Organizing for Social Media


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Marketers were the first to realize the tremendous role social media can play in reshaping the way an organization communicates with and creates value for its customers. In this new media landscape, marketing teams must organize in a way that allows them to successfully communicate with other departments - both internally and externally - and make the most out of every social media engagement.

Listen to host Larry Weber, Greg Matthews of Humana and Steve Goldbach of Monitor Group for a discussion about:

- The "New Marketing Organization" and what it looks like
- The organizational roles required to maximize your online presence
- How your organization can use social media to foster collaboration and improve products, services and how business is conducted
- Which companies are successfully organizing around social tools and environments

Published in: Business, News & Politics
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  • Ask who is familiar with Monitor and who has worked with MonitorIf there is one thing to take away about Monitor, it’s that we are about growth – helping our clients grow in the ways that are most important to themThis can mean dollars, people…
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  • As a result of all the noise, marketers have turned to “integration” as the mechanism through which they believe they will drive effective consumer engagement.In fact, in a recent survey, the Association of National Advertisers found that about 70% of companies they surveyed had some sort of “integrated marketing program” in their company. How many people here have something like that? In fact, marketers are talking about integration so much that one might say…(click)Integration is the new black. I hear our clients talk about this so frequently that we decided to get t-shirts made up (take off shirt).We agree…integration is a critical component of creating better consumer engagement and changing consumer behavior. Here’s the challenge. In that same survey, the ANA asked how satisfied companies were with the results. Only 25% of companies surveyed thought they were getting very good or excellent results – and of that 25%, only about 6% stated excellent. So why is this so hard?
  • First the good news – most marketers are starting to undertake integrated marketing programs. In a recent survey of the ANA, 70% of respondents said that most of their brands were creating integrating marketing programs.The bad news – most of you are unsatisfied with the results. Only 25% of you feel the results are excellent or very good. And a greater percentage of you thought the results were – let’s just say “less than good”. So we have to examine the underlying system to see what’s getting in the way.
  • So to understand the problem marketers face in integration today, let’s look to what integration meant in that world when that car was built. On the right hand side, we have the classic purchase funnel that we are all familiar with. (click). And in the old world – we were integrated. We had a dominant model for reaching consumers – and I use the term reaching because that’s what we did. We spent a lot of money at the top of the purchase funnel on building awareness – usually on television - and then we drove them to the store to buy our products. But this purchase funnel is very company centric – it is what we as brands want the consumer to do; it’s not really what the consumer is actually doing. For instance, we now know that while there are still lower and higher consideration purchases, most purchases are more highly researched than ever before simply because the consumer has more access to information than ever before.So this dominant model, around which most marketing departments were originally designed is no longer “integrated”That’s so last century.So what constitutes integration in the minds of marketers today?
  • Now we are using most touch points. Well – we’re doing what the natural reaction has been – if we think that something has importance then we try it. In that same survey on integrated marketing, respondents were asked about the importance of various different media – 14 in total – and 10 of them had at least 50% of respondents say the medium was very important or important. So we’ve moved from a dominant model to one where everything is important. And that’s not integration. So what did we do?Marketers and Agencies added specialists. A lot of them.And they each put out messages – on their own.And I’m fairly certain that the consumer doesn’t experience the messages as integratedHow do I know? - DVR - Ad Ware - Spam filters - Shredders for Direct Mail - Etc.The problem is – it is not just about using lots of new medium, it is about understanding the pathway that the consumer goes through to make their way through the purchase cycle.
  • So here is what I believe integrated marketing – from a communications stand point – needs to start with. This is Monitor’s framework called “Channel Pathways”. We work with companies to develop these maps specific to their consumer segments. It starts with an understanding of how the consumer makes their way through the purchase cycle. What media / touch points are relevant at each different stage. And understanding that different segments of consumers will have a different pathway. When I think about good integrated marketing, it is about having each touchpoint play some role in moving the consumer through their purchase funnel without “dropping off” the purchase cycle. By the way – this framework is as relevant for B2B marketing as it is for B2C marketing. I’m going to give you an example. HEIDI SHOUT OUT HERE…
  • The changes we need to make fall into three buckets: Work – what is the stuff we are doing together as a system of agencies / marketers?Capabilities of our people Incentives and measures. I’ll address each of them in turn…starting with work.
