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8/9/2019 Developing Measuring Open Leadership Strategies from Charlene Li
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Developing & Measuring
Open Leadership Strategies
Charlene Li
Altimeter Group
May 7, 2010
1
#openleader
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CMO: We need a blog and Twitter strategy.VP Customer Service: Well just complaints.
VP Product Development: But we need feedback andnew ideas to beat the competition.
VP Sales: Competitors will steal the ideas and unhappycustomers.
CMO: With reviews, well know whats wrong and canthen fix it.
CEO: Negative reviews will kill sales.
VP Biz Dev: Dell does this
CEO: Were not Dell.
Determining how open you will be2
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Social technology forces
you to be open3
When people get what they need
from each otherHow open do I need
to be?
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Open Leadership4
Having the confidenceand humility to give upthe need to be in control,
while inspiringcommitment from peopleto accomplish goals
How to give up control,and be in command
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1. Identify a strategic goal to address.2. Put in place learning systems to support
that goal.3. Determine which open-driven objective can
help the most.4. Gauge the need to be open.5. Gauge yourability to be open.
Steps To Create Your Open Strategy5
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Align openness with strategic goals6
Examine your 2010 and
2011 goals
Pick one where open andsocial can have an impact
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Four goals define your open strategy,
but always start with learn
7
LearnLearn
DialogDialog
SupportSupport
InnovateInnovate
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OpenLearning
Focusgroups
Customersurveys
Employeesurveys
Ethno-graphics
Open learning adds to traditional tools8
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OpenLearning
Focusgroups
MonitoringTools
Customersurveys
Employeesurveys
Ethno-graphics
Open learning adds to traditional tools9
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Learn with basic monitoring tools10
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OpenLearning
Focusgroups
MonitoringTools
Customersurveys
Listeningcommunities
Employeesurveys
Ethno-graphics
Open learning adds to traditional tools11
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Community insight platforms12
CommunispaceNetworked InsightsPassenger
Umbria
CommunispaceNetworked InsightsPassenger
Umbria
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OpenLearning
Focusgroups
MonitoringTools
Customersurveys
Listeningcommunities
Employeesurveys
Real-timeanalytics
Ethno-graphics
Open learning adds to traditional tools13
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Understand who that person is
in real time
LinkedIn in Lotus Notes
14
Service Cloud w/social
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Listen so you can respond appropriately15
Is lkilpatrick anelite customer?
Is lkilpatrick anelite customer?
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Traditional
Learning
Open
Learning
Speed Days and weeks Minutes and hours
Scale Thousands Millions
Costs $$ to $$$ Free or $
Distribution Market research All employees
The value of open learning16
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Description BenefitReduce the cost of focus groups- Assumes 12 sessions @$5K each
$60,000
Real-time insight generation- One extra product per year- Avoid a big mistake, cost savings from not doing acampaign
$100,000$25,000
Alignment for a strategic goal- Reduce training classes- Increase employee buy-in, morale, retention-- Strategic partners develop solutions
$160,000$200,000$250,000
Total benefit $795,000Total cost $410,000
Net benefit $385,000
Return 94%
Calculating the value of open learning17
Spreadsheets online at open-leadership.com
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Finding the signal in the noise. Analytics are still in infancy stages.
Insights are not always representative. Distributed, open learning threatens the market
research department. Example: CEO keeps repeating insight from a single
tweet or blog post.
Market research reasserts its authority by being
the enabler of open learning. Aggregate and distribute with speed
Analyze and distill with deeper insights.
Whats hard about open learning?18
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Dialog with your community19
LearnLearn
DialogDialog
SupportSupport
InnovateInnovate
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Blogs establish thought leadership20
Richard Edelmanhas been blogging
since 2004.
Richard Edelmanhas been blogging
since 2004.
