Social Business: An opportunity that requires

greater leadership

Excerpted from the second annual MIT Sloan Management Review and

Deloitte social business report

Our multi-year research study

To better understand how social is evolving within organizations, we engaged in a multi-year research project with MIT Sloan Management Review (MIT SMR). Our second year research: Surveyed 2,545 executives and managers Involved 99 countries and 25 industries Interviewed 33 business executives and

thought leaders

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A call for leadership in social business

There is a tremendous opportunity to reap the benefits of social business across an organization

Yet, the use of social tools and technologies is still in the early stages at most organizations

Strong leadership is needed to help companies advance along the social business journey and capitalize on the benefits

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Where are the leaders?

Fifty-two percent of managers say their companies are at an early stage of developing social business capabilities

For these managers, the top barriers to social business are a lack of strategy, no business case and a lack of management understanding

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Statistics provide evidence

Respondents from companies who lack senior management sponsorship rated their companies’ social business maturity 0.519 and 0.457 points lower than others (on a 10 point maturity scale).

-0.519

-0.457

Lack of Senior Management Sponsorship

Smaller Businesses (< $250 million revenue)

Large Businesses (> $250 million revenue)

Coefficients for Impact to Maturity

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Socially mature companies understand this

“Michael Dell’s leadership really paved the path to us becoming a social business.”

Richard Margetic, Dell’s director of social media

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Why is leadership critical?

Social Business IS NOT like getting

employees to use the newest update to a

word-processing program

Social Business IS about changing

the way people work

70% of respondents personally believe that social business is an opportunity to fundamentally change the way their organization works

In other words, Social Business won’t happen on its own

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C-suite execs are beginning to see the value

How important do you consider social business to be to your organization? Percentage of responses marked “important” by C-suite executives in 2011 and 2012

Today

68% 64%

50%

43%

35%

20%

One year from today

Three years from today

2011 2012

0%

10%

20%

30%

40%

50%

60%

70%

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C-suite execs are beginning to see the value

What is your personal perspective on the future impact of social business on your business?

CIO/ technology

director

CMO

A risky medium that we are forced to confront Just another tool to communicate

0%

20%

40%

60%

80%

CEO/ president/ managing director

CFO/ treasurer/

comptroller

An opportunity to fundamentally change the way we work

A Social business is:

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C-suite execs are beginning to see the value

Top Uses of Social Business by C-suite

CEO CFO CIO CMO

1st Top Use of Social Business

Driving brand affinity

Increasing sales

Managing projects

Driving brand affinity

2nd Top Use of Social Business

Increasing sales

Recruiting and managing talent

Driving brand affinity

Increasing sales

3rd Top Use of Social Business

Crowdsourcing ideas and knowledge

Providing customer service

Providing customer service

Crowdsourcing ideas and knowledge

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But what does effective leadership look like?

1 2 3 3 Key leadership behaviors appear in many

successful social business initiatives

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Don’t just plan, … execute and follow through, too

“If I didn’t have senior leadership support, and if I hadn’t had the head of our sales force tell me that we had to be the first in the industry to do this, then it never would have happened.”

Lauren Boyman, director of digital strategy, Morgan Stanley Wealth Management

1

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2 Lead by example

“It’s a fundamental equation: no involvement (by leaders), no commitment (by employees), no exception.”

Vala Afshar, chief marketing officer and chief customer officer, Enterasys Networks

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Take a pragmatic approach to measurement

“It takes time to figure this (social business ROI) out … You won’t see the benefits until after you have changed the ways you work.”

Ralf Larsson, director of online engagement at Electrolux

3

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But wait, there’s more …

Social is also changing how the C-suite works together

CEO

CMO

CFO

CIO

CXO

CDO*

of C-suite leaders believe social business is “an opportunity to fundamentally change the way we work”

70%

*Chief Digital Officer @DU_Press #SocBizStudy

Greater collaboration between the CMO and CIO

“What we’re seeing in the market is a real partnership starting to evolve between the IT and marketing organizations.”

• “IT can take on matters such as ensuring the site is up, apps are running, metrics are solid, and the infrastructure is well-managed.”

• “Marketing can manage the content.”

Bill Ingram, vice president analytics and social at Adobe

CMO CIO

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Emergence of the Chief Digital Officer (CDO)

The basic mandate of the CDO is to provide broad leadership of key digital-based initiatives that affect the entire organization or its critical focus areas.

CDOs can be found in a variety of sectors, particularly

media, entertainment and non-profit sectors.

CDO

Gannett

Simon & Schuster

Starbucks Columbia University

Harvard University

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Conclusion

The onus is on leaders to believe, and act on the belief, that social tools can help solve important business problems.

Examples of leaders championing social business like Michael Dell exist.

The question is: How many senior executives at other companies will follow their example?

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Join the discussion: Share your ideas for promoting social leadership Please share your experiences

with us. How are leaders embracing social at your company?

Join the #SocBizStudy conversation, or follow @DU_Press on Twitter.

Visit our site to read our research and learn more.

The Executive’s Role in Social Business

MIT SMR Summer edition 2013

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Participate in our 2014 study

We’re kicking off our third annual research study on social business with MIT Sloan Management Review. Help us understand how social business is evolving within your organization by participating in our survey .

@DU_Press #SocBizStudy

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