Presentation by Charlene Li for HSM in Buenos Aires, Argentina, on October 3, 2011

1. The Power Of Groundbreaking Social Technologies 1 Charlene Li Altimeter Group Twitter: @charleneli Email: charlene@altimetergroup.com

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3. OUT ofCONTROL? © 2011 Altimeter Group

4. 4 © 2011 Altimeter Group

5. 5 © 2011 Altimeter Group

6. It’s time to move past experiments 6

7. It’s about RELATIONSHIPS © 2011 Altimeter Group

8. 8 Agenda Strategy Lead Prepare

9. 9 Agenda Strategy Lead Prepare

10. Strategy Process Stages 10

12. Level of strategy (corporate, biz unit, brand)

13. Identify key metrics

15. Objectives differ by level 13

16. Ask the Right Questions about Value 14 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

17. Use appropriate metrics at each level 15 Business metrics: revenue, CSAT, reputation. Social media analytics: Insights, share of voice, resonance, WOM. Engagement metrics: fans, followers, clicks.

19. Mindset

20. Roles

21. Stakeholders

22. Monitoring

23. Reporting

24. Customer Profile

25. Market Analysis

26. Processes

27. Organizational Model

29. Benchmarking Social Readiness (After) 18 April 2010

32. Define Your Strategy With Objectives 21

34. Expertise

36. 62% visit company profiles on social media sites

37. 55% visit company blogs

38. 51% participate in online business communities or forums

39. 49% ask questions on Q&A sites

40. 29% use Twitter to find or request business-related information Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393) 23

41. People in B2B use social media for work 24 Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393)

42. 25 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

43. Track brand mentions with basic tools 26 What would happen if every employee could learn from customers?

44. Integrate monitoring with workflow 27 Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech. From Radian 6, to be acquired by Salesforce.com

45. Go beyond basic monitoring to analytics 28 Make course corrections nearly real-time. Use predictive analytics to anticipate demand.

46. Shoppers want to be “known” 29 I walk into the store Store knows it’s me Give me offers And plans my visit

48. Go beyond traditional data to understand your customers 32 Demographic Geographic Psychographic Behavioral Socialgraphic

49. Where are your customers online? What social information or people do your customers rely on? What is your customers’ social influence? Who trusts them? What are your customers’ social behaviors online? How do your customers use social technologies in the context of your products. Socialgraphics asks key questions 33

50. Engagement Pyramid 34

51. Engagement Pyramid - Watching 35 Watch videos Read blog posts Listen to podcasts Read tweets Read discussion forum posts

52. Engagement Pyramid - Sharing 36 Share a link Share photos Share videos Write a status update Retweet

53. Engagement Pyramid - Commenting 37 Comment on a blog Write a review Rate a product Participate in a discussion forum @Reply on Twitter

54. Engagement Pyramid - Producing 38 Write a blog Create videos or podcasts Tweet for an audience

55. Engagement Pyramid - Curating 39 Moderate a wiki or discussion forum Curate a Facebook fan page

56. Engagement Pyramid Data 40 Source: Global Wave Index Wave 2, Trendstream.net, January 2010

57. Conduct research to identify the social behaviors of your target customer Also identify: Where are they online: Surveys or brand monitoring Who do they trust: Surveys Who do they influence: Survey or brand monitoring How they use these tools in context of your products: Most often surveys. When you first understand your customers, your marketing efforts will naturally unfold. Putting socialgraphics to work 41

58. Listen and learn from your customers. Start with basic monitoring tools, but quickly evolve them. Invest in analytics that matter. Use metrics that are relevant to your business. Understand the socialgraphics of your customers. Summary - Learn 42

59. 43 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

60. Conversations, not messages Human, not corporate Continuous, not episodic The New Normal 44

61. Blogs establish thought leadership 45 CEO Richard Edelman has been blogging consistently since September 2004.

62. The Central Bank of Brazil shares articles on twitter 46

63. Pantene Argentina listens to the crowd, connects with the individual 47

64. Ford targets an influencer, reaches half of Argentina’s Twitter audience 48

65. Encourage commenting to get into the Facebook news feed 49

67. Insert your content into newsfeed of fans

69. ISS connects distributed work-force with social-powered intranet 52 “Everyone feels more connected. Socialtext is allowing us to work as a team towards our goals and serve customers more efficiently.” - Erick Vera, Enterprise Social Media Manager

