A presentation to the EUPRERA Spring Symposium 2011, Lisbon. EUPRERA – The European Public Relations Education and Research Association.

1. Influence in the age of the social Web 1

2. Philip Sheldrake 2 Meanwhile Blog LinkedIn Twitter CIPR TV ___________ EUPRERA, Lisbon, 4th March 2011 www.andmeanwhile.com www.philipsheldrake.com /in/philipsheldrake @sheldrake www.cipr.tv ___________ #euprera #ess11

3. Communications complexity and My Channel A clean sheet / Influence and other definitions The Six Influence Flows Contrast to traditional emphases; the 2nd flow debate The social Web and beyond The Balanced Scorecard – business performance management and ROI The Influence Scorecard – influence performance management and ROI Influence-centricity – influencer-centricity is flawed Coming up… 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 3

4. This presentation is based on the The Business of Influence – Reframing Marketing and PR for the Digital Age, Philip Sheldrake, Wiley, April 2011. Book 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 4

5. What exactly are we dealing with here? Let’s paint the picture for the content / media side of things… Communications complexity and My Channel 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 5

6. Content – an illustrated history 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales Blog post: http://www.philipsheldrake.com/2011/01/content-an-illustrated-history Hi-res long-form image: http://bit.ly/content-an-illustrated-history Slideshare version: http://bit.ly/hPYjnd 6

7. Prehistory 7

8. Ancient Greece 8

9. Ancient Rome & Middle Ages 9

10. Victorian Era 10

11. 1930s 11

12. 1950s 12

13. 1960s, 1970s & 1980s 13

14. 1980s 14

15. 1990s 15

16. 2000s 16

17. 2000s /2 17

18. 2000s /3 18

19. 2010 19

20. 2011 20

21. The Future 21

22. It’s impossible to fake it. Real-time social marketing and PR must, by nature, be authentic. Real-time PR marks the death of the persuasion / ‘spin’ school. Long live two-way, symmetric PR fostering mutually beneficial relationships between an organisation and its publics. Reality is perception 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 22 Real-time PR is one of those facets of the modern PR discipline that separates the 21st Century PR professional from the 20th Century practitioner.

23. A clean sheet / influence and other definitions 23 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales

24. Rethinks are best started by jettisoning baggage. Some words and phrases come with the ‘baggage’ of historic and current use and misuse and are likely therefore to confuse or narrow our thinking. Words like “advertising”, “publicity”, “promotion”, “marketing”, “comms” and “public relations”. My book is a rethink 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 24

25. Organisation– an organized group of people with a particular purpose Stakeholder – a person or organisation with an interest or concern in our organisation or something our organisation is involved in Competitor – an organisation with objectives that clash with our own either directly (eg, fly with us not them) or indirectly (eg, don’t fly, video conference instead). I adopt the common distinction between competitors and stakeholders. The entities 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 25

26. Customer – pays with money or attention; includes “consumer” Prospect – a potential customer Client – under our care Partner – eg, supplier, reseller, retailer Citizen – a legally recognisedsubject or national Employee – includes dependents, and dependent retirees Shareholder – owner of shares or similar interest The stakeholders 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 26

27. – to have an effect on the character, development, or behaviour of someone or something. You have been influenced when you think in a way you would not otherwise have thought or do something you would not otherwise have done. I always use influence to mean influencing and being influenced. Influence 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 27

28. The Six Influence Flows 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 28

29. Relevance – closely connected or appropriate to the matter in hand Resonance – the power to evoke enduring images, memories, and emotions Accessible – easily understood or appreciated; friendly and approachable Reputation – beliefs or opinions generally held about someone or something Trust – firm belief in the reliability, truth, or ability of someone or something Significance – the quality of being worthy of attention; importance. Definitions in this influence framework 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 29

30. The task at hand is influence. The resulting perception in the near-term may be described in terms of relevance, resonance and accessibility. The outcomes in the longer-term are reputation, trust and significance. The task at hand 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 30

31. The 2nd Flow Debate 31 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales

32. It’s probably too simplistic but not too wide of the mark to consider the historic focus of marketing and PR practice as being predominantly on the 1st influence flow (our influence with our stakeholders), …with a bit of the 3rd (stakeholders influence with us), eg, internal circulation of news clippings; marketing research to improve one’s understanding of consumer preferences, attitudes, and behaviours; and best practice PR; so long as you systematically make sure these have an influence of course. Contrast to traditional emphases 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 32

