KNEWSTART REPORT

Social Media for the C-Suite: Threats & Opportunities

Page 2

Social Media for the C-Suite: Threats & Opportunities

Introduction

Time and tide wait for no man. And, when it comes to social media it is now no different. Social

media is maturing. Gone are the hype days when it was simply a case of not understanding it but

having to join in if you happened to be in marketing. Today it’s in a production phase and

revolutionizing brands. It’s empowering people, including staff, to have a voice and communicate

their message.

And, whether you like it or not, social media is rapidly evolving into an essential leadership tool.

With an expectation for company leaders to embrace it, which is being silently communicated, the

pressure is now on for C-levels and ambitious executives to get involved and leverage off it.

However, with so much at stake, the question that’s troubling everyone is, how to do this the right

way.

And, it’s this lack of understanding that’s tending to make C-levels skeptical and reluctant

participants, unrealistically fearful of making mistakes and in an uncomfortable position of learning

whilst leading.

This e-Book has been written to help you, as a C-level or aspiring one, understand how you can

build a powerful C-level social media presence. It covers:

1. Positioning

2. Messaging

3. Exposure

Before we delve into it, we’ll be setting the scene and looking at the challenges and opportunities.

For example, how information can be deliberately leaked or unintentionally gleaned; deals can be

done; and reputations can be built or ruined, all through social media portals.

The content contained within this e-Book will provide you with insight and help you get you started

with creating a strong social media presence. It’s here to help you get ahead in terms of your career

and learn that when an effective social media presence is created, opportunities abound. Now,

before we get started, I just want to stress that this e-Book is meant for those who are fairly new to

social media. If you’re an executive, Manager or Director, or a business owner, the content

contained here will provide you with insight.

Now, let’s get started!

Page 3

Setting the Scene

We live in a digital age. We’re inter-connected and socially connected. We search online for

everything. And, we can find anything. We Google you, mine data on you and profile you. We

share, friend, like, connect and link in. We leave digital footprints everywhere. We consume data at

the rate of 10 hours per day. And, what’s more, we take all this for granted.

And, this is why the importance of social media on business has never been higher and why it’s

dramatically escalated.

The world has moved through the hype phase – when businesses felt compelled to join in because

it was the latest trend. Now, as it matures, businesses have entered the productive phase where

they’re starting to crack the code and turn it into a genuine business advantage. Social media

channels have become an essential platform for brands to communicate their messages.

However, it doesn’t stop there.

Social has empowered everyone to have a voice and communicate his or her message. And, savvy

companies, such as IBM, are leveraging off this to dominate their markets and seize share.

Becoming brands in their own right employees have never had as much power as they have today.

And, this is why business leaders can no longer afford to remain silent and avoid being active on it.

Rapidly evolving into a leadership tool there’s now an expectation for company leaders to join in

that’s silently being communicated.

Those who embrace it and get involved will reap the rewards.

Social Media Penetration

Gone are the days when social media was used purely for marketing. Publicly traded companies

are beginning to use social media for business development, business communication, business

continuity, crisis management, reputation management, customer service, human resources and

innovation.

Social is changing the way we do business. Corporate silos are being broken down and new ways

of connecting are changing the way we work together. Collaborative relationships and innovation

are flourishing. Companies are gaining better consumer insights and engaging with customers.

Businesses are becoming more agile and transparent as a result. They are moving away from

seeking transactions and moving towards making a difference. In a connected world they are

becoming socially conscious. And, for the first time employees have empowerment and a voice that

can be heard.

Page 4

Social networks are therefore having a broad-based impact and what’s clear is that the tightly

controlled corporate environments are falling apart. A balance of power is therefore shifting

between brands and individuals. The explosion in connectivity and availability of information is

enabling today’s consumers, employees, citizens, patients and other individuals to take control.

Some argue a revolution is occurring.

So for brands to remain, or even get ahead, they have to move fast. Otherwise they’ll get left

behind.

“The rate of internal change must be greater than the rate of external change or the company will

fall behind” – Jack Welch.

Social Media Knowledge Gap

While many C-levels understand the importance social media plays in business, most have not yet

seen the need for their personal involvement let alone realized the changes it’s about to make to

their role.

