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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
@DU_Press #SocBizStudy
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
@DU_Press #SocBizStudy
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%
@DU_Press #SocBizStudy
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:
@DU_Press #SocBizStudy
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
@DU_Press #SocBizStudy
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
@DU_Press #SocBizStudy
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
@DU_Press #SocBizStudy
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?
@DU_Press #SocBizStudy
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
@DU_Press #SocBizStudy
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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