33. The 2nd flow is stakeholders influence with each other with respect to us. James Grunigcontinues to support the validity of the two-way symmetrical model in the digital age. In Paradigms of Global Public Relations in the Age of Digitalisation, he specifically responds to Brian Solis and Deirdre Breakenridge, and David Phillips and Philip Young. The 2nd flow debate 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 33

34. “The Web has changed everything” Putting the Public back in Public Relations: How Social Media is Reinventing the Aging Business of PR. “... it is hard to avoid making the claim that ‘the internet changes everything.’ ... for public relations the unavoidable conclusion is that nothing will ever be the same again” Online Public Relations: A Practical Guide to Developing an Online Strategy in the World of Social Media. The assertions 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 34

35. “The bold claim that emerges from the arguments put forward for ‘the new PR’ is that the fundamental vector of communication that shapes reputation and an organization’s relationship with its stakeholders has flipped through 90 degrees. Now, the truly significant discourse is that which surrounds an organisation, product or service, a conversation that is enabled and given form and substance by the interlinked, aggregated messages that emerge from internet mediated social networks.” Phillips and Young 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 35

36. “In one sense, I agree with these assertions. For most practitioners, digital media do change everything about the way they practice public relations. Other practitioners, however, doggedly use the new media in the same way that they used traditional media. From a theoretical perspective, in addition, I do not believe digital media change the public relations theory… Rather, the new media facilitate the application of the principles and, in the future, will make it difficult for practitioners around the world not to use the principles.” Grunig’s response 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 36

37. “I do not believe that the ‘internet society’ or the ‘new PR’ challenges the Excellence paradigm, as Phillips and Young argued… They seem to believe that ‘an organisation and its publics’ are distinct from ‘internet-mediated social networks’. Instead, I believe that an organisation and its publics now are embedded in internet-mediated social networks but that public relations is still about an organisation’s relationships with its publics.” Grunig’s response /2 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 37

38. “Organisations do not need relationships with individuals who are not members of their publics even though these people might be actively communicating with and building relationships with each other. Organisations simply do not have the time or resources to cultivate relationships with everyone – only with individuals or groups who have stakes in organisations because of consequences that publics or organisations have or might have on each other.” Grunig’s response /3 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 38

39. – isn’t just a new media form in my opinion. It has unprecedented emergent behaviour, a scientific term used to describe how very many relatively simple interactions (eg, blogging, tweeting, sharing) can give rise to complex systems, systems that exhibit one or more properties as a whole that aren’t manifest for smaller parts or individual components. “Internet mediated” communication 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 39

40. What are these “relationships” that Grunig refers to? Relationship – the way in which two or more people or things are connected, or the state of being connected. But with our blank sheet approach we’ve freed ourselves from such constructs. All we have are Six Influence Flows that may or may not be based on “relationships” with “publics”. Relationships 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 40

41. So instead of saying that “organisations do not need relationships with individuals who are not members of their publics” we can say that organisations will find it advantageous to maintain awareness of all Six Influence Flows regardless of the genesis or properties of the influence that flows therein. Organisations can prepare for the expected and unexpected emergence of influences that might warrant attention. Monitoring the influence flows 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 41

42. Our new stakeholder is the individual who did not know herself that she was a stakeholder until… hang on, there, look, she just shared that link. And she added a little comment too. Atoms of influence. She is the modern manifestation of the netizen. A new stakeholder 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 42

43. Netizens are not ‘online publics’ – those are just the usual stakeholders with Internet access. Rather, netizens are stakeholders because they are online and because they are willing to act in ways that represent their moral compass so to speak, their feelings for what is right and wrong, or good and bad. Or perhaps they act simply on what makes them happy or sad. Excited or chillaxed. Netizens, not ‘online publics’ 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 43

44. The netizen is a most complex being whose responses boil down to a synaptic-like mouse click, or not. And given that humans are unchanged, some act apparently rationally and some have no regard for logical discourse whatsoever, and most lay some place in between. Synapse 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 44

45. So instead of saying “organisations simply do not have the time or resources to cultivate relationships with everyone” we can say that organisations will find it advantageous to wield information technologies to ‘relate’ to the use (both directly and programmatically) of information technologies by others. Relate 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 45

