cio national board meeting keynote
TRANSCRIPT
In the beginning – all business was social
Satisfaction results in positive or negative word of mouth which makes a difference
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Then business started scaling
…but the social could not scale and made no difference anymore – so it disappeared from business
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And companies started to develop real bad habits
Interrupting people, targeting people, segmenting people – it felt like going to war with customers (& employees)
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But then came the Internet and Social Media
Blogs, wiki’s, discussion boards, tags, social networks – a massive platform of participation
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And because humans were hardwired to be social
The social reentered business and commerce with a vengeance – employees, customers could once again behave
the way they’re hardwired to behave: humanly, tribally.
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So to understand how to do business in a 2.0 world
You do not need to understand the Web 2.0 technologies
You are better off understanding Human 1.0 – not as individuals, but as
hyper-social creatures 7
A RECAP OF THE HYPER-SOCIAL ORGANIZATION UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA – HUMAN 1.0 HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS WHAT THEY DO DIFFERENTLY, AND WHY WHAT DOES THIS ALL MEAN TO THE WORLD OF A CIO HOW DO YOU GET STARTED? HOW DO YOU MEASURE ROI FOR THOSE “SQUISHY” BENEFITS? HOW DO YOU BUILD CONSENSUS INTERNALLY? HOW DO YOU DEAL WITH RISK? HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?
OVERVIEW
Why are people going out of their way to punish others?
Humans have an innate sense of fairness = keeps reciprocal society working
Why do people like to look like others?
Because humans have mirror neurons and Tribes are one the two fundamental Human social instincts
Why is status so important (and why do we hoard it)?
Because it used to get us a better mate – proceed with caution: status works both ways!
Culture – perhaps the most important Human 1.0 characteristic
Humans created culture to deal with climate changes in the Pleistocene era – when they realized they could deal with change through culture they created their own
change
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
• The role of fairness in assessing situations
• Social framework of evaluating things vs. market framework
• The importance of power and status
• Herding and self-herding
• Culture – the most important Human 1.0 characteristic (early research shows that social behavior does not change when it scales)
So to the extent that we can basically be human
with what we know, and share it as freely as we
possibly can, I think we’ll go a long way towards
gaining a higher or stronger level of trust with
the consumers.
Barry Judge, CMO Best Buy
http://www.cmotwo.com
HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS
SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS
Informed by Tribalization of Business Study: 2008-2010 – 1,000+ companies took the survey
Hyper-Social companies think differently • 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
• Think knowledge network – not information channel – The most important conversations in
communities happen in networks of people, not between your organization and the community.
• Think human-centricity – not company-centricity – The human has to be at the center of everything
you do, not the organization • Think emergent messiness – not hierarchical fixed
processes – People will want to see responses to their
suggestions, even if it does not fit your community goals – FAST
“…affinity groups will quickly become the dominant social
force in the emerging world
economy, changing how we think about markets, fads, social
movements, and, ultimately, power”
- Tom Hayes, Jump
Point: How Network Culture is
Revolutionizing Business – 2008
BY GETTING PEOPLE WHO’S JOB IT IS NOT TO DO SOMETHING TO HELP YOU DO IT ANYWAY
SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS TURN THEIR BUSINESS PROCESSES INTO “SOCIAL” PROCESSES
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 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 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.
– TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS
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Process Before After Benefits Case Studies
Sales One-to-one Many-to-many Sales is social networking
Tibco, Zappos
Product Innovation Constraint to a department
Includes all employees,
customers, prospects and detractors
Reduce product failure rates (now at 80%)
Cisco, Netflix
Lead generation Interrupt-driven Become findable, be generally helpful in public conversation
Leads that actually want to buy something
EMC, Dell
Customer Service Conducted by employees
Conducted by employees and other
customers
Customers service as a revenue source
instead of cost center
SAP, Zappos
Knowledge Management
Top down process Federated and user-driven process
KM that works, changes in work habits
IBM
Customer Communications
Mostly between companies and
customers
Primarily among customers, detractors
and prospects
Reduced cost and increased
effectiveness
Best Buy, Dassault Systemes, Fiskars
Talent Acquisition and Development
Board, interrupt-driven and based on
weak ties WOM
Endorsed by the tribes people belong to
Social context provides better
matches
Monster.com
Employee Communications
Mostly within silos Cross enterprise Increased serendipity, increased support
IBM, FedEx, Cisco
Market research Based on small groups and financial
incentives
Based on tribes and social contract
Much more accurate market data and
increased success
Eli Lilly, Pfizer, IBM, Fiskars
PR & Thought leadership
Rolodex based and focused on traditional
media
Community/tribe based and focused on
social media
Much more amplification of the
messages
Microsoft, Intuit
HOW DO YOU GET STARTED? HOW DO YOU MEASURE ROI FOR “SQUISHY” BENEFITS? HOW DO YOU BUILD CONSENSUS INTERNALLY? HOW DO YOU DEAL WITH RISK? HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?
