Social media, brands and culture in the finance sector

Beans and Pearls 2.0

Social business design for finance

Social business design and management

What it means for brands and corporate cultures


Somesso Talk 2009

‘I believe we will survive and thrive in the new creaCve age only if we

enlarge both our understanding and our delivery of creaCvity’

Sir MarCn Sorrell, D&AD President’s Lecture Nov 1996


CreaCvity as a means of broadcast


‘I believe we will survive and thrive in the new crea3ve age only if we enlarge both our understanding and our delivery of crea3vity’

But the message isn’t gePng through

The social environment

re‐defines how to transact and

behave to create value


Permission, trust and loyalty as a

means of involvement


How much do you trust businesses in each of the following industries to do what is right? Source: Edelman Trust Report ‐ US companies

In the UK, France and Germany, trust in banks, media companies, energy and automoCve has declined steeply Source: Edelman Trust Report ‐ European companies

Financial services companies have come off badly in terms of the perceived match between the promise they put out and the consumer experience. Source: Promise Index 2009

% of Top 100 banks in Forbes Global 2000 2009 that are acknowledged as having a presence

in social media .


5%

5%

Source: Forbes 2000 2009/AlCmeter Group/Visible Banking/Visceral Business/October 23rdt 2009

5%


% of Top 100 diversified financial services companies in

Forbes Global 2000 2009 acknowledged as having a presence in social media

.


How many of the top 100

diversified financial services companies in

Forbes Global 2000 2009 are acknowledged as having a presence in social media?

.

9%

9%


How many of the top 100

diversified financial services companies in

Forbes Global 2000 2009 are acknowledged as having a presence in social media?

. 9%


% of the 92 insurance

companies within Forbes Global 2000 2009

acknowledged as having a presence in social media

.


6%

6%


6%


It starts with the idenCty of the brand as a central organizing thread

Branding is a contact sport…the further apart you are from your audience, the less likely you are able to connect and have an impact with them.

Social business supports formaCve, generaCve experiences

IteraCve, adapCve fits can be integrated into business design

AeenCon

TradiConal media

IntenCon

Then Now Broadcast Involvement

And markeCng based on purpose beyond product

ProtecConism in finance is strong

Opportunity to leverage intangible assets like culture

The economics of automated transacCon changes things

TransacCons

RelaConships

New types of behaviour

amiable expressive

analyCcal driver

task

peo

ple

ask tell Source: Keirsey Temperament Sorter

A brand is what people say about you when you’ve lef the room, social media is about being a part of that conversaCon and there is good news…

80% tacit communicaCon

Source: Karen Stephenson Nehorm

80% tacit communicaCon

hubs

gatekeepers

pulsetakers


80%

learning

strategy

advice

innovaCon

social

decision making

tacit communicaCon


Increasing employee saCsfacCon

Decreasing travel costs

Increasing customer saCsfacCon

Increasing speed of access to internal experts

Increasing effecCveness of markeCng

Reducing communicaCon costs

Increasing speed of access to knowledge

35%

40%

43%

43%

52%

54%

68%

20% 40% 60% 80% 100%

Business returns being seen from Web 2.0 Benefits acknowledged by survey respondents (%) Source: McKinsey September 2009

Close to seven out of ten respondents (69%) report that their companies “have gained measurable business benefits, including more innovaCve products and services, more effecCve markeCng, beeer access to knowledge, lower cost of doing business, and higher revenues”.

Beans and Pearls 2.0 Social business design and management

tangible assets intangible assets

industrial organiza3ons

commercial organiza3ons

social organiza3ons

u3li3es causes

A commercial evoluCon

Visceral Business ‐ Anne McCrossan ‐ www.visceralbusiness.com





social organiza3ons

who you are and

what you do

products and

services

skills and

approach

culture and

personality

mission and

cause

1 2 3 4 5

u3li3es causes

A commercial evoluCon





social organiza3ons

who you are and

what you do

products and

services

skills and

approach

culture and

personality

mission and

cause

1 2 3 4 5

u3li3es causes

housing

energy charities

pharma trade guilds

councils and public services transport auto travel and leisure

food and beverages membership organizations

financial services

consumer electronics

fmcg media and cultural institutions

technology government

mining retail mining



PosiConing the brand Social business design and management




social organiza3ons

who you are and

what you do

products and

services

skills and

approach

culture and

personality

mission and

cause

1 2 3 4 5

u3li3es causes

housing

energy charities

pharma trade guilds



financial services






PosiConing the brand Social business design and management

Yochai Benkler Berkman Professor of Entrepreneurial Legal

Studies at Harvard & Faculty co-director of the Berkman Center for Internet and Society

‘The personal computer changed the basic model of capitalizaCon of informaCon, knowledge, and cultural producCon.

