Social media strongly influences the way of communications controlling. Philip Sheldrake demonstrates the new measurement concept and shows some practical examples.

1. //The Business of Influence
Philip Sheldrake
Social Media Measurement and
the Influence Scorecard
30th June 2011 4th Swiss Conference on Communications Controlling 1

2. //4th Swiss Conference on
Communications Controlling
Zurich
30th June 2011
30th June 2011 4th Swiss Conference on Communications Controlling 2

3. //Three things…
Social media
changes nothing and everything
Measurement
the latest thinking from AMEC
The Influence Scorecard
business performance management
30th June 2011 4th Swiss Conference on Communications Controlling 3

4. changes nothing and everything
//Social media
30th June 2011 4th Swiss Conference on Communications Controlling 4

5. //An illustrated history
Content – an illustrated history
http://mnwh.li/content-illustrated-history-1000
By @karoshikula & @sheldrake
30th June 2011 4th Swiss Conference on Communications Controlling 5

6. //Changes nothing .1
My lovely marketing & PR dept.
www.flickr.com/photos/iangallagher/490333150
30th June 2011 4th Swiss Conference on Communications Controlling 6

7. //Changes nothing .2
My lovely marketing & PR dept.
www.flickr.com/photos/iangallagher/490333150
www.flickr.com/photos/jeremylevinedesign/2815977968
30th June 2011 4th Swiss Conference on Communications Controlling 7

8. //Changes nothing .3
The digital / social “bolt on”
Do you recognise this picture?
How many of you consider your digital
activities to be integrated seamlessly into
everything you do?
30th June 2011 4th Swiss Conference on Communications Controlling 8

9. //Changes nothing .4
Digital is not ...
a new team or department.
something to procure, design or manage separately.
Digital does…
require new skills.
bring new opportunities, and threats.
But think about it. Would you have…
30th June 2011 4th Swiss Conference on Communications Controlling 9

10. //Changes nothing .5
A telephone section?
www.flickr.com/photos/iangallagher/490333150
www.flickr.com/photos/mightyohm/3040031278
30th June 2011 4th Swiss Conference on Communications Controlling 10

11. //Changes everything .1
The Cluetrain Manifesto
The Internet allows markets to revert back to
the days when a market was defined by people
gathering and talking amongst themselves
about buyer reputation, seller reputation,
product quality and prices.
This was lost for a while as the scale of
organisations and markets outstripped the
facility for consumers to coalesce. The
consumers’ conversation is now reignited.
30th June 2011 4th Swiss Conference on Communications Controlling 11

12. //Changes everything .2
Social analytics
If you could go back to the mid-90s and offer a
marketer a little box that could sit on her desk
and let her listen in on thousands of customer
conversations and participate in those
discussions regardless of geography or time
zone, it would appear so far-fetched that she’d
probably call security.
The Social Web Analytics eBook 2008, Philip Sheldrake.
30th June 2011 4th Swiss Conference on Communications Controlling 12

13. //Changes everything .3
Social analytics is the application of
search, indexing, semantic analysis and
business intelligence technologies to the
task of identifying, tracking, listening to
and participating in the distributed
conversations about a particular brand,
product or issue, with emphasis on
quantifying the trend in each
conversation's sentiment and influence.
30th June 2011 4th Swiss Conference on Communications Controlling 13

14. //Changes everything .4
Perception is reality
May have been a relevant axiom for 20th
Century marketing and PR practice, but now…
Reality is perception
Real-time social marketing and PR must, by
nature, be authentic. Real-time PR marks the
death of ‘spin’. You can’t fake it.
30th June 2011 4th Swiss Conference on Communications Controlling 14

15. the latest thinking from AMEC
//Measurement
30th June 2011 4th Swiss Conference on Communications Controlling 15

16. //AMEC Barcelona Principles
• Goal setting and measurement are important
• Media measurement requires quantity and quality
• AVEs are not the value of public relations
• Social media can and should be measured
• Measuring outcomes is preferred to measuring
media results (outputs)
• Organisational results and outcomes should be
measured whenever possible
• Transparency and replicability are paramount to
2010
sound measurement.
30th June 2011 4th Swiss Conference on Communications Controlling 16

17. //AVEs
Advertising value equivalence is a
specious sum based on false
assumptions using an unfounded
multiplier, only addressing a
fraction of the PR domain.
30th June 2011 4th Swiss Conference on Communications Controlling 17

18. //But…
“The world of online marketing has
been suffering from a delusion of
precision and an expectation of
exactitude.”
Social Media Metrics, Jim Sterne, ISBN 978-0470583784
30th June 2011 4th Swiss Conference on Communications Controlling 18

19. //AMEC valid metrics framework
30th June 2011 4th Swiss Conference on Communications Controlling 19

20. //Applying the AMEC framework
From the Lisbon conference:
Select relevant metrics.
Track over time to identify trends.
Consider plotting the ‘Target Audience Effect’ outcome
metrics against the ‘Intermediary Effect’ metrics.
Not exhaustive – may be other metrics that are
appropriate to the campaign being measured.
2011
30th June 2011 4th Swiss Conference on Communications Controlling 20

21. //AMEC framework examples
See the presentation from Ruth Pestana and
Mike Daniels, 8th June 2011:
www.slideshare.net/ArunSudhaman/amecs-new-valid-metrics
30th June 2011 4th Swiss Conference on Communications Controlling 21

22. business performance management
//Influence Scorecard
30th June 2011 4th Swiss Conference on Communications Controlling 22

