THE HYPER-SOCIAL ORGANIZATION

PREPARED FOR THE AMERICAN MARKETING ASSOCIATION

– BOSTON, APRIL 27TH, 2011@FGOSSIEAUX

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The SAP Developer NetworkStats:1.4 M users400K+ business expertsContent-richOriginal Incentive System:Point system leading to

personal rewardsThe Results:Bullying behavior in the

communityNew Incentive System:Point system leading to

donation to good causeThe Results:No more bullying in the

communityWeb 2.0 or Human 1.0?

A look at some NIH + Duke Research

Experiment #1:

People play Atari-style video game which allows them to earn or lose money for themselves

MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs

Experiment #2:

People play Atari-style video game which allows them to earn or lose money for a charity

MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions

So to understand how to do business in a 2.0 world…

You do not need to understand the Web 2.0 technologies

You are better off understanding Human 1.0 – not as individuals, but as

hyper-social creatures

UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIAHOW DO HYPER-SOCIAL ORGANIZATIONS THINK ABOUT THEIR BUSINESS?WHAT DO HYPER-SOCIAL ORGANIZATIONS DO DIFFERENTLY, AND WHY?9 WAYS TO THINK DIFFERENTLY ABOUT MARKETING

OVERVIEW

LET’S GET A LEVEL DEEPER ON THE HUMAN 1.0…

Why are social beings helping one another?

Reciprocity = a Reflex

Why are people going out of their way to punish others?

Humans have an innate sense of fairness = keeps reciprocal society working

How do we make decisions?

Social Framework Market Framework

Why do people like to look like others?

Because humans have mirror neurons

Why do we lie to market researchers?

Because we lie to ourselves and others, and we tell people what we think they want to hear

Why is status so important (and why do we hoard it)?

Because it used to get us a better mate – proceed with caution: status works both ways!

We are a herding species – self herding even

What are the important Human 1.0 Hyper-Social Traits

• Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters

• The role of fairness in assessing situations

• Social framework of evaluating things vs. market framework

• The importance of looking cool and mimicking others

• Herding and self-herding(early research shows that social behavior does not change when it scales)

So to the extent that we can basically be human

with what we know, and share it as freely as we

possibly can, I think we’ll go a long way towards

gaining a higher or stronger level of trust with

the consumers.

Barry Judge, CMO Best Buyhttp://www.cmotwo.com

HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS

SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS

Informed by Tribalization of Business Study:2008-2010 – 1,000+ companies took the survey

Hyper-Social companies think differently

• Think tribe – not market segment– We need to find groups of people who have

something in common based on their behavior, not their market characteristics

• Think knowledge network – not information channel– The most important conversations in communities

happen in networks of people, not between the company and the community.

• Think human-centricity – not company-centricity– The human has to be at the center of everything

you do, not the company• Think emergent messiness – not hierarchical fixed

processes– People will want to see responses to their

suggestions, even if it does not fit your community goals – FAST

“…affinity groups will quickly become the dominant social

force in the emerging world

economy, changing how we think about markets, fads, social

movements, and, ultimately, power”

- Tom Hayes, Jump Point: How Network

Culture is Revolutionizing Business – 2008

WHAT IS IT THAT THEY DO DIFFERENTLY?

HYPER-SOCIAL ORGANIZATIONS

Hyper-Social Orgs – Leveraging Social Business Processes

• Successful Hyper-Social organizations turn their business processes into “social” processes– Why?

• Scale• Increased quality• Increased passion• Increased WOM

Turning a business process into a social process

• IS NOT:– Running traditional programs using social

media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc.

• BUT IS:– Running programs based on human reciprocity

and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc.

– TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS

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Process Before After Benefits Case Studies

Sales One-to-one Many-to-many Sales is social networking

Tibco, Zappos

Product Innovation Constraint to a department

Includes all employees,

customers, prospects and detractors

Reduce product failure rates (now at 80%)

Cisco, Netflix

Lead generation Interrupt-driven Become findable, be generally helpful in public conversation

Leads that actually want to buy something

EMC, Dell

Customer Service Conducted by employees

Conducted by employees and other

customers

Customers service as a revenue source

instead of cost center

SAP, Zappos

Knowledge Management

Top down process Federated and user-driven process

KM that works, changes in work habits

IBM

Customer Communications

Mostly between companies and

customers

Primarily among customers, detractors

and prospects

Reduced cost and increased

effectiveness

Best Buy, Dassault Systemes, Fiskars

Talent Acquisition and Development

Board, interrupt-driven and based on

weak ties WOM

Endorsed by the tribes people belong to

Social context provides better

matches

Monster.com

Employee Communications

Mostly within silos Cross enterprise Increased serendipity, increased support

IBM, FedEx, Cisco

Market research Based on small groups and financial

incentives

Based on tribes and social contract

Much more accurate market data and

increased success

Eli Lilly, Pfizer, IBM, Fiskars

PR & Thought leadership

Rolodex based and focused on traditional

media

Community/tribe based and focused on

social media

Much more amplification of the

messages

Microsoft, Intuit

…IN A HYPER-SOCIAL WORLD

9 WAYS TO THINK DIFFERENTLY ABOUT MARKETING

1) BRING DOWN THAT WALL

Do like IBM – get rid of the firewall while protecting IP

CIO’s

Product Idea

Business model tweak

PR

Customer support

Green Enthusiasts

IP

…increase knowledge flows…and competitiveness

IP

IP

2) DON’T BUILD NEW WALLS

Don’t put a wall between company and people

Don’t put a wall between company and people

Embrace what people want

…and give them access…it will increase passion & productivity!

