Edelman on social business

SOCIAL BUSINESS PLANNING© BUILDING AN INTELLIGENT BUSINESS & CONNECTED BRAND David Armano & Mike Kuczkowski Edelman Digital | Edelman ConsulGng

THE WORLD HAS CHANGED

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Today, 70% OF ALL INFORMATION is created by individuals and the size of the digital universe DOUBLES EVERY TWO YEARS

IN A MULTI-‐STAKEHOLDER WORLD, PARTICIPATION TRUMPS BROADCASTING

Source: IDC, “Digital Universe Study”, 2011

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CUSTOMERS CAN BE ADVOCATES

“For brands today in this fragmented world getting us, as multifaceted people, to take action and engage is one of the biggest challenges marketers face” ~Christina Smedley, Edelman Global Chair Consumer Marketing

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OR “BADVOCATES”

“The first duty of a revolutionary is to get away with it” ~Abbie Hoffman

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“To succeed with empowered customers, you must empower your employees to solve customer problems” ~Josh Bernoff, Forrester Analyst & Author of Empowered

EMPLOYEES ARE AMBASSADORS

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“For the first Gme, this year’s Trust Barometer shows that trust and transparency are as important to corporate reputaGon as the quality of products and services” ~Edelman Trust Barometer

INFORMATION HAS BEEN UNLEASHED

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“It‘s esGmated that the combined installed base of smartphones and browser-‐equipped enhanced phones will surpass 1.82 billion units by 2013, eclipsing the total of 1.78 billion PCs by then.” ~eMarketer, Gehng To Know The Mobile PopulaGon

MEDIA HAS CHANGED

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“To stand out in a commoditized market, companies must understand what customers truly value. The only way to do that is to break down the traditional, often entrenched, silos and unite resources to focus directly on customer needs." ~Ranjay Gulati, Harvard Business Review

BUT YOUR BUSINESS HASN’T

marketing public relations sales customer

service product

development

SOCIAL is not a “silver bullet” for business. It just CHANGES THE GAME…again.

CHALLENGES ORGANIZATIONS FACE

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CHALLENGES: UNCLEAR OBJECTIVES, MEASUREMENT & ROI

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CHALLENGES: UNDERPERFORMING DIGITAL/SOCIAL INITIATIVES

Organizations have unrealistic expectations of social media effectiveness and therefore are unable to harness benefits

Experienced organizations have realized the difficulties with social media objectives and ROI and have taken new, practical approaches to implementation

Benefits of Social Media have been fully demonstrated by a select few organizations

WE ARE HERE

Based upon the Gartner Hype Cycle

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CHALLENGES: MISALIGNED SKILLS & COMPETENCIES

marketing

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CHALLENGES: LACK OF COORDINATION & INTEGRATION

marketing

“Your marketing department has set up a Facebook page. Your human resources department is thinking about using social media as a recruiting tool. Your sales department isn’t quite sure how social media can deliver qualified sales leads. Your employees are tweeting away about what they’re doing all day at work. Your IT department is worried about the threat of viruses and malware. Your customer service department is overwhelmed by the amount of content out there that needs monitoring. Sounds like chaos." ~ Veronica Fielding

CLOSED Silos, rigidity & information hoarding vs.

collaboration

COLLABORATIVE Freely sharing information and

knowledge internally while acting more social externally

CONNECTED Connecting internal and external ecosystems/

communities for mutual gain

*For an evolved version of this visual concept (in collaboration with Brian Solis), see The End of Business As Usual

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“A new organizational structure is required to accommodate and benefit from the culture of sharing that social media has fueled over the last four years. The information flow we all experience daily can no longer be organized into neat org-chart silos." ~Charlene Li, Author of Open Leadership

CHALLENGES: CLOSED BUSINESS CULTURE

BRANDS MUST BECOME SOCIAL, CONNECTED AND AGILE

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Social Enterprise + Social Brand = Social Business

Community Management Customer Service CommunicaJons Crowdsourcing

Marketing Campaigns Advocacy Crisis

SOCIAL BRAND (External)

SOCIAL ENTERPRISE (Internal)