ComputaCon, communicaCons, storage, sensing, and capture devices are now widely distributed.

These, in turn, enable the effecCve deployment of the other core input into the global informaCon economy ‐ human creaCvity, wisdom, insight, and perspecCve.’

‘Capital, Power, and the Next Step in Decentralization’ Essay, Sept 16th 2009

Strength of leadership Market worth Technological capability

  Clarity of business intent and openness of operaCons

  The business has qualitaCve and quanCtaCve operaCng outcomes and social as well as economic benefit

  The business model is capable of integraCng co‐created innovaCon

  The degree to which leadership is dispersed i.e. % of people within the organizaCon is engaged in social media

  Levels of senCment, inside and outside the organizaCon

  Strength of reputaCon across products and services, innovaCon, workplace, governance, ciCzenship, leadership and performance

  Churn, recruitment Cme and costs involved of employee acquisiCon

  Channel reach, social capability, and type of engagement profiles

  Network mapping across the organizaCon’s hierarchies, communiCes of interest and trust networks

  Open innovaCon capability and acCviCes

  Real‐Cme open‐data management capabiliCes

  Processes to measure proximity and collaboraCon

  AudiCng processes, benchmark sePng and listening capabiliCes

  Market capitalizaCon (Forbes/Fortune/FTSE metrics and public analyst opinion)

  Brand value

  Human capital value, measured by the raCo of brand valuaCon to market capitalizaCon by employee

  ReputaCon and customer saCsfacCon metrics

  Share of voice

  Media spend ROI (measuring the % of spend to return)

  Average new revenue per customer and lifeCme value per customer


45% of all social financial service organiza3ons are Credit Unions

Source: Visible Banking www.visiblebanking.com




social organiza3ons

who you are and

what you do

products and

services

skills and

approach

culture and

personality

mission and

cause

1 2 3 4 5

u3li3es causes

PosiConing the brand

housing

energy charities

pharma trade guilds



financial services







affinity is stronger than structure



So the quesCon is: How do you connect with ‘the people formerly known as the audience’?


ReputaCon Statement of Account by Jason Tester 2004

The web makes trading more granular and accountable

The EvoluCon of Social Sofware in IBM. Small Blue Research Study. hep://smallblueresearch.ibm.com

The value of each person in your address book is $948

When friends of your friends are not friends of each other or belong to the same social group = 276.64% increase in monthly revenues

One strong link to your manager is worth $588.2/m

One weak link to your manager costs $98.48/m

Having managers in a project is correlated with team performance iniCally

Too many managers in a project is negaCvely associated with team performance

Strong Ces to execuCves is posiCvely correlated

Aeributes of your network human capital, power and status have a unique relaConship with work performance.

A place where personal worth and corporate worth combine

The EvoluCon of Social Sofware in IBM. Small Blue Research Study. hep://smallblueresearch.ibm.com

‘all value is perceived value, and persuasion is more effecCve than compliance’ Rory Sutherland, Chairman IPA, TED Oxford June 2009

Back to behavioural economics

‘you can’t fake community, you can’t force it, either’ Chris Brogan

Involvement pwns broadcast

‘People will forget what you said, they’ll forget what you did, but they’ll never forget how you made them feel and what

you inspired them to do.’

credible and compelling

geek

loser poser

hero

credible and compelling

cred

ible

compelling

Your business must be aware of, and be leveraging, its authenCc DNA Your business must be aware of, and be leveraging, its authenCc DNA

And realize cultural value as part of social business design

Consumer‐centric business models


A business model to describe the way you intend to make money by creaCng and delivering value collecCvely.

