iStrategy Amsterdam, 2011 - Penny Power, Founder, Ecademy, Understanding ‘social’ and it’s impact on business leadership and branding (Split Stream Keynote Session, Day 1)

1. Understanding ‘social’ and it’s impact on
business leadership and branding
Penny Power @pennypower
#ecademy
Building Social Capital
Founder of Ecademy.com

2. My background
1998
Many mistakes
Transactional attitudes do not work
Tried to make money from the community!

3. Do leaders of businesses understand the word ‘social’?

4. Is this a repeat of ‘customer is king’ but
“Our Customer Services department have the
patience to look after them”

5. Social Media is that ‘marketing thing’

6. Business leaders are terrified of this ‘social world’
They HAVE to lose their Transactional Mindset
I want to sell
to you

7. Communities -
• Births
• Deaths
• Marriages

9. Chinese proverb
“To know and not to
do is not YET to
know”

10. Lessons being learned by CEO’s the hard way

11. “I’d like my life back” – a defining moment

12. Beyond customer service – this message taught us all
that…
It is not about YOU, it is about
US
Communities of people are
asking for something but not
everyone is listening to them

13. Corporate’s speak with their heads
• Consumers and Small Businesses listen with
their hearts

14. This goes way beyond ‘engagement’
• Engagement is a TASK
• It can be fake
• It can be delegated
• Building Communities is a shared value and a
reason for existing
• Building communities creates a new form of
capital in a company
• Social Capital

15. ‘Communities’ are a brands unfair advantage
• Very different to a network
• Two way communication
• Listen, adapt, innovate, survive, thrive
• Forgive
• Loyal
• Belonging
• Family
• Shared values
• Advocacy

16. Creating our ‘shared values’

17. Safe and Supported

18. My lessons

19. My lessons
• Communities don’t want to be transacted with

20. My lessons
• Communities don’t want to be transacted with
• They only want to be supported

21. My lessons
• Communities don’t want to be transacted with
• They only want to be supported
• They want their own agenda

22. My lessons
• Communities don’t want to be transacted with
• They only want to be supported
• They want their own agenda
• You cannot control them

23. My lessons
• Communities don’t want to be transacted with
• They only want to be supported
• They want their own agenda
• You cannot control them
• They want a lot for free

24. My lessons
• Communities don’t want to be transacted with
• They only want to be supported
• They want their own agenda
• You cannot control them
• They want a lot for free
• They have an enormous power

25. My lessons
• Communities don’t want to be transacted with
• They only want to be supported
• They want their own agenda
• You cannot control them
• They want a lot for free
• They have an enormous power
• They are very hard to monetize

26. My lessons
• Communities don’t want to be transacted with
• They only want to be supported
• They want their own agenda
• You cannot control them
• They want a lot for free
• They have an enormous power
• They are very hard to monetize
• You cannot see them as customers

27. My lessons
• Communities don’t want to be transacted with
• They only want to be supported
• They want their own agenda
• You cannot control them
• They want a lot for free
• They have an enormous power
• They are very hard to monetize
• You cannot see them as customers
• Loyalty means they will criticize

28. But they are very powerful for your brand
They build your
Social Capital

29. Social Capital is the glue in which to build a brand and
create followers
Create your
Social Capital
Image taken
from Alison
Mitchell
Liverpool
University

30. Social Capital is the glue in which to build a brand and
create followers
Shared
Commitment to
belonging
Create your
Social Capital
Image taken
from Alison
Mitchell
Liverpool
University

31. Social Capital is the glue in which to build a brand and
create followers
Shared
Commitment to
belonging
Shared norms
of behaviour
Create your
Social Capital
Image taken
from Alison
Mitchell
Liverpool
University

32. Social Capital is the glue in which to build a brand and
create followers
Shared
Commitment to
belonging
Shared norms
of behaviour
Create your
Social Capital
Effective
communicati
on channels
Image taken
from Alison
Mitchell
Liverpool
University

33. Social Capital is the glue in which to build a brand and
create followers
Shared
Commitment to
belonging
Shared norms
of behaviour
Create your
Social Capital
Effective
communicati
on channels
Image taken Formal and
from Alison Informal
Mitchell networks
Liverpool
University

34. Social Capital is the glue in which to build a brand and
create followers
Shared
Commitment to
belonging
Shared norms
of behaviour
Create your
Social Capital
Reciprocity and Effective
mutuality communicati
on channels
Image taken Formal and
from Alison Informal
Mitchell networks
Liverpool
University

35. Social Capital is the glue in which to build a brand and
create followers
Shared
Commitment to
belonging
Trust Shared norms
of behaviour
Create your
Social Capital
Reciprocity and Effective
mutuality communicati
on channels
Image taken Formal and
from Alison Informal
Mitchell networks
Liverpool
University

36. The power of unconditional Love as a child
Now we have to engage support and care with
no conditions and no hidden agenda

37. “I support my friends”

38. “I support my friends”
TJ – aged 13 –
600 in network

39. “I support my friends”
TJ – aged 13 –
600 in network
Ross – aged 16
800 in network

40. “I support my friends”
TJ – aged 13 –
600 in network
Ross – aged 16
800 in network
Hannah – aged
18
3000 in
network

41. The trick is to learn how to monetize social capital
• What are the problems that your community
members have?
• What do they want YOU to serve them?
• What are their needs that you can support?
• Who else do you need to collaborate with to
solve problems for them?
• What is it that your community values about
you?