70. Premier Farnell supports engineers with community, and employees with “OurTube” 53

71. Give out Flip cameras/smartphones Set up an internal “OurTube” Transcribe conversations into emails and posts Ask people for best practices, reactions, advice, opinion in areas of passion. Recognize key contributors. Getting people to share within your company 54

72. Tivo joined an existing community 55

73. 56 Advocacy – A five-phase approach

74. Tesco engages influencer blogs 57 Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.

75. Visa’s online video campaign increase card payments 19% 58

76. Have an authentic conversation with your customers that they want to have. Engage across and through social communities Engage off of your Web site. Recruit an army of customer advocates. Respond to your prospects and customers in real time. Summary - Dialog 59

77. It’s about RELATIONSHIPS © 2011 Altimeter Group

78. 61 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

79. Telmex provides customer support on Twitter 62

80. Ritz-Carlton managers monitor Twitter for real-time service 63 Property manager helped unhappy honeymooners

81. DellOutlet supports sales with Twitter 64

82. Movistar’s ‘Social Media Agents’ advance customer support on Twitter 65 Moviestar has specific social media guidelines and processes in place to facilitate customer service online.

83. Brazilian politicians provide campaign support via Twitter 66

84. 67 Question & Answer sites provide opportunity for support

85. Q&A encourages dialog too 68

86. iRobot ties discussion boards into customers support 69 iRobot escalates unanswered questions into support centers

87. Salesforce.com Service Cloud ties social channels back to customer data 70

88. Solarwinds’ community is strategic 71

89. Retailer Best Buy has 2,500 employees providing support via Twitter 72

90. Real-time isn’t fast enough. Integrate “social” support into your support infrastructure. Scaling support to meet the groundswell will require that you create your own groundswell. Summary - Support 73

91. 74 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

92. Participate in crowdsourcing to understand how it works. Create a culture of sharing and collaboration within the company. Encourage “intrapreneurship”. 85% of innovations involve optimizing one parameter. Use social media to collect and prioritize ideas. Reduce “power distance” with open leadership and management. How to encourage innovation 75

93. P&G uses reviews to improve products 76

94. GE asked for ideas from around the globe 77

95. Starbucks involves 50 people around the organization in innovation 78 Over 100 ideas have been implemented

96. P&G goes outside for innovation 79 P&G made outside-in innovation a priority

97. P&G developed technology from diaper research Reached out to competitor Clorox to form a new joint venture Helped Glad become Clorox’s second largest brand Success story: Glad Press’n Seal 80

98. Fiat Mio, the world’s first crowdsourced car 81

99. Mio by the numbers 82

100. ModCloth has customers merchandise new products 83

101. FoodExtraconnects food consumers and food producers through social 84

102. Innovating can come from any customer or employee interaction. Dedicated innovation communities require significant commitment and nurturing. Extend your firewall to bring customers into your organization. Summary - Innovating 85

105. Company and leadership implications

106. Risk identification

108. 88

113. Likenomics evaluation 91 User experience impact - moderate People with high social currency will enjoy benefits, richer experiences, receive psychic income. People with low social currency will find ways to get it. Business model impact – moderate New economics create opportunity for people who understand Likenomics to leverage gas. The cost of accessing social currency will increase, and raise barriers to entry. Ecosystem value impact – none

114. 92 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)

115. Social Search evaluation 93 User experience impact - Moderate Search becomes more useful, relevant to people. Business model impact – Moderate SEO takes on a different dimension, rewards companies with social currency, personalized experiences. Ecosystem value impact – Moderate New power brokers are social data/profile players who capture activity data and profiles. Google has little of either.

116. Social monitoring merges with Web analytics HOT: Omniture, Coremetrics/IBM, Webtrends Technology like Hadoop makes it easy for companies to tap “Big Data” E.g. New York Times making its archives public Twitter archived by Library of Congress Facebook Cassandra, Amazon Dynamo, Google BigTable Data visualization tools make it easy to digest Balancing privacy and personalization 3) Big Data 94

117. Big Data evaluation 95 User experience impact - Low Most users won’t directly experience Big Data. Business model impact – High New businesses and initiatives can be started at very low cost. Ecosystem value impact – Moderate Owners of Big Data repositories can assert control, demand payments for access.

