THE HYPER-SOCIAL ORGANIZATION
THANKING OUR SPONSORS
BUILDING HYPER-SOCIAL ORGANIZATIONS
PREPARED FOR THE HYPER-SOCIAL MINI SUMMIT – NEW YORK CITY, JAN 19TH, 2011
@FGOSSIEAUX, @EDMORAN, @SKWILDER, @ROBERTCOLLINS
THE SAP DEVELOPER COMMUNITY
LET’S START OFF WITH A LITTLE EXAMPLE HUMAN 1.0 VS. WEB 2.0
The SAP Developer Network
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Stats: 1.4 M users 400K+ business experts Content-rich Original Incentive System: Point system leading to
personal rewards The Results: Bullying behavior in the
community New Incentive System: Point system leading to
donation to good cause The Results: No more bullying in the
community
Web 2.0 or Human 1.0?
A look at some NIH + Duke Research
Experiment #1: People play Atari-style video game which allows them to earn or lose money for themselves MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs
Experiment #2: People play Atari-style video game which allows them to earn or lose money for a charity MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions
So to understand how to do business in a 2.0 world…
You do not need to understand the Web 2.0 technologies
You are better off understanding Human 1.0 – not as individuals, but as
hyper-social creatures
QUICK INTRO UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA HOW DO HYPER-SOCIAL ORGANIZATIONS THINK ABOUT THEIR BUSINESS? WHAT DO HYPER-SOCIAL ORGANIZATIONS DO DIFFERENTLY, AND WHY? 9 WAYS TO THINK DIFFERENTLY ABOUT YOUR ORGANIZATION HOW TO DEAL WITH RISK
OVERVIEW
Quick definitions
• Social media: Various technologies and tools like Facebook, Twitter and blogs that provide people with a massive platform for interaction with one another. “Social media” is often used synonymously with “Web 2.0” or “social software.”
• Tribe: A collection of people who choose to interact due to shared interests and passions (scrapbooking, software, wine) and affinity for one another. They are characterized more by whom they like to hang out with and their behaviors than individual traits (like age or income)
• Hyper-Social: The cooperative, reciprocal behavior displayed between humans who are not necessarily related or in close geographic proximity
LET’S GET A LEVEL DEEPER ON THE HUMAN 1.0…
Why are social beings helping one another?
Reciprocity = a Reflex
Why are people going out of their way to punish others?
Humans have an innate sense of fairness = keeps reciprocal society working
How do we make decisions?
Social Framework Market Framework
Why do people like to look like others?
Because humans have mirror neurons
Why do we lie to market researchers?
Because we lie to ourselves and others, and we tell people what we think they want to hear
Why is status so important (and why do we hoard it)?
Because it used to get us a better mate – proceed with caution: status works both ways!
We are a herding species – self herding even
What are the important Human 1.0 Hyper-Social Traits
• Reciprocity – it’s a reflex that allows us to be the only
super-social species without all being brothers and sisters
• The role of fairness in assessing situations
• Social framework of evaluating things vs. market framework
• The importance of looking cool and mimicking others
• Herding and self-herding (early research shows that social behavior does not change when it scales)
So to the extent that we can basically be human
with what we know, and share it as freely as we
possibly can, I think we’ll go a long way towards
gaining a higher or stronger level of trust with
the consumers.
Barry Judge, CMO Best Buy
http://www.cmotwo.com
HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS
SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS
Informed by Tribalization of Business Study: 2008-2010 – 1,000+ companies took the survey
Hyper-Social companies think differently • Think tribe – not market segment
– We need to find groups of people who have something in common based on their behavior, not their market characteristics
• Think knowledge network – not information channel – The most important conversations in
communities happen in networks of people, not between the company and the community.
• Think human-centricity – not company-centricity – The human has to be at the center of everything
you do, not the company • Think emergent messiness – not hierarchical fixed
processes – People will want to see responses to their
suggestions, even if it does not fit your community goals – FAST
“…affinity groups will quickly become the dominant social
force in the emerging world
economy, changing how we think about markets, fads, social
movements, and, ultimately, power”
- Tom Hayes, Jump
Point: How Network Culture is
Revolutionizing Business – 2008
WHAT IS IT THAT THEY DO DIFFERENTLY?
HYPER-SOCIAL ORGANIZATIONS
Hyper-Social Orgs – Leveraging Social Business Processes
• Successful Hyper-Social organizations turn their business processes into “social” processes – Why?
• Scale • Increased quality • Increased passion • Increased WOM
Turning a business process into a social process • IS NOT:
– Running traditional programs using social media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc.
• BUT IS: – Running programs based on human reciprocity
and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc.
– TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS
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Process Before After Benefits Case Studies
Sales One-to-one Many-to-many Sales is social networking
Tibco, Zappos
Product Innovation Constraint to a department
Includes all employees,
customers, prospects and detractors
Reduce product failure rates (now at 80%)
Cisco, Netflix
Lead generation Interrupt-driven Become findable, be generally helpful in public conversation
Leads that actually want to buy something
EMC, Dell
Customer Service Conducted by employees
Conducted by employees and other
customers
Customers service as a revenue source
instead of cost center
SAP, Zappos
Knowledge Management
Top down process Federated and user-driven process
KM that works, changes in work habits
IBM
Customer Communications
Mostly between companies and
customers
Primarily among customers, detractors
and prospects
Reduced cost and increased
effectiveness
Best Buy, Dassault Systemes, Fiskars
Talent Acquisition and Development
Board, interrupt-driven and based on
weak ties WOM
Endorsed by the tribes people belong to
Social context provides better
matches
Monster.com
Employee Communications
Mostly within silos Cross enterprise Increased serendipity, increased support
IBM, FedEx, Cisco
Market research Based on small groups and financial
incentives
Based on tribes and social contract
Much more accurate market data and
increased success
Eli Lilly, Pfizer, IBM, Fiskars
PR & Thought leadership
Rolodex based and focused on traditional
media
Community/tribe based and focused on
social media
Much more amplification of the
messages
Microsoft, Intuit
…IN A HYPER-SOCIAL WORLD
9 WAYS TO THINK DIFFERENTLY ABOUT YOUR BUSINESS
1) BRING DOWN THAT WALL
Do like IBM – get rid of the firewall while protecting IP
CIO’s
Product Idea
Business model tweak
PR
Customer support
Green Enthusiasts
IP
…increase knowledge flows…and competitiveness
IP
IP
2) DON’T BUILD NEW WALLS
Don’t put a wall between company and people
Don’t put a wall between company and people
Embrace what people want
…and give them access…it will increase passion & productivity!
…AND GET PEOPLE COMMITMENT
3) TEAR DOWN SILOS
Business objectives of communities
0%
10%
20%
30%
40%
50%
60%
70%
Q: Of the following business objectives which best represent your community? (select all that apply)
Department managing community
0%
10%
20%
30%
40%
50%
60%
Q: Which department manages your community (even if outsourced)?
# of people managing community
51%
16%
23%
2% 5%
3%
Q: How many people from your company manage this community as their full-time job?
None: part time job
One
5-Feb
10-Jun
More than 10
Other
Establish Center for Excellence
SM Center for Excellence
Marketing
Sales
Support Development
HR
Budgets
…BETWEEN MARKETING AND CUSTOMER SUPPORT
4) FIX THE GREAT DIVIDE
Your brand is only as good as the last transaction
• Fix the whole company’s user interface with the customer: – Sales – Marketing – Customer Support – Service, etc…
• Tap into the passion of employees and customers to help one another across boundaries
…OR DON’T LET HISTORY REPEAT ITSELF
5) DON’T BUILD WHAT YOU BUILT BEFORE
Move with caution – it’s not easy!
We need Social CRM
We need Social graphs
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The funnel is dead
Source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373
Tribes & Networks
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Today’s buying cycle: a social-powered continuous loop process
Based on source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373
Many more sources of
information Can still become part of consideration
set
CRM – the makings of a social process
• Leave company centricity behind: – Prospects, lead nurturing, sales funnel, etc.
• Put the customer at the center: – What does she need? – Will it work for her?
• Increase knowledge flows, and think tribes – Who can help her internally? – Who can help her externally?
• Embrace a messier process – Allow people to jump in and help
6) MAKE SURE CIO & CMO ARE BEST FRIENDS
The benefits of a CIO/CMO friendship
• Build the right infrastructure to support your social processes
• Find the right pockets of culture to ensure adoption
• Regain a strategic role at the executive table by being the representatives for the voice of the customer within your company
DON’T JUST THINK TECHNOLOGY
7) THINK CULTURE
“WE FIND OURSELVES IN THE ODDEST POSITION – WHICH IS TO TELL THE BUSINESS UNITS THAT THIS IS NOT A TECHNOLOGY ISSUE BUT A PEOPLE AND PROCESS ISSUE.” – CIO AT A MAJOR PHARMACEUTICAL COMPANY
BE HUMAN
The benefits of allowing people to be human
• Better knowledge flows = Social Knowledge Management Platform
• Customer/employee centricity = leveraging more passion
• Leveraging passion = increasing productivity exponentially
• More passion = increased WOM
= the creation of more customers with a higher lifetime value
“The purpose of a business is to create a customer.” -- Peter Drucker
…NOT THE COMPANY ADVOCATE
8) BECOME THE CUSTOMER ADVOCATE
HOW CAN YOU EXPECT YOUR CUSTOMERS TO TRUST YOU IF YOU CANNOT TRUST YOUR EMPLOYEES?
9) ESTABLISH TRUST AS THE NEW CURRENCY
Any questions?
Francois Gossieaux Partner, Beeline Labs e. [email protected] w. http://www.human1.com b. http://www.emergencemarketing.com Ed Moran e. [email protected] w. http://www.deloitte.com Our new book: The Hyper-Social Organization http://www.hypersocialorg.com
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DEALING WITH RISK MANAGEMENT
Social Media brings new risks
• Brand risk • Legal risks
– Labor laws – Non compete – HR – Whistleblower laws
• Competitive risks • IP risks • Privacy • Loss of operational efficiency • Compliance risks • Etc…
CEO VS. EMPLOYEES ARE EQUAL SOURCES OF RISK PROTECTIONS THAT ENGENDER RISKS ARE MEANT TO PROTECT BOTH INDIVIDUALS AS WELL AS COMPANIES
RISKS ARE EGALITARIAN
EDUCATION VS. RULES AND POLICIES AFFIRM THE CULTURE, DON’T DEFINE IT
HOW TO DEAL WITH IT?
= THE RISK OF DOING NOTHING
AND THE BIGGEST RISK OF ALL