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How Openness and
                                 Transparency Become a

          TOWARDS A
                                Central Business Strategy
                                     for Cultural Heritage

          REPUTATION ECONOMY
Robert Stein
Deputy Director for Research,
Technology, and Engagement
WHAT IS A
                         REPUTATION
                         ECONOMY?
Flickr Credit ~rednuht
THE REPUTATION ECONOMY

            But here's the interesting paradox: The reputation economy creates
            an incentive to be more open, not less. Since Internet commentary is
            inescapable, the only way to influence it is to be part of it. Being
            transparent, opening up, posting interesting material frequently and
            often is the only way to amass positive links to yourself and thus to
            directly influence your Googleable reputation.
            Putting out more evasion or PR puffery won't work, because people
            will either ignore it and not link to it - or worse, pick the spin apart and
            enshrine those criticisms high on your Google list of life.


                                        Clive Thompson, “The See-Through CEO”
                                      WIRED Magazine - Issue 15.04, March, 2007

Flickr Credit ~rednuht
SUPPLY
DEMAND
2011 Forbes Reputation Survey
70%

60%

50%

40%
                                                                         Purchasing
30%                                                                      Advocacy

20%

10%

  0%
            Perception of Product          Perception of Company

Source http://www.forbes.com/2011/06/08/reputation-economy-stupid.html




                                                             WHAT DRIVES
        PURCHASING DECISIONS?
79% of HR
professionals use
online reputation in their
hiring process
Source: Microsoft – 2010, http://bit.ly/cPsOXX   Flickr Credit ~ helenasicily
THE REPUTATION
ECONOMY EXISTS


Driven by:
- Rise in access to information
- Rise in public awareness to that fact
- Rise in a culture of participation




                                          Flickr Credit ~altus
REPUTATION
   AND CULTURAL HERITAGE




                 Flickr Credit ~adforce1
REPUTATION
                      AND CULTURAL HERITAGE




Attendance is
DISCRETIONARY and NOT
prescriptive of LONG-TERM
success




                                    Flickr Credit ~adforce1
REPUTATION
                          AND CULTURAL HERITAGE




Funding is increasingly
SCARCE and driven by
SOCIAL IMPACT




                                        Flickr Credit ~adforce1
REPUTATION
                       AND CULTURAL HERITAGE




Philanthropy is fueled by
RELATIONSHIP and PAST
PERFORMANCE




                                     Flickr Credit ~adforce1
REPUTATION
                                           AND CULTURAL HERITAGE



There is no outside world anymore, just a world.
one that is blogged, Facebooked, Twittered, and
utterly porous. The extent to which we can
control our image is directly proportionate to our
honesty about ups and downs in a context that
we can to some degree define

                            -Maxwell L. Anderson




                                                         Flickr Credit ~adforce1
source ~donsolo
THE REPUTATION ECONOMY
AND SOCIAL CAPITAL
THE REPUTATION ECONOMY
AND SOCIAL CAPITAL
     Whereas physical capital refers to physical objects and
     human      capital    refers    to    the    properties    of
     individuals, social capital refers to connections among
     individuals – social networks and the norms of
     reciprocity and trustworthiness that arise from them. In
     that sense social capital is closely related to what some
     have called “civic virtue.” The difference is that social
     capital calls attention to the fact that civic virtue is most
     powerful when embedded in a sense network of
     reciprocal social relations. A society of many virtuous but
     isolated individuals is not necessarily rich in social
     capital.

                          Robert Putnam, Bowling Alone, 2000
IS OUR SOCIAL CAPITAL
BANKRUPT ALREADY?
REPUTATION HAS
MANY FACETS




                               PUBLIC
                         PROFESSIONAL
                             FUNDERS
Flickr Credit ~swamibu
Strategies of…

TRANSPARENCY
COLLABORATION
SHARING
                          Lead to…
                          SOCIAL CAPITAL
                              AUTHORITY
                 CONTINUOUS IMPROVEMENT
WHAT IS
TRANSPARENCY?