  • Let me start with a question – how many of you believe that if you had to substantially change your marketing mix – tomorrow – you would have the right people and talent to execute your marketing programs. Our processes and systems are set to the rhythm of our old system. Our resources are over-specialized and not always particularly useful in a world where how our consumers gather information is constantly changing. Let me put it this way – if it is someone’s job to buy TV, I can almost guarantee you that we’ll do some TV, even if we know our consumers aren’t watching much anymore.One of my colleagues likens our old system to that of creating films. We spend a lot of money creating beautiful films and then try to amortize the high costs over a large media buy. What we need in the future is to be more like a newspaper publisher – creating new, relevant content every day.
  • Does anyone here remember the movie Top Gun? Anyone remember why that school was founded?(wait for audience response)Top Gun was founded with the purpose of teaching pilots how to respond quickly to their environment. The underlying belief was that this was a critical contributor to effective “kill” ratios in times of war. Pilots who could get through their “OODA Loop” – as military strategist John Boyd coined the phrase. A great example of getting through the OODA loop occurred during the US Air flight recently – Miracle on the Hudson. Captain Chelsey “Sully” Sullenberger. Took off at t= 030 seconds in or so hit the birdsOrient themselves – can I get to Teterboro, back to LGANope – decide – need to go into the Hudson “My Airplane”In a wolrd of increasing pace of change, we need marketers and agencies who can get through their own OODA loop quickly and effectively to make good decisions regarding how it is that we can reach consumers. We simply can’t afford to wait until models are proven for us.
  • Not only do we need marketers who are able to get through their OODA loop quickly and effectively, we need marketers who are more versatile.Today’s marketers and agencies are a lot like a football team. Each has a very specific job to do on any given play. And if any of them don’t do their job, the play might fail. As a result – we have sets of people with very different capabilities – or in football – body types . The quarterback might be tall to see over the line, the running back needs to be either fast and agile to run to the outside or powerful to get through the line. And the linemen need to be powerful to pancake block the defensive line. But very different types of players for different positions. Has anyone ever seen a football playbook – so you know how complicated it can be to learn. We can’t afford that kind of complexity in our marketing system. Consumers are changing too quickly. This game is designed for the coach to call a play from in – now the game has changed. So we need to develop our football players into hockey players. Even though they still have roles on the ice, the fluidity of the game demands that they are more able to substitute for each other if called upon. The defenseman can lead the rush or the forward can fall back to help on defense. They react to how their opponent is playing and change plays accordingly. Or in marketing terms – we need people who are comfortable across different communication vehicles who at their core understand how to reach and engage with consumers. So how do we create these organizations of hockey players able to get through their OODA loops?
  • Given an important theme of this conference is around Design Thinking, I want to connect some thoughts about that to the topic of consumer engagement. Roger Martin, the current Dean of the U of T business school and former colleague of Mark and I at Monitor discussed two concepts in his book – reliability and validity.Reliability is all about being able to replicate the same result over and over againValidity is about being right. Did we achieve the outcome we wanted to.The challenge is that our organizations are over-torqued to reliability. (click)What organizations dedicated to running reliable algorithms often fail to realize is that while they reduce the risk of small variations in their businesses, they increase the risk of cataclysmic events that occur when the future no longer resembles the past and the algorithm is no longer relevant or useful.”
