The Social Media After Shock Will Destroy Business as Usual

The social media earthquake hit and it hit hard. It caused, and is still causing, massive disruption that can mostly be felt in the worlds of media and marketing. But the core of business – business as usual – hasn’t been hit yet. Not really.

It’s about to.

Tired and Lonely

The supports that hold up traditional organizations have been shaken and weakened and are about to be hit by a massive aftershock that will finish the job. Business as usual will cease to exist except in the most laggard, niche markets. Org charts will get thrown out the window and MBA programs everywhere will quickly turn into business history classes.

Anytime someone tells you “We HAVE  to do it this way,” run. Run far away. You don’t HAVE to do anything. If someone says “You Can’t do that, it will never work,” you’re probably on the right path, keep going.

While I am as excited as ever about these tectonic shifts happening in our world I’m also really tired.  I love disruption more than any healthy person should. I thrive in chaos. But I’ve been doing this for a while now and sometimes it’s exhausting, lonely work.

I feel like I’ve just sprinted as fast as I could to the finish line only to realize that it was actually the starting line to a marathon. Go.

Even though I’ve been right way more often than I’ve been wrong over the last 5 years, most people aren’t going to believe me. Even those that believed me the first time are going to be skeptical, and the ones who do believe me and aren’t skeptical are tired too. Some of them are sitting this one out.

But that’s enough complaining, it’s time to get back to work. I’ve got massive destruction to prepare for.

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The Most Important Book You Will Read This Year

You may be familiar with author Daniel A Pink (blog & Twitter). As a right brainer, I loved his book,  A Whole New Mind: Why Right-Brainers Will Rule the Future and I just finished his most recent book: Drive: The Surprising Truth About What Motivates Us. (Amazon affiliate links)

I downloaded the audio book for my last drive down to corporate headquarters in Portland, OR. I listened to the first half on the way down and the second half on the way back. Before my road trip was done I found a bookstore and bought two copies of the book. I’ve already given them away and will buy another two today. Maybe I should just buy them in bulk.

This is probably the most important book I can recommend for you to read this year. You will question every aspect of business management, your business model, organizational structure, parenting, schooling, even what you want to do with the rest of your life.

Most of us believe that the best way to motivate ourselves and others is with external rewards like money—the carrot-and-stick approach. That’s a mistake, Daniel H. Pink says in, Drive: The Surprising Truth About What Motivates Us, his provocative and persuasive new book. The secret to high performance and satisfaction—at work, at school, and at home—is the deeply human need to direct our own lives, to learn and create new things, and to do better by ourselves and our world.

We have reached a level where work and knowledge can be and should be intrinsically motivating (doing it is its own reward). Not all jobs of course fit this model but as the economy rebounds there is no reason to do a job you don’t want to.  In my last post I talked about the parts of your business you are least likely to give up.

Social media has changed the landscape driven by our collective shift in motivation. In my opinion, we have entered a new economy, an economy where money is no longer the only capital. Money may no longer even be the most important capital.

Fellow New Comm Biz author, Jason has posted about companies sucking their wealth from the new Bourgeoisie. Maybe we have reached a point where, money is a commodity, easily obtained. Maybe not for everyone but for the western world where a college degree doesn’t mean as much as it used to money is no longer enough of a motivator.

I have a lot more to write about this topic but first I suggest reading Drive, then my posts will make a lot more sense. If that’s really possible :)

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Social Media is not a Telephone or Pants

You’ve all the heard the arguments about measuring social media:

How do you measure the ROI of your telephone?

Or my other favorite:

What’s the ROI of putting on your pants in the morning?

Seriously?

Man, this ain’t my social media, this is a cell phone. Duh!

The ROI of putting your pants on:

In all seriousness, having a phone at work and putting on your pants is a cost of business. At one time having phones at everyone’s desk was something that had to be justified. Now having a phone is a cost and managed accordingly. Do you really want social media to be managed by cost and not by return? Guess which gets more budgets?

BTW: Unless you work from home the ROI of putting on your pants should never have been a question.

The greater risk here is that the people who are resistance to measuring social media are well intentioned and for the most part “get” social media. While we’re sitting around debating the merits of measuring social media, marketers and advertisers are calculating the ROI of Facebook fans and followers.

