Presentation used at the HSO Summit in Boston on 1/27/2011

1. THE HYPER-SOCIAL ORGANIZATION
THANKING OUR SPONSORS

2. BUILDING HYPER-SOCIAL ORGANIZATIONS
PREPARED FOR THE HYPER-SOCIAL MINI SUMMIT
– NEW YORK CITY, JAN 19TH, 2011
@FGOSSIEAUX, @EDMORAN, @SKWILDER,
@ROBERTCOLLINS

3. LET’S START OFF WITH A LITTLE EXAMPLE
HUMAN 1.0 VS. WEB 2.0
THE SAP DEVELOPER COMMUNITY

4. The SAP Developer Network
Stats:
1.4 M users
400K+ business experts
Content-rich
Original Incentive System:
Point system leading to
personal rewards
The Results:
Bullying behavior in the
community
New Incentive System:
Point system leading to
donation to good cause
The Results:
No more bullying in the
community
Web 2.0 or Human 1.0?
4

5. A look at some NIH + Duke Research
Experiment #1: Experiment #2:
People play Atari-style People play Atari-style
video game which allows video game which allows
them to earn or lose money them to earn or lose money
for themselves for a charity
MRI scans shows that the MRI scans shows that the
pleasure side of the brain altruism side of the brain
lights up – that same part lights up – that same part
that gets addicted to drugs that is responsible for
social interactions

6. So to understand how to do business in a 2.0 world…
You are better off understanding
You do not need to understand the
Human 1.0 – not as individuals, but as
Web 2.0 technologies
hyper-social creatures

7. OVERVIEW
QUICK INTRO
UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA
HOW DO HYPER-SOCIAL ORGANIZATIONS THINK ABOUT THEIR BUSINESS?
WHAT DO HYPER-SOCIAL ORGANIZATIONS DO DIFFERENTLY, AND WHY?
9 WAYS TO THINK DIFFERENTLY ABOUT YOUR ORGANIZATION
HOW TO DEAL WITH RISK

8. Quick definitions
• Social media: Various technologies and tools like Facebook, Twitter
and blogs that provide people with a massive platform for interaction
with one another. “Social media” is often used synonymously with
“Web 2.0” or “social software.”
• Tribe: A collection of people who choose to interact due to shared
interests and passions (scrapbooking, software, wine) and affinity for
one another. They are characterized more by whom they like to hang
out with and their behaviors than individual traits (like age or
income)
• Hyper-Social: The cooperative, reciprocal behavior displayed
between humans who are not necessarily related or in close
geographic proximity

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

10. Why are social beings helping one another?
Reciprocity = a Reflex

11. Why are people going out of their way to punish others?
Humans have an innate sense of fairness
= keeps reciprocal society working

12. How do we make decisions?
Social Framework Market Framework

13. Why do people like to look like others?
Because humans have mirror
neurons

14. 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

15. 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!

16. We are a herding species – self herding even

17. 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
So to the extent that we
can basically be human
• Social framework of evaluating things vs. market with what we know, and
framework share it as freely as we
possibly can, I think we’ll
go a long way towards
gaining a higher or
• The importance of looking cool and mimicking others stronger level of trust with
the consumers.
• Herding and self-herding Barry Judge, CMO Best
(early research shows that social behavior does not change when it scales) Buy
http://www.cmotwo.com

18. SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS
HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS
Informed by Tribalization of Business Study:
2008-2010 – 1,000+ companies took the survey

19. 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 “…affinity groups
communities happen in networks of people, not will quickly become
between the company and the community. the dominant social
force in the
• Think human-centricity – not company-centricity emerging world
– The human has to be at the center of everything economy, changing
how we think about
you do, not the company markets, fads, social
• Think emergent messiness – not hierarchical fixed movements, and,
ultimately, power”
processes
– People will want to see responses to their - Tom Hayes, Jump
suggestions, even if it does not fit your Point: How Network
Culture is
community goals – FAST Revolutionizing
Business – 2008

20. HYPER-SOCIAL ORGANIZATIONS
WHAT IS IT THAT THEY DO DIFFERENTLY?

21. 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

22. 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

23. Process Before After Benefits Case Studies
Sales One-to-one Many-to-many Sales is social Tibco, Zappos
networking
Product Innovation Constraint to a Includes all Reduce product failure Cisco, Netflix
department employees, rates (now at 80%)
customers, prospects
and detractors
Lead generation Interrupt-driven Become findable, be Leads that actually EMC, Dell
generally helpful in want to buy
public conversation something
Customer Service Conducted by Conducted by Customers service as a SAP, Zappos
employees employees and other revenue source
customers instead of cost center
Knowledge Top down process Federated and user- KM that works, IBM
Management driven process changes in work habits
Customer Mostly between Primarily among Reduced cost and Best Buy, Dassault
Communications companies and customers, detractors increased Systemes, Fiskars
customers and prospects effectiveness
Talent Acquisition and Board, interrupt- Endorsed by the tribes Social context Monster.com
Development driven and based on people belong to provides better
weak ties WOM matches
Employee Mostly within silos Cross enterprise Increased serendipity, IBM, FedEx, Cisco
Communications increased support
Market research Based on small groups Based on tribes and Much more accurate Eli Lilly, Pfizer, IBM,
and financial social contract market data and Fiskars
incentives increased success
PR & Thought Rolodex based and Community/tribe Much more Microsoft, Intuit
leadership focused on traditional based and focused on amplification of the
media social media messages 23

