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  

PRE  MEDIA  AGE   MASS  MEDIA  AGE  SOCIAL  MEDIA  

AGE  

Religious  InsOtuOons,  state,  monarchy  dictate  the  agenda  

Consumers    dictate  

Talk  face  to  face  

Talk  to  shop  worker    

Consumer  influence  channels  

 

Consult  a  professional  

Readers  le<ers  

Phone  in;  TV  /  Radio  

Talk  to  shop  worker    

Talk  face  to  face  

Phone  call  

Professional  media  dictate   h"p://blogs.cisco.com/  

Consum

er  ability  to  pub

lish  content  

THE RELATIONSHIP IS NO LONGER LINEAR

http://www.flickr.com/photos/timothyschenck/

Social  media:  MarkeOng  and  PR  

Social  business:  People  and  business  processes    

Agile  

Transparent  

AuthenOc  

RelaOonship  

What  MoOvates  Us?    

give me the prestige of a new title

give me something I want to

do

give me $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”    

About Me

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    

Source:  h"p://www.5me.com/5me/interac5ve/0,31813,2048601,00.html  

Technology Keeps Getting Faster

… But People Don’t Change as Fast

Source:  h"p://pandasthumb.org/archives/2006/09/fun-­‐with-­‐homini-­‐1.html  

.

h"p://www.flickr.com/photos/alainbachellier/4327038011/  

We  Are  On  A  Collision  Course  

h"p://www.flickr.com/photos/kyra__m/4681259456/  

People  Are  Now  The  Weakest  Link  

Image  by  Dave  Gray,  The  Connected  Company  

What  Are  the  ImplicaOons  for  OrganizaOons?  

             

Cost  of  Sales  

       

Cost  of  InformaOon  DistribuOon  

     

Cost  of  Content  CreaOon  

h"p://www.flickr.com/photos/wisefly/2948707192/  

Cost  of  Sales  is  Dropping  

h"p://www.flickr.com/photos/mon_oeil/2803417816/  

             

Margins  

       

Cost  of  Market  Access  

     

Cost  of  Discovery  

Margins  Are  Eroding  

             

Time  to  innova5on  

         

Time  from  tacit  to  explicit  

knowledge  

     

Capture    of  tacit  

knowledge  

InnovaOon  Cycle  Times  Are  Speeding  Up  

Change  

Confusion  

Anxiety  PolarizaOon  

TranslaOon  to  InternalizaOon  

Frame  of  Reference  

Major  

Minor  

Overwhelmed  People  Shut  Down  

Play  A  Different  Game—One  Focused  On  Enduring  RelaOonships    

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  

RelaOonships  as  CompeOOve  DifferenOator  

Enc

ount

er

Awareness  

Recogni5on

 

Awareness  Resonance    

Developm

ent   Understanding  of  

compa5bility  Piqued  interest  

Acknowledgement  of  rela5onship   Friend

ship  

Contextual  trust  Contextual  loyalty  

Contextual  advocacy    

Partne

rship   Forgiveness  

Advocacy      Defense  

Universal  trust  Universal  loyalty  

Social  Media  (Content-­‐Based)  Engagement  

Community  (RelaOonship-­‐Based)  Engagement  

In-­‐Person  Engagement  

Social  Approaches  Enable  Scalable  RelaOonships  

1  Cost-­‐EffecOve  Customer  Support    (Autodesk,  AT&T,  CA  Technologies,  Google)  

2  Engineering  Ecosystems    (Red  Hat,  SAP,  Yahoo!,  Oracle,  eBay)  

3  Cost-­‐EffecOve  Market  Development    (Ford,  Pepsi,  BarclaysCard,  EDR,  Zipcar)  

4  Internal  Efficiency      (CSC,  BASF,  Nike)   InnovaOon  

 (Boston  Children’s,  Dell,  SAP)  5  

Top  5  Community  Uses  

Measurable  But  Not  Immediate  

Investment  

Return

Community  Maturity  ModelTM  

Time  

Impa

ct  

 Phase  1  –  Strong  Hierarchy  

 Phase  2  –  Emergent  Community  

 Phase  3  –Community  

 Phase  4  –Networked  

Behavior  Change  

Pull  

Growth  

Transform  

CommuniOes  Mature  and  Change  

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  

Work  Status     Team  networks,  func5onal  communi5es  

ProducOvity  •  Reduced  mee5ngs  •  Micro-­‐mentoring  •  Alignment  •  Focus  on  issue  resolu5on  

Data  Analysis   Team  networks,  func5onal  communi5es,  communi5es  of  prac5ce,  customer  communi5es,  partner  communi5es  

