The Business of Influence – Measurement

1. //The Business of Influence Philip Sheldrake Social Media Measurement and the Influence Scorecard 4th Swiss Conference on Communications Controlling 30th June 2011 1

2. //4th Swiss Conference on Communications Controlling Zurich 30th June 2011 4th Swiss Conference on Communications Controlling 30th June 2011 2

3. //Three things… Social media changes nothing and everything Measurement the latest thinking from AMEC The Influence Scorecard business performance management 4th Swiss Conference on Communications Controlling 30th June 2011 3

4. //Social media changes nothing and everything 4th Swiss Conference on Communications Controlling 30th June 2011 4

5. //An illustrated history Content – an illustrated history http://mnwh.li/content-illustrated-history-1000 By @karoshikula & @sheldrake 4th Swiss Conference on Communications Controlling 30th June 2011 5

6. 30th June 2011 4th Swiss Conference on Communications Controlling //Changes nothing .1 My lovely marketing & PR dept. www.flickr.com/photos/iangallagher/490333150 6

7. 30th June 2011 4th Swiss Conference on Communications Controlling //Changes nothing .2 My lovely marketing & PR dept. www.flickr.com/photos/iangallagher/490333150 www.flickr.com/photos/jeremylevinedesign/2815977968 7

8. //Changes nothing .3 The digital / social “bolt on” Do you recognise this picture? How many of you consider your digital activities to be integrated seamlessly into everything you do? 4th Swiss Conference on Communications Controlling 30th June 2011 8

9. //Changes nothing .4 Digital is not ... a new team or department. something to procure, design or manage separately. Digital does… require new skills. bring new opportunities, and threats. But think about it. Would you have… 4th Swiss Conference on Communications Controlling 30th June 2011 9

10. 30th June 2011 4th Swiss Conference on Communications Controlling //Changes nothing .5 A telephone section? www.flickr.com/photos/iangallagher/490333150 www.flickr.com/photos/mightyohm/3040031278 10

11. //Changes everything .1 The Cluetrain Manifesto The Internet allows markets to revert back to the days when a market was defined by people gathering and talking amongst themselves about buyer reputation, seller reputation, product quality and prices. This was lost for a while as the scale of organisations and markets outstripped the facility for consumers to coalesce. The consumers’ conversation is now reignited. 4th Swiss Conference on Communications Controlling 30th June 2011 11

12. //Changes everything .2 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 Social Web Analytics eBook 2008, Philip Sheldrake. 4th Swiss Conference on Communications Controlling 30th June 2011 12

13. //Changes everything .3 Social analytics is the application of search, indexing, semantic analysis and business intelligence technologies to the task of identifying, tracking, listening to and participating in the distributed conversations about a particular brand, product or issue, with emphasis on quantifying the trend in each conversation's sentiment and influence. 4th Swiss Conference on Communications Controlling 30th June 2011 13

14. //Changes everything .4 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. 4th Swiss Conference on Communications Controlling 30th June 2011 14

15. //Measurement the latest thinking from AMEC 4th Swiss Conference on Communications Controlling 30th June 2011 15

16. 2010 //AMEC Barcelona Principles <ul><li>Goal setting and measurement are important

17. Media measurement requires quantity and quality

18. AVEs are not the value of public relations

19. Social media can and should be measured

20. Measuring outcomes is preferred to measuring media results (outputs)

21. Organisational results and outcomes should be measured whenever possible

22. Transparency and replicability are paramount to sound measurement.</li></ul>4th Swiss Conference on Communications Controlling 30th June 2011 16

23. //AVEs Advertising value equivalence is a specious sum based on false assumptions using an unfounded multiplier, only addressing a fraction of the PR domain. 4th Swiss Conference on Communications Controlling 30th June 2011 17

24. //But… “The world of online marketing has been suffering from a delusion of precision and an expectation of exactitude.” Social Media Metrics, Jim Sterne, ISBN 978-0470583784 4th Swiss Conference on Communications Controlling 30th June 2011 18

25. 30th June 2011 4th Swiss Conference on Communications Controlling //AMEC valid metrics framework 19

26. 2011 //Applying the AMEC framework From the Lisbon conference: Select relevant metrics. Track over time to identify trends. Consider plotting the ‘Target Audience Effect’ outcome metrics against the ‘Intermediary Effect’ metrics. Not exhaustive – may be other metrics that are appropriate to the campaign being measured. 4th Swiss Conference on Communications Controlling 30th June 2011 20