Facebook Develops Conversion Tracking Tool: What’s A Fan Worth?

Boland also served up advice on how to calculate a cost-per-fan metric to determine the campaigns return on investment (ROI). Not only the cost to acquire a fan, but the fan’s worth.

If you walk into a meeting preaching that social media shouldn’t be measured because you decided to put on pants and the other group walks into the meeting showing the ROI of individual Facebook fans and the cost per acquisition, take a wild guess who’s going to get the budget and guess who’s going to loose their pants?

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The Innovation Equation and Social Media Solution

I have a theory: The amount of Knowledge and quality of Collaboration a company is able to achieve directly effected by the level of Trust all parties have in the company.This is reflected in the potential value of the Innovation.

Collaboration
Image by yuan2003 via Flickr

(Knowledge x Collaboration) x Trust = Innovation

Knowledge is the raw materials businesses are built on today. All commodities are just that, commodities. Production became a commodity thanks to globalization and distribution became a commodity thanks to the Internet. The only thing that’s left is knowledge.

Knowledge is easy for individuals to gain. Knowledge is itself a commodity – for individuals. Knowledge is a scarcity for companies. The ability to mine the wealth of knowledge inside of the people employed by a company is harder. Add to that the need to mine knowledge from customers and partners and knowledge just became the scarcest mineral on the planet.

Why is knowledge so difficult to gain? Two factors: Retention and Trust.

Retention because we don’t stay at the same job as long as we used to, customers are rarely brand loyal anymore and partnerships are fleeting. None of this is going to change dramatically, which puts an increase on the need for trust.

Employees, Customers and Partners have an inherent lack of trust in corporations. This means they will only give up as much knowledge as they have to in order to gain something of value like a paycheck, a product or a contract.

In my last post I talked about the value of Trust. Let’s assume for a minute that you are actually able to gain enough trust to gather sufficient knowledge, now what? Now that you’ve mined that raw data you need to turn it into something. This is where collaboration comes in.

As companies continue to rely on remote and mobile workforces our ability to collaborate has been hampered and becomes expensive and difficult. This yields lower returns comparable to the level of investment. Which in turns causes companies to kill potential breakthrough innovations much sooner.

Social Media has huge payoffs in all of these areas. Social Media allows companies to open up and place trust in their employees and customers which in turn yields more trust. Social media allows for the gathering, storing and sharing of knowledge as well as facilitating communication and collaboration across multiple regions and stakeholders.

Among other benefits, this social media centric approach lowers the overall costs and increases the output making it easier to invest in, what in the short term seems like, smaller innovations but may actually have larger returns in the end.

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For a long time now I (and many many others) have been talking about transparency. I’ve even gone so far as to tell companies that they need to adopt a Transparent Business Strategy.

The goal of a Transparent Strategy is to *have* trust.
To have trust in others and to have the trust of others.

I hate throwing around the much over used word, “strategy” without some context. The best definition of strategy that I’ve heard is: to create fit within all practices of an organization. Each function of a company should support the other business functions to drive profit.

Transparency isn’t just about Marketing. A Transparent Business Strategy should align across the entire organization: Marketing, Employee Communications, Partner Communications, Investor Relations, and Customer Support.

What is Transparency? Transparency means communicating honestly, it doesn’t mean communicating everything. It also means trusting others.

Companies need to be trust worthy. If companies want to have the trust of others they need to first trust in others. We don’t trust people who don’t trust us.

I believe that transparency drives trust which drives greater profits.

  • When your employees trust you they will work, not just harder, but better.
  • When your customers trust you they are more loyal.
  • When your stakeholders trust you they are more likely to invest in you.
  • When your strategic partners trust you they will more likely share valuable information.

I don’t know a single company (I’m sure they exist somewhere) that doesn’t want to have the trust of their customers, or the trust of their employees. Far fewer companies are willing to first trust their customers or employees. Most say they do, but how many actually do?

On a tactical level, last year Shel Holtz and John Haven even went so far as to release a great book called Tactical Transparency. If you’re interested in driving transparency through your organization I recommend giving it a read.