  • If what we want is flexible, agile marketers, we have to train them to be that from the start. We have to give them exposure to all kinds of different marketing which means rotation programs at the agency and within the marketing “expert” groups. I know several holding companies have programs like this in place today – I believe they should be expanded considerably to take advantage of the kind of depth of training the holding companies can provide. In fact, one of the reasons I’m bullish on holding companies is because they are well structured to create an army of communications experts of tomorrow – people who are comfortable across all kinds of creative ways to engage with the consumer and can serve as integrators for their clients. The same is true on the marketing side – as people are developing – provide them with exposure to all kinds of ways to reach and engage with the consumer. One way to make sure that marketers get exposure to different communication vehicles is to protect experiment budgets. Organizations learn by doing. You’ll never learn how to effectively use a medium if you don’t try. And in a world of constant change, those companies who can effectively put in place, and learn from experiments will gain competitive advantage.Two more quick things:Stop fragmenting yourselves further – winning in the future will be predicated on how well you can integrate across media rather than how well you use any particular type. Build the capabilities within your existing organizations.And finally, I spent some time with the CPG team in Google New York a few weeks ago. One of the biggest barriers they cited to marketers using digital tools was that many marketers were still firewalled from visiting sites – like YouTube in the name of productivity. We need to make sure our marketers are exposed to all the different ways consumers will communicate with each other. Discover example - Discover has instituted a disciplined approach to allocation and tracking of marketing spend that works from the customer back to identify the optimal set of initiatives and integrates marketing spend decisions across channels and mediaThe company is shifting marketing mix from traditional vehicles (e.g., direct mailings) to new media (e.g., mobile and email marketing), and in early 2009 plans to supplement with social media networks like Flickr, Facebook, and YouTubeQuote from Discover CMO: “In the old world, when we did almost of our acquisition by direct mail, it was okay to be more siloed, but now that we’re using multiple channels to acquialr customers, as well as to stimulate portfolio usage, all areas have to be tightly integrated from a business planning and analysis point of view.”Invested in creating a center of excellence around business planning – did it formally – center of excellence. P&G Example – talk about IBBO under Marc Pritchard integrating Design, Marketing, ER and CMK functions. Major intervention in how the create capabilities and make choices. And it helps them integrate by having Brand Franchise Leaders to whom all of they mostly report. They have also restructured their beauty organization under Ed Shirley, a former Gillette executive, under “Him” and “her” to enable them to think broader about how to serve their broad segments. Best Buy Example: Company has undertaken a lot of activities to let the outside in. Activity on Twitter, organizing around the consumers – Jill and Barry stores. They also invested during the last downturn and came out of the recession and substantially grew their profit while that of Circuit City’s stayed flat. Created BlueShirtNation – basically a company Wiki network – online discussion forum – allows employees to talk about what is on their mind. Fast way to distribute information across the store. Empowers employees. Loop marketplace – allows people to vote on innovation ideas. And they are on Twitter servicing customer needs. Really focused on the needs of the customers and how they differ. Starts from a basis of deep consumer insight. Xerox – decided to go after the SMB market in a much more concerted way. To get SMB to ‘take notice’ and re-consider Xerox, the Company launched a multi touchpoint campaign, which included traditional media, viral / word of mouth, digital, campaign and select partnerships. Xerox restructured its marketing organization to move from a product-centered to a customer-centered organization. As part of this change, the company was able to use a ‘customer back’ approach to product development to reconfigure the products and services Xerox had been selling to their corporate clients to suit the needs and budgets of the SMB customers. SMB customers were looking for multifunctional products and easy to use solutions at an affordable price point. To fit this need, Xerox introduced 7 new document hardware products that started at a $499 street price point. Xerox recognized that its strong sales organization would not be efficient in providing solutions to the highly fragmented SMB market. To most effectively reach and serve this market, Xerox created a new North American Partners Group within the company that developed partnerships with solutions providers, value added resellers (VARs), and distributors, echoing their motto “Partner or perish.” Tailor and design offerings for this segment, marketing campaigns that was integrated; reconfigured their sales organization relying on partnerships and technology.