 Trans-par-en-cy:
   “The full accurate and timely
   disclosure of information”

                      -Wall Street Words
              http://www.dictionary.com

                                           Flickr Credit: ~marcomagrini
kalexanderson/



transparency

IF YOU CAN’T AVOID IT…
                                EMBRACE IT!
Some facts INDIANAPOLIS
              THE About the
               IMA
                MUSEUM OF ART




127 YEARS
152 ACRES
300 STAFF
Enrich Permanent
                THE INDIANAPOLIS
              Collection
                   MUSEUM OF ART




54,000 OBJECTS
428,000 VISITORS
1M WEB VISITORS
IMA’S CHALLENGES
“The Indianapolis Museum of Art might be
the web-smartest museum in America, and
its blog is one of my favorite daily reads”
                – Tyler Green, Modern Art Notes
IMA DASHBOARD
  Launch: Sept 2007
  Goals:
    Simplicity
    Deep Dives
    Workflow
    Flexibility
w
“Of course, such systems [dashboards] raise a rather vexing challenge:
what, exactly, are the few key indicators you would need to watch to monitor
your success? It's this question that actually proves to be more effective
than the dashboard tool itself. To know what you should monitor, you need
to know what you're trying to do, and you also have to define what success
looks like (more people? happier people? more art? better reviews? prolific
artists?).”
                            Andrew Taylor, “Keeping an Eye on Dashboards”,
                                 The Artful Manager Blog, October 20, 2006,.
“The root of the problem is that there is no longer an agreed-upon method
of measuring achievement… While many challenges beset art museum
leaders today, finding a way to measure performance is accordingly among
the field’s most urgent… Without generally accepted metrics, arts
organizations will have more and more trouble making a case for
themselves.”
                Maxwell L. Anderson, “Metrics of Success in Art Museums”,
                                       Getty Leadership Institute (2004),.
RESULTS
FOR THE IMA



                     GOOD PRESS
          WELL RECEIVED BY PEERS
               CLARIFYING GOALS
                 INSPIRED OTHERS
OVERCOMING FEAR



      COMPARE AND DESPAIR
OVERCOMING FEAR



        ACTUAL FAILURE




                         Flickr Credit ~sziszo
WHY FAILING PUBLICLY IS GOOD




                                        HIGHLIGHTS SUCCESS

                                DISPELLS ASSUMPTION OF SPIN
                              DOCUMENTS A NEED FOR CHANGE
Flickr Credit: ~carowallis1
BENCHMARKING
      “Thus, benchmarking has many direct and
      indirect benefits: increasing the impact of
      mission-related activities, raising internal
      standards, improving performance, attracting
      more funding, uncovering (and fixing) hidden
      weaknesses, and overall, improving the public
      face of the organization.”
                                         Jason Saul
                       Benchmarking for nonprofits
                   Fieldstone Alliance, 2004, pg 12
AAMD
STATISTICAL
SURVEY
IMA’S DIRTY LITTLE SECRET
THE DASHBOARD IS FOR STAFF
HOW CAN MUSEUMS
PURSUE EXCELLENCE?




              Flickr Credit ~adforce1
W. EDWARDS DEMING
Kaizen
KAI    = change or to correct
ZEN    = good
KAIZEN = a system of
       continuous
       improvement
CONTINUOUS IMPROVEMENT




EXECUTE
EVALUATE
REPEAT
Strategies of…

TRANSPARENCY
COLLABORATION
SHARING
                          Lead to…
                          SOCIAL CAPITAL
                              AUTHORITY
                 CONTINUOUS IMPROVEMENT
AUTHORITATIVE
           VS
           AUTHORITARIAN



   HOW DO YOU ESTABLISH

AUTHORITY
JULIA CHILD
Julia’s Kitchen at

AMERICAN MUSEUM OF NATURAL HISTORY
                                     Flickr Credit ~kevharb
Cultural Heritage &

COMPETITIVE ADVANTAGE
Flickr Credit ~jasoneppink
Visitor Inclusion
IMA’S offense to Bruce, but who doesn’t want
  • No STRATEGIES FOR
    this?
COLLABORATION




                                       source ~victoriapeckham
Steve.Museum
     Exploring Applications of
     Social Tagging for Museums

