This document discusses the concept of hyper-social organizations and how social media has allowed innate human social behaviors to scale. It addresses how hyper-social organizations think differently by focusing on tribes rather than market segments, knowledge networks rather than information channels, and human-centricity over company-centricity. Successful hyper-social organizations turn traditional business processes like sales, product development, and customer service into social processes. They assess readiness, engage tribes and leaders, start pilots, and scale programs that make a cross-functional impact on the business. Legal considerations for hyper-social organizations include hiring practices and protecting private information.

1. THE HYPER‐SOCIAL ORGANIZATION, AND
UNDERSTANDING THE CHANGES CAUSED BY
SOCIAL MEDIA
PREPARED FOR NEWCOMM FORUM –
SAN MATEO, APRIL 21 22
A 21,22

2. OVERVIEW
WHAT IS ACTUALLY HAPPENING OUT THERE?
UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA
WHAT IS HYPER‐SOCIALITY, AND WHY NOW?
S ?
HOW DOES HYPER‐SOCIALITY SCALE?
HOW DO HYPER‐SOCIAL ORGANIZATIONS THINK ABOUT THEIR BUSINESS?
WHAT DO HYPER‐SOCIAL ORGANIZATIONS DO DIFFERENTLY, AND WHY?
HOW DO HYPER‐SOCIAL ORGANIZATIONS GET STARTED AND SUCCEED?
EXERCISE – AND WHERE DOES THIS ALL LEAD?

3. Why are social beings helping one another?
Reciprocity = a Reflex

4. Why are people going out of their way to punish others?
Humans have an innate sense of fairness
= keeps reciprocal society working

5. Why do people like to look like others?
Because humans have mirror
neurons

6. Why do we lie to market researchers?
Because we lie to ourselves and others, and we
Because we lie to ourselves and others and we
tell people what we think they want to hear

7. Why there is no real (big) business in the long tail
Because we are a herding species, and a self‐
Because we are a herding species and a self‐
herding one to boot

8. Why is status so important (and why do we hoard it)?
Because it used to get us a better mate
Because it used to get us a better mate –
proceed with caution: status works both ways!

9. So to understand how to do business in a 2.0 world…
You are better off understanding
You do not need to understand the
You do not need to understand the
Human 1.0 – not as individuals, but as
Web 2.0 technologies
hyper‐social creatures

10. What are the important Human 1.0 Hyper‐Social Traits
• Reciprocity – it’s a reflex that allows us to be the only
super‐social species without all being brothers and
sisters
• g g
Social framework of evaluating things vs. market
framework So to the extent that we
can basically be human
with what we know, and
• The role of fairness in assessing situations
The role of fairness in assessing situations share it as freely as we
y
possibly can, I think we’ll
go a long way towards
gaining a higher or
• The importance of looking cool and mimicking others stronger level of trust with
the consumers.
the consumers
• Herding and self‐herding Barry Judge, CMO Best
(early research shows that social behavior does not change when it scales) Buy
http://www.cmotwo.com

11. WHAT IS HYPER‐SOCIALITY AND HOW DID IT SCALE?
AND HOW IS IT IMPACTING BUSINESS?

12. What is Hyper Sociality, Why Now, and Why is it important to
What is Hyper‐Sociality Why Now and Why is it important to
Organizations?
• Technology, connectivity, Moore’s Law allow
our innate Hyper‐Sociality to scale
• Mass media is no longer the only show in
town
• Organizations (and their functions like
marketing, product development, sales,
marketing product development sales
customer support, knowledge management,
HR) were structured in a Hyper‐Social
vacuum.
vacuum
• The companies that can mirror their
yp y
constituents’ Hyper‐Sociality will be best
positioned to succeed

13. Symbols, signs, rules, and culture let reciprocity scale
Reciprocity scales beyond Dunbar’s 150 people
because of signs, symbols, rules, and culture

14. SUCCESSFUL HYPER‐SOCIAL ORGANIZATIONS
THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS
Informed by Tribalization of Business Study:
2009 – 430 Companies took the survey
(52% external communities, 32 hybrid, and 12
(52% t l iti 32 h b id d 12
internal)

15. In the old days
Customer
Support
PR
Marketing
Hierarchies within organizations
Hierarchies within organizations Mostly 1‐1 customer relationships
M tl 1 1 t l ti hi
Old: legal employee contracts Old: legal customer contracts

16. The new world order Green
Green
Enthusiasts
CIO’s
Business
model tweak
PR
Customer
support
Product Idea
Hierarchies within organizations
Hierarchies within organizations Mostly 1‐1 customer relationships
M tl 1 1 t l ti hi
Old: legal employee contracts Old: legal customer contracts
New: cross‐functional social contracts New: social contracts

17. Hyper‐Social companies think differently: a recap
• Think tribe – not market segment
– We need to find groups of people who have
something in common based on their behavior,
not their market characteristics
not their market characteristics
• Think knowledge network – not information channel
– The most important conversations in “…affinity groups
communities happen in networks of people, not
communities happen in networks of people not will quickly become
will quickly become
between the company and the community. the dominant social
force in the
• Think human‐centricity – not company‐centricity emerging world
– The human has to be at the center of everything
The human has to be at the center of everything economy, changing
how we think about
you do, not the company markets, fads, social
• Think emergent messiness – not hierarchical fixed movements, and,
ultimately, power”
processes
– People will want to see responses to their ‐ Tom Hayes, Jump
suggestions, even if it does not fit your Point: How Network
Culture is
community goals – FAST Revolutionizing
Business – 2008