24. 9 WAYS TO THINK DIFFERENTLY ABOUT YOUR BUSINESS
…IN A HYPER-SOCIAL WORLD

25. 1) BRING DOWN THAT WALL

26. Do like IBM – get rid of the firewall while protecting IP
Green
Enthusiasts
CIO’s
Business
IP model tweak
PR
IP
Customer
IP support
Product Idea
…increase knowledge flows…and competitiveness

27. 2) DON’T BUILD NEW WALLS

28. Don’t put a wall between company and people

29. Don’t put a wall between company and people

30. Embrace what people want
…and give them access…it will increase passion & productivity!

31. 3) TEAR DOWN SILOS
…AND GET PEOPLE COMMITMENT

32. Business objectives of communities
Q: Of the following business objectives which best represent your
community? (select all that apply)
70%
60%
50%
40%
30%
20%
10%
0%

33. Department managing community
Q: Which department manages your community (even if
outsourced)?
60%
50%
40%
30%
20%
10%
0%

34. # of people managing community
Q: How many people from your company manage this community as
their full-time job?
3%
5%
2%
None: part time job
23% One
5-Feb
51% 10-Jun
More than 10
Other
16%

35. Establish Center for Excellence
Marketing
Budgets
HR Sales
SM
Center for
Excellence
Development Support

36. 4) FIX THE GREAT DIVIDE
…BETWEEN MARKETING AND CUSTOMER SUPPORT

37. Your brand is only as good as the last transaction
• Fix the whole company’s user interface
with the customer:
– Sales
– Marketing
– Customer Support
– Service, etc…
• Tap into the passion of employees and
customers to help one another across
boundaries

38. 5) DON’T BUILD WHAT YOU BUILT BEFORE
…OR DON’T LET HISTORY REPEAT ITSELF

39. Move with caution – it’s not easy!
We need
Social graphs
We need
Social CRM

40. The funnel is dead
Source: McKinsey Quarterly
http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373
40

41. Today’s buying cycle: a social-powered continuous loop process
Tribes & Networks
Many more
sources of
information Can still
become part of
consideration
set
Based on source: McKinsey Quarterly
http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373
41

42. CRM – the makings of a social process
• Leave company centricity behind:
– Prospects, lead nurturing, sales funnel, etc.
• Put the customer at the center:
– What does she need?
– Will it work for her?
• Increase knowledge flows, and think tribes
– Who can help her internally?
– Who can help her externally?
• Embrace a messier process
– Allow people to jump in and help

43. 6) MAKE SURE CIO & CMO
ARE BEST FRIENDS

44. The benefits of a CIO/CMO friendship
• Build the right infrastructure to support
your social processes
• Find the right pockets of culture to ensure
adoption
• Regain a strategic role at the executive
table by being the representatives for the
voice of the customer within your
company

45. 7) THINK CULTURE
DON’T JUST THINK TECHNOLOGY

46. BE HUMAN
“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

47. The benefits of allowing people to be human
• Better knowledge flows = Social
Knowledge Management Platform
• Customer/employee centricity =
leveraging more passion
• Leveraging passion = increasing
productivity exponentially
• More passion = increased WOM
= the creation of more customers with a higher lifetime value
“The purpose of a business is to create a customer.”
-- Peter Drucker

48. 8) BECOME THE CUSTOMER ADVOCATE
…NOT THE COMPANY ADVOCATE

49. 9) ESTABLISH TRUST AS THE NEW
CURRENCY
HOW CAN YOU EXPECT YOUR CUSTOMERS TO TRUST
YOU IF YOU CANNOT TRUST YOUR EMPLOYEES?

50. Any questions?
Francois Gossieaux
Partner, Beeline Labs
e. francois@human1.com
w. http://www.human1.com
b. http://www.emergencemarketing.com
Ed Moran
e. emoran@deloitte.com
w. http://www.deloitte.com
Our new book: The Hyper-Social Organization
http://www.hypersocialorg.com
50

51. DEALING WITH RISK MANAGEMENT

52. Social Media brings new risks
• Brand risk
• Legal risks
– Labor laws
– Non compete
– HR
– Whistleblower laws
• Competitive risks
• IP risks
• Privacy
• Loss of operational efficiency
• Compliance risks
• Etc…

53. RISKS ARE EGALITARIAN
CEO VS. EMPLOYEES ARE EQUAL SOURCES OF RISK
PROTECTIONS THAT ENGENDER RISKS ARE MEANT TO PROTECT BOTH
INDIVIDUALS AS WELL AS COMPANIES

54. HOW TO DEAL WITH IT?
EDUCATION VS. RULES AND POLICIES
AFFIRM THE CULTURE, DON’T DEFINE IT

55. AND THE BIGGEST RISK OF ALL
= THE RISK OF DOING NOTHING