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DellOutlet drives sales with Twitter21
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Kohls has conversations on Facebook22
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Engagement Pyramid: Focus onWatching and Sharing
23
Curating
Producing
Commenting
Sharing
Watching
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United
StatesSouth Korea Brazil
United
Kingdom
Curating
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Engagement scores of 100 top brands25
+18% revenue+15% gross margin
growth
-6% revenue-11% gross margin
growth
+10% revenue
+1% gross margingrowth
+5% revenue+3% gross margin
growth
Source: EngagementDB.com
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Description Benefit
Increased revenue-$3 million incremental revenue (10% profit)- Deeper engagement with customers
$300,000$100,000
Increased awareness-Advertising equivalent (5M impressions at $10 CPM) $500,000
Improve reputation of the organization-Negative sentiment reduced from 25% to 10% and reducescustomer churn
$100,000
Avoid potential PR blowup- Assumes cost of $250,000 in lost revenues
$250,000
Hire better people
Scale engagementImprove SEO
$400,000
$500,000$500,000
Total benefit $2,650,000
Total cost $150,000
Net benefit $2,500,000
Return 1,667%
Calculating the value of open dialog26
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Solarwinds uses community for call
deflection and product development
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Comcast made support proactive with
indirect deflection
29
Took 3minutes tonotify entire
system of off-air channel
Took 3minutes tonotify entire
system of off-air channel
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Cisco supported employees with open
collaboration and social platforms
30
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Description Benefit
Call deflection- 10% of 100,000 calls/year at $10/call $100,000
Identify support problems in advance (indirect calldeflection)- Notify customers ahead of time
$100,000
Greater employee productivity (fewer emails, findexperts, fewer meetings)-Get back two hours/week- Cost avoidance because employees find solutions
$600,000$200,000
Better employee moral and commitment
- Lower employee churn, reduce recruitment costs $200,000Total benefit $1,200,000
Total cost $300,000
Net benefit $900,000
Return 300%
Calculating the value of open support31
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Innovate with customer feedback32
LearnLearn
DialogDialog
SupportSupport
InnovateInnovate
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Dells IdeaStorm measures the health of
its community, not value of ideas
33
13,000 ideas389 implemented(11/month, 3% of
all ideas)
13,000 ideas389 implemented(11/month, 3% of
all ideas)
Metrics used:
-% who comment- quality of ideas
- rate of Dellsresponse to ideas
Metrics used:
-% who comment- quality of ideas
- rate of Dellsresponse to ideas
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Starbucks involves 50 people around the
organization
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P&G goes outside for innovation35
P&G madeoutside-in
innovation apriority
P&G madeoutside-in
innovation apriority
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Description Benefit
Diversity of designs and ideas- Results in products that sell better $1,000,000
Innovations develop faster- Gets product to market quickly $250,000
More accurate projections and predictions- Anticipates product wont be a success, so closes it $50,000
Customer& employee commitment and loyalty- Better buy-in, reduce customer/employee churn $200,000
Total benefit $1,500,000
Total cost $200,000
Net benefit $1,300,000
Return 650%
Calculating the value of open innovation36
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+ Value of purchases-Cost of acquisition
____________________= Customer lifetime value
The new lifetime value calculation
Percent that refer Size of their networks Percent of referredpeople who purchase
Value of purchases
Percent that providesupport Frequency and value of
the support
+ Value of new customers
from referrals
+ Value of support+ Value of ideas
+ Value of insights
Spreadsheets for call calculationsavailable at open-leadership.com
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Fans
Largenetwork
Refers
Doesntrefer
Small
network
Refers
Doesntrefer
Find more fanswith largenetworks
Find more fanswith largenetworks
Encourage fansto make more
referrals
Encourage fansto make more
referrals
Use metrics to help make decisions38
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1. Identify a strategic goal to address.2. Put in place learning systems to support
that goal.3. Determine which open-driven objective can
help the most.4. Gauge the need to be open.
5. Gauge yourability to be open.
Steps To Create Your Open Strategy39
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#3 Understand how open you need to be40
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 tomeet your goals
41
Platform
Crowdsourcing
Open Mic
Conversing
Updating
Explaining
Today
Where we need to be
More on openness metrics at open-leadership.com
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Open-drivenObjective
Apples Openness
Learn Apple closely monitors high levels of dialog for ideas, opportunity
Dialog Theres already a great deal of dialog, but without Apple. Infact, customers anticipate bigannouncements so secrecy adds to theApple experience.
Support Apple support forums have many eager contributors, Apple rarely participates.
Innovation Arguably already the most creativeminds are inside Apple. They dont
want/need outside input.
The Apple Factor42
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Brilliant engineers and designers Charismatic CEO Brand that its customers love and support
Why Apple can afford to be less open43
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Define your objectives, and make sure they arealigned with your strategic goals.
Identify the most important key performanceindicators already in use in your organization.
Identify open activities that support your KPIs. Establish a baseline for your objectives and KPIs. Optimize and adjust your KPIs and priorities.
Action Plan44
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Finding &Supporting Your Open Leaders
Friday, May 14th, 10am PT (bit.ly/openleaderweb3)
How Open Leaders Embrace & Recover From Failure
Friday, May 21st, 10am PT (bit.ly/openleaderweb4)
Upcoming Open Leadership Webinars45
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Focus on relationships. Align your social strategy with strategic goals.
Support open leaders in your organization.
Be prepared for failure youll encounter many.
Summary46
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Thank you
47
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
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