     Founded in 2005

     2006 Institute for Museum and
     Library Services (IMLS) National
     Leadership Research Grant

     2008 IMLS NLG Steve In Action

     2008 IMLS NLG Research Grant
      T3: Text, Tags, Trust

     Open Source software supporting
     tagging in museums
33 Partners
• MoMA
• National Gallery of Art, USA
• Metropolitan Museum of Art
• Museo Nacional del Prado
• Van Gogh Museum
• Museum Boijmans Van
   Beuningen
SAY HELLO TO


TAP
Museums
• Balboa Park Online Collaborative   • National Air and Space Museum
• Dallas Museum of Art               • The Smithsonian
• The Eiteljorg Museum of Native     Vendors
  American and Western Art
                                     • AdLib Systems
• Indianapolis Museum of Art
                                     • GuideByCell
• The Metropolitan Museum of Art
                                     • Imagineear
• Minnesota Historical Society
                                     • MyTours
• Museum of Contemporary Art,
                                     • NOUS Guides
  San Diego
                                     • Tristan Systems
• Museum of Fine Arts, Boston
MFA Boston
Gemeente Museum
   Den Haag
Crystal Bridges Museum
    of American Art
Online Scholarly
Catalogue Initiative
RESULTS
FOR THE IMA




                 $3.2M GRANTS SINCE 2006
            $1.2M CONSULTING SINCE 2009
            +89% WEB TRAFFIC SINCE 2008
EXCEEDS EXHIBITION REVENUE BY > 50% IN FY12
DECLINING
SOCIAL CAPITAL?


     Putnam suggests in Bowling Alone that the
     individualizing nature of technology is at least partially
     reponsible for an observed decline in social capital.




                                                   I DISAGREE
CULTURAL HERITAGE
NEEDS THE REPUTATION
ECONOMY
THANK YOU!
@rjstein

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Towards a Reputation Economy: How Openness and Transparency Become a Central Business Strategy for Cultural Heritage

