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The Influence Scorecard –influence performance management

Philip Sheldrakewww.philipsheldrake.com

@sheldrake

Author

The Business of Influence: Reframing Marketing and PR for the Digital Age

www.influenceprofessional.com

Founding Partner, Meanwhile

www.andmeanwhile.com

AMEC – The Big AskLondon, 17th November 2011

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Questions

Tick those you consider to be unique…

Your organization ☐

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Questions

Tick those you consider to be unique…

Your organization

Your marketplace ☐

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Questions

Tick those you consider to be unique…

Your organization

Your marketplace

Your stakeholders ☐

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Questions

Tick those you consider to be unique…

Your organization

Your marketplace

Your stakeholders

Your marketing objectives ☐

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Questions

Tick those you consider to be unique…

Your organization

Your marketplace

Your stakeholders

Your marketing objectives

Your PR objectives ☐

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Questions

Tick those you consider to be unique…

Your organization

Your marketplace

Your stakeholders

Your marketing objectives

Your PR objectives

Your marketing strategy ☐

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Questions

Tick those you consider to be unique…

See where I’m going with this?

Your organization

Your marketplace

Your stakeholders

Your marketing objectives

Your PR objectives

Your marketing strategy

Your PR strategy ☐

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Questions

Tick those you consider to be unique…

See where I’m going with this?

Your organization

Your marketplace

Your stakeholders

Your marketing objectives

Your PR objectives

Your marketing strategy

Your PR strategy

Your marketing execution ☐

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Questions

Tick those you consider to be unique…

See where I’m going with this?

Your organization

Your marketplace

Your stakeholders

Your marketing objectives

Your PR objectives

Your marketing strategy

Your PR strategy

Your marketing execution

Your PR execution ☐

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Questions

Tick those you consider to be unique…

See where I’m going with this?

Your organization

Your marketplace

Your stakeholders

Your marketing objectives

Your PR objectives

Your marketing strategy

Your PR strategy

Your marketing execution

Your PR execution

Your metrics? ☐

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Questions

Tick those you consider to be unique…

See where I’m going with this?

Your organization

Your marketplace

Your stakeholders

Your marketing objectives

Your PR objectives

Your marketing strategy

Your PR strategy

Your marketing execution

Your PR execution

Your metrics?

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Not just a yardstick

Management and measurement are inseparable.

Things that get measured get done, or, to change the emphasis subtly and probably more accurately, people perform as they are measured.

In other words, measurement isn’t some passive eye taking it all in and reporting back to the brain; it is an active, dynamic management tool as well as a feedback mechanism.

The Business of Influence, Philip Sheldrake, Wiley, 2011

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The business of influence is broken

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/87055500

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You have been influenced when

you think in a way you wouldn’t

otherwise have thought, or do something you

wouldn’t otherwise have done

The Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/160365265

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If you’re in business, indeed any type of organization, then you’re in the business of

influenceThe Business of Influence, Philip Sheldrake, Wiley, 2011

http://www.flickr.com/photos/philip_sheldrake/5629452844

… marketing, advertising, public relations, internal communications, public affairs, customer service, customer

relationship management, social media, copywriting and content, SEO, branding, branded apps and widgets, brand

journalism …

… web design, graphic design, direct marketing, packaging, merchandising, promotion, publicity, events, sponsorship, sales and sales promotion, marketing and market research, product

and service design and development …

… human resources, training and development, channel management, procurement and supplier management, facilities

management …

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Public Relations

≠

media relationsPre-WebWeb 1.0Web 2.0Web 3.0

}

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Everything an organization does occurs in the context of a changing world, in a dynamic interplay with every entity

around it

//The rise of social media

Align Your Stakeholder-Facing Functions with an Influence Strategy, Philip Sheldrake, Balanced Scorecard Report, July-August 2011, Vol 13 No 4, Harvard Business Publishing

http://www.flickr.com/photos/philip_sheldrake/107864510

No organization is an island

Organizations must cultivate a sensitivity to the new dynamic (one that’s superior to competitors’) and sharpen their ability to interpret and respond

to the myriad communication flows issuing from all sides

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The Six Influence Flows

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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Kaplan and Norton developed the strategy map tool for the alignment of operations with strategy, and the popular* Balanced Scorecard framework to augment the lagging (financial) indicators of business success with non-financial drivers of future financial performance.