But this is shortsighted. As social changes the way businesses work, it impacts the talents and skill

sets needed for the next generation of business leaders. Successful C-levels have to be equipped

to be more social. In 2013, Forbes ran a story entitled ‘68% of CEOs have no social media

presence whatsoever.’ They quoted a report from CEO.com, which stated that:

• 68% of CEOs have no social presence whatsoever and that a mere 32% have only one

social network.

• 28% of the Fortune 500s are on Twitter; 38% are on Facebook, and 5% are on Google+.

• 140 of the Fortune 500s are on LinkedIn. Looking at some of those who are active, it’s

clear that they’re winning in the game. Richard Branson (@RichardBranson) has nearly 4

million Twitter followers, which is more than most media brands. Donald Trump

(@realDonaldTrump) has more than 2.5 million, Marc Cuban (@mcuban) has just over 2

million and Tony Hsieh (@Zappos_Hsieh) has 2.8 million. But, it’s Bill Gates (@BillGates)

who controls the leader board at just over 15.2 million.

Without a doubt, when C-levels and aspiring C-levels have the opportunity to use social media

platforms to amplify their company message and take responsibility for their own brand, they can

achieve more influence than most media outlets.

However, the C-levels in today’s digital world have not grown up in a world like this. They’re not the

Gen Y’s and have a very different set of skills, let alone corporate values. Most are still living in their

comfort zones - being transactional, fearful of sharing information and shying away from transparent

collaboration. And, even if they know they need to change they don’t really understand how to do

this.

Page 5

Social media blunders by C-level participants that have tried haven’t helped either and nor have the

media headlines about the security issues resulting from hackers.

As with anything risk related though it’s vital to know your threats, vulnerabilities and impacts so you

can make an informed decision.

Social Media Risks: Blunders, Hackers and Litigation

Rather than avoid the elephant in the room it’s always best to consider the risks involved. Looking

at the blunders first, it’s inevitable that there have been a few. This is a new skill that’s being applied

after all.

In March, the UK Prime Minister, David Cameron slipped up. With “selfies” trending, he took one

whilst on the phone to US President Barak Obama. It was supposed to portray him as a high-

powered statesman trying to manage an emerging global crisis. But instead it only resulted in

mockery rather than admiration as seen in the photomontage.

The PM again failed on social media when it was revealed that his account followed a high-class

escort agency on Twitter.

In November 2013, JPMorgan suffered a severe public spanking after trying to host a town hall

Q&A on Twitter. The bank announced a live Twitter Q&A about leadership and career advice

hosted by one of its executives. Participants were encouraged to submit questions using the

hashtag #AskJPM. One week later, JPMorgan sent out a reminder tweet: “JPMorgan VC Jimmy

Lee is taking over @JPMorgan on 11/14. Tweet Qs using #AskJPM.”

Page 6

While hardly anyone noticed the original tweet, the second one spread like wildfire. Within 24 hours,

there were 18,669 tweets using the #AskJPM hashtag, and none of them were what JPMorgan had

hoped for. Twitter users around the world hijacked the hashtag, using the opportunity to blast the

bank’s ethics (or lack thereof).

The Q&A was pulled within a few hours and JP Morgan watched as journalists and financial

industry pundits snickered right along with the sophomoric gaggle on Twitter. Thousands of articles

and blog posts took delight in rehashing (literally) the insults hurled at JPMorgan.

Kitchen Aid fell foul of not keeping their opinions personal when their community manager

inadvertently tweeted from the wrong account via his smartphone. During a presidential debate, this

confused employee thought that their personal offensive tweet about Obama’s deceased

grandmother just went out to his small following. Instead, it was blasted out to over 24,000 of

KitchenAid’s followers. Whoops!

Chrysler too made a similar mistake when their Social media Manager dropped this f-bomb!

Page 7

Moving on to hackers there’s rarely a day that goes by without a news story breaking about a

compromise or breach. As if that’s not shocking enough, the activity has become so prolific and

advanced that hacking has now been elevated to a higher priority for governments than terrorism.

