Making The Case For Open Leadership

Charlene LiAltimeter GroupMarch 11, 2010

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For Dachis Social Business Summit

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A culture of sharing

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It’s about relationships

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These new relationships are changing business

Command & control

New ways to get things done

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Why is social business hard?

Because real relationships require that you give up control

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The need for open leadership7

When people get what they need from each other

Having the confidence to give up control and still be in command

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10 elements of openness8

• Explaining• Updating• Conversing• Open Mic• Crowdsourcing• Platforms

Information Sharing

• Centralized• Democratic• Self-managing• Distributed

Decision Making

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Determine how open you need to be to meet your goals

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Platform

Crowdsourcing

Open Mic

Conversing

Updating

Explaining

Today

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Social Strategy

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Four goals define your strategy, but always start with learn

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Learn

Dialog

Support

Innovate

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Learn with monitoring tools12

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Dialog with your community13

Learn

Dialog

Support

Innovate

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Engagement Pyramid: Focus on Watching and Sharing

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Curating

Producing

Commenting

Sharing

Watching

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Focus on the relationship you want15

Richard Edelman writes or records his

blog posts – he doesn’t type.

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DellOutlet drives sales with Twitter16

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Help your members support each other

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Learn

Dialog

Support

Innovate

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Premier Farnell supports engineers with community, and employees with “OurTube”

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Social + open = competitive advantage

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+2,200 Best Buy employees answer questions sent to @twelpforce

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Innovate with customer feedback20

Learn

Dialog

Support

Innovate

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Starbucks innovates across the company

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Fiat gathers product and market intelligence

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Contributors submit ideas, and can include pictures and embed

videos. Fiat gets valuable ideas for

features and design, and marketing and

advertising.

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What to do first

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#1 Align social with strategic goals24

Examine your 2010 goals

Pick one where social can have an impact

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#2 Understand the valueWhat’s the value of a fan or follower?

+4 million fans

16,965 followers

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+ Value of purchases- Cost of acquisition

= Customer lifetime value

+ Value of new customers from referrals

+ Value of insights+ Value of support

The new lifetime value calculation, based on your goals

• 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 ideas

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Fans

Large network

Refers

Doesn’t refer

Small network

Refers

Doesn’t refer

Find more fans with

large networks

Encourage fans to make

more referrals

Make decisions with metrics27

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#3 Organize for different types of openness

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Organic- Natural growth requiring few resources- Deep adoption- Non-consistent- Eg. Humana, Microsoft

Centralized

- One department controls all efforts- Experimental, fast moving- Not spread or used broadly- Eg. Starbucks, Ford, Dell

Coordinated

- Sets rules, best practices, policies- Each department executes- Takes time, not cutting edge- Eg. HP, Red Cross

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#4 Find and develop your open leaders

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Cautious Tester

Realist Optimist

Worried Skeptic

Transparent Evangelist

Pessimist Optimist

Collaborative

Independent

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#5 Embrace failure30

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Buyer blog hit the right note31

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Build trust and manage risk 32

The Sandbox Covenant

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Align your social business goals with your strategic goals.

Benchmark your progress based upon your business goals, not “engagement” data.

Change your mindset: letting go will yield more results.

Summary33

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Thank you

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Charlene Licharlene@altimetergroup.co

m

blog.altimetergroup.com

Twitter: charleneli

For slides, send an email

slides@altimetergroup.com

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About Us

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Altimeter Group is a strategy 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 http://www.altimetergroup.com or contact

info@altimetergroup.com.