…AND GET PEOPLE COMMITMENT

3) TEAR DOWN SILOS

Business objectives of communities

Reduce

market

resea

rch co

sts

Reduce

custo

mer acq

uisition co

sts

Reduce

custo

mer su

pport co

sts

Impro

ve cu

stomer

support

quality

Bring o

utside i

deas in

to organiza

tions

Increase

custo

mer loya

lty

Increase

custo

mer life

time valu

e

Increase

sales

Impro

ve new

product

succe

ss rati

os

Increase

product/

brand aw

areness

Genera

te more

word-of-m

outh

Prepare

for c

risis m

anag

emen

t

Business

model

innovation

Impro

ve part

ner rel

ations

Impro

ve public

relati

ons effecti

veness

Impro

ve kn

owledge

man

agem

ent

Impro

ve re

cruiting

Impro

ve re

tention

Impro

ve co

rporat

e gove

rnan

ce

To re

spond to

competi

tor’s deci

sion to

crea

te a c

ommunity

Unsure

Other (plea

se ex

plain)

0%

10%

20%

30%

40%

50%

60%

70%

Q: Of the following business objectives which best represent yourcommunity? (select all that apply)

Department managing community

Market

resea

rch

Product

develo

pment

Marketi

ng

Finan

ce dep

artmen

t

Community dep

artmen

t

Public rel

ations

Sales

Human Reso

urces IT

Customer

Servi

ce

Corporat

e communica

tions

Knowledge

Man

agem

ent

Multiple dep

artmen

ts

Other (plea

se ex

plain)

0%

10%

20%

30%

40%

50%

60%

Q: Which department manages your community (even if outsourced)?

Establish Center for Excellence

SMCenter for Excellence

Marketing

Sales

SupportDevelopment

HR KPI’s

Budgets

# of people managing community

51%

16%

23%

2%

5%3%

Q: How many people from your company manage this community as their full-time job?

None: part time jobOne5-Feb10-JunMore than 10Other

…BETWEEN MARKETING AND CUSTOMER SERVICE

4) FIX THE GREAT DIVIDE

Your brand is only as good as the last transaction

• Fix the whole organization’s user interface with the donor/recipient:– Fund raising– Marketing– Service delivery– etc…

• Tap into the passion of employees and volunteers to help one another across boundaries

…OR DON’T LET HISTORY REPEAT ITSELF

5) DON’T BUILD WHAT YOU BUILT BEFORE

Move with caution – it’s not easy!

We need Social CRM

We need Social graphs

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The funnel is dead

Source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

Tribes & Networks

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Today’s buying cycle: a social-powered continuous loop process

Based on source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

Many more sources of

information Can still become part of consideration

set

6) MAKE SURE YOUR CMO AND CIO ARE BFF

DON’T JUST THINK TECHNOLOGY

7) THINK CULTURE

“WE FIND OURSELVES IN THE ODDEST POSITION – WHICH IS TO TELL THE BUSINESS UNITS THAT THIS IS NOT A TECHNOLOGY ISSUE BUT A PEOPLE AND PROCESS ISSUE.” – CIO AT A MAJOR PHARMACEUTICAL COMPANY

BE HUMAN

Culture – perhaps the most important Human 1.0 Characteristic

• Humans developed culture to deal with change

• We now use culture to adapt to changes that we create ourselves

• Harness culture to create lasting competitive advantages

Where we used to deploy Technologies to impact social behavior, now we need to deploy Technologies to support social behaviors Senior IT Strategy Executive with a major system integrator

…NOT YOUR COMPANY’S ADVOCATE

8) BE THE CUSTOMER ADVOCATE

HOW CAN YOU EXPECT ANYONE TO TRUST YOU IF YOU CANNOT TRUST YOUR EMPLOYEES & VOLUNTEERS?

9) ESTABLISH TRUST AS THE NEW CURRENCY

Any questions?

Francois GossieauxPresident, Human 1.0e. francois@human1.comw. http://www.human1.com b. http://www.emergencemarketing.comp. http://www.cmotwo.comt. http://twitter.com/fgossieaux

Our new book: The Hyper-Social Organizationhttp://www.facebook.com/hypersocialorg

Download a free chapter at:http://www.human1.com/the-hyper-social-organization/

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