BUILDING HYPER-SOCIAL ORGANIZATIONS

PREPARED FOR THE NATIONAL CIO BOARD – JUNE, 2011 @FGOSSIEAUX

In the beginning – all business was social

Satisfaction results in positive or negative word of mouth which makes a difference

2

Then business started scaling

…but the social could not scale and made no difference anymore – so it disappeared from business

3

And companies started to develop real bad habits

Interrupting people, targeting people, segmenting people – it felt like going to war with customers (& employees)

4

But then came the Internet and Social Media

Blogs, wiki’s, discussion boards, tags, social networks – a massive platform of participation

5

And because humans were hardwired to be social

The social reentered business and commerce with a vengeance – employees, customers could once again behave

the way they’re hardwired to behave: humanly, tribally.

6

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 7

A RECAP OF THE HYPER-SOCIAL ORGANIZATION UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA – HUMAN 1.0 HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS WHAT THEY DO DIFFERENTLY, AND WHY WHAT DOES THIS ALL MEAN TO THE WORLD OF A CIO HOW DO YOU GET STARTED? HOW DO YOU MEASURE ROI FOR THOSE “SQUISHY” BENEFITS? HOW DO YOU BUILD CONSENSUS INTERNALLY? HOW DO YOU DEAL WITH RISK? HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?

OVERVIEW

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 and Tribes are one the two fundamental Human social instincts

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

Culture – perhaps the most important Human 1.0 characteristic

Humans created culture to deal with climate changes in the Pleistocene era – when they realized they could deal with change through culture they created their own

change

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 power and status

• Herding and self-herding

• Culture – the most important Human 1.0 characteristic (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 your organization and the community.

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

you do, not the organization • 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

Reuters…using Social Media to connect financial analysts

WHAT IS IT THAT THEY DO DIFFERENTLY?

HYPER-SOCIAL ORGANIZATIONS

BY GETTING PEOPLE WHO’S JOB IT IS NOT TO DO SOMETHING TO HELP YOU DO IT ANYWAY

SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS TURN THEIR BUSINESS PROCESSES INTO “SOCIAL” PROCESSES

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

23

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

HOW DO YOU GET STARTED? HOW DO YOU MEASURE ROI FOR “SQUISHY” BENEFITS? HOW DO YOU BUILD CONSENSUS INTERNALLY? HOW DO YOU DEAL WITH RISK? HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?

WHAT DOES THIS ALL MEAN TO THE WORLD OF A CIO?

1. UNDERSTAND YOUR CUSTOMER AND EMPLOYEE CULTURES 2. MAKE FRIENDS WITH THE CMO AND JOINTLY REPRESENT THE VOC 3. DEPLOY INFRASTRUCTURE THAT WILL SUPPORT THE NEW SOCIAL PROCESSES 4. THINK OF INNOVATION AT THE SEAMS 5. THINK HUMAN

HOW DO YOU GET STARTED?

“IN MANY INDUSTRIES, NEW COMPETITIVE BATTLE LINES MAY FORM BETWEEN COMPANIES THAT USE THE WEB IN SOPHISTICATED WAYS AND COMPANIES THAT FEEL UNCOMFORTABLE WITH NEW WEB-INSPIRED MANAGEMENT STYLES OR SIMPLY CAN’T EXECUTE AT A SUFFICIENTLY HIGH LEVEL” – MCKINSEY QUARTERLY, THE RISE OF THE NETWORKED ENTERPRISE, WEB 2.0 FINDS ITS PAYDAY, DEC 2010

UNDERSTAND OF THE RISK OF DOING NOTHING

https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

1. MEASURE THE IMPACT OF SOCIAL PROGRAMS THE SAME WAY AS YOU MEASURE THE IMPACT OF TRADITIONAL PROGRAMS 2. START MEASURING NEW METRICS – CLV, CUSTOMER EQUITY, PASSION, WOM, TALENT ACQUISITION AND DEVELOPMENT, KNOWLEDGE ACQUISITION AND REUSE, ETC. 3. THINK HUMAN

HOW DO YOU MEASURE ROI FOR SQUISHY BENEFITS?

The power of passion

Passionate people 2X as energized with

unexpected challenges

The power of passion

Passionate people 2X as likely to connect

with outsiders

The benefits that companies derive are for real

https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

The benefits are amazing

https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

Benefits differences are measured by a

factor 2-6X

Overall company metrics are correlated as well

https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

1. AGREE ON EASY-TO-UNDERSTAND VALUES 2. DEVELOP SOCIAL MEDIA GUIDELINES AND GUIDERAILS 3. GET PEOPLE INVOLVED IN THE BEGINNING OF THE PROCESS 4. TREAT IT AS A CENTER OF EXCELLENCE VS. ONE GROUP OWNING THE SHOW 5. FOCUS ON BUILDING TRUST BY FOCUSING FIRST ON THE DIFFERENT TYPES OF PEOPLE IN THE GROUP AND THEN FOCUS ON THE WORK 6. ROTATE TEAM LEADS 7. GET EVERYONE’S DESIRED GOALS, OUTCOMES AND MOTIVATIONS OUT ON THE TABLE FIRST 8. THINK HUMAN

HOW DO YOU ACHIEVE CONSENSUS

1. TAKE A HOLISTIC, NON-SILOED APPROACH TO RISK 2. EDUCATE PEOPLE ON HOW TO AVOID RISKS 3. SET UP GUIDELINES AND GUIDERAILS 4. PROVIDE CASE STUDIES 5. BE TOLERANT OF THE 1% OF THE TIME SOMEONE MESSES UP 6. DEFINE CRISIS MANAGEMENT PLANS AND TRIAGE APPROACH 7. THINK HUMAN

HOW DO YOU DEAL WITH RISKS?

1. EMBRACE THE NEW ARTISAN WORKFORCE AND THE TOOLS THEY BRING 2. BRING BACK TRUST AS THE MAIN BUSINESS CURRENCY 3. THINK HUMAN

HOW TO DEAL WITH CONSUMERIZATION OF IT?

FOCUS ON ADOPTION OF TECHNOLOGIES THAT WILL SUPPORT DESIRED SOCIAL BEHAVIOR INSTEAD OF DEPLOYMENT OF TECHNOLOGIES TO CHANGE BEHAVIORS …IT’S ALL ABOUT BEING HUMAN IN BUSINESS ONCE AGAIN

A FINAL WORD OF ADVICE…

Any questions?

Francois Gossieaux Partner, Human 1.0 e. francois@human1.com w. http://www.human1.com p. http://www.cmotwo.com b. http://www.emergencemarketing.com Our new book: The Hyper-Social Organization http://www.hypersocialorg.com 37