  • Managing social media in a corporate environment is inherently differentThe NATURE of the corporation is top-down controlThe NATURE of social is grassroots; ground-upThere’s inherent tension there
  • We default to thinking that the org chart tells us how work gets doneBut it doesn’t really work that way … mapping social networks in an organization paints a fascinating picture of how work actually happensWhat happens when a company discovers that – then organizes itself around the way the work actually happens?
  • This can be even more important than HOW you organizeWhen people agree on the core principles, you have a lot greater organizational flexibility
  • Organizing for Social Media

    1. 1. Organizing for Social Media<br />June 4, 2010<br /> #Organize<br />
    2. 2. 2<br />Today’s Speakers<br />Moderator<br />Steve Goldbach<br />Partner<br />Monitor Group<br />@steven_goldbach<br />Larry Weber<br />Chairman<br />Digital Influence Group and<br />Racepoint Group<br /> @thelarryweber<br />Greg Matthews<br />Social Media Director<br />WCG <br />(Formerly Humana)<br />@chimoose<br />
    3. 3. 3<br />About Us<br />Full service digital agency that is social media at its core<br />A global public relations agency that helps clients harness the power of both traditional and social media to strengthen reputation and drive business<br />
    4. 4. 4<br />Introducing Larry Weber<br />Chairman<br /> @thelarryweber<br />
    5. 5. New Rules of Engagement<br />Old Marketing<br />New Marketing<br />Brand is dialogue<br />Customers determine brand value<br />Enterprise + user-generated content<br />Virality based on content<br />User reviews<br />Publishers build relationships<br />Bottom-up strategy<br />Invest for growth – Measurable ROI<br />One-way communication<br />Brand recall is holy grail<br />Content controlled by marketers<br />Virality driven by flash<br />Expert reviews<br />Publishers control channels<br />Top-down strategy<br />Emphasis on cost – CPM<br />5<br />
    6. 6. Social Media is EVERYWHERE<br />Breaking down walls between:<br /><ul><li>Marketing disciplines
    7. 7. PR, Advertising, Events, Promo
    8. 8. Marketing and other functions
    9. 9. IT, Customer Service, HR
    10. 10. Enterprise and external stakeholders
    11. 11. Customers, resellers, investors</li></ul>6<br />
    12. 12. Social Media Cross-Functional Steering Committee<br />CEO<br />PROD DEV<br />MKTG<br />LEGAL<br />Strategy, Governance, Technology<br />Best Practices, Training, Leadership<br />HR<br />IT<br />OPS<br />SERVICE<br />MKTG<br />OPS<br />IT<br />HR<br />SERVICE<br />7<br />
    13. 13. New Social Media Roles – A Strategic Approach<br />STRATEGY<br />& PLANNING<br />SOCIAL<br />EXPERIENCE<br />DESIGN<br />ACTIVATION &<br />SUSTAINMENT<br />MEASUREMENT & ANALYTICS<br />Social Strategist<br />Creative Director<br />User Experience<br />Designer<br />Technology Guru<br />Engagement Manager<br />Content Manager<br />Media Planner/<br />Buyer<br />Social Media Analyst<br />8<br />
    14. 14. 9<br />Where do we go from here?<br /><ul><li>Establish the Social Media Cross-Functional Steering Committee
    15. 15. Set enterprise social media goals and measurement metrics
    16. 16. Do a social media skills audit across your organization
    17. 17. Supplement internal resources with external expertise</li></li></ul><li>10<br />Introducing Steve Goldbach<br />Partner<br />Monitor Group<br />
    18. 18. About Monitor<br />We grow organizations<br />11<br />
    19. 19. About Monitor<br />We grow organizations<br />12<br />
    20. 20.
