Open Leadership: How Social Technology Can Transform The Way You Lead Charlene Li Altimeter Group May 6, 2010 1 #openleader

Open Leadership: How Social Technology Can Transform The Way You Lead

Charlene LiAltimeter GroupMay 6, 2010

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#openleader

© 2010 Altimeter Group


More people visit Facebook than Yahoo!


4

It’s about relationships


5

Why is social hard?

Because realrelationships require that you give up control


The need for open leadership6

When people get what they need from each other

“How open do I need to be?


Defining Open Leadership7

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


Best Buy’s First Social Media Experts8

Steve Bendt & Gary Koelling


They harnessed Best Buy’s biggest asset9

The Blue Shirts

© 2010 Altimeter Group10

BlueShirtNation.com supported Best Buy’s front line employees


Steve & Gary had an executive sponsor11

Barry Judge CMO of Best Buy


They kept telling him one thing…12

“Barry, you gotta get a blog!”


Barry’s first post13

“I was so relieved when it was over—it was just two sentences to get started.”


The Premier Black Fiasco14

6.8 million emails sent instead of 1,000 test


Barry’s response15

“…we screwed up the execution which makes me feel sick about the customer trust that we have impacted.”

“…we screwed up the execution which makes me feel sick about the customer trust that we have impacted.”


Openness became a strategy16

Open market testing of new logo


+2,200 Best Buy employees provide support on Twitter17


Focus on relationships, not technologies

What kind of relationship do you want?

Transactional

OccasionalImpersonalShort-term

Transactional

OccasionalImpersonalShort-term

Passionate

ConstantIntimate

Loyal

Passionate

ConstantIntimate

Loyal


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

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Go beyond traditional customer data20

DemographicDemographic

GeographicGeographic

PsychographicPsychographic

BehavioralBehavioral

SocialgraphicSocialgraphic


Engagement Pyramid: Focus on Watching and Sharing21

Curating

Producing

Commenting

Sharing

Watching


Dialog with your community22


DellOutlet drives sales with Twitter23


Help your members support each other24


Social moves into enterprise apps

Salesforce Chatter

LinkedIn in Lotus Notes

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Service Cloud w/social


Innovate with customer feedback26


Starbucks involves 50 people around the organization


What to do first


#1 Align openness with strategic goals29

Examine your 2011goals

Pick one where open and social can have an impact


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#2 Understanding the value

Value of +5 million fans?

“We tend to overvalue the things we can measure, and undervalue

the things we cannot.”

- John Hayes, CMO of American Express


+ Value of purchases-Cost of acquisition

____________________

= Customer lifetime value

The new lifetime value calculation

• 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 new customers from referrals

+ Value of support+ Value of ideas

+ Value of insights

Learn more: Webinar this Friday 5/7 bit.ly/openleaderweb2


#3 Understand how open you need to be32


Determine how open you need to be to meet your goals33


#4 Find and develop you open leaders34

Pessimist Optimist

Collaborative

Independent


#5 Prepare your organization35

Ideally, you should be at

“4.0” for launch.

Area of opportunity.


Social media triage36

Can you add value?

Can you add value?

Evaluate the

purpose

Evaluate the

purpose

Respond in kind & share

Respond in kind & share

Thank the person

Thank the person

Unhappy Customer?Unhappy

Customer?

DedicatedComplainer?Dedicated

Complainer?

Comedian Want-to-

Be?

Comedian Want-to-

Be?

NegativePositive

Yes No

Do you want to

respond?

Do you want to

respond?

No Response

No Response

No

Yes

Take reasonable action to fix issue and let customer

know action taken

Take reasonable action to fix issue and let customer

know action taken

Are the facts

correct?

Are the facts

correct?

Gently correct the facts

Gently correct the facts

No

No

No

Yes

Are the facts

correct?

Are the facts

correct?

Does customer need/deserve

more info?

Does customer need/deserve

more info?

Yes

Explain what is being done to

correct the issue.

Explain what is being done to

correct the issue.

Yes

Is the problem

being fixed?

Is the problem

being fixed?

Yes

Let post stand and monitor.

Let post stand and monitor.

No

Yes

NoYes

Yes

Assess the message

Assess the message


Create a culture of sharing


#^ Embrace failure38


Buyer blog hit the right note39


Manage risk with Sandbox Covenants40


What the future will bring41

Social networks will be like air


Focus on relationships.

Align your social strategy with strategic goals.

Support open leaders in your organization.

Be prepared for failure – you’ll encounter many.

Summary42


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Thank you

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Charlene [email protected]

charleneli.com/blog

Twitter: charleneli

For slides, send an email to

[email protected]

Learn more and buy the book at

open-leadership.com

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Open Leadership: How Social Technology Can Transform The Way You Lead Charlene Li Altimeter Group May 6, 2010 1 #openleader