Web 2.0 Expo Speech: Open Leadership

1. 1 Open Leadership: How Social Technology Can Transform The Way You Lead Charlene Li Altimeter Group May 6, 2010 #openleader

2. © 2010 Altimeter Group

3. More people visit Facebook than Yahoo! © 2010 Altimeter Group

4. 4 It’s aboutrelationships © 2010 Altimeter Group

5. 5 Why is social hard? Because real relationships require that you give up control © 2010 Altimeter Group

6. 6 The need for open leadership When people get what they need from each other ―How open do I need to be? © 2010 Altimeter Group

7. 7 Defining Open Leadership Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals How to give up control, and be in command © 2010 Altimeter Group

8. 8 Best Buy’s First Social Media Experts Steve Bendt & Gary Koelling © 2010 Altimeter Group

9. 9 They harnessed Best Buy’s biggest asset The Blue Shirts © 2010 Altimeter Group

10. BlueShirtNation.com supported Best Buy’s front line employees © 2010 Altimeter Group 10

11. 11 Steve & Gary had an executive sponsor Barry Judge CMO of Best Buy © 2010 Altimeter Group

12. 12 They kept telling him one thing… ―Barry, you gotta get a blog!‖ © 2010 Altimeter Group

13. 13 Barry’s first post ―I was so relieved when it was over—it was just two sentences to get started.‖ © 2010 Altimeter Group

14. 14 The Premier Black Fiasco 6.8 million emails sent instead of 1,000 test © 2010 Altimeter Group

15. 15 Barry’s response ―…we screwed up the execution which makes me feel sick about the customer trust that we have impacted.‖ © 2010 Altimeter Group

16. 16 Openness became a strategy Open market testing of new logo © 2010 Altimeter Group

17. 17 +2,200 Best Buy employees provide support on Twitter © 2010 Altimeter Group

18. Focus on relationships, not technologies What kind of relationship do you want? Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal © 2010 Altimeter Group

19. 19 Four goals define your open strategy, but always start with learn Dialog Learn Support Innovate © 2010 Altimeter Group

20. 20 Go beyond traditional customer data Demographic Geographic Psychographic Behavioral Socialgraphic © 2010 Altimeter Group

21. 21 Engagement Pyramid: Focus on Watching and Sharing Curating Producing Commenting Sharing Watching © 2010 Altimeter Group

22. 22 Dialog with your community Dialog Learn Support Innovate © 2010 Altimeter Group

23. 23 DellOutlet drives sales with Twitter © 2010 Altimeter Group

24. 24 Help your members support each other Dialog Learn Support Innovate © 2010 Altimeter Group

25. 25 Social moves into enterprise apps Salesforce Chatter Service Cloud w/social LinkedIn in Lotus Notes © 2010 Altimeter Group

26. 26 Innovate with customer feedback Dialog Learn Support Innovate © 2010 Altimeter Group

27. Starbucks involves 50 people around the organization © 2010 Altimeter Group

28. What to do first © 2010 Altimeter Group

29. 29 #1 Align openness with strategic goals Examine your 2011goals Pick one where open and social can have an impact © 2010 Altimeter Group

30. 30 #2 Understanding the value ―We tend to overvalue the things we can measure, and undervalue the things we cannot.‖ - John Hayes, CMO of American Express Value of +5 million fans? © 2010 Altimeter Group

31. The new lifetime value calculation • Percent that refer • Size of their networks • Percent of referred people who purchase • Value of purchases + Value of purchases -Cost of acquisition + Value of new customers from referrals + Value of insights • Percent that provide support • Frequency and value of the support + Value of support + Value of ideas ____________________ = Customer lifetime value Learn more: Webinar this Friday 5/7 bit.ly/openleaderweb2 © 2010 Altimeter Group

32. 32 #3 Understand how open you need to be Information Sharing • Explaining • Updating • Conversing • Open Mic • Crowdsourcing • Platforms Decision Making • Centralized • Democratic • Self-managing • Distributed © 2010 Altimeter Group

33. 33 Determine how open you need to be to meet your goals Explaining Updating Conversing Today Where we need to be Open Mic Crowdsourcing Platform © 2010 Altimeter Group

34. 34 #4 Find and develop you open leaders Collaborative Independent Pessimist Optimist © 2010 Altimeter Group

35. 35 #5 Prepare your organization Ideally, you should be at ―4.0‖ for launch. Area of opportunity. © 2010 Altimeter Group

36. 36 Social media triage Take reasonable action to fix issue and let customer know action taken Positive Negative Yes Yes No Does customer need/deserve more info? Assess the message Do you want to respond? Evaluate the purpose Yes Yes No No Unhappy Customer? Are the facts correct? Gently correct the facts Response No No Yes Yes No Can you add value? Are the facts correct? Dedicated Complainer? No Yes Is the problem being fixed? Explain what is being done to correct the issue. Yes Respond in kind & share Thank the person Comedian Want-to-Be? No Yes Let post stand and monitor. © 2010 Altimeter Group

37. Create a culture of sharing © 2010 Altimeter Group

38. 38 #^ Embrace failure © 2010 Altimeter Group

39. 39 Buyer blog hit the right note © 2010 Altimeter Group

40. 40 Manage risk with Sandbox Covenants © 2010 Altimeter Group

41. 41 What the future will bring Social networks will be like air © 2010 Altimeter Group

42. 42 Summary  Focus on relationships.  Align your social strategy with strategic goals.  Support open leaders in your organization.  Be prepared for failure – you’ll encounter many. © 2010 Altimeter Group

43. 43 43 Thank you Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com Learn more and buy the book at open-leadership.com © 2010 Altimeter Group