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Dachis Social Business Summit - Open Leadership

Presentation by Charlene Li at the Dachis Social Business Summit, March 11, 2010 in Austin, Texas. Discusses the need for open leadership when implementing social strategies.

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Dachis Social Business Summit - Open Leadership

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  1. 1 Making The Case For Open Leadership Charlene Li Altimeter Group March 11, 2010 For Dachis Social Business Summit

  2. © 2010 Altimeter Group

  3. A culture of sharing © 2010 Altimeter Group

  4. It’s about relationships © 2010 Altimeter Group

  5. These new relationships are changing business New ways to get things done Command & control © 2010 Altimeter Group

  6. 6 Why is social business hard? Because real relationships require that you give up control © 2010 Altimeter Group

  7. 7 The need for open leadership When people get what they need from each other Having the confidence to give up control and still be in command © 2010 Altimeter Group

  8. 8 10 elements of openness Information Sharing • Explaining • Updating • Conversing • Open Mic • Crowdsourcing • Platforms Decision Making • Centralized • Democratic • Self-managing • Distributed © 2010 Altimeter Group

  9. 9 Determine how open you need to be to meet your goals Explaining Updating Conversing Today Where we need to be Open Mic Crowdsourcing Platform © 2010 Altimeter Group

  10. Social Strategy © 2010 Altimeter Group

  11. 11 Four goals define your strategy, but always start with learn Dialog Learn Support Innovate © 2010 Altimeter Group

  12. 12 Learn with monitoring tools © 2010 Altimeter Group

  13. 13 Dialog with your community Dialog Learn Support Innovate © 2010 Altimeter Group

  14. 14 Engagement Pyramid: Focus on Watching and Sharing Curating Producing Commenting Sharing Watching © 2010 Altimeter Group

  15. 15 Focus on the relationship you want Richard Edelman writes or records his blog posts – he doesn’t type. © 2010 Altimeter Group

  16. 16 DellOutlet drives sales with Twitter © 2010 Altimeter Group

  17. 17 Help your members support each other Dialog Learn Support Innovate © 2010 Altimeter Group

  18. 18 Premier Farnell supports engineers with community, and employees with “OurTube” © 2010 Altimeter Group

  19. 19 Social + open = competitive advantage +2,200 Best Buy employees answer questions sent to @twelpforce © 2010 Altimeter Group

  20. 20 Innovate with customer feedback Dialog Learn Support Innovate © 2010 Altimeter Group

  21. 21 Starbucks innovates across the company © 2010 Altimeter Group

  22. 22 Fiat gathers product and market intelligence Contributors submit ideas, and can include pictures and embed videos. Fiat gets valuable ideas for features and design, and marketing and advertising. © 2010 Altimeter Group

  23. What to do first © 2010 Altimeter Group

  24. 24 #1 Align social with strategic goals Examine your 2010 goals Pick one where social can have an impact © 2010 Altimeter Group

  25. 25 #2 Understand the value What’s the value of a fan or follower? 16,965 followers +4 million fans © 2010 Altimeter Group

  26. The new lifetime value calculation, based on your goals • Percent that refer • Size of their networks • Percent of referred people who purchase • Value of purchases + Value of purchases - Cost of acquisition + Value of new customers from referrals + Value of insights + Value of support + Value of ideas • Percent that provide support • Frequency and value of the support = Customer lifetime value © 2010 Altimeter Group

  27. 27 Make decisions with metrics Find more fans with large networks Refers Large network Doesn’t refer Fans Refers Small network Doesn’t refer Encourage fans to make more referrals © 2010 Altimeter Group

  28. 28 #3 Organize for different types of openness Coordinated - Sets rules, best practices, policies - Each department executes - Takes time, not cutting edge - Eg. HP, Red Cross Organic - Natural growth requiring few resources - Deep adoption - Non-consistent - Eg. Humana, Microsof t Centralized - One department controls all efforts - Experimental, fast moving - Not spread or used broadly - Eg. Starbucks, Ford, D ell © 2010 Altimeter Group

  29. 29 #4 Find and develop your open leaders Collaborative Independent Pessimist Optimist © 2010 Altimeter Group

  30. 30 #5 Embrace failure © 2010 Altimeter Group

  31. 31 Buyer blog hit the right note © 2010 Altimeter Group

  32. 32 Build trust and manage risk The Sandbox Covenant © 2010 Altimeter Group

  33. 33 Summary  Align your social business goals with your strategic goals.  Benchmark your progress based upon your business goals, not “engagement” data.  Change your mindset: letting go will yield more results. © 2010 Altimeter Group

  34. 34 34 Thank you Charlene Li charlene@altimetergroup.com blog.altimetergroup.com Twitter: charleneli For slides, send an email slides@altimetergroup.com © 2010 Altimeter Group

  35. 35 About Us Altimeter Group is a strategy consulting firm that provides companies with a pragmatic approach to disruptive technologies. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design. Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com. © 2010 Altimeter Group

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