Keynote presentation from the National CIO Board meeting in St Louis in June 2011

1. BUILDING HYPER-SOCIAL ORGANIZATIONS
PREPARED FOR THE NATIONAL CIO BOARD – JUNE, 2011
@FGOSSIEAUX

2. In the beginning – all business was social
Satisfaction results in positive or negative word of mouth
which makes a difference
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3. Then business started scaling
…but the social could not scale and made no difference
anymore – so it disappeared from business
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4. And companies started to develop real bad habits
Interrupting people, targeting people, segmenting people – it
felt like going to war with customers (& employees)
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5. But then came the Internet and Social Media
Blogs, wiki’s, discussion boards, tags, social networks –
a massive platform of participation
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6. And because humans were hardwired to be social
The social reentered business and commerce with a
vengeance – employees, customers could once again behave
the way they’re hardwired to behave: humanly, tribally.
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7. 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
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8. OVERVIEW
A RECAP OF THE HYPER-SOCIAL ORGANIZATION
UNDERSTANDING THE TRUE DRIVERS OF SOCIAL MEDIA – HUMAN 1.0
HOW THEY THINK DIFFERENTLY ABOUT THEIR BUSINESS
WHAT THEY DO DIFFERENTLY, AND WHY
WHAT DOES THIS ALL MEAN TO THE WORLD OF A CIO
HOW DO YOU GET STARTED?
HOW DO YOU MEASURE ROI FOR THOSE “SQUISHY” BENEFITS?
HOW DO YOU BUILD CONSENSUS INTERNALLY?
HOW DO YOU DEAL WITH RISK?
HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?

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

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

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

12. Why do people like to look like others?
Because humans have mirror neurons and Tribes are one the two
fundamental Human social instincts

13. 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!

14. We are a herding species – self herding even

15. Culture – perhaps the most important Human 1.0 characteristic
Humans created culture to deal with climate changes in the Pleistocene era – when
they realized they could deal with change through culture they created their own
change

16. 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
• Social framework of evaluating things vs. market So to the extent that we
framework can basically be human
with what we know, and
share it as freely as we
• The importance of power and status possibly can, I think we’ll
go a long way towards
gaining a higher or
• Herding and self-herding stronger level of trust with
the consumers.
• Culture – the most important Human 1.0 characteristic Barry Judge, CMO Best
(early research shows that social behavior does not change when it scales) Buy
http://www.cmotwo.com

17. 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

18. 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 your organization 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 organization 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

19. Reuters…using Social Media to connect financial analysts

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

21. SUCCESSFUL HYPER-SOCIAL ORGANIZATIONS
TURN THEIR BUSINESS PROCESSES INTO
“SOCIAL” PROCESSES
BY GETTING PEOPLE WHO’S JOB IT IS NOT TO DO SOMETHING TO HELP YOU
DO IT ANYWAY

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. WHAT DOES THIS ALL MEAN TO
THE WORLD OF A CIO?
HOW DO YOU GET STARTED?
HOW DO YOU MEASURE ROI FOR “SQUISHY” BENEFITS?
HOW DO YOU BUILD CONSENSUS INTERNALLY?
HOW DO YOU DEAL WITH RISK?
HOW DO YOU DEAL WITH CONSUMERIZATION OF IT?

25. HOW DO YOU GET STARTED?
1. UNDERSTAND YOUR CUSTOMER AND EMPLOYEE CULTURES
2. MAKE FRIENDS WITH THE CMO AND JOINTLY REPRESENT THE VOC
3. DEPLOY INFRASTRUCTURE THAT WILL SUPPORT THE NEW SOCIAL PROCESSES
4. THINK OF INNOVATION AT THE SEAMS
5. THINK HUMAN