SOCIAL BUSINESS

Training Process

CollaboraJon Organization Models

Research & Development Policies & Guidelines Knowledge Sharing

Culture

Initiatives

Infrastructure

Source: David Armano, Edelman 2011, edelmandigital.com

SOCIAL BUSINESS EXTENDS THE ENTERPRISE

*Source: McKinsey Quarterly, How social technologies are extending the organization

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SOCIAL BUSINESS PLANNING DRIVES STRATEGY & EXECUTION

SOCIAL BUSINESS PLANNING (people, process, plarorms)

SOCIAL/DIGITAL STRATEGY & PROGRAMS (engagement, content, communicaGon, collaboraGon, programs)

IMPLEMENTATION & EXECUTION

(deployment, maintenance, measurement, refinement, integraGon)


INTERNAL + EXTERNAL INITIATIVES

WHY BECOME A “SOCIAL BUSINESS”?

Move past being a linear process-driven organization and create a new, dynamic, networked businesses

CUSTOMERS HAVE EVOLVED AND SO MUST BUSINESS

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EVERYONE IS AN ACTIVIST

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CRISIS MANAGEMENT IS REAL TIME

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MARKETING IS SOCIAL

Energizer is an Edelman Client

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IDEAS CAN COME FROM ANYWHERE

Starbucks is an Edelman Client

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BUSINESS EMBRACES RESPONSIBILITY

"We're calling for a business model that decouples growth from environmental impact, and that frankly isn't out there yet,” ~Paul Polman, Unilever CEO

Unilever is an Edelman Client

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PUBLICS SEEK PURPOSE

“86 percent of global consumers believe that business needs to place at least equal weight on society’s interests as on a business’ interests.” ~Edelman 2010 Good Purpose Study

Starbucks is an Edelman Client

BEING SOCIAL WITHIN

LEARN ABOUT CO-‐WORKERS personally and professionally MINE NETWORKS OF CONTACTS and acquaintances for advice, references and referrals

FORM TEAMS, communities or informal groups COLLABORATE, DISCUSS AND COMMENT on work products

ORGANIZE AND IDENTIFY relevant work within the organization

ALERT USERS to relevant information

*Source: Gartner, “Magic Quadrant for Social Software in the Workplace”, 2011 August; Edelman Consulting analysis

SOCIAL BUSINESS PLANNING DEFINED

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SOCIAL BUSINESS PLANNING

Social business planning is the blueprint for the transformation of an organization—bridging the external with internal, resulting in a more connected way of doing business which creates shared value for all stakeholders

Customer Service

Sales/Commerce

Market Research

Advertising/Promotions

Public Relations

Internal Communications

Recruiting

MARKETING

FINANCE

SALES

COMMUNICATIONS

HUMAN RESOURCES

Product Development INFORMATION TECHNOLOGY

OPERATIONS

PRODUCT DEVELOPMENT

EXTEND SOCIAL MEDIA BEYOND MARKETING

SOCIAL MEDIA USE DEPARTMENT CORPORATE USAGE %*

88%

48%

40%

96%

<10%

56%

24%

75%

NOT JUST A MARKETING FUNCTION.

Social media impacts the enGre organizaGon.

Embrace social media internally and externally and watch your organizaGon grow from the inside out and outside in.

*Source: Booz & Co. and Buddy Media, “Campaigns to Capabilities: Social Media & Marketing”, 2011

UNRE

ALIZED

PO

TENTIAL

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SOCIAL BUSINESS BECOMES THE CONNECTIVE TISSUE

SOCIAL BUSINESS

MARKETING

PUBLIC RELATIONS

CUSTOMER SERVICE

SALES PRODUCT DEVELOPMENT

HUMAN RESOURCES

SUPPLY CHAIN

BEYOND BUSINESS SILOS Social Business Planning looks at mulGple operaGons across the organizaGon and idenGfies opportuniGes for the integraGon of doing business in a more social way.

A social business is a connected business.