Most statistics online say that three in every four people already have, or will have their data

compromised at some point in their lives. And if you speak to anyone in cyber security, they’ll tell

you that it’s not a case of if (now) but when. With 90% of all businesses having already had their

data breached during the year, we’re at a point where any major brand is vulnerable to a hack on a

daily basis.

Now when it comes to social media, these networking sites have created a revolution in social

connectivity. However, risks proliferate. Con artists, criminals, hactivists, industrial spies, state

sponsored terrorists and other dishonest predators are exploiting this capability.

What’s more many are operating like professional corporate businesses. Cyber criminals today

have crime packs with business intelligence reporting dashboards to manage the distribution of the

malicious code they release, video installation guides and even tech support! And some will even

trick you into paying for the “privilege” of being hacked!

How do they do it?

Well they’re using two primary tactics to exploit online social media networks. In practice, however,

they’re often combined.

• Hackers who specialize in writing and manipulating computer code to gain access or install

unwanted software on your computer or phone.

• Hackers who specialize in exploiting personal connections through social networks (social

engineering).

As most hackers know only too well, people are the weakest link in the chain. As a result they focus

on them with the intention of getting past security defenses. And, they’ll design their actions to

appear harmless and legitimate.

Page 8

Falling for an online scam or computer hack is a genuine risk and would be damaging for any C-

level let alone the company they work for. So detailed below is an overview of the main risks. Note,

they should not be considered exhaustive.

• Sharing: Social networking sites are Internet-based services that allow users to

communicate and share information with a group. However, once information is posted to a

social networking site, it’s no longer private. The more information you post, the more

vulnerable you potentially are. And, even when using high security settings, friends or

websites may inadvertently leak your information. And that’s why the personal information

you share could be used to conduct attacks against you or those you associate with. The

more information shared, the more likely someone could impersonate you and trick one of

your friends into sharing personal information, downloading malware, or providing access to

restricted sites. Remember, predators, hackers, business competitors, and foreign state

terrorists trawl social networking sites looking for information or people to target for

exploitation.

• Scams: These are fake deals that trick people into providing money, information, or

services in exchange for the deal. Cybercriminals typically use popular events and news

stories as bait for people to open infected email, visit infected websites, or donate money to

bogus charities. For example, before the 2010 World Cup, cybercriminals offered tickets

for sale or sent phishing emails claiming that you had won tickets to see the event.

After the death of Osama Bin Laden, a video claiming to show Bin Laden’s capture was posted on

Facebook. The video was a fake. When users clicked on the link to the video, they were told to

copy a JavaScript code into their browser bar, which automatically sent the hoax to their friends,

and gave the hackers full access to their account and the private information they stored on it.

Then there are the more obvious emails that say something like, “Hi I’m a Nigerian banker and I’d

like to give you $53 billion because I like your face...” or an amusing exe file. Rumour has it the

funny cats .exe proved extremely successful for a certain state sponsored attack.

• False Information: There have been several incidents where false information transmitted

on social networking sites has had serious consequences. For example, a fake tweet by a

someone impersonating the Russian interior minister, claiming that the Syrian president

had been killed or injured, caused crude prices to rise by over $1 before traders realised

the news was false. On another occasion a hacktivist group hijacked the Associated

Press’s Twitter account, sending out fake tweets about an explosion in the White House

and President Obama’s safety. This caused the S&P 500 to drop almost a full percent and

cost investors $136.5 billion before recovering three minutes later. Whilst The Associated

Press sent out a tweet following the incident affirming that the first tweet was untrue, the

damage was done.

• The Virus: And then there’s the Twitter virus that you regularly see. It usually looks like this:

Page 9

"Did you see this crazy pic of you?" or "I lost 30 lbs in a week. You can too!" “Someone’s

saying horrible things about you.” Sadly the more people you follow on Twitter, the more of

these messages you’ll see. Whether you’re the perpetrator or not don’t click the link.