//The way we contemplate, design, communicate and execute strategy

Balanced Scorecard: Translating Strategy into Action, Robert S. Kaplan and David P. Norton, ISBN: 9780875846514

* http://www.bain.com/publications/articles/management-tools-2011-balanced-scorecard.aspx

http://www.flickr.com/photos/philip_sheldrake/2773203483

Useful for dealing with business based on tangible assets. Essential for those built on intangibles.

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Return on investment

//The way we contemplate, design, communicate and execute strategy

Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Robert S. Kaplan and David P. Norton, ISBN: 978-1591391340

http://www.flickr.com/photos/philip_sheldrake/107865905

“The strategy map identifies the specific capabilities in the organization’s intangible assets – human capital, information capital, and organization capital – that are required for delivering exceptional performance in the critical internal processes.”

“… each investment or initiative is only one ingredient in the bigger recipe. Each is necessary, but not sufficient. Economic justification is determined by evaluating the return from the entire portfolio of investments in intangible assets that will deliver the ROI from [the strategic imperative].”

And this applies to influence activities too.

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//The way we contemplate, design, communicate and execute strategy

From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011. http://www.ibm.com/cmostudy2011

Square brackets added here.

And yet: “CMOs believe ROI on marketing spend [in isolation?] will be the number

one method for determining the marketing function’s success.”

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The Maturity of Influence Approach

The Business of Influence, Philip Sheldrake, Wiley, 2011, Table 5.1, page 47

Maturity Characteristics

High Trace the influence (the action) back to source. Focused on business

outcomes, as we should be. Best practice, intelligent and you could say scientific and professional marketing and PR, and associated activities.

Influence-centri

c

Medium It’s quality not quantity. Not how many people you interact with, but how and in what context?

Low Number of followers, friends, subscribers, circulation. Empirically supported network science. Akin to column inches and

AVE – measurement because you can, not because you should.

Influencer-centri

cPitiful Obfuscating compound measures of

non-contextual trivial variables. No empirical evidence.

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The Influence Scorecard

How can we systematically learn from and manage influence flows?

How do we define, develop, and execute a consistent and coherent influence strategy?

How do we prioritize investments in influence-related human, information, and organizational capital?

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

Kaplan and Norton’s strategy map tool and Balanced Scorecard framework are well suited to these efforts.

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The Influence Scorecard /2

The Influence Scorecard serves as both the methodology for defining influence strategy and the tool for executing it.

It’s a subset of the Balanced Scorecard, containing all the influence-related objectives and metrics extracted from their functional silos.

Helps management ensure that the potential to influence and be influenced is exploited cohesively and consistently throughout the organization.

//The Business of Influence

The Business of Influence, Philip Sheldrake, Wiley, 2011

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Researching candidate metrics

Social Media Metrics, Sterne

Measure What Matters, Paine

Marketing Metrics, Farris, Bendle, Pfeifer, Reibstein

http://kpilibrary.com

http://www.smartkpis.com http://www.kpi-portal.com http://www.bsccommunity.com http://www.thepalladiumgroup.com/communities/XPC

The Business of Influence, Philip Sheldrake, Wiley, 2011, page 115

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Today

… influence activities:

– Are spread, uncoordinated, across functional silos

– Encompass only some aspects and subsets of the Six Influence Flows and the Influence Scorecard

– Are defined in the context of 20th Century technology, media, and articulation of and appreciation for business strategy

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Tomorrow

Your influence strategy must:

– Take best advantage of social media, new info technologies and best practice performance management

– ‘Socialize the enterprise’, systematically

– Drive business performance.