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Open Leadership: How Social Technology Can Transform The Way You Lead Charlene Li Altimeter Group May 6, 2010 1 #openleader
More people visit Facebook than Yahoo!
4 It’s aboutrelationships
5 Why is social hard? Because realrelationships require that you give up control
The need for open leadership			 6 When people get what they need from each other “How open do I need to be?
Defining Open Leadership 7 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 Experts 8 Steve Bendt & Gary Koelling
They harnessed Best Buy’s biggest asset 9 The Blue Shirts
BlueShirtNation.com supported Best Buy’s front line employees
Steve & Gary had an executive sponsor 11 Barry Judge CMO of Best Buy
They kept telling him one thing… 12 “Barry, you gotta get a blog!”
Barry’s first post 13 “I was so relieved when it was over—it was just two sentences to get started.”
The Premier Black Fiasco 14 6.8 million emails sent instead of 1,000 test
Barry’s response 15 “…we screwed up the execution which makes me feel sick about the customer trust that we have impacted.”
Openness became a strategy 16 Open market testing of new logo
+2,200 Best Buy employees provide support on Twitter 17
Focus on relationships, not technologies What kind of relationship do you want? Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal
Four goals define your open strategy, but always start with learn 19
Go beyond traditional customer data 20 Demographic Geographic Psychographic Behavioral Socialgraphic
21 Curating Engagement Pyramid: Focus on Watching and Sharing Producing Commenting Sharing Watching
Dialog with your community 22
DellOutlet drives sales with Twitter 23
Help your members support each other 24
Social moves into enterprise apps Salesforce Chatter Service Cloud w/social LinkedIn in Lotus Notes 25
Innovate with customer feedback 26
Starbucks involves 50 people around the organization
What to do first
#1 Align openness with strategic goals 29 Examine your 2011goals Pick one where open and social can have an impact
30 #2 Understanding the value “We tend to overvalue the things we can measure, and undervalue the things we cannot.”         - John Hayes, CMO of American Express Value of +5 million fans?
The new lifetime value calculation ,[object Object]
 Size of their networks
 Percent of referred people who purchase
 Value of purchases+ Value of purchases ,[object Object],____________________ = Customer lifetime value + Value of new customers from referrals + Value of insights ,[object Object]
 Frequency and value of the support+ Value of support + Value of ideas Learn more: Webinar this Friday 5/7 bit.ly/openleaderweb2
#3 Understand how open you need to be 32
Determine how open you need to be to meet your goals 33
#4 Find and develop you open leaders 34 Collaborative Independent Optimist Pessimist
35 #5 Prepare your organization Ideally, you should be at “4.0” for launch. Area of opportunity.
Social media triage 36 Take reasonable action to fix issue and let customer know action taken Negative Positive Yes Yes No Assess the message Evaluate the purpose Do you want to respond? Does customer need/deserve more info? Unhappy Customer? No Response Yes Are the facts correct? Gently correct the facts Yes No No No Can you add value? DedicatedComplainer? Are the facts correct? Yes Yes No No Yes Respond in kind & share Thank the person Comedian Want-to-Be? Explain what is being done to correct the issue. Is the problem being fixed? Yes No Yes Let post stand and monitor.
Create a culture of sharing
#^ Embrace failure 38
Buyer blog hit the right note 39

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Web 2.0 Expo Speech: Open Leadership