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SOCIAL BUSINESS SYSTEMS NEED TO INTEGRATE

IntegraGon Planning

Legacy

ExisGng

Social

Internal External


THE PATH TO BECOMING A SOCIAL BUSINESS

Develop an approach to undertake your social business endeavor. Decide where to start, what the finish line looks like and what the organization is willing to commit to get from point A to point B.

A CONTINUOUS EVOLUTION

Define a social business strategy that outlines core objectives, roadmap, measurement, process and technology integration. Identify, evaluate and prioritize stakeholder needs and wants into an overall stakeholder engagement plan.

Align the organization to fully harness the power of social permeating the internal and external enterprise.

Enact the social media strategy and engage each major stakeholder group through social media.

Becoming a social business is NOT A CAMPAIGN—it is a CONTINUOUS EVOLUTION.

Source: Edelman Consulting 2011

ASSESSMENT STRATEGY ORGANIZATION ENGAGEMENT EVALUATION

Take a continuous “measure and respond” approach around social media investments, optimizing the execution model based on continuous stakeholder feedback.

STEP 1: APPROACH

Often two approaches: 1. Wait until you’ve mastered current social media implementations (popular) 2. Galvanize leaders around social needs and begin to add layers of social engagement now (recommended)



STEP 2: STRATEGY

Source: Forrester. “Social Business Strategy for CIOs” ,February 2011

Utilize pre-built frameworks to organize a clear, actionable plan

ASSESSMENT STRATEGY ORGANIZATION ENGAGEMENT EVALUATION Source: Edelman Consulting 2011

STEP 3: ORGANIZATION

Break down functional silos around social media with aligned and coordinated organizational structures



STEP 4: ENGAGEMENT

Activate social business strategy across various stakeholders

CUSTOMERS

BUSINESS PARTNERS

EMPLOYEES

MEDIA



STEP 5: EVALUATION

Evaluate data, analyze for meaning and adapt with change



gather

synthesize

evaluate

disseminate

adapt

STRATEGY: SOCIAL BUSINESS PLANNING FRAMEWORK

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3 P’s: THE SOCIAL BUSINESS TRIUMVERATE

People

Plarorms Process

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A FOUR PRONGED FRAMEWORK

STRATEGY Vision

Business Objectives

Roadmap

MEASUREMENT Key Performance

Indicators

Analytics & Methodology

ORG & GOVERNANCE Organizational Design

Governance & Control

Culture & Leadership

ECOSYSTEM Audience

Engagement

Risk

PROCESS PLATFORMS

PEOPLE


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•  Learning and listening •  Visibility •  Knowledge sharing

Internal Intelligence

•  Demand generaGon •  Lead generaGon •  Conversion

Sales

•  Brand awareness •  Engagement data • Word of mouth

Awareness

•  Brand engagement •  Customer loyalty

RetenGon

Bus

ines

s O

bjec

tives

STRATEGY ALIGN SOCIAL ACTIVITIES WITH BUSINESS STRATEGY

* Edelman Consulting analysis based on Gartner research

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CONSTRUCT THE ROADMAP: FROM CRAWLING TO FLYING

CRAWL

• Steering Commiwee IdenGfied • Governance models in place • Internal network deployed •  Listening tools & process in place • KPI/Measurement Framework Established

• Policy established • Center of Excellence IdenGfied

• Public Facing ModeraGon Policy • Community CoordinaGon • Content Development • Controlled Paid Media in Social

• Social Enterprise Architecture Constructed

• Rules Of Engagement Circulated

• Early Adopter Training Initiated • Monitoring/AnalyGcs inform policy, process and content

• Community Management Plan AcGvated

THE BUSINESS ITSELF IS SOCIAL

POLICY, PROCESS, PROCEDURE

• Social properGes enhanced • Voice and tone established • Influencers idenGfied • Test & learn pilots launched • Content Published Across MulGple ProperGes

• Partners Coordinated & Connected To Internal Lead

• Social CMS Tools & Internal Staffing Formalized • Regional AddiGons to Steering Commiwee

• Training Rolled Out In Across EnGre OrganizaGon

• Systems Integrated on Back End

• Employees, Partners, & Customers Connected • Culture of OrganizaGon More Adaptable • People, Processes & Plarorm Maturity Well Established

