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The Business of Influence
Philip Sheldrakewww.philipsheldrake.com
@sheldrake
Author of The Business of Influence: Reframing Marketing and PR for the Digital Age, Wiley, 2011
www.influenceprofessional.com
Founding Partner, Meanwhile
www.andmeanwhile.com
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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
influence
The 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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3 things
http://www.flickr.com/photos/philip_sheldrake/104947731
//The rise of social media
//The info tech explosion
//The way we contemplate, design,
communicate and execute strategy
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//The rise of social mediaONE
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An illustrated history
//The rise of social media
http://youtu.be/wp2eUSL4oHc
http://www.philipsheldrake.com/2011/01/content-an-illustrated-history
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The authors of the Cluetrain Manifesto asserted back in 1999 that the Internet allows markets to revert to the days when a market was defined by people gathering and talking among themselves about buyer and seller reputation, product quality and prices.
This was lost for a while as the scale of organizations and markets outstripped the facility for consumers to coalesce.
//The rise of social media
The Cluetrain Manifesto – http://www.cluetrain.com
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/5724320736
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We are more influenced by the 150 nearest to us
than by the other six or so billion combined
//The rise of social media
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/3068588302
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May have been a relevant axiom for 20th Century, but now…
//The rise of social media
Influence Strategy and Execution, Philip Sheldrake, Marketing Magnified eJournal, June 2011, CMO Council http://www.marketingmagnified.com/2011/june
http://www.flickr.com/photos/philip_sheldrake/5723483505
Perception is reality
The real-time social enterprise must, by
nature, be authentic.You can’t fake it.
Reality is perception
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If you could go back to the mid-90s and offer a marketer a little box that could sit on her desk and let her listen in on thousands of customer conversations and participate in those discussions regardless of geography or time zone, it would appear so far-fetched that she’d probably call security.
//The rise of social media
The Social Web Analytics eBook 2008, Philip Sheldrake
http://www.flickr.com/photos/philip_sheldrake/488935955
Social analytics
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And yet in 2011: “most CMOs pay
more attention to markets than individuals.”
//The rise of social media
From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011. http://www.ibm.com/cmostudy2011
Key sources to understanding individuals
in yellow.
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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 info tech explosionTWO
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Phones are the most personal of consumer
electronic devices. They rank with keys and money
when going out. They become an extension of
their owner and their loss is mourned, literally.
It keeps you connected with those far away, and
disengaged from strangers nearby.
//The info tech explosion
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/87041513
- address book- diary
- digital messenger- web browser
- games machine- music player- video player
- navigator- video & stills
camera
... and, of course,a phone
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The Internet of ThingsA public and private nervous system for the planet
//The info tech explosion
Internetome Conference, London, 2010
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/488970370
Electronic devices (washing machines, air conditioning units and cars)Electrical devices (lighting, electric heaters, and power distribution)Non-electrical objects (food and drink packages, clothes, and animals)Environmental sensors(measuring such variables as temperature, noise, moisture)
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Data paucity was a problem of the 20th Century.Big data is the problem and opportunity of the 21st.
//The info tech explosion
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/4326146564
I believe that a future where so much data is collected about me and owned by others is nothing short of dystopian.
We need a new privacy framework.And we need streams banks.
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– when individuals can market their needs or desires, either directly or anonymously, via a streams bank or other broker, to organizations interested in meeting that need or desire.
//The info tech explosion
The Social Web Analytics eBook 2008, Philip Sheldrake
http://www.flickr.com/photos/philip_sheldrake/6222250215
Buyer marketing
What’s the impact on advertising when we can pull customized ‘tenders’ to us on demand for anything and everything we can imagine?
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Web 3.0 – the Semantic Web – is about the Web itself understanding the meaning of all the content and participation.
//The info tech explosion
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/4324972193
Indeed, the Web becomes a universal medium for the exchange of data, information and knowledge.
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“Most CMOs are underprepared to manage the impact of key changes in the marketing arena.”
//The info tech explosion
From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, IBM, 2011. http://www.ibm.com/cmostudy2011
Data explosion& Social media
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//The way we contemplate, design, communicate and execute strategy
THREE
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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 social enterprise
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/2772566046
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‘Socializing the enterprise’ demands more than just procuring some social
tools. It demands a CEO-led organizational redesign.
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
http://www.flickr.com/photos/philip_sheldrake/3504552777
A framework for all influence activities, for the social media, info tech and
business strategy of the 21st Century.
It demands a new and simple model, devoid of ‘baggage’, to think about what
we’re trying to achieve.
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The Six Influence Flows
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
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Comparing market research and continuous engagement
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011, Table 5.4
Market research Continuous engagement
Ad hoc or regular intervals Continuous
One-way (and often needs the carrot of a prize, gift or payment)
Two-way (mutually rewarding)
Unemotional Emotional
Independent of loyalty Inculcates brand loyalty
Tight focus Wide focus
Sequential parameters Multi-parametric
Designed to achieve statistical confidence
Emphasis on detecting weak signals
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Influence-centricity
1. Focusing on the influenced
Related to the emphases of Net Promoter Score (albeit focused on all stakeholders that have been influenced or influenced others, rather customers that would recommend us).
Outcome rather than output oriented.
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011
The term ‘the influenced’ means those who have done something they otherwise wouldn’t have done (e.g. buy your product) and is not a contraction of ‘the positively influenced’, i.e. those who have come round to our point of view, as it might be in more casual parlance.
2. Tracing influence
Understanding and learning from how influence has happened.
Not hung up on finding ‘key influencers’, but rather it’s about:
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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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In conclusion
Today, influence activities are:
//The Business of Influence
– Spread, uncoordinated, across functional silos
– Encompass only some aspects and subsets of the Six Influence Flows and the Influence Scorecard
– Defined in the context of 20th Century technology, media, and articulation of and appreciation for business strategy.
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In conclusion
Tomorrow, your influence strategy must:
//The Business of Influence
– Take best advantage of social media, new info technologies and best practice performance management
– Integrate marketing research, systematically
– ‘Socialize the enterprise’, systematically
– Drive business performance.
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The ease and effectiveness with which we manage and learn from influence flows is
integral to the ways all stakeholders interact with organizations to broker mutually valuable,
beneficial relationships.
//The Business of Influence
The Business of Influence, Philip Sheldrake, Wiley, 2011http://www.flickr.com/photos/philip_sheldrake/3820770698
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The Business of Influence: Reframing Marketing and PR for the Digital Age
Philip Sheldrake, Wiley, May 2011ISBN 978-0470978627
www.influenceprofessional.com#infpro@sheldrake