If a company trusted their employees, why would it be so scary to let them blog or use Twitter? If a company trusted that their customers why wouldn’t they have a dedicated evangelist program?

Of course an even more poignant question is: if a company has trust in themselves why should social media scare them? Ironically, I think they are afraid of the truth.

This is an updated version of an older post which can be found here.

Photo credit by nick.garrod

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Never chase a market leader. Instead start a new race.

Ignore the rumors and stop chasing Apple. Forbes has a good post on innovation. The irony is that the minute you say we want to innovate like Apple, you are no longer innovating. You’re iterating.

Innovation Beyond Apple – Forbes.com

When it comes to innovation, many executives in the consumer goods industry are chasing Apple. Who can blame them? While most retailers spent the holiday season slashing prices, Apple reported record earnings by enchanting audiences with iPhones. Now, as retailers try to re-engage consumers this year, executives are trying to replicate the “Apple thrill.”

But focusing exclusively on product innovation is a mistake for most companies, say executives who gathered recently at Berglass + Associates, my company, to discuss innovation. The attendees included Richard Dickson, general manager, Barbie, and a senior vice president at Mattel ( MAT – news – people ); Melisse Shaban, CEO of Chrysalis, an incubator company for emerging brands; and Bill Brand, executive vice president of programming, marketing and business development at HSN.

Sounds much like my advice I included in two posts: Chase your Customers not Your Competition

Now that we’ve moved past The Tipping Point it’s time for everyone else to play catch up. Everyone else will want to replicate the successes other companies – and in many cases their competitors – have had. The problem is that most of these new efforts will be based on 2009 examples.

2010 is a different world than 2009.  Most companies that try to play catch up this year will be playing catch up to the wrong people. They’ll be playing catch up to their competition.

While my advice was geared towards social media use it’s perfectly applicable to any strategic decision. Never chase a market leader. Instead start a new race.

But if you really want an Apple love fest, I suggest heading over to Louis Gray and Chris Saad’s EdgeTheory Podcast (?)

louisgray.com: EdgeTheory: Apple’s Closed Approach in an Open World

In advance of all the fun and fury that will be sent Apple’s way this week, as many are expecting new hardware from Cupertino on Wednesday, EdgeTheory conversationalist Chris Saad and I talked about how Apple can be so successful with its closed, proprietary, approach when we tend to promote and hope for openness from companies we do business with on the Web.

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How will the Future of Marketing be Organized?

So I’ve made the prediction that Marketing and PR (and potentially all comms) will be rolled up into one group. Making the prediction was easy. There are way to many inefficiencies in the way companies communicate. Now I ask myself the “put your money where your mouth is” question: What will this new org look like?

For the first time in 50 years we have a real opportunity to structurally change the way companies organize their communications groups. Reporting structure, team make up, work flow, all of it. It’s pretty exciting to me. But I’m stuck.

Should Marketing  job functions be defined by some version of stakeholder alignment? Customers, Employees, Shareholders, Partners. This is basically what we have today but if all functions were in one group that alone would improve things.

- OR -

Should Marketing job functions be defined by what they do? Messaging, Content/Distribution, Research, Support. Again just another condensed version of what we have today. And again if all of these groups were in the same org that would improve many things.

- OR -

Should Marketing jobs be aligned along integration points? Customer Integration, Partner Integration, Internal Integration (Shareholders and Employees), Influencer Integration (this is also where competitive lives). These roles would be defined by integrating feedback and two way communications with these groups into every cycle of the marketing process. Research, measurement and content creation would mostly be handled by agencies but do you also need someone who owns that internally.

None of these are perfect and they all leave out some aspects of  Marketing (remember marketing is much more than PR & Advertising). But do we really need those other functions? I think there’s a lot that we can do away with.

What do you think? These are just my raw thoughts from late last night with a few hours to sleep on it. I’d love your feedback. There are no stupid ideas at this point.

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Get Serious. Get to Work.

People ask me why I come to work at 7:00 am, why I subscribe to and read hundreds of blogs, why I read so many business books, why I blog so much, why I stay at work so late and why I sleep so little.