18. HYPER‐SOCIAL ORGANIZATIONS
WHAT IS IT THAT THEY DO DIFFERENT?

19. Hyper‐Social Orgs – Leveraging Social Business Processes
• Successful Hyper‐Social organizations turn their
business processes into “social” processes
– Why?
• Scale
• Increased quality
• Increased passion
Increased passion
• Increased WOM

20. Turning a business process into a social process
• IS NOT:
– Running traditional programs using social
media platforms – PR by blogging press
releases, lead gen by spamming community
releases lead gen by spamming community
members, recruiting through spray and pray
over Twitter, etc.
• BUT IS:
– Running programs based on human reciprocity
and social contracts to get others, whose job it
g j
isn’t to do so, to help you do your job –
customer support with the help of all
employees and customers, product innovation
with customers and detractors, etc.
with customers and detractors etc
– TAPPING INTO PASSION, AND HUMAN 1.0
TRAITS

21. Process Before After Benefits Case Studies
Sales One‐to‐one Many‐to‐many Sales is social Tibco, Zappos
networking
Product Innovation Constraint to a Includes all Reduce product failure Cisco, Netflix
department employees, rates (now at 80%)
customers, prospects
and detractors
Lead generation Interrupt‐driven Become findable, be Leads that actually EMC, Dell
generally helpful in want to buy
public conversation something
Customer Service Conducted by Conducted by Customers service as a SAP, Zappos
employees employees and other
employees and other revenue source
revenue source
customers instead of cost center
Knowledge Top down process Federated and user‐ KM that works, IBM
Management driven process changes in work habits
Customer Mostly between
y Primarily among
y g Reduced cost and Best Buy, Dassault
y,
Communications companies and customers, detractors increased Systemes, Fiskars
customers and prospects effectiveness
Talent Acquisition and Board, interrupt‐ Endorsed by the tribes Social context Monster.com
Development driven and based on people belong to provides better
weak ties WOM
weak ties WOM matches
Employee Mostly within silos Cross enterprise Increased serendipity, IBM, FedEx, Cisco
Communications increased support
Market research Based on small groups Based on tribes and Much more accurate Eli Lilly, Pfizer, IBM,
and financial social contract market data and Fiskars
incentives increased success
PR & Thought Rolodex based and Community/tribe Much more Microsoft, Intuit
leadership focused on traditional based and focused on amplification of the
media social media messages 21

22. HYPER‐SOCIAL ORGANIZATIONS
HOW DO THEY GET GOING?

23. Many paths to success (and many paths to failure too)
• Assess Hyper‐Social readiness (plan is to get
benchmarking info on this from 2010 Tribalization of
Business Study)
• Find the tribes and their leaders – internally and Compared to other
externally: CMO’s I consider
myself lucky. Dell Hell
– Who are they, what makes them tick, what is their put our brand under
pressure and so to
d t
language, what is their shared symbolism, where engage in social
do they hang out, etc. media was actually a
question of
• Start pilots that matter ‐ and measure them the same survival….you cannot
y
way you would measure the impact of any other get into social media
by just putting a toe in
program the water ‐ you are
• Set up infrastructure to: either all in and it
becomes part of your
becomes part of your
– Measure cross‐functional impact of programs culture, or you’re not.
Erin Nelson, CMO Dell
– Scale the program to where it makes a difference (cmotwo.com)
in business

24. Further down the line
• Look at new measurements – e.g., customer
equity measurements to better reflect impact of
WOM
• Monitoring and understanding the behavior of
active lurkers – the largest active member group
of any community (32% of companies are starting
to measure)
• Think of expanding your employee pool by
encouraging more people to participate
• Recruit for a Hyper‐Social future
– Different talent
– Different leadership
Different leadership

25. Smaller questions to ask yourself
• Are your marketing/employee programs reciprocal?
• Would you send collateral to a friend of yours?
• Do you know what 20% of your collateral gets used?
y y g
• Are you recruiting for skill or behavior?
• Are you ensuring diversity in the recruiting process?
• Are you tapping in the social realm to recruit?
Are you tapping in the social realm to recruit?
• Is your KM extending to your customers?
• Is your CRM customer‐centric or account‐centric?
• Is it focused on transactions or relationships?
• Is it focused on the past/present or the present/future?

26. Legal Considerations
• What’s legal good for anyway?
h ’ l l df ?
• Key Hyper‐Social legal issues:
– Hiring (unlawful background checks, lawful off‐duty
conduct) )
– Disclosure of trade secrets and/or proprietary
information
– Privacy (employers may run afoul of SCA; waiters)
– Harassment
– Wrongful termination
– Defamation (of company by employees?)
– Disclosure of nonpublic material information
p
triggering securities law issues
– Negligent referral based on social network references
– Unauthorized use of company logos, trademarks and
copyrighted
– Material (employees posting other people’s content
to corporate site)
– Labor laws
Derived from Morgan Lewis analysis at
http://www.pli.edu/product_files/EN00000000081353/49749.pdf

27. Brainstorm exercise
• You are Social Media Experts (and we are not)
– How would you define social businesses?
• We always overestimate the short term impact of
change and underestimate the long term impact
of change – but if you were to extrapolate the
g y p
changes moving forward, what would you predict
the big changes would be?
• Think about your corporate culture – which
elements of it further Hyper‐Sociality, and which
are an impediment?
p

28. Any questions?
Francois Gossieaux
Partner, Beeline Labs
e. francois@beelinelabs.com
f i @b li l b
w. http://www.beelinelabs.com
b. http://www.emergencemarketing.com
c. http://www.marketingtwo.net
p // g
p. http://www.cmotwo.com
Ed Moran
e. emoran@deloitte.com
e emoran@deloitte com
w. http://www.deloitte.com
Our new book: The Hyper‐Social Organization
http://www.hypersocialorg.com
28