Instead work on fixing the Twitter DM (direct message) virus someone sends you to avoid

getting your Twitter account infected. Although it isn't possible for you to clean the virus

from the account that sent you a DM, it’s possible for you to protect yourself from getting it if

you don't already have it. Here’s a link for more information on how -

http://smallbusiness.chron.com/fix-twitter-dm-virus-26739.html

Looking at social media from a legal stance is essential. Even if you've set you’re privacy and

secured your social media account so that only a select few can view it, there's always a risk that

something you share could be reposted elsewhere. When it comes to social media, nothing is truly

private. What you post can be used against you, either now or in the future by snooping

government agencies, political operatives, potential employers or online marketers that want to

serve up interest-based advertising.

And if you think you can delete a post and all will be ok, think again. You see, even when you delete

a post its footprint is likely to remain. Your "friends" can copy/paste anything visible to them into

other sites or email messages. Twitter’s posts are part of the public data feed that's routinely

captured by data brokers and others interested in analyzing that data. The act of deleting just

means removing the visibility on Twitter. However, every data broker or other organization that has

consumed your Twitter feed between the time you posted and the time you deleted the message

still has the data. And, if what you share on social media sites is 'defamatory' (meaning that it could

be damaging to someone's reputation), then you could face legal repercussions.

Think before you post anything on social media. Ask yourself is this information I want to share and

would someone be able to use it to gain an advantage?

Treat everything as brand adversarial and then you don't have to worry about it.

As you can see the risks outlined here are viable concerns for C-levels. That said it’s a lack of

understanding of the risks involved that tends to induce skepticism and harbour reluctant

participants, unrealistically fearful of making mistakes and in an uncomfortable position of learning

whilst leading.

Social Media Advantages

So putting the risks aside, in favour of making informed decisions against measurable risks, C-

levels have to consider being actively involved in social media.

If Peter Aceto, CEO of ING Direct Canada and Toronto’s Communicator of the Year 2010, has got it

right,

Page 10

“Successful leaders will no longer be measured just by stock price. Managing and communicating

with shareholders, employees, government, community and customers will be table stakes in the

future.”

Social media will become a KPI.

Ever the innovator and early adopter, IBM seems to agree. In 2013 they surveyed 4,000 C-suite

executives, and found:

• 64% of CMOs want to approach customers as individuals

• 71% of CIOs see communication moving towards more social/digital collaboration

• 55% of CHROs foresee increasing organisational openness The infographic here provides

more detail.

Page 11

Interestingly, in a slightly earlier 2012 study of more than 1,700 CEOs from 64 countries IBM also

discovered that 70% of the responding CEOs plan to shift their focus from using e-mail and the

phone as primary communication vehicles to using social networks as a new path for direct

engagement.

According to the study, as soon as the next three to five years, social media is anticipated to rise

from the least likely method for C-levels to connect with their audiences to the second highest

method, just behind face-to-face interactions.

Traditional corporate communication is therefore potentially at threat from a social communication

takeover. As C-levels transition through, unfortunately, however, they’re going to have to cope with

both, which is costly as it’s time intensive. But, those who do put in the effort and truly socially

engage with their employees and customers in genuine conversations can find some solace in the

fact that they’ll be recognized as the new corporate leaders and profits will follow.

After all, all brands (including personal brands, which is what the C-level is building) are assets, and

profits follow assets.

This thinking is radical. There’s a major change from traditional, controlled, protective corporate

environments, towards a more open and transparent leadership structure. As socially savvy C-

levels evolve and harness the power of direct engagement their proficiency in social media will

become even more relevant.

Customers are increasingly going to expect to have direct access to brands and their leaders, which

is why the time has arrived for social media to become a necessity for C-levels.

According to the 2012 CEO, Social Media Survey & Leadership Survey by consultancy BRANDfog,

82% of consumers say they trust a company more when its CEO and leadership team are active in

social media.

What’s more, employees perceive CEOs who are “social” as being better leaders and better

communicators - 52% felt more inspired, and 41% more technologically advanced and proud.

How C-levels Get it Right

Sir Richard Branson, world-renowned entrepreneur and businessman, provides a perfect example.

He’s regularly referred to as being the consummate social CEO and has amassed more than 4

million Twitter followers, 2.1 million connections on LinkedIn and 2.9 million Google+ circles. His

blog is also averaging 500,000 visitors per month.