26. UNDERSTAND OF THE RISK OF
DOING NOTHING
“IN MANY INDUSTRIES, NEW COMPETITIVE BATTLE LINES MAY FORM
BETWEEN COMPANIES THAT USE THE WEB IN SOPHISTICATED WAYS AND
COMPANIES THAT FEEL UNCOMFORTABLE WITH NEW WEB-INSPIRED
MANAGEMENT STYLES OR SIMPLY CAN’T EXECUTE AT A SUFFICIENTLY HIGH
LEVEL”
– MCKINSEY QUARTERLY, THE RISE OF THE NETWORKED ENTERPRISE, WEB 2.0 FINDS ITS PAYDAY, DEC 2010
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

27. HOW DO YOU MEASURE ROI
FOR SQUISHY BENEFITS?
1. MEASURE THE IMPACT OF SOCIAL PROGRAMS THE SAME WAY AS
YOU MEASURE THE IMPACT OF TRADITIONAL PROGRAMS
2. START MEASURING NEW METRICS – CLV, CUSTOMER EQUITY, PASSION,
WOM, TALENT ACQUISITION AND DEVELOPMENT, KNOWLEDGE
ACQUISITION AND REUSE, ETC.
3. THINK HUMAN

28. The power of passion
Passionate people 2X
as energized with
unexpected challenges

29. The power of passion
Passionate people 2X
as likely to connect
with outsiders

30. The benefits that companies derive are for real
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

31. The benefits are amazing
Benefits differences
are measured by a
factor 2-6X
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

32. Overall company metrics are correlated as well
https://www.mckinseyquarterly.com/Business_Technology/The_rise_of_the_networked_enterprise_Web_20_finds_its_payday_2716

33. HOW DO YOU ACHIEVE
CONSENSUS
1. AGREE ON EASY-TO-UNDERSTAND VALUES
2. DEVELOP SOCIAL MEDIA GUIDELINES AND GUIDERAILS
3. GET PEOPLE INVOLVED IN THE BEGINNING OF THE PROCESS
4. TREAT IT AS A CENTER OF EXCELLENCE VS. ONE GROUP OWNING THE SHOW
5. FOCUS ON BUILDING TRUST BY FOCUSING FIRST ON THE DIFFERENT TYPES OF
PEOPLE IN THE GROUP AND THEN FOCUS ON THE WORK
6. ROTATE TEAM LEADS
7. GET EVERYONE’S DESIRED GOALS, OUTCOMES AND MOTIVATIONS OUT ON THE
TABLE FIRST
8. THINK HUMAN

34. HOW DO YOU DEAL WITH RISKS?
1. TAKE A HOLISTIC, NON-SILOED APPROACH TO RISK
2. EDUCATE PEOPLE ON HOW TO AVOID RISKS
3. SET UP GUIDELINES AND GUIDERAILS
4. PROVIDE CASE STUDIES
5. BE TOLERANT OF THE 1% OF THE TIME SOMEONE MESSES UP
6. DEFINE CRISIS MANAGEMENT PLANS AND TRIAGE APPROACH
7. THINK HUMAN

35. HOW TO DEAL WITH
CONSUMERIZATION OF IT?
1. EMBRACE THE NEW ARTISAN WORKFORCE AND THE TOOLS THEY BRING
2. BRING BACK TRUST AS THE MAIN BUSINESS CURRENCY
3. THINK HUMAN

36. A FINAL WORD OF ADVICE…
FOCUS ON ADOPTION OF TECHNOLOGIES THAT WILL SUPPORT DESIRED
SOCIAL BEHAVIOR INSTEAD OF DEPLOYMENT OF TECHNOLOGIES TO CHANGE
BEHAVIORS
…IT’S ALL ABOUT BEING HUMAN IN BUSINESS ONCE AGAIN

37. Any questions?
Francois Gossieaux
Partner, Human 1.0
e. francois@human1.com
w. http://www.human1.com
p. http://www.cmotwo.com
b. http://www.emergencemarketing.com
Our new book: The Hyper-Social Organization
http://www.hypersocialorg.com
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