  • 1. Open Leadership: How Social Technology Can Transform The Way You Lead Charlene Li Altimeter Group May 6, 2010 1 #openleader
  • 2.
  • 3. More people visit Facebook than Yahoo!
  • 5. 5 Why is social hard? Because realrelationships require that you give up control
  • 6. The need for open leadership 6 When people get what they need from each other “How open do I need to be?
  • 7. Defining Open Leadership 7 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
  • 8. Best Buy’s First Social Media Experts 8 Steve Bendt & Gary Koelling
  • 9. They harnessed Best Buy’s biggest asset 9 The Blue Shirts
  • 10. BlueShirtNation.com supported Best Buy’s front line employees
  • 11. Steve & Gary had an executive sponsor 11 Barry Judge CMO of Best Buy
  • 12. They kept telling him one thing… 12 “Barry, you gotta get a blog!”
  • 13. Barry’s first post 13 “I was so relieved when it was over—it was just two sentences to get started.”
  • 14. The Premier Black Fiasco 14 6.8 million emails sent instead of 1,000 test
  • 15. Barry’s response 15 “…we screwed up the execution which makes me feel sick about the customer trust that we have impacted.”
  • 16. Openness became a strategy 16 Open market testing of new logo
  • 17. +2,200 Best Buy employees provide support on Twitter 17
  • 18. Focus on relationships, not technologies What kind of relationship do you want? Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal
  • 19. Four goals define your open strategy, but always start with learn 19
  • 20. Go beyond traditional customer data 20 Demographic Geographic Psychographic Behavioral Socialgraphic
  • 21. 21 Curating Engagement Pyramid: Focus on Watching and Sharing Producing Commenting Sharing Watching
  • 22. Dialog with your community 22
  • 23. DellOutlet drives sales with Twitter 23
  • 24. Help your members support each other 24
  • 25. Social moves into enterprise apps Salesforce Chatter Service Cloud w/social LinkedIn in Lotus Notes 25
  • 26. Innovate with customer feedback 26
  • 27. Starbucks involves 50 people around the organization
  • 28. What to do first
  • 29. #1 Align openness with strategic goals 29 Examine your 2011goals Pick one where open and social can have an impact
  • 30. 30 #2 Understanding the value “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express Value of +5 million fans?
  • 31.
  • 32. Size of their networks
  • 33. Percent of referred people who purchase
  • 34.
  • 35. Frequency and value of the support+ Value of support + Value of ideas Learn more: Webinar this Friday 5/7 bit.ly/openleaderweb2
  • 36. #3 Understand how open you need to be 32
  • 37. Determine how open you need to be to meet your goals 33
  • 38. #4 Find and develop you open leaders 34 Collaborative Independent Optimist Pessimist
  • 39. 35 #5 Prepare your organization Ideally, you should be at “4.0” for launch. Area of opportunity.
  • 40. Social media triage 36 Take reasonable action to fix issue and let customer know action taken Negative Positive Yes Yes No Assess the message Evaluate the purpose Do you want to respond? Does customer need/deserve more info? Unhappy Customer? No Response Yes Are the facts correct? Gently correct the facts Yes No No No Can you add value? DedicatedComplainer? Are the facts correct? Yes Yes No No Yes Respond in kind & share Thank the person Comedian Want-to-Be? Explain what is being done to correct the issue. Is the problem being fixed? Yes No Yes Let post stand and monitor.
  • 41. Create a culture of sharing
  • 43. Buyer blog hit the right note 39
  • 44. Manage risk with Sandbox Covenants 40
  • 45. What the future will bring 41 Social networks will be like air
  • 46. Focus on relationships. Align your social strategy with strategic goals. Support open leaders in your organization. Be prepared for failure – you’ll encounter many. Summary 42
  • 47. 43 43 Thank you Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com Learn more and buy the book atopen-leadership.com

Notas do Editor

  1. Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals
  2. Best Buy set up an internal community for their front line employees. They all wear blue shirts in the stores, so they call the site “blue shirt nation”. In this example, a camera case was sent to the store and it just didn’t look right. Within two hours, someone had come into the community and seen the post. It happened to be the person who designed the case. She said that she would go back and make sure that all of the right cases got sent to the right stores. How long do you think it would have taken that floor manager to figure out that he had been sent the wrong case? Probably weeks. But with Blue Shirt Nation, employees are solving problems together.
  3. Key take aways:Relationship was strongCould overcome small transgressions, mistakes are forgiven
  4. The key is to focus on the relationships and connections that are enabled, not the technologies. Think about the kind of relationship that you want. Do you want it to be short term and transaction, or long-term and intimate?To help you think about this, I have a simple idea.
  5. Starbucks has a site where people can make suggestions on how they should improve. The key difference is that the suggestions are public, and people can vote for their favorite suggestions. Here’s an example of automatic ordering. Note that there is a status update here “Under Review”.