THE HYPER-SOCIAL ORGANIZATION

THANKING OUR SPONSORS

BUILDING HYPER-SOCIAL ORGANIZATIONS

PREPARED FOR THE HYPER-SOCIAL MINI SUMMIT – NEW YORK CITY, JAN 19TH, 2011

@FGOSSIEAUX, @EDMORAN, @SKWILDER, @ROBERTCOLLINS

THE SAP DEVELOPER COMMUNITY

LET’S START OFF WITH A LITTLE EXAMPLE HUMAN 1.0 VS. WEB 2.0

The SAP Developer Network

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Stats: 1.4 M users 400K+ business experts Content-rich Original Incentive System: Point system leading to

personal rewards The Results: Bullying behavior in the

community New Incentive System: Point system leading to

donation to good cause The Results: No more bullying in the

community

Web 2.0 or Human 1.0?

A look at some NIH + Duke Research

Experiment #1: People play Atari-style video game which allows them to earn or lose money for themselves MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs

Experiment #2: People play Atari-style video game which allows them to earn or lose money for a charity MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions

So to understand how to do business in a 2.0 world…

You do not need to understand the Web 2.0 technologies

You are better off understanding Human 1.0 – not as individuals, but as

hyper-social creatures

QUICK INTRO UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA HOW DO HYPER-SOCIAL ORGANIZATIONS THINK ABOUT THEIR BUSINESS? WHAT DO HYPER-SOCIAL ORGANIZATIONS DO DIFFERENTLY, AND WHY? 9 WAYS TO THINK DIFFERENTLY ABOUT YOUR ORGANIZATION HOW TO DEAL WITH RISK

OVERVIEW

Quick definitions

• Social media: Various technologies and tools like Facebook, Twitter and blogs that provide people with a massive platform for interaction with one another. “Social media” is often used synonymously with “Web 2.0” or “social software.”

• Tribe: A collection of people who choose to interact due to shared interests and passions (scrapbooking, software, wine) and affinity for one another. They are characterized more by whom they like to hang out with and their behaviors than individual traits (like age or income)

• Hyper-Social: The cooperative, reciprocal behavior displayed between humans who are not necessarily related or in close geographic proximity

LET’S GET A LEVEL DEEPER ON THE HUMAN 1.0…

Why are social beings helping one another?

Reciprocity = a Reflex

Why are people going out of their way to punish others?

Humans have an innate sense of fairness = keeps reciprocal society working

How do we make decisions?

Social Framework Market Framework

Why do people like to look like others?

Because humans have mirror neurons

Why do we lie to market researchers?

Because we lie to ourselves and others, and we tell people what we think they want to hear

Why is status so important (and why do we hoard it)?

Because it used to get us a better mate – proceed with caution: status works both ways!

We are a herding species – self herding even

What are the important Human 1.0 Hyper-Social Traits

• Reciprocity – it’s a reflex that allows us to be the only

super-social species without all being brothers and sisters

• The role of fairness in assessing situations

• Social framework of evaluating things vs. market framework

• The importance of looking cool and mimicking others

• Herding and self-herding (early research shows that social behavior does not change when it scales)

So to the extent that we can basically be human

with what we know, and share it as freely as we

possibly can, I think we’ll go a long way towards

gaining a higher or stronger level of trust with

the consumers.

Barry Judge, CMO Best Buy

http://www.cmotwo.com

HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS

SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS

Informed by Tribalization of Business Study: 2008-2010 – 1,000+ companies took the survey

Hyper-Social companies think differently • Think tribe – not market segment

– We need to find groups of people who have something in common based on their behavior, not their market characteristics

• Think knowledge network – not information channel – The most important conversations in

communities happen in networks of people, not between the company and the community.

• Think human-centricity – not company-centricity – The human has to be at the center of everything

you do, not the company • Think emergent messiness – not hierarchical fixed

processes – People will want to see responses to their

suggestions, even if it does not fit your community goals – FAST

“…affinity groups will quickly become the dominant social

force in the emerging world

economy, changing how we think about markets, fads, social

movements, and, ultimately, power”

- Tom Hayes, Jump

Point: How Network Culture is

Revolutionizing Business – 2008

WHAT IS IT THAT THEY DO DIFFERENTLY?

HYPER-SOCIAL ORGANIZATIONS

Hyper-Social Orgs – Leveraging Social Business Processes

• Successful Hyper-Social organizations turn their business processes into “social” processes – Why?

• Scale • Increased quality • Increased passion • Increased WOM

Turning a business process into a social process • IS NOT:

– Running traditional programs using social media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc.

• BUT IS: – Running programs based on human reciprocity

and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc.

– TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS

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Process Before After Benefits Case Studies

Sales One-to-one Many-to-many Sales is social networking

Tibco, Zappos

Product Innovation Constraint to a department

Includes all employees,

customers, prospects and detractors

Reduce product failure rates (now at 80%)

Cisco, Netflix

Lead generation Interrupt-driven Become findable, be generally helpful in public conversation

Leads that actually want to buy something

EMC, Dell

Customer Service Conducted by employees

Conducted by employees and other

customers

Customers service as a revenue source

instead of cost center

SAP, Zappos

Knowledge Management

Top down process Federated and user-driven process

KM that works, changes in work habits

IBM

Customer Communications

Mostly between companies and

customers

Primarily among customers, detractors

and prospects

Reduced cost and increased

effectiveness

Best Buy, Dassault Systemes, Fiskars

Talent Acquisition and Development

Board, interrupt-driven and based on

weak ties WOM

Endorsed by the tribes people belong to

Social context provides better

matches

Monster.com

Employee Communications

Mostly within silos Cross enterprise Increased serendipity, increased support

IBM, FedEx, Cisco

Market research Based on small groups and financial

incentives

Based on tribes and social contract

Much more accurate market data and

increased success

Eli Lilly, Pfizer, IBM, Fiskars

PR & Thought leadership

Rolodex based and focused on traditional

media

Community/tribe based and focused on

social media

Much more amplification of the

messages

Microsoft, Intuit

…IN A HYPER-SOCIAL WORLD

9 WAYS TO THINK DIFFERENTLY ABOUT YOUR BUSINESS

1) BRING DOWN THAT WALL

Do like IBM – get rid of the firewall while protecting IP

CIO’s

Product Idea

Business model tweak

PR

Customer support

Green Enthusiasts

IP

…increase knowledge flows…and competitiveness

IP

IP

2) DON’T BUILD NEW WALLS

Don’t put a wall between company and people

Don’t put a wall between company and people

Embrace what people want

…and give them access…it will increase passion & productivity!

…AND GET PEOPLE COMMITMENT

3) TEAR DOWN SILOS

Business objectives of communities

0%

10%

20%

30%

40%

50%

60%

70%

Q: Of the following business objectives which best represent your community? (select all that apply)

Department managing community

0%

10%

20%

30%

40%

50%

60%

Q: Which department manages your community (even if outsourced)?

# of people managing community

51%

16%

23%

2% 5%

3%

Q: How many people from your company manage this community as their full-time job?

None: part time job

One

5-Feb

10-Jun

More than 10

Other

Establish Center for Excellence

SM Center for Excellence

Marketing

Sales

Support Development

HR

Budgets

…BETWEEN MARKETING AND CUSTOMER SUPPORT

4) FIX THE GREAT DIVIDE

Your brand is only as good as the last transaction

• Fix the whole company’s user interface with the customer: – Sales – Marketing – Customer Support – Service, etc…

• Tap into the passion of employees and customers to help one another across boundaries

…OR DON’T LET HISTORY REPEAT ITSELF

5) DON’T BUILD WHAT YOU BUILT BEFORE

Move with caution – it’s not easy!

We need Social CRM

We need Social graphs

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The funnel is dead

Source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

Tribes & Networks

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Today’s buying cycle: a social-powered continuous loop process

Based on source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

Many more sources of

information Can still become part of consideration

set

CRM – the makings of a social process

• Leave company centricity behind: – Prospects, lead nurturing, sales funnel, etc.

• Put the customer at the center: – What does she need? – Will it work for her?

• Increase knowledge flows, and think tribes – Who can help her internally? – Who can help her externally?

• Embrace a messier process – Allow people to jump in and help

6) MAKE SURE CIO & CMO ARE BEST FRIENDS

The benefits of a CIO/CMO friendship

• Build the right infrastructure to support your social processes

• Find the right pockets of culture to ensure adoption

• Regain a strategic role at the executive table by being the representatives for the voice of the customer within your company

DON’T JUST THINK TECHNOLOGY

7) THINK CULTURE

“WE FIND OURSELVES IN THE ODDEST POSITION – WHICH IS TO TELL THE BUSINESS UNITS THAT THIS IS NOT A TECHNOLOGY ISSUE BUT A PEOPLE AND PROCESS ISSUE.” – CIO AT A MAJOR PHARMACEUTICAL COMPANY

BE HUMAN

The benefits of allowing people to be human

• Better knowledge flows = Social Knowledge Management Platform

• Customer/employee centricity = leveraging more passion

• Leveraging passion = increasing productivity exponentially

• More passion = increased WOM

= the creation of more customers with a higher lifetime value

“The purpose of a business is to create a customer.” -- Peter Drucker

…NOT THE COMPANY ADVOCATE

8) BECOME THE CUSTOMER ADVOCATE

HOW CAN YOU EXPECT YOUR CUSTOMERS TO TRUST YOU IF YOU CANNOT TRUST YOUR EMPLOYEES?

9) ESTABLISH TRUST AS THE NEW CURRENCY

Any questions?

Francois Gossieaux Partner, Beeline Labs e. francois@human1.com w. http://www.human1.com b. http://www.emergencemarketing.com Ed Moran e. emoran@deloitte.com w. http://www.deloitte.com Our new book: The Hyper-Social Organization http://www.hypersocialorg.com

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DEALING WITH RISK MANAGEMENT

Social Media brings new risks

• Brand risk • Legal risks

– Labor laws – Non compete – HR – Whistleblower laws

• Competitive risks • IP risks • Privacy • Loss of operational efficiency • Compliance risks • Etc…

CEO VS. EMPLOYEES ARE EQUAL SOURCES OF RISK PROTECTIONS THAT ENGENDER RISKS ARE MEANT TO PROTECT BOTH INDIVIDUALS AS WELL AS COMPANIES

RISKS ARE EGALITARIAN

EDUCATION VS. RULES AND POLICIES AFFIRM THE CULTURE, DON’T DEFINE IT

HOW TO DEAL WITH IT?

= THE RISK OF DOING NOTHING

AND THE BIGGEST RISK OF ALL