27. //AMEC framework examples See the presentation from Ruth Pestana and Mike Daniels, 8th June 2011: www.slideshare.net/ArunSudhaman/amecs-new-valid-metrics 4th Swiss Conference on Communications Controlling 30th June 2011 21

28. //Influence Scorecard business performance management 4th Swiss Conference on Communications Controlling 30th June 2011 22

29. //So what? As Katie Delahaye Paine likes to say, if you want to know how good your metrics are – ask “So what?” three times. Measure What Matters: Online Tools For Understanding Customers, Social Media, Engagement, and Key Relationships, Katie Delahaye Paine, ISBN 978-0470920107 4th Swiss Conference on Communications Controlling 30th June 2011 23

30. //Return on investment ROI is a measure of the financial return secured for the capital employed. The AMEC Lisbon delegates rated the measurement of public relations ROI their number 1 priority. 4th Swiss Conference on Communications Controlling 30th June 2011 24 No.1

31. //Intangibles .1 20th Century business was built around tangible assets (land, plant & machinery). The 21st Century business is more reliant on intangibles (intellectual property, brand, reputation, social dialogue), for which traditional accounting analyses are poorly designed. 4th Swiss Conference on Communications Controlling 30th June 2011 25

32. //Intangibles .2 Intangible assets tend to only have strategic value when they're 'in the mix'. 30th June 2011 4th Swiss Conference on Communications Controlling 26

33. //Balanced Scorecard So that's one reason why Kaplan and Norton developed the Balanced Scorecard approach, designed to augment the lagging (financial) indicators of business success, with non-financial drivers of future financial performance. Balanced Scorecard: Translating Strategy into Action, Robert S. Kaplan and David P. Norton, ISBN: 9780875846514 4th Swiss Conference on Communications Controlling 30th June 2011 27

34. //Influence 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. 4th Swiss Conference on Communications Controlling 30th June 2011 28

35. 30th June 2011 //The Six Influence Flows .1 4th Swiss Conference on Communications Controlling 29

36. //The Six Influence Flows .2 A new and simple model to think about what we’re trying to achieve. Avoids words and phrases that come with the ‘baggage’ of historic and current use and misuse otherwise likely to confuse or narrow our thinking. 30th June 2011 4th Swiss Conference on Communications Controlling 30

37. //Influence Scorecard .1 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 organisational capital? Kaplan and Norton’s strategy map tool and Balanced Scorecard framework are well suited to these efforts. 4th Swiss Conference on Communications Controlling 30th June 2011 31

38. //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, contains all the influence-related objectives and metrics extracted from their functional silos. 4th Swiss Conference on Communications Controlling 30th June 2011 32

39. //Influence Scorecard .3 Consider the hypothetical instance of two organisations designing, executing and analysing exactly the same public relations strategy delivering precisely the same results for the same investment. 4th Swiss Conference on Communications Controlling 30th June 2011 33

40. //Influence Scorecard .4 The two organisations are different (different missions, visions, values and objectives). Their priorities will differ, and so therefore will their portfolio of investments in all kinds of assets. And so the specific role PR plays will be different, and so therefore its contribution to success; its ROI. 4th Swiss Conference on Communications Controlling 30th June 2011 34

41. //Influence Scorecard .5 AMEC’s working group asserts: “ROI = ROIROI = Money In, Money OutTotal Value of PR > ROITotal Value of PR = Tangible + IntangibleTotal Value of PR = Near-Term + Long-Term” The Influence Scorecard encompasses tangibles & intangibles, near- and long-term. 30th June 2011 4th Swiss Conference on Communications Controlling 35

42. //Influence Scorecard .6 Ultimately, the ease and effectiveness with which we manage and learn from influence flows is integral to the ways all stakeholders interact with organisations to broker mutually valuable, beneficial relationships. 30th June 2011 4th Swiss Conference on Communications Controlling 36

43. //ROI .1 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 ...’ 30th June 2011 4th Swiss Conference on Communications Controlling 37

44. //ROI .2 When the competition rules ‘They’ve gone for it, so ...’ 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?’ 30th June 2011 4th Swiss Conference on Communications Controlling 38

45. //ROI .3 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.’ 30th June 2011 4th Swiss Conference on Communications Controlling 39

46. //ROI .4 I prefer it when strategy rules… the Influence Scorecard approach. 30th June 2011 4th Swiss Conference on Communications Controlling 40

47. //The Business of Influence Reframing Marketing and PR for the Digital Age. Philip Sheldrake, Wiley, May 2011 ISBN 978-0470978627 www.influenceprofessional.com Thanks for your attention. @sheldrake #infpro 30th June 2011 4th Swiss Conference on Communications Controlling 41