Charlene Li argues that open leadership is needed for social business. She outlines 10 elements of openness that involve giving up some control to build real relationships and get value from others. An open leader determines how open they need to be to meet goals, learns from their community through monitoring and dialog, and focuses on building relationships over commands. Social business requires aligning social goals with strategic goals, understanding the new metrics of customer lifetime value, and organizing for different types of openness.

1. Making The Case For Open Leadership Charlene Li Altimeter Group March 11, 2010 1 For Dachis Social BusinessSummit

3. A culture of sharing

4. It’s about relationships

5. These new relationships are changing business New ways to get things done Command & control

6. 6 Why is social business hard? Because real relationships require that you give up control

7. The need for open leadership 7 When people get what they need from each other Having the confidence to give up control and still be in command

8. 10 elements of openness 8

9. Determine how open you need to be to meet your goals 9

10. Social Strategy

11. Four goals define your strategy, but always start with learn 11

12. Learn with monitoring tools 12

13. Dialog with your community 13

14. 14 Curating Engagement Pyramid: Focus on Watching and Sharing Producing Commenting Sharing Watching

15. Focus on the relationship you want 15 Richard Edelman writes or records his blog posts – he doesn’t type.

16. DellOutlet drives sales with Twitter 16

17. Help your members support each other 17

18. Premier Farnell supports engineers with community, and employees with “OurTube” 18

19. Social + open = competitive advantage 19 +2,200 Best Buy employees answer questions sent to @twelpforce

20. Innovate with customer feedback 20

21. Starbucks innovates across the company 21

22. Fiat gathers product and market intelligence 22 Contributors submit ideas, and can include pictures and embed videos. Fiat gets valuable ideas for features and design, and marketing and advertising.

23. What to do first

24. #1 Align social with strategic goals 24 Examine your 2010 goals Pick one where social can have an impact

25. 25 #2 Understand the value What’s the value of a fan or follower? 16,965 followers +4 million fans

27. Size of their networks

28. Percent of referred people who purchase

29. Value of purchases

30. Percent that provide support

31. Frequency and value of the support+ Value of ideas

32. Find more fans with large networks Encourage fans to make more referrals Make decisions with metrics 27

33. #3 Organize for different types of openness 28

34. #4 Find and develop your open leaders 29 Collaborative Independent Optimist Pessimist

35. #5 Embrace failure 30

36. Buyer blog hit the right note 31

37. Build trust and manage risk 32 The Sandbox Covenant

38. Align your social business goals with your strategic goals. Benchmark your progress based upon your business goals, not “engagement” data. Change your mindset: letting go will yield more results. Summary 33

39. 34 34 Thank you Charlene Li charlene@altimetergroup.com blog.altimetergroup.com Twitter: charleneli For slides, send an email slides@altimetergroup.com

40. 35 About Us Altimeter Group is a strategy consulting firm that provides companies with a pragmatic approach to disruptive technologies. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design. Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.