ProducOvity  •  Shared  ownership  of  analysis  •  Broad  buy-­‐in  of  issues  and  framing  •  Faster  awareness  and  buy-­‐in  for  analysis  

Content  Development   Team  networks   ProducOvity  •  Ongoing  alignment  as  content  is  developed  •  Less  wasted  work  

Stakeholder  Review   Team  networks,  communi5es  of  peers/prac5ces  

ProducOvity  •  Transparent  decision  making  process  •  Be"er  sensing  of  poten5al  responses    

(crisis  management)  •  Shared  ownership  of  decision    

Communica5on  of  Informa5on  and  Decisions  

Func5onal  communi5es,  communi5es  of  prac5ce,  customer  communi5es,  partner  communi5es,  organiza5on-­‐wide  networks  

ProducOvity  •  Alignment  and  shared  situa5onal  awareness  Quality  •  Be"er  understanding  of  reac5ons  (crisis  management)  

Direct  Impact:    Measuring  Cost  and  Quality  Gains  

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  

Tacit  Opportuni5es   Market  network,  communi5es  of  prac5ce,  customer  communi5es,  partner  communi5es  

InnovaOon  Quality  and  Demand  •  Ability  to  understand  issues  before  they  are  ar5culated  InnovaOon  Cycle  Time  •  Solve  problems  in  step  with  demand  forma5on,  not  

sequen5ally    Customer-­‐led  Crea5on  and  Co-­‐Crea5on  

Customer  communi5es,  partner  communi5es  

InnovaOon  Extension  •  Fills  roadmap  gaps  •  Reduces  investment  in  high-­‐risk  projects  Demand  GeneraOon  •  Develops  customer  advocates  

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    

Indirect  Impact:    Measuring  Revenue  and  Growth  

S O C I A L I N N O VAT I O N  

S O C I A L I N T E L L I G E N C E  

S O C I A L C O M M E R C E  

Extract  intelligence  from  observable  customer  behaviors  and  conversaOons  to  equip  our  colleagues  with  insight  into  customer  hot  topics,  burning  issues  and  new  opportuniOes  

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  

Leverage  our  reach  and  influence  to  drive  speed  and  to    dramaOcally  increase  leads  and  revenues  both  organically  and  through  targeted  campaigns  

S O C I A L I N S I G H T  

Enable  customer  success  through  the  acOve  sharing  of  knowledge,  soluOons  and  best  pracOces  to  drive  excellence  and  innovaOon  

SAP  Social  Strategy:  Driving  InnovaOon  

•   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  

Digital,  Social  and  CommuniOes  at  SAP  

All  Rights  Reserved,  The  Community  Roundtable,  2012  

of  companies  describe  themselves  as  fully  socially  networked    

Amount  of  value  that  could  be  generated  annually  from  corporate  use  of  social  technologies  

Factoids  

Linda  Y.  Cureton,  CIO  of  NASA    

Sandy  Carter,  SVP  IBM  Mark  Yolton,  SVP  SAP  

Mark  Bertolini,  CEO  of  Aetna    

Sco<  Monty,  Head  of  Social  Media  Ford  

We  Want  to  Learn  from  ExecuOves  

   

Command  and  control.  Primary  

modes    of  communica5on  are  in  person,  phone  &  email.  No  use  of  many-­‐

to-­‐many  communica5on  

tools.        

TradiOonal      

Tes5ng  the  waters.  Not  suppor5ve  of  

the  use  of  social  as  a  viable  solu5on  for  

business.  Silos  and  not  

connected  to  the  business  workflow.  

   

Piqued      

Commi"ed  to  a  few  social  

ac5vi5es,  but  most  

communica5on  s5ll  occurs  through  tradi5onal  

channels.  Seeing  quick  wins.    

   

Experimental      

Engagement  with  key  

stakeholders  via  new  social  channels.  

Beginning  to  see  correla5on  

between  social  ac5vity  and  

business  results.      

Social    Social  business  is  integrated  into  the  DNA  of  

doing  business  with  all  

cons5tuents.  Opera5ons  are  op5mized  for  collabora5on  and  innova5on.  

   

Networked  

We  Need  to  Understand  the  ExecuOve  Journey  

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  

 

In Summary

4

Organizations that Go Up and Down Hold You Back 1

Break down the silos 2

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

4 Community management is the bedrock capability in driving innovation

A  massive  opportunity  to  have  a  different  relaOonship  with  your  customers,  partners  and  

employees  

Co-­‐creaOon,  crowdsourcing,  crowdfunding  neilperkin.typepad.com/  

Contact  Me:  ayelet27@gmail.com