46. The Social Web and Beyond 46 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales

47. Social media – Facebook, Ping, Twitter, Flickr, YouTube, blogging, debate at news websites, social news at Slashdot and Digg, etc. + Applications – Outlook, Wordpress, Tweetdeck,Flipboard, My Taptu, the Facebook app, Foursquare, iTunes, Spotify, LinkedIn toolbar, Xobni, instant messenger, Skype,Shopkick, Blippy,Layar + Services – email, Delicious, StumbleUpon, friend location information from Foursquare and Facebook Places, socially augmented search, etc. + The network of devices… Defining the social web 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 47

48. The Internet of Things refers to a network of objects not historically connected. We can consider four kinds of objects: Electronic devices (washing machines, air conditioning units and cars) Electrical devices (lighting, electric heaters, and power distribution) Non-electrical objects(food and drink packages, clothes, and animals) Environmental sensors(measuring such variables as temperature, noise and moisture) The Internet of Things 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 48

49. Estimates for the total number of things connected to the Internet of Things in 2020 vary from 16 billion to more than thirty times this number. If emergent behaviours stem from 2 billion+ connected humans, we can expect similar from the ‘real world’ interacting with tens of billions of things. The manifestation of the Internet of Things, the Internetome, might become an organisational stakeholder of sorts. The Internet of Things /2 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 49

50. Web 1.0 – the web of documents Web 2.0 – the social Web (user generated content, participation) Web 3.0 / The Semantic Web the Web itself understands the meaning of that content and participation the Web as a universal medium for data, information and knowledge exchange Manifold ramifications for the influence / PR professional. And beyond 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 50

51. The Balanced scorecard, Strategy maps and ROI Plugging influence into business performance management. 51 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales

52. The cascade 52 Mission – why do we exist? Values – what guides our behaviour? Vision – what do we want to be? Business objectives – to get from A to B Strategy – the plan to get us from A to B Strategic objectives – wholly necessary and sufficient to execute the plan Tactics – activities to achieve the strategic objectives. CASCADE 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales

53. To win, organisations must approach this cascade with professional rigour. 7 out of 10 organisations simply fail to execute their strategies1. The Balanced Scorecard is the most popular approach to BPM… 1. Balanced Scorecard Institute Business performance management (BPM) 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 53

54. “The Balanced Scorecard transforms an organization’s strategic plan from an attractive but passive document into the 'marching orders' for the organization on a daily basis. It provides a framework that not only provides performance measurements, but helps planners identify what should be done and measured. It enables executives to truly execute their strategies. “It is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action.” – The Balanced Scorecard Institute The Balanced Scorecard 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 54

55. The Balanced Scorecard Perspectives 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 55

57. Information; and

58. Organisation.Learning and growth 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 56

59. “The strategy map provides the visual framework for integrating the organization’s objectives in the four perspectives of a Balanced Scorecard. It illustrates the cause-and-effect relationships that link desired outcomes in the customer and financial perspectives to outstanding performance in critical internal processes.” – Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Kaplan and Norton Strategy Maps 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 57

60. “The strategy map identifies the specific capabilities in the organization’s intangible assets – human capital, information capital, and organization capital – that are required for delivering exceptional performance in the critical internal processes.” – Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Kaplan and Norton Intangibles 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 58

61. “Economic justification of these strategic investments can be performed, but not in traditional ways. The common approach is on a stand-alone basis: ‘Show the ROI of the new IT application’, or ‘Demonstrate the payback from the HR training program.’ But each investment or initiative is only one ingredient in the bigger recipe. Each is necessary, but not sufficient. Economic justification is determined by evaluating the return from the entire portfolio of investments in intangible assets that will deliver the ROI from [the strategic imperative].” – Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Kaplan and Norton Return on investment 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 59

62. The Influence Scorecard and ROI Plugging influence into business performance management. 60

63. The Influence Scorecard is both part of and an augmentation to the Balanced Scorecard. Influence performance management (IPM) is the ease and effectiveness with which we can manage and learn from influence flows; integral to the process by which customers, citizens and all stakeholders interact with organisations and governments to broker mutually valuable, beneficial relationships. The Influence Scorecard 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 61

64. The influence strategy is the set of influence activities in which you must excel in order to help create a sustained difference in the marketplace. It facilitates organisational coherence, coordination and effectiveness of influence. The Balanced Scorecard and Strategy Maps ensure that investment in intangible assets has ROI built in by design. The Influence Scorecard ensures ROI is similarly built-in to all the influence activities identified in pursuit of the influence strategy. Influence strategy and ROI 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 62