• Influencer Partnerships formed • Plarorm Partnerships solidified •  Engagement at scale established •  CoordinaGon Exists Between Social, Owned, Mainstream & Hybrid ProperGes

• Measurement, KPI’s Formalized & Standardized Across OrganizaGon

• Ambassador Programs operaGng globally

• Employees engaged systemaGcally • Systems integrated on front end • All business funcGon integrate social layer

• Product /service innovaGons result

I N T E R N A L

E X T E R N A L

AD HOC SOCIAL MEDIA TACTICS

WALK PROPERTY MANAGEMENT

RUN ECOSYSTEM ENGAGEMENT

FLY SOCIAL INNOVATION &

INTEGRATION

STRATEGY

Source: Edelman 2011, edelmandigital.com

PILOT A PILOT A PILOT A PILOT B PILOT C PILOT B

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TEST PILOTS AND VALIDATE OUTCOMES

SOCIAL BUSINESS PLANNING

STRATEGIC INITIATIVE

ACROSS ALL BRANDS/BUSINESS FUNCTIONS & TEAMS

AT THE BRAND/BUSINESS FUNCTION LEVEL

STRATEGIC INITIATIVE STRATEGIC INITIATIVE

Planning: Infrastructure IniJaJves: Strategic efforts Pilots: Measurable tacGcs


STRATEGY

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MAP STAKEHOLDERS AND IDENTIFY CONNECTIVE TISSUE

• People who do business with the organizaGon • Can be split into high-‐value and new customers Customers or Prospects

•  IdenGfiable people on the payroll Employees

• PR and corporate communicaGon departments as well as company execuGves Corporate

• Suppliers, vendors, contractors, alumni Business Partners

• AddiGonal individuals who interact on the social web Social Web

ECOSYSTEM

* Edelman Consulting analysis based on Gartner research

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IDENTIFY LEVELS OF ENGAGEMENT AND ALIGN WITH OBJECTIVES

ECOSYSTEM

• AcGvely involve the audience (e.g., feedback on branding, new product development) Co-‐create

• Listen and respond to the audience ParGcipate

• Share company perspecGve (e.g., CEO blog) Share

• Analyze conversaGons to gain insight and discover pawerns Discover

• Listen to conversaGons happening around the organizaGon Monitor * Edelman Consulting analysis based on Gartner research

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OR

G &

G

OVERN

ANCE

DEFINE ROLES AND RESPONSIBILITIES

•  Oversees all digital integraGon iniGaGves between tradiGonal, digital and social. •  Sample Title: Chief Digital Officer Leadership

•  Focuses on social strategy and integraGon across designated acGviGes (markeGng, customer service, crisis etc.)

•  Sample Title: Social Strategist Strategy

•  Determines content plans, strategies and deployment of all content through social systems

•  Sample Title: Content Strategist Content

• Monitors, and reports stakeholder acGvity and engages in a variety of social systems •  Sample Title: Community Manager Community

•  Analyze key metrics to draw intelligence from social media efforts and report effecGveness (ROI)

•  Sample Title: Measurement & Data Analyst Measurement


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OR

G &

G

OVERN

ANCE

REVISE REPORTING STRUCTURES

A multi-departmental social business committee accelerates integration and helps bridge organizational silos

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BREAK DOWN SILOS WITH COLLABORATIVE GOVERNANCE O

RG

&

GOVER

NAN

CE

YES SOCIAL MEDIA COMMITTEE

WHICH BRAND?

BRAND X

PILOT PROGRAM BRAND TEAM

TECHNOLOGY PARTNERS

AGENCY PARTNERS

PLANNING STRATEGY IMPLEMENTATION

INTEGRATION

RESULTS REPORTED

L

M

SOCIAL MEDIA COMMITTEE

GLOBAL DIGITAL SERVICES

P

B

O

B = BRANDS, P = PARTNERS, O = OPERATIONS

L = LAUNCH M = MEASURE

NO


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MEASUR

MEN

T CONNECT METRICS WITH BUSINESS OBJECTIVES

Business ObjecJve Key Performance Indicator (KPI)

Foster Dialog Engagement DuraGon

Share of Voice

Brand Advocacy Loyalty (member re-‐share)

Brand MenGons

Facilitate Support ResoluGon Rate

ResoluGon Time

Spur InnovaJon Topic Trends

Idea Impact For example:

Share of Voice Brand MenGons/ (Total MenGons (brand + compeGtors) =

*Based on Altimeter's "Social Marketing Analytics" research, April 2010.

