the value of influence @sheldrake

The Value of Influence

Philip Sheldrakewww.philipsheldrake.com@sheldrake

AuthorThe Business of Influence: Reframing Marketing and PR for the Digital Agewww.influenceprofessional.com

Influence CrowdMeanwhileIntellect6UK

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http://www.philipsheldrake.com

http://twitter.com/sheldrake

http://www.influenceprofessional.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



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If you’re in business, indeed any type of organization, then you’re in the business of influence



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3 thingshttp://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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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 Cluetrain Manifesto – http://www.cluetrain.com



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http://www.cluetrain.com

http://www.flickr.com/photos/iangallagher/490333150


But I get social, I get influence…


www.flickr.com/photos/iangallagher/490333150

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But I get social, I get influence… err?!


www.flickr.com/photos/iangallagher/490333150

www.flickr.com/photos/jeremylevinedesign/2815977968

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http://www.flickr.com/photos/jeremylevinedesign/2815977968

social / digital is not:– a new team or department– something to procure, design or manage separately



social / digital does:– require new skills– bring new opportunities, and threats

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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 Social Web Analytics eBook 2008, Philip Sheldrake


Social analytics

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May have been a relevant axiom for 20th Century marketing and PR practice, but now…


Influence Strategy and Execution, Philip Sheldrake, Marketing Magnified eJournal, June 2011, CMO Council http://www.marketingmagnified.com/2011/june


Perception is reality

Real-time social marketing and PR must, by nature, be

authentic. Real-time PR marks the death of ‘spin’.

You can’t fake it.

Reality is perception

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http://www.marketingmagnified.com/2011/june


Everything an organization does occurs in the context of a changing world, in a dynamic interplay with every entity around it


Align Your Stakeholder-Facing Functions with an Influence Strategy, Philip Sheldrake, Balanced Scorecard Report, July-August 2011, Vol 13 No 4, Harvard Business Publishing


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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An illustrated history

http://youtu.be/wp2eUSL4oHc

http://www.philipsheldrake.com/2011/01/content-an-illustrated-history

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http://youtu.be/wp2eUSL4oHc

http://www.philipsheldrake.com/2011/01/content-an-illustrated-history

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




- 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


Internetome Conference, London, 2010



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.




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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Web 3.0 – the Semantic Web – is about the Web itself understanding the meaning of all the content and participation




Indeed, the Web becomes a universal medium for the exchange of data, information and knowledge

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//The way we contemplate, design, communicate and execute strategy

THREE

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20th Century business was built around tangible assets (land, plant & machinery)



The 21st Century business is more reliant on intangibles (intellectual property,

brand, reputation, social dialogue) for which traditional accounting analyses are

poorly designed

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So that's one reason why 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.


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


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http://www.bain.com/publications/articles/management-tools-2011-balanced-scorecard.aspx


Return on investment




When the boss rules‘Look, I’m told we’re investing in this. Now we just need to work up the numbers to get it through finance.’When efficiency rules‘This investment will speed the process up.’ ‘Er, but it’s not actually a bottleneck.’When the guru rules‘Well the book’s at number 1.’When last year rules‘Well we did it this way last year ...’ When the competition rules‘They’ve gone for it, so ...’

When vanity rules‘We can afford it and it’ll be a testament to our time.’When experience rules‘Do you think the CMO’sbackground in advertising sways the budgeting process?’When rules rule‘Let’s treat it as three separate projects so each comes under the limit demanding cost justification.’When paralysis rules‘I just don’t know.’And when all else fails – when cost rules‘Just make a decision on a least-cost basis because this sort of thing never has a tangible ROI.’

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Return on investment


Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Robert S. Kaplan and David P. Norton, ISBN: 978-1591391340


I prefer it when strategy rules...

“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.”

And this applies to influence activities too.

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//The Business of InfluenceThe Six Influence Flows, Influence Scorecard and CInflO

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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



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A new and simple model, devoid of ‘baggage’, to think about what

we’re trying to achieve.




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A framework for all influence activities, for the social media, info tech and business strategy

of the 21st Century.


The Six Influence Flows



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We are more influenced by the 150 nearest to us than by

the other six or so billion combined




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Influence(r)-centric



* AVE – advertising value equivalence, a discredited measurement of media relations performance

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Maturity Characteristics

High Trace the influence (the action) back to source. Focused on business

outcomes, as we should be. Best practice, intelligent and you could say scientific and professional marketing and PR, and associated activities. In

fluen

ce-c

entri

c

Medium It’s quality not quantity. Not how many people you interact with, but how and in what context?

Low Number of followers, friends, subscribers, circulation. Empirically supported network science. Akin to column inches and

AVE* – measurement because you can, not because you should.

Influ

ence

r-cen

tric

Pitiful Obfuscating compound measures of non-contextual trivial variables. No empirical evidence.

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



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2. Tracing influence

Understanding and learning from how influence has happened

Not hung up on finding ‘key influencers’, but rather it’s about:

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?



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Kaplan and Norton’s strategy map tool and Balanced Scorecard framework are well suited to these efforts.

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.



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The Influence Scorecard /3

Ultimately, 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.



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The Chief Influence Officer

Are you ambidextrous of mind (left- & right-brained)?

Are you fluent in public relations excellence and other influence disciplines? Can you effect change in the face of entrenched organisational resistance?

Then this is your perfect storm. You might be the new breed of influence professional, and perhaps Chief Influence Officer.



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In conclusion

Today, influence activities are:

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– 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

In conclusion

Tomorrow, your influence processes must:

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– Socialize the enterprise, systematically

– Take best advantage of new info technologies

– Drive business performance management

I recommend the Influence Scorecard.

The Business of Influence: Reframing Marketing and PR for the Digital Age

Philip Sheldrake, Wiley, May 2011ISBN 978-0470978627

www.influenceprofessional.com#infpro

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http://www.influenceprofessional.com

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