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My recent presentation to an Innovation Council on the importance of culture, strategy and social approaches. It all comes down to relationships.
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Culture Eats Strategy for Lunch Every Time September 13, 2012 Ayelet Baron ayelet27@gmail.com h<p://twi<er.com/ayeletb H<p://ayeletbaron.com
We Trust Strangers Consumer ability to publish content SOCIAL MEDIA AGE Consumers dictate MASS MEDIA AGE PRE MEDIA AGE Talk face to face Talk face to face Talk to shop worker Phone call Talk to shop worker Consult a professional Readers le<ers Phone in; TV / Radio Religious InsOtuOons, state, monarchy dictate the agenda h"p://blogs.cisco.com/ Professional media dictate Consumer influence channels
THE RELATIONSHIP IS NO LONGER LINEAR Social media: MarkeOng and PR Transparent RelaOonship Social business: People and business processes Agile AuthenOc http://www.flickr.com/photos/timothyschenck/
What MoOvates Us? give me the give me the prestige of prestige of a new title a new title give me give me something something I want to I want to do do give me give me $10,000 $10,000
About Me Former Chief Strategist, TransformaOon and InnovaOon OrganizaOonal Results • From #4 to #2 Country in Cisco • A culture of firsts and innovaOon • Top 3 “Best Company to Work For” in Canada over the last 3 years • 300 new R&D jobs in Canada facilitated by $25M grant from the Province of Ontario – just the start • Advisor to Federal, Provincial and City Governments Key Drivers of InnovaOon Introduced • ExperimenOng culture • “Connected North” • VerOcal Rainmakers • Reverse Mentoring • Create a truly “social business” • Enable the “future of work”
Community A group of people with unique shared values, behaviors, and ar?facts The social era will reward organizaOons that understand they can create more value with communiOes than they can on their own −Nilofer Merchant, 11 Rules for Crea?ng Value in the Social Era
Technology Keeps Getting Faster Source: h"p://www.5me.com/5me/interac5ve/0,31813,2048601,00.html
… But People Don’t Change as Fast Source: h"p://pandasthumb.org/archives/2006/09/fun-‐with-‐homini-‐1.html
. . We Are On A Collision Course h"p://www.flickr.com/photos/alainbachellier/4327038011/
People Are Now The Weakest Link h"p://www.flickr.com/photos/kyra__m/4681259456/
What Are the ImplicaOons for OrganizaOons? Image by Dave Gray, The Connected Company
Cost of Sales is Dropping Cost of Content CreaOon Cost of InformaOon DistribuOon Cost of Sales h"p://www.flickr.com/photos/wisefly/2948707192/
Margins Are Eroding Cost of Discovery Cost of Market Access Margins h"p://www.flickr.com/photos/mon_oeil/2803417816/
Capture of tacit knowledge Time from tacit to explicit knowledge Time to innova5on InnovaOon Cycle Times Are Speeding Up
Overwhelmed People Shut Down Major Change Minor Frame of Reference TranslaOon to InternalizaOon Confusion PolarizaOon Anxiety
Play A Different Game—One Focused On Enduring RelaOonships
RelaOonships as CompeOOve DifferenOator Cost Savings § Loyalty § Forgiveness § Time § Peer support § Issue reporOng Revenue § Preference § PaOence § Advocacy § CompeOOve lockout § AuthenOc insights These quali?es require a different level of rela?onship than tradi?onal transac?onal rela?onships
Social Approaches Enable Scalable RelaOonships Encounter Friendship Recogni5on Development Partnership Awareness Awareness Resonance Understanding of compa5bility Piqued interest Acknowledgement of rela5onship Contextual trust Contextual loyalty Contextual advocacy Forgiveness Advocacy Defense Universal trust Universal loyalty Social Media (Content-‐Based) Engagement Community (RelaOonship-‐Based) Engagement In-‐Person Engagement
Top 5 Community Uses Cost-‐EffecOve Customer Support (Autodesk, AT&T, CA Technologies, Google) 1 Engineering Ecosystems (Red Hat, SAP, Yahoo!, Oracle, eBay) 2 Cost-‐EffecOve Market Development (Ford, Pepsi, BarclaysCard, EDR, Zipcar) 3 Internal Efficiency (CSC, BASF, Nike) InnovaOon (Boston Children’s, Dell, SAP) 4 5
Measurable But Not Immediate Return Investment
CommuniOes Mature and Change Phase 2 – Emergent Community Phase 3 – Community Phase 4 – Networked Phase 1 – Strong Hierarchy Impact Transform Growth Pull Behavior Change Time