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MEASUR

MEN

T ANALYZE SIGNALS FOR MEANING


ORGANIZATION: ALIGN BUSINESS TO STRATEGY

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ORGANIZATION MODEL: CENTRALIZED

CORPORATE

BRAND / BU BRAND / BU BRAND / BU BRAND / BU

BT

T

D S BT

T

D S BT

T

D S BT

T

D S

KEY BT: BRAND OR BUSINESS UNIT TEAMS T: TRADITIONAL D: DIGITAL S: SOCIAL


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ORGANIZATION MODEL: DE-‐CENTRALIZED

BT

T

D S


BRAND / BU

BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S BRAND / BU

BRAND / BU

BRAND / BU

BRAND / BU

BRAND / BU


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COE (CENTER OF EXCELLENCE)

BRAND OR BU BRAND

OR BU

BRAND OR BU

BRAND OR BU

BRAND OR BU

BRAND OR BU

BRAND OR BU

BRAND OR BU

BRAND OR BU

BRAND OR BU

BRAND OR BU

BT

T

D S BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S

BT

T

D S

PLANNING & INTEGRATION

STRATEGY

IMPLEMENTATION

BT

T

D S

ORGANIZATION MODEL: COORDINATED (CENTER OF EXCELLENCE)



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ORGANIZATION MODEL: ANTHILL (ORGANIC COORDINATION)

Each employee is empowered within an organized framework


SOCIAL BUSINESS ACTIVITIES

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PROCESS DESIGN


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INFLUENCE MAPPING


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DATA PLANNING


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SOCIAL BUSINESS INTELLIGENCE

Wal-Mart is an Edelman client

EDELMAN SOCIAL BUSINESS PLANNING PRACTITIONERS

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REAL WORLD EXPERTISE IN SOCIAL BUSINESS AT SCALE KAZIM ALI Kazim is a Consultant for Edelman Consulting, a management consultancy focused on the intersection of strategy, marketing, and communications. He was the former CTO of an education-based startup and has led several IT strategy and decision modeling projects for Gartner Consulting.

ZENA WEIST Zena is Vice President Social Business Planning out of Edelman Digital’s Chicago practice. She has over 16 years experience in digital media including start-ups and acted as social media manager for H&R Block prior to joining Edelman. Zena is also an active writer and industry speaker.

MICHAEL BRITO Michael is the Senior Vice President of Social Business Planning at Edelman Digital, working previously with Intel where he was their Social Media Strategist. He wrote the book on social business titled “Smart Business, Social Business: A Playbook for Social Media in Your Organization”.

MARSHALL MANSON Marshall Manson is Managing Director of Digital for Edelman in EMEA, and a leader in the field of online strategy, communications and reputation management. Marshall is based in London, and previously was Vice-President of Digital Public Affairs in Washington, DC.

ROBIN HAMMAN

Robin is the Director of Edelman’s Digital practice in London. He has vast experience in recognizing the crucial role that digital plays in business transformation, both at the BBC where he was Senior Community Producer and at Headshift where he led the social media team for two years.

CHUCK HEMANN Chuck is Vice President measurement and analytics of Edelman Digital’s central region. Prior to Edelman, Chuck led measurement activities at WCG and was a social strategist at Ogilvy Digital Influence. Chuck acts as co-organizer for the social business track at Blogworld New Media Summit.

David Armano EVP, Global Innovation & Integration David.Armano [at] edelman.com Edelmandigital.com

Mike Kuczkowski President, Edelman Consulting Michael.Kuczkowski [at] edelman.com consulting.edelman.com