  • 1. How Openness and Transparency Become a TOWARDS A Central Business Strategy for Cultural Heritage REPUTATION ECONOMY Robert Stein Deputy Director for Research, Technology, and Engagement
  • 2. WHAT IS A REPUTATION ECONOMY? Flickr Credit ~rednuht
  • 3. THE REPUTATION ECONOMY But here's the interesting paradox: The reputation economy creates an incentive to be more open, not less. Since Internet commentary is inescapable, the only way to influence it is to be part of it. Being transparent, opening up, posting interesting material frequently and often is the only way to amass positive links to yourself and thus to directly influence your Googleable reputation. Putting out more evasion or PR puffery won't work, because people will either ignore it and not link to it - or worse, pick the spin apart and enshrine those criticisms high on your Google list of life. Clive Thompson, “The See-Through CEO” WIRED Magazine - Issue 15.04, March, 2007 Flickr Credit ~rednuht
  • 5. 2011 Forbes Reputation Survey 70% 60% 50% 40% Purchasing 30% Advocacy 20% 10% 0% Perception of Product Perception of Company Source http://www.forbes.com/2011/06/08/reputation-economy-stupid.html WHAT DRIVES PURCHASING DECISIONS?
  • 6. 79% of HR professionals use online reputation in their hiring process Source: Microsoft – 2010, http://bit.ly/cPsOXX Flickr Credit ~ helenasicily
  • 7. THE REPUTATION ECONOMY EXISTS Driven by: - Rise in access to information - Rise in public awareness to that fact - Rise in a culture of participation Flickr Credit ~altus
  • 8. REPUTATION AND CULTURAL HERITAGE Flickr Credit ~adforce1
  • 9. REPUTATION AND CULTURAL HERITAGE Attendance is DISCRETIONARY and NOT prescriptive of LONG-TERM success Flickr Credit ~adforce1
  • 10. REPUTATION AND CULTURAL HERITAGE Funding is increasingly SCARCE and driven by SOCIAL IMPACT Flickr Credit ~adforce1
  • 11. REPUTATION AND CULTURAL HERITAGE Philanthropy is fueled by RELATIONSHIP and PAST PERFORMANCE Flickr Credit ~adforce1
  • 12. REPUTATION AND CULTURAL HERITAGE There is no outside world anymore, just a world. one that is blogged, Facebooked, Twittered, and utterly porous. The extent to which we can control our image is directly proportionate to our honesty about ups and downs in a context that we can to some degree define -Maxwell L. Anderson Flickr Credit ~adforce1
  • 14. THE REPUTATION ECONOMY AND SOCIAL CAPITAL
  • 15. THE REPUTATION ECONOMY AND SOCIAL CAPITAL Whereas physical capital refers to physical objects and human capital refers to the properties of individuals, social capital refers to connections among individuals – social networks and the norms of reciprocity and trustworthiness that arise from them. In that sense social capital is closely related to what some have called “civic virtue.” The difference is that social capital calls attention to the fact that civic virtue is most powerful when embedded in a sense network of reciprocal social relations. A society of many virtuous but isolated individuals is not necessarily rich in social capital. Robert Putnam, Bowling Alone, 2000
  • 16. IS OUR SOCIAL CAPITAL BANKRUPT ALREADY?
  • 17. REPUTATION HAS MANY FACETS PUBLIC PROFESSIONAL FUNDERS Flickr Credit ~swamibu
  • 18. Strategies of… TRANSPARENCY COLLABORATION SHARING Lead to… SOCIAL CAPITAL AUTHORITY CONTINUOUS IMPROVEMENT
  • 19. WHAT IS TRANSPARENCY? Trans-par-en-cy: “The full accurate and timely disclosure of information” -Wall Street Words http://www.dictionary.com Flickr Credit: ~marcomagrini
  • 21. Some facts INDIANAPOLIS THE About the IMA MUSEUM OF ART 127 YEARS 152 ACRES 300 STAFF
  • 22. Enrich Permanent THE INDIANAPOLIS Collection MUSEUM OF ART 54,000 OBJECTS 428,000 VISITORS 1M WEB VISITORS
  • 24. “The Indianapolis Museum of Art might be the web-smartest museum in America, and its blog is one of my favorite daily reads” – Tyler Green, Modern Art Notes
  • 25. IMA DASHBOARD Launch: Sept 2007 Goals: Simplicity Deep Dives Workflow Flexibility
  • 26.
  • 27. w
  • 28. “Of course, such systems [dashboards] raise a rather vexing challenge: what, exactly, are the few key indicators you would need to watch to monitor your success? It's this question that actually proves to be more effective than the dashboard tool itself. To know what you should monitor, you need to know what you're trying to do, and you also have to define what success looks like (more people? happier people? more art? better reviews? prolific artists?).” Andrew Taylor, “Keeping an Eye on Dashboards”, The Artful Manager Blog, October 20, 2006,.
  • 29. “The root of the problem is that there is no longer an agreed-upon method of measuring achievement… While many challenges beset art museum leaders today, finding a way to measure performance is accordingly among the field’s most urgent… Without generally accepted metrics, arts organizations will have more and more trouble making a case for themselves.” Maxwell L. Anderson, “Metrics of Success in Art Museums”, Getty Leadership Institute (2004),.
  • 30. RESULTS FOR THE IMA GOOD PRESS WELL RECEIVED BY PEERS CLARIFYING GOALS INSPIRED OTHERS
  • 31.
  • 32.
  • 33.
  • 34. OVERCOMING FEAR COMPARE AND DESPAIR
  • 35. OVERCOMING FEAR ACTUAL FAILURE Flickr Credit ~sziszo
  • 36. WHY FAILING PUBLICLY IS GOOD HIGHLIGHTS SUCCESS DISPELLS ASSUMPTION OF SPIN DOCUMENTS A NEED FOR CHANGE Flickr Credit: ~carowallis1
  • 37. BENCHMARKING “Thus, benchmarking has many direct and indirect benefits: increasing the impact of mission-related activities, raising internal standards, improving performance, attracting more funding, uncovering (and fixing) hidden weaknesses, and overall, improving the public face of the organization.” Jason Saul Benchmarking for nonprofits Fieldstone Alliance, 2004, pg 12
  • 39.
  • 40. IMA’S DIRTY LITTLE SECRET THE DASHBOARD IS FOR STAFF
  • 41. HOW CAN MUSEUMS PURSUE EXCELLENCE? Flickr Credit ~adforce1
  • 43. Kaizen KAI = change or to correct ZEN = good KAIZEN = a system of continuous improvement
  • 45. Strategies of… TRANSPARENCY COLLABORATION SHARING Lead to… SOCIAL CAPITAL AUTHORITY CONTINUOUS IMPROVEMENT
  • 46. AUTHORITATIVE VS AUTHORITARIAN HOW DO YOU ESTABLISH AUTHORITY
  • 48. Julia’s Kitchen at AMERICAN MUSEUM OF NATURAL HISTORY Flickr Credit ~kevharb
  • 49.
  • 50. Cultural Heritage & COMPETITIVE ADVANTAGE Flickr Credit ~jasoneppink
  • 51. Visitor Inclusion IMA’S offense to Bruce, but who doesn’t want • No STRATEGIES FOR this? COLLABORATION source ~victoriapeckham
  • 52. Steve.Museum Exploring Applications of Social Tagging for Museums Founded in 2005 2006 Institute for Museum and Library Services (IMLS) National Leadership Research Grant 2008 IMLS NLG Steve In Action 2008 IMLS NLG Research Grant T3: Text, Tags, Trust Open Source software supporting tagging in museums
  • 53. 33 Partners • MoMA • National Gallery of Art, USA • Metropolitan Museum of Art • Museo Nacional del Prado • Van Gogh Museum • Museum Boijmans Van Beuningen
  • 55. Museums • Balboa Park Online Collaborative • National Air and Space Museum • Dallas Museum of Art • The Smithsonian • The Eiteljorg Museum of Native Vendors American and Western Art • AdLib Systems • Indianapolis Museum of Art • GuideByCell • The Metropolitan Museum of Art • Imagineear • Minnesota Historical Society • MyTours • Museum of Contemporary Art, • NOUS Guides San Diego • Tristan Systems • Museum of Fine Arts, Boston
  • 57. Gemeente Museum Den Haag
  • 58. Crystal Bridges Museum of American Art
  • 60. RESULTS FOR THE IMA $3.2M GRANTS SINCE 2006 $1.2M CONSULTING SINCE 2009 +89% WEB TRAFFIC SINCE 2008 EXCEEDS EXHIBITION REVENUE BY > 50% IN FY12
  • 61. DECLINING SOCIAL CAPITAL? Putnam suggests in Bowling Alone that the individualizing nature of technology is at least partially reponsible for an observed decline in social capital. I DISAGREE
  • 62. CULTURAL HERITAGE NEEDS THE REPUTATION ECONOMY