65. Influence-centricity 63 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales

66. Maturity of influence approach 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 64

67. More of us are more influenced more often by the 150 nearest and dearest than the other six billion people combined. The evidence against influencer-centricity 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 65

68. Researched the influence of known peer influencers, social influencers and key influencers. Known peers “top the list”, and social influencers come next. … One is left wondering how “key influencers” got their name?! Fluent: The Razorfish Social Influence Marketing Report, 2009, http://fluent.razorfish.com Razorfish 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 66

69. We trust information most when it’s generated by friends, or people we know regardless of content form. Facebook and blog posts by companies were either "trusted completely" or "trusted somewhat" by 41% and 36% of respondents respectively. Few participants rated length of participation (15%) and number of fellow fans, followers and participants (12%) as extremely important. Consumers Pushing Companies into Social Media, Invoke Solutions, August 2010, http://www.invoke.com/index/08-04-10 Invoke Solutions 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 67

70. What influences your choice of company, brand or product? 71% – reviews from family members or friends 46% – reviews in newspapers or magazine articles 45% – reviews from friends or people they follow on social networking websites 33% – reviews on blogs and message boards 10% – reviews by celebrities. Speak Now or Forever Hold Your Tweets, Harris Interactive, 3rd June 2010, Table 5 http://www.harrisinteractive.com/vault/HI-Harris-Poll-Opinions-In-Social-Media-2010-06-03.pdf Harris Interactive 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 68

71. The role of ‘influentials’ is over-estimated. After The Tipping Point became a bestseller… Some studies concluded that there are in fact people in society who have great influence over others. But most research studies concluded that other factors play a much bigger part in how people are influenced. Whether someone can be influenced is as important as the strength of the influencer. We’re most influenced by the people around us. http://www.slideshare.net/padday/bridging-the-gap-between-our-online-and-offline-social-network slides 131-140. And his upcoming book, Social Circles, August 2011. Paul Adams, user experience researcher 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 69

72. …relatively few so-called friends are actually significant influencers of a given user’s behavior (22% is the sample mean), while substantial heterogeneity across users also exists. The authors also find that descriptors from user profiles … lack the power to determine who, per se, is influential. … friend counts and profile views also fall short of being able to identify influential site members. Determining Influential Users in Internet Social Networks, August 2010, Journal of Marketing Research. Drs. Trusov, Bodapati and Bucklin 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 70

73. Influentials don't govern person-to-person communication. We all do. A trend's success depends not on the person who starts it, but on how susceptible the society is overall to the trend – not how persuasive the early adopter is, but whether everyone else is easily persuaded. http://www.fastcompany.com/magazine/122/is-the-tipping-point-toast.html?page=0%2C1 Dr. Duncan Watts 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 71

74. Two significant elements of influence-centricity are: 1. Focus on the influenced Related to the emphases of Net Promoter Score Outcome oriented (eg, promoter score and revenue growth, securing insights into and understanding of current customers and other stakeholders) rather than output oriented (eg, column inches, ‘opportunities to see’, feedback forms completed). Influence-centricity 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 72

75. And: 2. Tracing influence Influence-centricity 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 73

76. In Conclusion 74 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales

77. Media has most definitely evolved, as have the ways in which we contemplate, design, communicate and execute strategy. And rather than technological evolution, we’re plainly in the midst of a technological revolution. We have no choice then but to reframe marketing and PR in the context of 21st Century technology, 21st Century media and disintermediation, and 21st Century articulation of and appreciation for business strategy. – The Business of Influence, Philip Sheldrake Fit for the 21st Century 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 75

78. Are you ambidextrous of mind (left- as well as right-brained)? Are you fluent in public relations best practice and other influence disciplines? Can you effect change in the face of entrenched organisational resistance? Then this is your perfect storm. You might be the new breed of influence professional, and perhaps Chief Influence Officer. ________________________________________ Thank you for your attention. Thank you 4th March 2011 / Philip Sheldrake / Creative Commons Attribution Share Alike License 2.0 England and Wales 76

79. Philip Sheldrake 77 Meanwhile Blog LinkedIn Twitter CIPR TV ___________ EUPRERA, Lisbon, 4th March 2011 www.andmeanwhile.com www.philipsheldrake.com /in/philipsheldrake @sheldrake www.cipr.tv ___________ #euprera #ess11