Alex Osterwalder – Business Model GeneraCon hep://www.businessmodelgeneraCon.com


Business model co‐creaCon


Business model innovaCon



selecCves

mavens

wallflowers

bueerflies

frequency of use

num

ber

of

chan

nels

lo

w

high

low high Source: AlCmeter Group

bystanders

weak links

emotional commitment

inte

llec

tual

und

erst

andin

g

champions

loose cannons

low

hi

gh

low high

3 core KPI’s


Strength of leadership creaCve vision, reputaCon, task

(work)

Market worth value to the ecosystem (social)

Technological capability capacity to connect and evaluate in real Cme


A biological organizaCon


And also an insurance policy and safety net


CollaboraCon creates new dimensions of value across an organizaCon

Your organizaCon has a unique DNA and culture worth culCvaCng

Connect with the business case strategically, go beyond tools and channels

There is no internal and external in the social organizaCon

Social leadership skills and management capabiliCes are core to success

Establish pools of interest around your business capable of generaCng aeenCon, contribuCon and wanCng to connect.


Copyright © 2009 Visceral Business

Anne McCrossan

Website – www.visceralbusiness.com Blog – www.visceralbusiness.com/blog Email – [email protected]

@Annemcx (+44) 203 355 0582 (+44) 7508 021951

Slides will be available at http://slideshare.net/Annemcx

Photos and credits Slide 1 : Coffee beans by Incasa Coffee hep://bit.ly/1NvtHh Slide 1 : Pearl farming 02 by nataliebehring.com hep://bit.ly/4vOuvM Slide 19: Rope‐pulling by vavara lozenko hep://bit.ly/4Au1SF Slide 21: Arm wrestle 2 by deejaynye hep://bit.ly/2SvFd Slide 22: We’ll walk hand in hand some day! by Werner Schnell (1.stream)

hep://bit.ly/3TIMJ6 Slide 24: Image Visceral Business Slide 25: Bank Vault – 003 by Jason Bethchel hep://bit.ly/29iDYW Slide 26: Where is going the stock market ????? by pfala hep://bit.ly/4zUR86 Slide 27: Image source not known Slide 31: Smile by jiggskykeken hep://bit.ly/2cvjqJ Slide 31: Work in Progress by Katherine Treffinger hep://bit.ly/FfT0u Slide 31: Post Office by Suzy Pym hep://bit.ly/FW8nD Slide 31: Driving light by Crankydragon hep://bit.ly/19jNBC Slide 32: Image not aeributed taken from Seth Godin’s Tribes presentaCon Slide 33: Saving by Ken Wilcox hep://bit.ly/1YJkmb Slide 43: Managing the Brand by Tom Fishburne hep://bit.ly/t2RjE Slide 49: ReputaCon Statement of Account by Jason Tester 2004 Slide 50: ContribuCon text via @Sparkbouy and IBM Slide 50: P1050180.JPGby l.million hep://bit.ly/2FBEOa Slide 56: New spectacles by Steve Green hep://bit.ly/LvyNa Slide 56: Time to play by qcomplex5 hep://bit.ly/e0qsD Slide 56: 4 by 3lieleboyz hep://bit.ly/2R5asI Slide 56: My Name is Not Clark Kent! Carlos Norbero hep://bit.ly/JFlIl Slide 58: Slide 26: Where is going the stock market ????? by pfala hep://bit.ly/4zUR86 Slides 61 – 72 taken from Business Model GeneraCon by Alex Osterwalder Slide 73: I ate 6 by Farl hep://bit.ly/4sMMZQ Slide 73: Bueerflies in my head by Kees Straver hep://bit.ly/ooIpN Slide 73: Wallfower by CogniCve AmbiCon hep://bit.ly/YcOjV Slide 73: Rainbow Coloured 319 by CrashCalloway hep://bit.ly/2sTaGJ Slide 74: Passively bystanding by Lo Li hep://bit.ly/odsab Slide 74: The weakest link by Darwin Bell hep://bit.ly/FAPcN Slide 74: Target Day 2 by Mikey Sachs hep://bit.ly/O09Os Slide 76: Image source not known Slide 77: Web 2 by Aldo Trim hep://bit.ly/2aNQ0b

Social media, brands and culture in the finance sector

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