Editor's Notes

  1. But here's the interesting paradox: The reputation economy creates an incentive to be more open, not less. Since Internet commentary is inescapable, the only way to influence it is to be part of it. Being transparent, opening up, posting interesting material frequently and often is the only way to amass positive links to yourself and thus to directly influence your Googleable reputation.Putting out more evasion or PR puffery won't work, because people will either ignore it and not link to it - or worse, pick the spin apart and enshrine those criticisms high on your Google list of life.Clive Thompson, “The See-Through CEO”WIRED Magazine - Issue 15.04, March, 2007
  2. If a demand exists – businesses will create enough supply to satisfy that demandBusinesses that optimize that production will win
  3. If a demand exists – businesses will create enough supply to satisfy that demandBusinesses that optimize that production will win
  4. Driven byRise in access to informationRise in public awareness to that factRise in participatory culture and Rating
  5. This is an image from the occupy wall street movement in NYC… demonstrates an evidence that social capital related to corporations is bankrupt.
  6. This is an image from the occupy wall street movement in NYC… demonstrates an evidence that social capital related to corporations is bankrupt.Is social capital related to cultural heritage bankrupt already? I don’t think that it is… but it’s a worthwhile question to ask what would happen if it ever became that way.
  7. LOCATION – FLY-OVER STATELIMITATIONS OF COLLECTIONLIMITATIONS OF BUDGET
  8. Highlight successesDispells assumption of PRDocuments a need for changeThe key is to know that they happened!!!(lead in to situational awareness)
  9. Recognized for introducing French Cuisine to the American PublicAuthor of Mastering the Art of French CookingWell-Known Host of Cooking shows and among the 50th greatest TV Stars of all time
  10. Museums loose nothing by giving away knowledgeBuilding solutions that work for you in a way that can be repurposed is long-term thinkingCollaboration (is a pain in the butt) but leads to better ideas – solving more problems than you would have on your own.