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The Hyper-Social Organization<br /> September 16th, 2010<br />By @fgossieaux<br />

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Overview<br />What is actually happening out there?Understanding the true drivers of Social MediaHow do Hyper-Social Organizations think about their business?What do Hyper-Social Organizations do Differently, and WHY?A closer look at Social InnovationHow Do Hyper-Social Organizations Get StartedWhat to do if you want to learn more<br />

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Let’s start off with a little example Human 1.0 vs. Web 2.0<br />The SAP Developer Community<br />

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The SAP Developer Network<br />13<br />Stats:<br />1.4 M users<br />400K+ business experts<br />Content-rich<br />Original Incentive System:<br />Point system leading to personal rewards<br />The Results:<br />Bullying behavior in the community<br />New Incentive System:<br />Point system leading to donation to good cause<br />The Results:<br />No more bullying in the community<br />Web 2.0 or Human 1.0?<br />

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

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

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Let’s get a level deeper on the Human 1.0…<br />

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Why are social beings helping one another?<br />Reciprocity = a Reflex<br />

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Why are people going out of their way to punish others?<br />Humans have an innate sense of fairness = keeps reciprocal society working<br />

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Why do people like to look like others?<br />Because humans have mirror neurons<br />

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Why do we lie to market researchers?<br />Because we lie to ourselves and others, and we tell people what we think they want to hear<br />

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Why there is no real (big) business in the long tail<br />Because we are a herding species, and a self-herding one to boot<br />

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Why is status so important (and why do we hoard it)?<br />Because it used to get us a better mate – proceed with caution: status works both ways!<br />

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What are the important Human 1.0 Hyper-Social Traits<br />Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters<br />Social framework of evaluating things vs. market framework<br />The role of fairness in assessing situations<br />The importance of looking cool and mimicking others<br />Herding and self-herding<br />(early research shows that social behavior does not change when it scales)<br />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.<br />Barry Judge, CMO Best Buy<br />http://www.cmotwo.com<br />

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They think differently about their business<br />Successful Hyper-Social Organizations<br />Informed by Tribalization of Business Study:<br />2009 – 430 Companies took the survey (52% external communities, 32 hybrid, and 12 internal)<br />

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Hyper-Social companies think differently: a recap<br />Think tribe – not market segment<br />We need to find groups of people who have something in common based on their behavior, not their market characteristics<br />Think knowledge network – not information channel<br />The most important conversations in communities happen in networks of people, not between the company and the community.<br />Think human-centricity – not company-centricity<br />The human has to be at the center of everything you do, not the company<br />Think emergent messiness – not hierarchical fixed processes<br />People will want to see responses to their suggestions, even if it does not fit your community goals – FAST<br />“…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” <br />- Tom Hayes, Jump Point: How Network Culture is Revolutionizing Business – 2008<br />

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What is it that they do different?<br />Hyper-Social Organizations<br />

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Hyper-Social Orgs – Leveraging Social Business Processes<br />Successful Hyper-Social organizations turn their business processes into “social” processes<br />Why?<br />Scale<br />Increased quality<br />Increased passion<br />Increased WOM<br />

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Turning a business process into a social process<br />IS NOT:<br />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.<br />BUT IS:<br />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.<br />TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS<br />

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A closer look at Social Product Innovation<br />

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Steeping the process in Human 1.0 principles<br />In innovation you need to deal with a few more Human 1.0 traits<br />People like to hang out with people who are like themselves, they do not have a natural tendency to diversify – yet diversity = key to success!<br />People tend to react to things better than starting things – so directed innovation has to be part of the social process<br />Avoid the second barrier to adoption – “why should I trust you?”<br />You also need to deal with all the other Human 1.0 characteristics<br />Status/power (and hoarding of status), social framework vs. market framework, etc.<br />Socializing the process requires recombination of ideas<br />

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

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Innovation<br />150,000 people from 104 countries logged on for<br />two 72 hour “jam sessions”<br />10 new IBM business opportunities: $100m investment<br />$300 million in new revenues in first year<br />

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Example of a Product Innovation 2.0 Company <br />How it works:<br /><ul><li> Teams submit business plans that can be reviewed by community

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It is the internal Cisco team who decides who moves up to next level

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They started seeing self organized posses, and teams formed online</li></ul>Results:<br /><ul><li>Crowdsourcing actionable innovations with large addressable marketshare</li></ul>Key to success:<br /><ul><li> Accepting the social power of people in communities</li></li></ul><li>How do they get going?<br />Hyper-Social Organizations<br />

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Many paths to success (and many paths to failure too)<br />Assess Hyper-Social readiness (plan is to get benchmarking info on this from 2010 Tribalization of Business Study)<br />Find the tribes and their leaders – internally and externally:<br />Who are they, what makes them tick, what is their language, what is their shared symbolism, where do they hang out, etc.<br />Start pilots that matter - and measure them the same way you would measure the impact of any other program<br />Set up infrastructure to:<br />Measure cross-functional impact of programs<br />Scale the program to where it makes a difference in business<br />Compared to other CMO’s I consider myself lucky. Dell Hell put our brand under pressure and so to engage in social media was actually a question of survival….you cannot get into social media by just putting a toe in the water - you are either all in and it becomes part of your culture, or you’re not.<br />Erin Nelson, CMO Dell (cmotwo.com)<br />

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Further down the line<br />Look at new measurements – e.g., customer equity measurements to better reflect impact of WOM<br />Monitoring and understanding the behavior of active lurkers – the largest active member group of any community (32% of companies are starting to measure) <br />Think of expanding your employee pool by encouraging more people to participate<br />Recruit for a Hyper-Social future<br />Different talent<br />Different leadership<br />

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Smaller questions to ask yourself<br />Are your marketing/employee programs reciprocal?<br />Would you send collateral to a friend of yours?<br />Do you know what 20% of your collateral gets used?<br />Are you recruiting for skill or behavior?<br />Are you ensuring diversity in the recruiting process?<br />Are you tapping in the social realm to recruit?<br />Is your KM extending to your customers?<br />Is your CRM customer-centric or account-centric?<br />Is it focused on transactions or relationships?<br />Is it focused on the past/present or the present/future?<br />

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If you want to learn more – Hyper-Social Mini-Summits<br />When? Where?<br />Columbia Faculty House Sep 30, 2010<br />Harvard Faculty Club Oct 5, 2010<br />What?<br />Join Academics, Practitioners and the Authors who will help you turn the principles of the Hyper-Social Organization in actionable plans for your company<br />How?<br />A pre-conference call to assess your needs/challenges<br />A full day of brainstorming with experts and peers<br />A great networking dinner<br />A follow up call to ensure that all questions have been answered<br />http://www.human1.com/hyper-social-mini-summits/<br />

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Any questions? <br />Francois Gossieaux<br />Partner, Beeline Labs<br />e. francois@human1.com<br />w. http://www.human1.com<br />b. http://www.emergencemarketing.com<br />c. http://www.marketingtwo.net<br />p. http://www.cmotwo.com<br />t. http://twitter.com/fgossieaux<br />Our new book: The Hyper-Social Organization<br />http://www.hypersocialorg.com<br />& Facebook page:<br />http://www.facebook.com/hypersocialorg<br />40<br />

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Remember: We’re people.<br />