developing measuring open leadership strategies from charlene li

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

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#openleader


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2010 Altimeter Group

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

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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



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Learn with basic monitoring tools10


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OpenLearning

Focusgroups

MonitoringTools

Customersurveys

Listeningcommunities

Employeesurveys

Ethno-graphics



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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



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Understand who that person is

in real time

LinkedIn in Lotus Notes

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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

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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

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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

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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

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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

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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

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Charlene Li

[email protected]

charleneli.com/blog

Twitter: charleneli

For slides, send an email to

[email protected]

Learn more and buy the book at

open-leadership.com

developing measuring open leadership strategies from charlene li

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