42. Creating followers
"the goal is NOT to sell what you have to
people who need what you have…………
The goal is to get people to BELIEVE WHAT
YOU BELIEVE”
Simon Sinek ‘Start with WHY’

43. "If you want to build a ship,
don't drum up the people to
gather wood, divide the work,
and give orders. Instead, teach
them to yearn for the vast and
endless sea”
Antoine De Saint-Exupery,
Author of The Little Prince.

44. Building Community requires
• Devotion
• Heart
• Passion
• Understanding
• Belief
• Thought leadership
• Empathy
• Inter-dependence

45. Community building will become a ‘Boardroom’ priority
Globalization has given the shareholders too much choice – when an economy is not thriving they move away
CSR is just a line on a P&L, not led with passion
CSR is legally expected
Legal obligation has taken away the competitive advantage of being a ‘good’ company
Leaders have to decide who they care for and why
Leaders will need to communicate and show that they care
Leaders will have to lead with their heart!!!!

46. Community building will become a ‘Boardroom’ priority
Corporate Social Responsibility has broken
down the ‘free will’ of caring
Globalization has given the shareholders too much choice – when an economy is not thriving they move away
CSR is just a line on a P&L, not led with passion
CSR is legally expected
Legal obligation has taken away the competitive advantage of being a ‘good’ company
Leaders have to decide who they care for and why
Leaders will need to communicate and show that they care
Leaders will have to lead with their heart!!!!

47. The economic benefits of social capital growth
• Reduces transaction costs
• Buyers come to buy
• Creates new forms of information exchange
• Increases innovation/live R&D
• Increases loyalty to the brand
• Creates a ‘connection’
• Provides feedback
• Ensures engagement

48. Where do you start?

49. Where do you start?
• Brands need to understand the demographic
they serve and the needs of that demographic

50. Where do you start?
• Brands need to understand the demographic
they serve and the needs of that demographic
• The board needs to agree on their shared
values

51. Where do you start?
• Brands need to understand the demographic
they serve and the needs of that demographic
• The board needs to agree on their shared
values
• Recruitment has to include these shared
values

52. Where do you start?
• Brands need to understand the demographic
they serve and the needs of that demographic
• The board needs to agree on their shared
values
• Recruitment has to include these shared
values
• The company must seek to provide greater
contribution to the local or global
communities

53. How Ecademy achieves this

54. How Ecademy achieves this
• We listen and engage across all platforms

55. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging

56. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline

57. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s

58. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize

59. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize
• We share

60. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize
• We share
• We are open and encourage random

61. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize
• We share
• We are open and encourage random
• We encourage shared values

62. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize
• We share
• We are open and encourage random
• We encourage shared values
• We take responsibility

63. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize
• We share
• We are open and encourage random
• We encourage shared values
• We take responsibility
• We ‘parent’

64. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize
• We share
• We are open and encourage random
• We encourage shared values
• We take responsibility
• We ‘parent’
• We are a family

65. How Ecademy achieves this
• We listen and engage across all platforms
• We are embedded in the community through the blogs and
messaging
• We meet offline
• We understand the plight and lives of SME’s
• We empathize
• We share
• We are open and encourage random
• We encourage shared values
• We take responsibility
• We ‘parent’
• We are a family
“Community First, Transaction Second”

66. Seeking solutions together within an SME Community

67. Thank you everyone
223
comments
7,582 views

68. The taxi driver

69. The banks as a case study
• Will they return to relationship banking
OR

70. Will the social networks become banks….

71. Relationship algorithms

72. Klout, Peer Index, Empire Avenue

73. Klout, Peer Index, Empire Avenue

74. Klout, Peer Index, Empire Avenue

75. Klout, Peer Index, Empire Avenue
Social Capital games for
measuring influence
Are they just
games??

76. The power of having followers and influence
Followers grow your social capital
• Your ability to innovate
• Your reputation
• Your brand
• Your sense of belonging
• Loyalty to the brand
• Advocacy
• Your market position
• They talk about you

77. Creating ‘followers’ is a different skill set and a different
intention
intention

78. Does the Pillow Man sell Pillows OR

79. “Does he sell the beauty and gift of sleep “

80. Would you follow someone who sells pillows?
• Would you follow someone who wants to
improve sleep for all?

81. The social world demands intention to be for the good
of all
• What good is a brand doing?
• How does it improve the lives of others?
• Why are they worthy of being followed?
• What do I gain by following their message?
• What do my followers gain?

82. Are you transactional?
I want to sell
to you

83. Are you transactional?
Suspect I want to sell
to you

84. Are you transactional?
Suspect I want to sell
to you
Prospect

85. Are you transactional?
Suspect I want to sell
to you
Prospect
Customer

86. Trapping
customers

87. Are you ‘social’?
I love my
network of
friends

88. Are you ‘social’?
Stranger
I love my
network of
friends

89. Are you ‘social’?
Stranger
Friend I love my
network of
friends

90. Are you ‘social’?
Stranger
Friend I love my
network of
Follower
friends

91. Social thinking
Attract Followers

92. Maslow – hierarchy of needs

93. Maslow – hierarchy of needs

94. What if you have to have self actualisation first!

95. What if you have to have self actualisation first!

96. Why should this matter in a global economy
• Consumers have choice
• Consumers share their experience
• Followers have passion
• Followers share their beliefs

97. Ecademy have created followers around our Manifesto
#DBBM

98. My legacy - Social Capital for all

99. A final thought
• Social Responsibility of Leaders to enable
their staff to build their own brand and
networks
• Aging population
• No job security
• Pensions - ?????
• Healthcare - ????

100. Social Media Builds your Social Capital
Thank you
Please stay in touch
@pennypower