118. 96 4) Game-ification

119. TurboTax used “games” to encourage sharing and support 97 Social design can enter training, collaboration, support, hiring

120. Gamification evaluation 98 User experience impact – High Experiences get richer, more engaging Business model impact – Moderate Work gets done faster, cheaper. New organizational structures and cultures emerge. Ecosystem value impact – Low Service providers will remain focused, boutique firms.

121. 99 5) Curation

122. Curation evaluation 100 User experience impact – Moderate User authority established from better curation, better content is organized well. Business model impact – Moderate Easier for businesses to create their content. Ecosystem value impact – Moderate Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.

123. Summary of disruptions 101

124. It’s about RELATIONSHIPS © 2011 Altimeter Group

125. 103 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

126. OUT ofCONTROL? © 2011 Altimeter Group

127. 105 © 2011 Altimeter Group

128. 106 © 2011 Altimeter Group

129. 107 How to give up control but still be in command © 2011 Altimeter Group

130. Open Leadership 108 Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals

131. 10 elements of openness 109

132. Explaining strategic decisions 110 Open book management Managing leaks

133. 111 Updating with every day stuff

134. Kohl’s has conversations on Facebook 112

135. Open Mic: When people contribute 113

136. Crowdsourcing new Walkers flavour 114

137. Open platforms make it easy to partner and share 115 Open architecture Open data access

138. 116 Centralized Democratic Distributed Consensus Decision making models

140. 16 Councils, 50 Boards make strategic decisions

142. Complete the Openness Audit 119

143. Traits of Open Leaders 120 Authenticity Transparency

144. Transparency as an imperative 121

145. How Best Buy became open and social 122

146. Best Buy’s First Social Media Experts 123 Steve Bendt & Gary Koelling

147. The Executive Advocate 124 Barry Judge CMO of Best Buy

148. Barry’s first post 125

149. The Premier Black Fiasco 126 6.8 million emails sent instead of 1,000 test

150. Developing Open Leaders © 2010 Altimeter Group

151. “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com © 2010 Altimeter Group

152. 129 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

153. #1 Create a Culture of Sharing 130

154. #2 Discipline is Needed to Succeed 131 Take reasonable action to fix issue and let customer know action taken Negative Positive Yes Yes No Assess the message Evaluate the purpose Do you want to respond? Does customer need/deserve more info? Unhappy Customer? No Response Yes Are the facts correct? Gently correct the facts Yes No No No Can you add value? DedicatedComplainer? Are the facts correct? Yes Yes No No Yes Respond in kind & share Thank the person Comedian Want-to-Be? Explain what is being done to correct the issue. Is the problem being fixed? Yes No Yes Adapted from US Air Force Comment Policy Let post stand and monitor. © 2011 Altimeter Group

155. Five ways companies organize around social media 132

156. Climb the Social Business Hierarchy of Needs 133 Holistic, Real-time Predictive Enlightenment Empowerment, Cross-Learning, Measurement Enablement Asset Inventory, Best Practice Sharing, Center of Excellence Formation Dedicated Team, Workflow, Crises Preparedness Safety Objectives, Policies, Education, Access Foundation

157. 100% of Advanced companies allow employees to use social media professionally 134

158. SMPs require constant social media education 135

160. Survey data from 144 social business programs

162. A Framework For Social Analytics 138

164. Size of their networks

165. Percent of referred people who purchase

167. Frequency and value of the support+ Value of support + Value of ideas Spreadsheets for all calculations available at open-leadership.com

168. 35% increase in LTV captured 140

169. Find more fans with large networks Encourage fans to make more referrals Make decisions with metrics 141

170. No relationships are perfect Google’s mantra:“Fail fast, fail smart” #4 Prepare for Failure 142 © 2011 Altimeter Group

171. 143 Create Sandbox Covenants © 2011 Altimeter Group

172. Structure your risk-taking and failure systems to create resilience 144 Conduct pre- and post-mortems. E.g. Johnson & Johnson after Motrin Moms. Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. E.g. Ford’s “lost” Fiesta. Build in responsiveness. E.g. Best Buy’s Black reward card. Prepare yourself for the personal cost of failure.

173. Audit the last few failures you and your organization experienced. 25% - what happened. 25% - what you learned. 50% - what you will do next. Keep a failure file. Identify risk-taking training needs. Build failure into your planning and operating processes. Create support networks for the inevitable failures. Action plan to prepare for failure 145

174. It’s about RELATIONSHIPS © 2011 Altimeter Group

175. Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com For more information & to buy the book visit open-leadership.com © 2011 Altimeter Group