23. //So what?
As Katie Delahaye Paine likes to
say, if you want to know how good
your metrics are –
ask “So what?” three times.
Measure What Matters: Online Tools For Understanding Customers, Social Media,
Engagement, and Key Relationships, Katie Delahaye Paine, ISBN 978-0470920107
30th June 2011 4th Swiss Conference on Communications Controlling 23

24. //Return on investment
ROI is a measure of the financial return
secured for the capital employed.
The AMEC Lisbon delegates rated the
measurement of public relations ROI their
number 1 priority.
30th June 2011 4th Swiss Conference on Communications Controlling 24

25. //Intangibles .1
20th Century business was built around
tangible assets (land, plant & machinery).
The 21st Century business is more reliant on
intangibles (intellectual property, brand,
reputation, social dialogue), for which
traditional accounting analyses are poorly
designed.
30th June 2011 4th Swiss Conference on Communications Controlling 25

26. //Intangibles .2
Intangible assets tend to only have
strategic value when they're 'in the
mix'.
30th June 2011 4th Swiss Conference on Communications Controlling 26

27. //Balanced Scorecard
So that's one reason why Kaplan and Norton
developed the Balanced Scorecard approach,
designed to augment the lagging (financial)
indicators of business success, with non-
financial drivers of future financial
performance.
Balanced Scorecard: Translating Strategy into Action, Robert S. Kaplan and David P. Norton,
ISBN: 9780875846514
30th June 2011 4th Swiss Conference on Communications Controlling 27

28. //Influence
You have been influenced when
you think in a way you wouldn’t
otherwise have thought, or do
something you wouldn’t
otherwise have done.
30th June 2011 4th Swiss Conference on Communications Controlling 28

29. //The Six Influence Flows .1
30th June 2011 4th Swiss Conference on Communications Controlling 29

30. //The Six Influence Flows .2
A new and simple model to think
about what we’re trying to achieve.
Avoids words and phrases that come with
the ‘baggage’ of historic and current use and
misuse otherwise likely to confuse or narrow
our thinking.
30th June 2011 4th Swiss Conference on Communications Controlling 30

31. //Influence Scorecard .1
How can we systematically learn from and
manage influence flows?
How do we define, develop, and execute a
consistent and coherent influence strategy?
How do we prioritize investments in influence-
related human, information, and organisational
capital?
Kaplan and Norton’s strategy map tool and
Balanced Scorecard framework are well suited
to these efforts.
30th June 2011 4th Swiss Conference on Communications Controlling 31

32. //Influence Scorecard .2
The Influence Scorecard serves as both the
methodology for defining influence
strategy and the tool for executing it.
It’s a subset of the Balanced Scorecard,
contains all the influence-related objectives
and metrics extracted from their functional
silos.
30th June 2011 4th Swiss Conference on Communications Controlling 32

33. //Influence Scorecard .3
Consider the hypothetical instance
of two organisations designing,
executing and analysing exactly the
same public relations strategy
delivering precisely the same
results for the same investment.
30th June 2011 4th Swiss Conference on Communications Controlling 33

34. //Influence Scorecard .4
The two organisations are different
(different missions, visions, values and
objectives).
Their priorities will differ, and so therefore
will their portfolio of investments in all
kinds of assets.
And so the specific role PR plays will be
different, and so therefore its contribution
to success; its ROI.
30th June 2011 4th Swiss Conference on Communications Controlling 34

35. //Influence Scorecard .5
AMEC’s working group asserts:
“ROI = ROI
ROI = Money In, Money Out
Total Value of PR > ROI
Total Value of PR = Tangible + Intangible
Total Value of PR = Near-Term + Long-Term”
The Influence Scorecard encompasses
tangibles & intangibles, near- and long-term.
30th June 2011 4th Swiss Conference on Communications Controlling 35

36. //Influence Scorecard .6
Ultimately, the ease and
effectiveness with which we
manage and learn from influence
flows is integral to the ways all
stakeholders interact with
organisations to broker mutually
valuable, beneficial relationships.
30th June 2011 4th Swiss Conference on Communications Controlling 36

37. //ROI .1
When the boss rules
‘Look, I’m told we’re investing in this. Now we just
need to work up the numbers to get it through finance.’
When efficiency rules
‘This investment will speed the process up.’ ‘Er, but it’s
not actually a bottleneck.’
When the guru rules
‘Well the book’s at number 1.’
When last year rules
‘Well we did it this way last year ...’
30th June 2011 4th Swiss Conference on Communications Controlling 37

38. //ROI .2
When the competition rules
‘They’ve gone for it, so ...’
When vanity rules
‘We can afford it and it’ll be a testament to our time.’
When experience rules
‘Do you think the CMO’s background in advertising
sways the budgeting process?’
30th June 2011 4th Swiss Conference on Communications Controlling 38

39. //ROI .3
When rules rule
‘Let’s treat it as three separate projects so each comes
under the limit demanding cost justification.’
When paralysis rules
‘I just don’t know.’
And when all else fails – when cost rules
‘Just make a decision on a least-cost basis because this
sort of thing never has a tangible ROI.’
30th June 2011 4th Swiss Conference on Communications Controlling 39

40. //ROI .4
I prefer it when strategy rules…
the Influence Scorecard approach.
30th June 2011 4th Swiss Conference on Communications Controlling 40

41. //The Business of Influence
Reframing Marketing and PR
for the Digital Age.
Philip Sheldrake, Wiley, May 2011
ISBN 978-0470978627
www.influenceprofessional.com
Thanks for your attention.
@sheldrake #infpro
30th June 2011 4th Swiss Conference on Communications Controlling 41