    21. 21. Integrated MarketingMost Critical Issue Facing Marketers<br />Achieving “integration” is critical to succeeding in social media<br />The Rest<br />Less thanMost<br />27<br />28<br />MostBrands<br />39<br />Good<br />48<br />AllBrands<br />33<br />Excellent /Very Good<br />25<br />Incidence of “Integrated Marketing Programs” in Company<br />Quality of Integrated Marketing Programs<br />Source: ANA Survey on Integrated Marketing<br />14<br />
    22. 22. Integration…the old way<br />One dominant model for reaching consumers<br />15<br />
    23. 23. Today, Integration Means Using Everything <br />Marketing Silos<br />Matched with Agency Silos<br />. . . How Do Consumers Experience Our Plans?<br />Ad Agency<br />Mkt Comm<br />Design<br />Design<br />Hispanic / AA Agencies<br />Ethnic Mkt<br />PublicRelations<br />Corp. Comm.<br />CONSUMER<br />Digital Agencies<br />Social Media<br />In-Store Marketing<br />Shopper Marketing<br />16<br />
    24. 24. A Better Way for Integration<br />Multiple alternate “Channel Pathways”to reach and engageconsumers through the purchase cycle<br />17<br />
    25. 25. Three Areas to Address in Marketing Organizations<br />PROCESSES, <br />SYSTEMS &<br />METRICS<br />18<br />
    26. 26. 0<br />Changing the Marketing Mix Isn’t Enough<br /><ul><li>Process and system are set to rhythm and requirements of the old mix
    27. 27. Resources available are over-specialized, i.e. not very useful in the new mix
    28. 28. People, data and tools
    29. 29. Metrics/measures are inappropriate
    30. 30. Lack good measures for parts of the new mix
    31. 31. Old measures are misleading</li></ul>Percentage of Marketing Spend<br />New Channel<br />Online<br />Out of Home<br />Print<br />Direct Mail<br />TV<br />Mobile<br />19<br />
    32. 32. From Film to Newspapers<br />20<br />
    33. 33. Organization Capabilities for an Evolving World<br />OBSERVATION<br />ORIENTATION<br />THE OODA LOOP<br />ACT<br />DECIDE<br />21<br />
    34. 34. OODA Suggests Flexibility and Adaptability<br />FOOTBALL<br />HOCKEY<br />COMMUNICATION INTEGRATORS<br />22<br />
    35. 35. Design Thinking in Social Media<br />Everything is ROI focused and needs to be accountable. That’s why this program has taken so long to develop. <br />We want to make sure everyone is comfortable behind this.” <br />― Media Manager/Interactive Specialist, CPG Company<br />RELIABILITYWere we consistent?<br />VALIDITYWere we right?<br />23<br />
    36. 36. How to Build Communications Integrators<br />Organize around the consumer / customer<br />Encourage and protect experimentation budgets<br />Moratorium on new silos / break down existing ones<br />Rotation programs – for agencies and marketers<br />Stop firewalling outside world<br />24<br />
    37. 37. 25<br />Introducing Greg Matthews<br />Social Media Director<br />WCG<br /> @chimoose<br />
    38. 38. Corporate Tension<br />control vs grassroots<br />The CW Photo by Eric Ogden<br />flickr photo by Jer Kunz<br />26<br />
    39. 39. Org Chart vs Network<br />flickr photo by Matt Lemmon<br />27<br />
    40. 40. What is it we’re trying to achieve?<br />28<br />More customers<br />More profitable customers<br />More efficient operations<br />Greater customer satisfaction<br />Tighter supply chains<br />Broader organizational capability<br />Deeper employee engagement<br />More effective strategic partnerships<br />
    41. 41. What can everyone agree on?<br />CORE<br />PRINCIPLES<br />29<br />
    42. 42. Social Media Truisms to Ponder<br />Top-level sponsorship is essential<br />You’ve got to have a well-planned strategy before you start<br />Don’t be a “me too”<br />Heavily regulated industries can’t really “do social”<br />You can outsource it to your agency<br />Your employees will be a liability<br />30<br />
    43. 43. 31<br />Questions from the Audience<br />Feel free to type in your questions for Larry, Steve and Greg<br />
    44. 44. 32<br />Additional Resources<br />1. To share the recording of this webinar<br /><br /><br />A white paper will be available in 2-3 weeks at same websites.<br />Other questions, contact:<br /> Jackie Lustig at<br />