Direct Impact: Measuring Cost and Quality Gains Process Element Type of Community Metric Research and Discovery Market network, communi5es of prac5ce, customer communi5es, partner communi5es Quality • Be"er inputs • Be"er alignment with markets ProducOvity • Faster 5me to answer/insight ProducOvity • Reduced mee5ngs • Micro-‐mentoring • Alignment • Focus on issue resolu5on ProducOvity • Shared ownership of analysis • Broad buy-‐in of issues and framing • Faster awareness and buy-‐in for analysis ProducOvity • Ongoing alignment as content is developed • Less wasted work ProducOvity • Transparent decision making process • Be"er sensing of poten5al responses (crisis management) • Shared ownership of decision ProducOvity • Alignment and shared situa5onal awareness Quality • Be"er understanding of reac5ons (crisis management) Work Status Team networks, func5onal communi5es Data Analysis Team networks, func5onal communi5es, communi5es of prac5ce, customer communi5es, partner communi5es Team networks Content Development Stakeholder Review Team networks, communi5es of peers/ prac5ces Communica5on of Informa5on and Decisions Func5onal communi5es, communi5es of prac5ce, customer communi5es, partner communi5es, organiza5on-‐ wide networks
Indirect Impact: Measuring Revenue and Growth Process Element Type of Community Metric Fla"en Access to Knowledge Communi5es of prac5ce, func5onal communi5es Reduced Time to Innovate • Quickly gather exis5ng exper5se • Understand accurate state of development Improved Quality • Add to exis5ng knowledge rather than replica5ng Reduced Waste and DuplicaOon • Know what the organiza5on knows InnovaOon Quality and Demand • Ability to understand issues before they are ar5culated InnovaOon Cycle Time • Solve problems in step with demand forma5on, not sequen5ally InnovaOon Extension • Fills roadmap gaps • Reduces investment in high-‐risk projects Demand GeneraOon • Develops customer advocates Tacit Opportuni5es Market network, communi5es of prac5ce, customer communi5es, partner communi5es Customer-‐led Crea5on and Co-‐ Crea5on Customer communi5es, partner communi5es Listening and Watching Market networks, func5onal communi5es, communi5es of prac5ce, customer communi5es, partner communi5es Alignment and Revenue Growth • Align products and communica5ons with exis5ng conversa5on and language which improves relevancy and adop5on
SAP Social Strategy: Driving InnovaOon S O C I A L I N S I G H T S O C I A L I N N OVAT I O N S O C I A L C O M M E RC E S O C I A L I N T E L L I G E N C E Use the wisdom of the crowd to drive higher quality soluOons and innovaOons that be<er meet customer needs and therefore have greater market success and impact Enable customer success through the acOve sharing of knowledge, soluOons and best pracOces to drive excellence and innovaOon Leverage our reach and influence to drive speed and to dramaOcally increase leads and revenues both organically and through targeted campaigns Extract intelligence from observable customer behaviors and conversaOons to equip our colleagues with insight into customer hot topics, burning issues and new opportuniOes
Digital, Social and CommuniOes at SAP • SAP Community Network – 2.5 million members – 3,000+ discussion posts per day – 9,200 acOve bloggers – 9.3 million total messages • SAP.com – 2 million unique visitors per month – 72 countries, 40 languages • SAP’s presence on social media – Over 1 million friends and fans • Social media tools and governance • Events – SAP TechEd, SAP Technology Forum
Factoids of companies describe themselves as fully socially networked Amount of value that could be generated annually from corporate use of social technologies All Rights Reserved, The Community Roundtable, 2012
We Want to Learn from ExecuOves Linda Y. Cureton, CIO of NASA Sco< Monty, Head of Social Media Ford Mark Bertolini, CEO of Aetna Sandy Carter, SVP IBM Mark Yolton, SVP SAP
We Need to Understand the ExecuOve Journey TradiOonal Piqued Experimental Social Networked Tes5ng the waters. Not suppor5ve of the use of social as a viable solu5on for business. Silos and not connected to the business workflow. Social business is integrated into the DNA of doing business with all cons5tuents. Opera5ons are op5mized for collabora5on and innova5on. Command and control. Primary modes of communica5on are in person, phone & email. No use of many-‐ to-‐many communica5on tools. Commi"ed to a few social ac5vi5es, but most communica5on s5ll occurs through tradi5onal channels. Seeing quick wins. Engagement with key stakeholders via new social channels. Beginning to see correla5on between social ac5vity and business results.
Social business cannot be fully achieved if execu?ves do not incorporate social approaches in the business – in what they say and what they do People not tools drive innova?on
4 In Summary
Organizations that Go Up and Down Hold You Back 1
2 Break down the silos We compartmentalize creaOvity Try to control it, set targets, apply rules Make it the domain of parOcular job Otles Or box it into brainstorming sessions
Focus on Relationships 3
Community management is the bedrock capability in driving innovation 4
A massive opportunity to have a different relaOonship with your customers, partners and employees Co-‐creaOon, crowdsourcing, crowdfunding neilperkin.typepad.com/