Making The Case For Open Leadership Charlene Li Altimeter Group July 29, 2010 1.

Making The Case For Open Leadership

Charlene LiAltimeter GroupJuly 29, 2010

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Create a culture of sharing


5

It’s about relationships


Open Leadership6

Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals


Conversations, not messages

Human, not corporate

Continuous, not episodic

The New Normal7


Four goals define your open strategy8


Learn with basic monitoring tools9


Understand who that person is – in real time

LinkedIn in Lotus Notes

10

Service Cloud w/social


Understand the socialgraphics of your audience

11

Curating

Producing

Commenting

Sharing

Watching

<1%

34%

26%

63%

78%

Source: Global Wave Index Wave 2 Trendstream.net, January 2010

U.S. adults


Dialog with your community12


Kohl’s has conversations on Facebook

13


DellOutlet drives sales with Twitter14


Help your members support each other

15


Solarwinds uses community for call deflection and product development

16


Innovate with customer feedback17


Starbucks involves 50 people around

the organization

18


How Best Buy became open19


Best Buy’s First Social Media Experts20

Steve Bendt & Gary Koelling


Steve & Gary had an executive sponsor

21

Barry Judge CMO of Best Buy


Barry’s first post22

“I was so relieved when it was over—it was just two sentences to get started.”


The Premier Black Fiasco23

6.8 million emails sent instead of 1,000 test


24


#1 Find and develop your open leaders

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Pessimist Optimist

Collaborative

Independent


Examples of Realist Optimists

Lionel MenchacaDell

Ed TerpeningWells Fargo

Lovisa WilliamsUS Dept. of State


1. Respect that your customers and employees have power

2. Share constantly to build trust.

3. Nurture curiosity and humility.

4. Hold openness accountable.

5. Forgive failure.

The New Rules of Open Leadership27


#2 Align openness with strategic goals

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Examine your 2010 goals

Pick one where open and social can have an impact


10 elements of openness29


Determine how open you need to be with information to meet your goals

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Platform

Crowdsourcing

Open Mic

Conversing

Updating

Explaining

Today

Download the openness audit at http://bit.ly/opennessaudit


#3 Prepare your organization31

Ideally, you should be at

“4.0” for launch.

Area of opportunity.


Social media triage32

Can you add value?

Evaluate the

purpose

Respond in kind & share

Thank the person

Unhappy Customer?

DedicatedComplainer

?

Comedian Want-to-

Be?

NegativePositive

Yes No

Do you want to

respond?

No Response

No

Yes

Take reasonable action to fix issue and let customer know action taken

Are the facts

correct?

Gently correct the facts

No

No

No

Yes

Are the facts

correct?

Does customer need/deserve

more info?

Yes

Explain what is being done to

correct the issue.

Yes

Is the problem

being fixed?

Yes

Let post stand and monitor.

No

Yes

NoYes

Yes

Assess the message


Prepare for new workflows

Social technologies will disrupt traditional organization structures


Organizational models must match goals34


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“We tend to overvalue the things

we can measure, and undervalue

the things we cannot.”

- John Hayes, CMO of American

Express

#4 Understand the value


+ Value of purchases- Cost of acquisition

____________________

= Customer lifetime value

The new lifetime value calculation

• Percent that refer• Size of their networks• Percent of referred

people who purchase• Value of purchases

• Percent that provide support

• Frequency and value of the support

+ Value of new customers from referrals

+ Value of support+ Value of ideas

+ Value of insights

Spreadsheets for 15 year lifetime value calculation available at charleneli.com/resources

36


Find more fans with

large networks

Encourage fans to make

more referrals

Use metrics to help make decisions37


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• Acknowledge that failure happens.

• Encourage dialog to foster trust and speed recovery.

• Adopt Google’s mantra: “Fail fast, fail smart”

#5 Prepare for failure


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Create Sandbox Covenants


Focus on relationships, not the technologies.

Align your open and social strategies with strategic goals.

Embrace failure and mistakes – you’ll be making many of them.

Summary40


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Thank you

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Charlene [email protected]

charleneli.com/blog

Twitter: charleneli

For slides, send an email to

[email protected]

For more information & to buy the

book

visit open-leadership.com

Making The Case For Open Leadership Charlene Li Altimeter Group July 29, 2010 1.

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