Because I know that being good isn’t enough, having a blog isn’t enough, knowing how social media works isn’t enough, being better than the next guys isn’t enough.  And I know that there are other people out there who come to work earlier, stay later and work harder than me.

Here’s to a great 2010. Get to work.

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How to Manage an Overzealous Manager when Running Social Media

It amazes me that, to this day, I run into employees/agencies still trying to convince their managers/clients that they need to be doing social media. (Really? Still?)

A more common problem that I run in to (and one I’m more than happy to help with) is that management is on board with social media and  is relying on them to put together a plan, but they’re not sure where to start and often over worked as it is.

And finally, the one that I sympathize with because I’ve been there over and over again is that their manager is pushing a social media plan or tactic that the employee is not  comfortable with.  The discomfort is felt when either it’s not the right plan for the strategy (if there even is one) or worse it’s boarder line unethical.

There are plenty of people talking/blogging about points one and two. I’ve even covered these topics before and they are probably worth addressing again, but not right now.

Right now I want to help those growing number of people that are dealing with the last point. Why? As more and more companies enter the social media space, more and more managers, with the best of intentions, will push misguided efforts.

First off we have to help you identify a misguided efforts. I must tell you at this point that if you are not active in social media, at least from the point where you’re reading blogs and books on the topic you’ll have a hard time answering these questions.  Of course if that’s the case then you aren’t reading this blog anyway, so we’ll move on.

Ask yourself:

  • Are we doing this to copy a competitor or because it aligns with our customers?
  • Does this make logical sense when we step back and take off our marketing hat.
  • Does this feel right?
  • Is this transparent?
  • Is this honest?
  • Is it real?
  • Will this achieve the goals management is expecting (and that you’re likely being measured on)?

If you can’t answer all of those questions with a yes, then you have a potential problem. If you answer no to any of those questions you need to go do some research. You need some case studies, examples or at the least some good blog posts explaining why said tactic is wrong.

Don’t go back to management and just tell them you can’t do it, tell them why and offer an alternative.

Where do you go to get these answers? This is where being active in social media pays off.  Ask your Twitter followers. Ask a question on FriendFeed, LinkedIn or Facebook. I’ve done all of these and they all work great. You don’t have to give specifics or violate any company sharing policies but ask in generalities about the topic.

Now that you’ve armed yourself with reams of data showing why this is a bad idea, you need to make a convincing presentation not about what not to do and why, but what you should be doing and why. In your backup slides put your arguments why the other plan won’t work, but first try selling management on a better idea before you tell them their baby’s ugly. Leading off with a positive approach is always better received than starting off with a negative.

What if you present your case and no one listens? What if they still want to do the wrong thing? If it’s just strategically wrong, there’s only so hard you can push. If it’s ethically wrong you need to make a choice, and it can be a damn hard one to make. Ask yourself and then ask your management:

Are you willing to ruin your reputation and the reputation of the company over this?

Don’t be afraid to phrase this to your management like that. I have and it worked.

What if you don’t come up with a good reason why not to do something? What if it’s not unethical, devious or even wrong? It just doesn’t *feel* right. You need to ask yourself why are you uneasy with it? I’ve usually found that it’s because of one of three reasons:

  1. You’re not comfortable with how to pull it off
  2. You’re afraid that the tactic won’t deliver the ROI management is after
  3. You’re concerned about the motives behind the request

#1 fortunately there’s a relatively easy solution for this one. Get some help. Either through an agency, consultants, books and blogs or maybe there’s someone in your organization that has more experience than you. I can tell you that I worked on more social media campaigns while at HP for other department than I did my own.

#2 If management is hell bent on doing something you know won’t deliver the results then try to temper expectations and move forward with it. This can be a scary proposition because no one want to be the sacrificial lamb. Cover your bases, document the process and always map back to what outcomes you’re driving and do what you can to pull it off.

#3 Why is management so determined to do marketing tactics even when everyone thinks it’s wrong? I’ve often found it’s because of ego.

