Open Leadership: The Upside Of Giving Up Control

Open Leadership: The Upside Of Giving Up Control

Charlene LiAltimeter GroupMarch 13, 2010

1

For SXSW

#open

© 2010 Altimeter Group


A culture of sharing


It’s about relationships


These new relationships are changing business

Command & control

New ways to get things done


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Why is social hard?

Because realrelationships require that you give up control


The need for open leadership7

When people get what they need from each other

“How open do I need to be?


Open Leadership8

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

How to give up control, and be in command


10 elements of openness9

• Explaining• Updating• Conversing• Open Mic• Crowdsourcing• Platforms

Information Sharing

• Centralized• Democratic• Self-managing• Distributed

Decision Making


Determine how open you need to be to meet your goals

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Platform

Crowdsourcing

Open Mic

Conversing

Updating

Explaining

Today


Four goals define your open strategy, but always start with learn

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Learn

Dialog

Support

Innovate


Learn with monitoring tools12


Dialog with your community13

Learn

Dialog

Support

Innovate


Engagement Pyramid: Focus on Watching and Sharing

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Curating

Producing

Commenting

Sharing

Watching


DellOutlet drives sales with Twitter15


Help your members support each other

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Learn

Dialog

Support

Innovate


Social + open = competitive advantage

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+2,200 Best Buy employees answer questions sent to @twelpforce


Innovate with customer feedback18

Learn

Dialog

Support

Innovate


Fiat gathers product and market intelligence

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Contributors submit ideas, and can include pictures and embed

videos. Fiat gets valuable ideas for

features and design, and marketing and

advertising.


What to do first


#1 Align openness with strategic goals

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Examine your 2010 goalsPick one where open and social can have an impact


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#2 Understanding the upsideWhat’s the value?

Of +5 million fans?Of karaoke?

Photo by Chris Heuer


+ Value of purchases- Cost of acquisition

= Customer lifetime value

+ Value of new customers from referrals

+ Value of insights+ Value of support

The new lifetime value calculation, based on your goals

• Percent that refer• Size of their networks• Percent of referred

people who purchase• Value of purchases

• Percent that provide support

• Frequency and value of the support

+ Value of ideas


Fans

Large network

Refers

Doesn’t refer

Small network

Refers

Doesn’t refer

Find more fans with

large networks

Encourage fans to make

more referrals

Make decisions with metrics24


#3 Support open leadership25

Cautious Tester

Realist Optimist

Worried Skeptic

Transparent Evangelist

Pessimist Optimist

Collaborative

Independent


Convincing the curmudgeon26

Lovisa WilliamsUS State Dept.

@State for 4 yearsWrote first social media policy

Who can best work with a Worried Skeptic?


#4 Manage risk with Sandbox Covenants

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#5 Embrace failure28


Buyer blog hit the right note29


New relationships require open leadership. Find and support your open leaders: letting

go will yield more results. Get good a failure – you’ll have many.

Summary30


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Thank you31

Charlene [email protected]: charleneli

For slides, send an email to [email protected]

Join me for a book signing at 6:20pm

http://bit.ly/buyopenleadership


About Us32

Altimeter Group is a strategy consulting firm that provides companies with a pragmatic approach to disruptive technologies. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design.

Visit us at http://www.altimetergroup.com or contact [email protected].

Documents

Open Leadership: The Upside Of Giving Up Control