WHAT DOES THIS ALL MEAN TO THE WORLD OF A CIO?
1. UNDERSTAND YOUR CUSTOMER AND EMPLOYEE CULTURES 2. MAKE FRIENDS WITH THE CMO AND JOINTLY REPRESENT THE VOC 3. DEPLOY INFRASTRUCTURE THAT WILL SUPPORT THE NEW SOCIAL PROCESSES 4. THINK OF INNOVATION AT THE SEAMS 5. THINK HUMAN
HOW DO YOU GET STARTED?
“IN MANY INDUSTRIES, NEW COMPETITIVE BATTLE LINES MAY FORM BETWEEN COMPANIES THAT USE THE WEB IN SOPHISTICATED WAYS AND COMPANIES THAT FEEL UNCOMFORTABLE WITH NEW WEB-INSPIRED MANAGEMENT STYLES OR SIMPLY CAN’T EXECUTE AT A SUFFICIENTLY HIGH LEVEL” – MCKINSEY QUARTERLY, THE RISE OF THE NETWORKED ENTERPRISE, WEB 2.0 FINDS ITS PAYDAY, DEC 2010
UNDERSTAND OF THE RISK OF DOING NOTHING
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
1. MEASURE THE IMPACT OF SOCIAL PROGRAMS THE SAME WAY AS YOU MEASURE THE IMPACT OF TRADITIONAL PROGRAMS 2. START MEASURING NEW METRICS – CLV, CUSTOMER EQUITY, PASSION, WOM, TALENT ACQUISITION AND DEVELOPMENT, KNOWLEDGE ACQUISITION AND REUSE, ETC. 3. THINK HUMAN
HOW DO YOU MEASURE ROI FOR SQUISHY BENEFITS?
The benefits that companies derive are for real
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
The benefits are amazing
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
Benefits differences are measured by a
factor 2-6X
Overall company metrics are correlated as well
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716
1. AGREE ON EASY-TO-UNDERSTAND VALUES 2. DEVELOP SOCIAL MEDIA GUIDELINES AND GUIDERAILS 3. GET PEOPLE INVOLVED IN THE BEGINNING OF THE PROCESS 4. TREAT IT AS A CENTER OF EXCELLENCE VS. ONE GROUP OWNING THE SHOW 5. FOCUS ON BUILDING TRUST BY FOCUSING FIRST ON THE DIFFERENT TYPES OF PEOPLE IN THE GROUP AND THEN FOCUS ON THE WORK 6. ROTATE TEAM LEADS 7. GET EVERYONE’S DESIRED GOALS, OUTCOMES AND MOTIVATIONS OUT ON THE TABLE FIRST 8. THINK HUMAN
HOW DO YOU ACHIEVE CONSENSUS
1. TAKE A HOLISTIC, NON-SILOED APPROACH TO RISK 2. EDUCATE PEOPLE ON HOW TO AVOID RISKS 3. SET UP GUIDELINES AND GUIDERAILS 4. PROVIDE CASE STUDIES 5. BE TOLERANT OF THE 1% OF THE TIME SOMEONE MESSES UP 6. DEFINE CRISIS MANAGEMENT PLANS AND TRIAGE APPROACH 7. THINK HUMAN
HOW DO YOU DEAL WITH RISKS?
1. EMBRACE THE NEW ARTISAN WORKFORCE AND THE TOOLS THEY BRING 2. BRING BACK TRUST AS THE MAIN BUSINESS CURRENCY 3. THINK HUMAN
HOW TO DEAL WITH CONSUMERIZATION OF IT?
FOCUS ON ADOPTION OF TECHNOLOGIES THAT WILL SUPPORT DESIRED SOCIAL BEHAVIOR INSTEAD OF DEPLOYMENT OF TECHNOLOGIES TO CHANGE BEHAVIORS …IT’S ALL ABOUT BEING HUMAN IN BUSINESS ONCE AGAIN
A FINAL WORD OF ADVICE…
Any questions?
Francois Gossieaux Partner, Human 1.0 e. [email protected] w. http://www.human1.com p. http://www.cmotwo.com b. http://www.emergencemarketing.com Our new book: The Hyper-Social Organization http://www.hypersocialorg.com 37