//The rise of social media
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7. An illustrated history
//The rise of social media
http://youtu.be/wp2eUSL4oHc
http://www.philipsheldrake.com/2011/01/content-an-illustrated-history
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8. 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
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9. 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
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10. 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
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11. 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
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12. 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
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13. 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
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14. TWO
//The info tech explosion
14

15. - 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
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16. 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
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17. Data paucity was a problem of the 20th Century.
Big data is the problem and opportunity of the 21st.
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.
//The info tech explosion
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/4326146564
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18. Buyer marketing
– when individuals can market their needs
or desires, either directly or anonymously,
via a streams bank or other broker, to
organizations interested in meeting that
need or desire.
What‟s the impact on advertising when we
can pull customized „tenders‟ to us on
demand for anything and everything we
can imagine?
//The info tech explosion
The Social Web Analytics eBook 2008, Philip Sheldrake
http://www.flickr.com/photos/philip_sheldrake/6222250215
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19. 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
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20. 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
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21. THREE
//The way we contemplate, design,
communicate and execute strategy
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22. 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 22

23. 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
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24. 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.
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25. The social enterprise
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/2772566046
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26. „Socializing the enterprise‟ demands more
than just procuring some social tools. It
demands a CEO-led organizational redesign.
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
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27. The Six Influence Flows
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
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28. Comparing market research and
continuous engagement
Market research Continuous engagement
Ad hoc or regular intervals Continuous
One-way (and often needs the carrot Two-way (mutually rewarding)
of a prize, gift or payment)
Unemotional Emotional
Independent of loyalty Inculcates brand loyalty
Tight focus Wide focus
Sequential parameters Multi-parametric
Designed to achieve statistical Emphasis on detecting weak signals
confidence
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011, Table 5.4
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29. Influence-centricity
Not hung up on finding „key influencers‟, but rather it‟s about:
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.
2. Tracing influence
Understanding and learning from how influence has happened.
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
The term „the influenced‟ means those who have done something they otherwise wouldn‟t have done
(e.g. buy your product) and is not a contraction of „the positively influenced‟, i.e. those who have come
round to our point of view, as it might be in more casual parlance. 29

30. 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
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31. 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
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32. 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
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33. In conclusion
Tomorrow, your influence strategy must:
– Take best advantage of social media, new info
technologies and best practice performance
management
– Integrate marketing research, systematically
– „Socializethe enterprise‟, systematically
– Drive business performance.
//The Business of Influence
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34. 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
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35. 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
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