1 Social Strategy: Getting Your Company Ready Charlene Li Founder and Partner 1 Jeremiah Owyang Partner April 14, 2010#socialchecklist

2 © 2010 Altimeter Group  Technology is only part of the solution. Getting your company ready and developing a strategy are the key drivers of success.  Our final webinar (Part 3) of this series will help you get your company ready with our Social Readiness checklist.  View all webinar slides and recordings, including today’s, at: blog.altimetergroup.com  Use the hashtag #socialchecklist for today A 3-part series 2

© 2010 Altimeter Group Companies Jump Into Social Image by Roo Reynolds used with Attribution as directed by Creative Commons

© 2010 Altimeter Group Yet Most Companies Fail to Plan Properly Image by divemasterking2000 used with Attribution as directed by Creative Commons

5 © 2010 Altimeter Group Many companies do not engage with their customers Source: 5 ENGAGEMENTdb ranked the world's most valuable brands based on how they leverage social media to interact with customers.

6 © 2010 Altimeter Group Many companies like the idea, but don’t fully execute 6

7 © 2010 Altimeter Group Get Ready Internally First

8 © 2010 Altimeter Group To be successful using social technologies, companies must first prepare and align internal roles, processes, policies and stakeholders with their business objectives. Social business is a profound change that impacts all departments in the organization.

9 © 2010 Altimeter Group  Getting Your Company Ready Research Planning Resources  Social Readiness Checklist and Scorecard  Questions Agenda 9

10 © 2010 Altimeter Group 10 Getting Your Company Ready

11 © 2010 Altimeter Group 11 Research

12 © 2010 Altimeter Group Demographics e.g. Where are moms online? Customer profile 12 Psychographics e.g. Who are moms influenced by? Source: “Digital Mom,” RazorFish and CafeMom, 2009

13 © 2010 Altimeter Group Where are your customers online? What are your customers’ social behaviors online? What social information or people do your customers rely on? What is your customers’ social influence? Who trusts them? How do your customers use social technologies in the context of your products. Socialgraphics 13

14 © 2010 Altimeter Group Engagement Pyramid 14 Curating Producing Commenting Sharing Watching Map out how your customers social behaviors online in order to determine what technologies to deploy.

15 © 2010 Altimeter Group Community pain points Source: Communispace 15 Communispace customer communities allow marketers to gain insights from their own customers

16 © 2010 Altimeter Group Market analysis 16 Companies should constantly measure what competitors are doing in the social space. Here are some examples in the hotel industry that can be added to a chart of industry assets.

17 © 2010 Altimeter Group  What is your company currently doing in the social space? What are employees doing? Product team, field, and support?  Identify internal experts by hosting brown bag lunches where anyone can share what they are doing in the social space.  Tip: Don’t relegate social media to Gen Y just because they use it for personal use. Current social audit 17

© 2010 Altimeter Group Processes

19 © 2010 Altimeter Group Crisis response plan 19

20 © 2010 Altimeter Group Social media triage 20 Can you add value? Evaluate the purpose Respond in kind & share Thank the person Unhappy Customer? Dedicated Complainer ? Comedian Want-to-Be? NegativePositive YesNo 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 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 No Yes Assess the message This framework was built using the USAF Blog Triage. (Added this attribution post webinar)

© 2010 Altimeter Group Organizational Models

© 2010 Altimeter Group Social Business Organizational Models Centralized

23 © 2010 Altimeter Group  Organic growth  Authentic  Experimental  Not coordinated  e.g. Sun Organic 23

24 © 2010 Altimeter Group  One hub sets rules, best practices, procedures  Business units undertake own efforts  Spreads widely around the org  Takes time  e.g. Red Cross Coordinated 24

25 © 2010 Altimeter Group  Similar to Coordinated but across multiple brands and units  e.g. HP Multiple hub and spoke or “Dandelion” 25

26 © 2010 Altimeter Group  Each employee is empowered  Unlike Organic, employees are organized.  e.g. Dell, Zappos Holistic or “Honeycomb” 26

© 2010 Altimeter Group Policies

28 © 2010 Altimeter Group Disclosure/ethics policy 28 From Walmart Elevenmom’s disclosure policy: “Participation in the Walmart Elevenmoms program is voluntary. Participants in the program are required to clearly disclose their relationship with Walmart as well as any compensation received, including travel opportunities, expenses or products. In the event that products are received for review, participants may keep or dispose of product at their discretion.

29 © 2010 Altimeter Group Social media policy 29 Intel updates it’s Social Media policy regularly (last in March 2010) and offers tips and pragmatic rules of engagement such as “Be transparent,” “Be judicious,” and “Write what you know.”

30 © 2010 Altimeter Group Community policy 30 SeaWorld sets boundaries on its blog for readers. For example, Seaworld asks for favorite park experiences and tips, and will not post “foul or offensive language.”

31 © 2010 Altimeter Group Internal education 31 Host brown bags, invite external speakers to talk, and promote memberships in organizations like Social Media Club or Social Media Business Council, as seen here. Internal training is important to organizational change.

32 © 2010 Altimeter Group Communication and collaboration 32 Sites like Yammer, Socialtext and Socialcast offer lightweight ways for staff to share insights and best practices internally. Telligent is a more robust enterprise- level tool.

33 © 2010 Altimeter Group 33 Resources

34 © 2010 Altimeter Group  Social strategist*: Responsible for the overall program, including ROI. There may be multiple strategists at each spoke.  Community manager: Customer facing role trusted by customers. Companies may have dozens of community managers. Key roles 34 *Look out for our research paper on the role of the Social Strategist later this year.

35 © 2010 Altimeter Group  Test to see that they focus on relationships, not campaigns.  Ask when they failed at social media – and what they learned. Hire only agencies with “scar tissue.”  Leverage agencies and have them train you in all things social. Enable fast, concerted entry into the market.  Be wary of agencies wanting to craft your strategy – only you can do that. Agencies 35

36 © 2010 Altimeter Group Customer advocates 36

37 © 2010 Altimeter Group  Executives: Approval to move forward, budget, allocate resources  Communications: What new skills will they need to learn and unlearn?  Employees: How will they be educated, armed, and supported?  Legal: Protect employees and corporation by co-creating policies and guidelines Stakeholders 37

38 © 2010 Altimeter Group Reporting 38 Web analytics Community analytics

39 © 2010 Altimeter Group 39 Social Readiness Score Card Image by randomcuriousity used with Attribution as directed by Creative Commons

40 © 2010 Altimeter Group Your social readiness score 40

41 © 2010 Altimeter Group Your social readiness score 41 Ideally, you should be at “4.0” for launch. Area of opportunity.

42 © 2010 Altimeter Group Includes findings, scoring, roles, and specific recommendations from a trusted third party. Full details on our checklist

43 © 2010 Altimeter Group Have the confidence to let go and still inspire results 43 Register for our upcoming webinar: “Making the Case for Open Leadership” Monday, April 26 at 10 am PST

© 2010 Altimeter Group 44 Jeremiah Owyang web-strategist.com/blog Twitter: jowyang Thank you Charlene Li charleneli.com Twitter: charleneli With assistance from Christine Tran, Researcher

© 2010 Altimeter Group 45 Altimeter Group is a Silicon Valley-based strategy research and consulting firm that provides companies with a pragmatic approach to disruptive technologies. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design. Visit us at or contact About Us