Branson attributes his social media success to sharing inspiring leadership stories and quotations,

which create online conversations about fresh business ventures. He also mixes things up so it’s

not all corporate and raises awareness for charitable initiatives or other things he simply finds of

Page 12

interest or fun.

His advice is to:

“Above all, remember to be authentic and organic, answering questions in a straightforward manner

– there’s no need to check with your PR team first. You know your products and services, and

people will see through any effort to parrot slogans or broadcast a marketing message.”

Because Branson tweets and blogs daily, almost all Virgin employees follow suit and engage

directly with their customers through social media. They use it to find out what their customers want

and need. And, as a result they remain ahead of their competition.

A Summary of the Benefits

The tangible benefits for C-levels who responsibly participate in social media are numerous. For

example, sociability enables C-levels to:

• Help find and attract new customers, business partners and employees

• Help retain customers by offering more service value

• Be more responsive to customer queries or complaints

• Be more effective in crisis management and business continuity

• Improve your brand’s reputation

• Show a human side to your business by having unfiltered direct communication

• Share news and information

• Demonstrate and encourage brand innovation

• Keep on top of your competitors movements

• Improve employee communications

• Get to know your company better

• Position yourself as an indispensible resource

• Enhance credibility and help attract the best opportunities

• Become a valuable asset for sharing corporate social responsibilities and causes.

• Find out when competitors are making connections with your clients.

Page 13

Conclusion

Social media is an established fact of modern life, in the corporate and the private sphere and if

you’re going to have success with it as a C-level you need to understand that it’s not just another

marketing tool. It provides a two-way channel of communication, allowing you to connect and

engage with large numbers of people quickly. It also maintains the characteristics of one-to-one

conversations because your market (audience) can use social media to respond quickly and

directly.

Finally, whilst there are challenges for you to overcome, as a C-level when creating your social

media presence, make no mistake in the next few years there are going to be more advantages

available in doing so. Whether you chose to play full out and embrace it now or not, one thing is

certain – it’s not going to disappear. Neither is the fact that social media at the C-level can be

outsourced. It takes personal involvement. And whilst there are risks involved, not participating now

appears to be the greater risk.

Thank you, as always for reading. If you found this useful, please tell others and get them to sign up

to receive more information.

Wishing you much success!

Page 14

About the Author

Jane Frankland is a successful technology entrepreneur,

business consultant and speaker. She has built and sold her own

seven-figure business and is frequently invited to speak about

entrepreneurship, women in business, cyber security and social

media at events around the world. She has over 18 years worth of

experience in business development and has held directorships

and senior executive positions within her own companies and at

several large PLCs. She built her last business in her mid

twenties, and through her latest consultancy, KnewStart, provides

strategic business development solutions to existing or aspiring

entrepreneurs.

Jane believes passionately in entrepreneurship, empowerment and freedom. Through her work she

wants to see more businesses survive and thrive. She is particularly interested in modern business

development methods and is currently writing a book, Who The Google Are You, on how to harness

the power of the Internet for accelerated business growth.

Jane has a BA (Hons) from Loughborough University in Design, is a Nominated Young British

Designer and a Fellow of the Institute of Sales & Marketing (ISMM). She’s also a mother to three

children, has a Weimaraner dog and a black and white moggy. The question you’ll hear her ask the

most in business is ‘what’s your objective?’ The reason why is obvious. Time is precious and unless

you know why you’re doing something why do it at all. However, at home it’s always, “Shall we go?”

Jane can be contacted on:

Email: hello@jane-frankland.com Twitter: https://twitter.com/JaneFrankland LinkedIn: https://linkedin.com/in/JaneFrankland

Page 15

ABOUT KNEWSTART

KnewStart helps entrepreneurs and leaders start-up, scale and build profitable global businesses. We’re on a mission to empower 1,000 businesses and 1,000 professionals in the next 2-years to take full advantage of the extraordinary times we’re living in.

We offer 3 core services – coaching, consulting and training and a community for thriving entrepreneurs to take advantage of.

CONTACT US NOW To discuss this e-book or to find out how we can help you, contact us now by phoning +44 (0) 20 8123 9463 or competing the inquiry form.