I worked for a manager with a company blog who wanted to blog more frequently. The easy solution was to open the blog up as a group blog and get some regular internal contributors.  He wouldn’t go for this. The compromise we eventually came up with (instead of ghost blogging) was to get internal guest posters. He insisted that each post have an intro written by him. This caused extra delays in posting and extra work on the teams part to coordinate. Yeah we were playing to his ego, but it’s his blog, his budget and he could do what he wanted.

Knowing when to trust your manager

Finally I’d like to address the hardest lesson for me to learn. Sometimes, your manager, who has no experience with social media, is going to be right and you’re going to be wrong. <cough><cough>

Your manager is *probably* a pretty smart person. They *probably* (hopefully) have a better understanding of the overall business than you do. They *probably* have years more general marketing experience than you do. They *probably* got to be where they are for a good reason. At some point you may have to trust them to make the call. And I have found, more often than not, things turn out alright. They could have probably turned out better (at least we  think so) but things turned out okay and everyone had more experience the next time around.

If you do your homework, things will rarely turn out as bad as people sometimes imagine.  We love to focus on the social media disasters. In reality there are far more examples of successes (small and big) out there than failures. Don’t let the bloggers and consultants preaching FUD get to you. Not every effort will be a home-run, but very few will be a disaster.

This post is an Updated Post. An Updated Post is where I take an older post and update it based on current thinking or examples. The original post can be found here: Managements Misguided Social Media Efforts

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A Collection of 2010 Social Media Predictions

As 2010 approaches there is  no shortage of 2010 predictions. (Mine included) I know some people get bored of these but I love them. I’ve been collecting a few to share with you here. Some of these I agree with some of these I don’t but I thought I’d let you make the call.

Netscape, Yelp, and the Tech IPO Boom of 2010

I’m wagering we’re about to enter a similar period in 2010. The last one was initiated by the Netscape IPO, one of the first commercial browser makers. Its IPO, less than two years after the company was founded, triggered an avalanche of similar offerings, and thus helped cause the dot-com episode that characterized the market’s madness of the late-1990s. All it would take to make it happen again is another Netscape moment, as it were.

Predictions for the Groundswell in 2010 — Twitter gets serious or gets bought

Emily Riley and our whole Groundswell team have just published our predictions for 2010. We serve interactive marketers, so these are marketing focused predictions. They are:

1. Companies’ use of social councils will attain budgets and power.
2. Listening Platform insights will go mainstream.
3. Marketers will focus less son fuzzy social media metrics and more on real marketing metrics.
4. Twitter will become profitable or get acquired.
5. Facebook will get more hands-on to protect users’ — and its own — interests.
6. Incompatible mobile devices and siloed social applications will shatter the social experience.

Ten trends that will matter to every company in 2010

First Five: Fundamental Marketplace Changes Driven by Technology

  1. Search – Who Will Lead is Not Always Obvious
  2. A Simple Technology, SMS, Is Changing How We Communicate
  3. Mobile Will be the Most Powerful Form of Media
  4. Advertising will Change
  5. Video is Becoming the Favourite Place to Learn

Second Five: Trends Driven By Consumers

  1. Media Consumption is Completely Changing
  2. Who I Trust is Most Important: Companies No Longer Decide For Me
  3. Brand + Individual = Influence: You Need to be Online to Have a Voice
  4. Content Syndication Drives Share of Conversation
  5. Best Firms will Collaborate, Share and Learn in Real-Time

TrendsSpotting 2010 Social Media Trend Predictions


8 News Media Business Trends for 2010

1. Social Media Monetization
2. Revenue Beyond Advertising
3. As Publications Fold, Others Become Lean and Mean
4. Growth in Hyperlocal and Community Models
5. Local Advertising Grows
6. Local Advertising Models Emerge
7. To Charge or Not To Charge?
8. The Freemium Model

2010 Prediction: Employees MIA

Over the course of 2010 we will see a decline in direct-hire employees and a rise in both contractors and entrepreneurs in the workforce.

2010: The Year of the Community Manager

I think 2010 is going to be the year of the community manager.

As more companies start to embrace social media as a key part of their communications, marketing and sales strategies, they are going to realize that community managers play a crucial role. It’s a job that combines Web expertise with the ability to filter and generate lots of content, customer service, marketing, business development and media/public relations.

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