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L E A D E R NETWORKS




How Can You Build Community
    For The Enterprise?

          Vanessa DiMauro
 CEO, Leader Networks & SNCR Fellow

           Podcamp Boston
             August, 2009
L E A D E R NETWORKS


                                   Framing Questions

 •    What is different about enterprise communities
          (vs. consumer communities)?
 •    How do you build a community for the enterprise?
 •    What are the models?
 •    What does the building process look like?
 •    What are critical success factors?
 •    What can go wrong?
 •    What do you want to add?.....




Copyright © 2009 Leader Networks                                        2
L E A D E R NETWORKS


                        Three General Community Models

     B2B                                   B2C                          Hybrid




   Select, narrow target           Open call, all interested
   audience                                                    Tiered membership
                                   Member directed
   Acceptance criteria                                         Consensus/Trend driven
                                   Public forum
   Protected dialog                                            Public forum w/ private area
                                   Big bang
   Facilitated discussion                                      Thought leadership
                                   Moderated discussion        (responsive)
   Managed topical agenda          Ad generated support        Hybrid Revenues
   Sponsor supported and
   sometimes member fees                                                              3
Copyright © 2009 Leader Networks
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                                   12 Step Process Overview

            Create Vision
            Target & Segment Audience
            Query Potential Members
            Build Value Proposition
            Architect Business Value Justification & Measurements
            Benchmark Competition & Best of Breed
            Determine Brand Positioning
            Design Features & Functionality
            Engage a Beta Group
            Launch with Finesse
            Manage Risk
            Evolve

Copyright © 2009 Leader Networks                                                4
L E A D E R NETWORKS

               Good Enterprise Community Strategic Planning:
                               Create Vision


      What does the                                               What do community
      business need for                                           members need
      the community to                                            from the community
      be successful?                                              to get value?




                                   Begin with the end in mind

                   Find the overlap & build for relevance to both audiences



Copyright © 2009 Leader Networks                                                       5
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                        Target and Segment Your Audience

 Understanding who you serve and in
 what ways provides the driving
 business rationale for an enterprise
 community program.

 This leads to members who engage
 with each other and the enterprise
 and sustains their interest.

        The who dictates the where,
          when, why and how.


                    Who are the key constituencies for your community?


Copyright © 2009 Leader Networks                                                   6
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                                   Query Potential Audiences

 Survey or interview your target audience to find out what they are missing in
    their current experience with your company


        – Create a structured interview guide with semi-formal interview program
        – Follow up with quantitative study
               • Don’t ask about features – inquire about needs!
        – Also, Talk to marketing, sales, product development to learn what they are
          doing for clients and prospects that could be leveraged online




Copyright © 2009 Leader Networks                                                       7
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                                   Build Value Proposition

 If-then arguments and causal relationships are key to building value
     propositions that are rooted in need and reality

 For example:
      – If we create a customer support forum then we can support more customers
        online and reduce human support costs

        – If we use a WIKI for a collaborative product manual then we will catch product
          errors quicker




Copyright © 2009 Leader Networks                                                       8
L E A D E R NETWORKS


                             Architect Business Justification

 •    You become what you measure so select your measurements carefully
        –    Interactivity ratios
        –    Number or nature of deliverables to product marketing, management, clients
        –    Cost/ ROI
        –    Client retention statistics – tied to use of product features and services
        –    New client data - impact analysis
        –    Press and goodwill
        –    Case studies, client testimonials etc.

 •    Once launched, use the tools available to you to impact change
        – Log analysis, market segmentation, individualized messaging & outreach,
          knowledge gifts




Copyright © 2009 Leader Networks                                                          9
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                 Benchmark Competition & Best of Breed

 •    Who is doing what with whom?
        – Look at direct and indirect competes
        – Analyze their web 2.0 strategies and initiatives
            • Help-wanted ads are a good way to predict competitors future efforts

 •    Who is talking about your company and in what way?
        – Monitor the Blogosphere
        – Actively manage your reputation online




Copyright © 2009 Leader Networks                                                     10
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                               Determine Brand Positioning

 •    Develop Market Plans
        – New users often means new markets – understand and target the members
          that matter most
        – Execute with the precision of any well-planned market strategy
               • Community is not a project it is a new line of business




Copyright © 2009 Leader Networks                                                         11
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                             Design Features and Functions

 •    Use business goals and user needs as told through the user research to
      identify key feature sets
        – Don’t search for a vendor until you know the critical feature sets and how they
          should behave
        – Understand and map the business process that the community endeavors to
          support




Copyright © 2009 Leader Networks                                                       12
L E A D E R NETWORKS


                                   Engage a Beta Group

 •    Involve users in the social design of the community
 •    Ask their opinion
 •    Gather UGC from them such a member feature articles and interviews
 •    Pre-populate the community before formal launch with their participation




Copyright © 2009 Leader Networks                                             13
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                                   Launch With Finesse

 •    Design and create appropriate member acquisition materials &
      marketing assets
        – Keep company core messaging and brand extension ever-present
          The enterprise community is an extension of your brand
        – Remember that different messages can motivate different constituents of the
          same community
        – Project into the future and strike the right tone.. (Reasonable) Early success
          claims can motivate participation
        – Plan for a steady member acquisition drum-beat: the hard work *start* once
          the community is live!




Copyright © 2009 Leader Networks                                                      14
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    Integrate Plans And Outcomes Into The Organization

 • Use your knowledge assets widely
 • Leveraging what you learn

               •   Sales
               •   Marketing
               •   Customer Service
               •   Product Development
               •   Research & Development
               •   Competitive Intelligence




Copyright © 2009 Leader Networks                            15
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                                            Manage Risk
                         Risk Factors                   Risk Mitigation Strategies

                        Failure to launch                 The power of a Beta group


                          Failure to vet          Rules of engagement (who’s in who’s out?)

                                                      Wacko factor and disaster scenario
                     Lack of transparency
                                                                  planning

                         Public criticism                     Governance policy


                        Failure to thrive                          “Plan B”

      Successful community that doesn’t support    Go / no-go decision point based on active
                    business goals                       measures on quarterly basis


Copyright © 2009 Leader Networks                                                               16
L E A D E R NETWORKS


                    Sample Metrics for an Enterprise Community

 Financial Metrics: Revenue generated (direct and indirect i.e. client retention or pass
 through revenue gained through bundled services) – Minus operational costs

 Operational Metrics: Fully burdened costs of community operations including
 technology, development, content acquisition, staffing.

 Business Metrics: Click-throughs/logins, industries serviced, # of members who are
 clients, title portfolio of membership,

 Marketing Metrics: New member acquisition costs, Cost per Member (CPM) against
 Revenue per Member (RPM), Event or campaign outcomes

 Editorial Metrics: Cost of content creation, % of UGC, content ratings/rank

 Member Metrics: # of members login/time, % of profiles complete, return rate,
 premium conversion rate, revenue generated per member, number of posts per
 member, average page views per member or group, member engagement ratios


Copyright © 2009 Leader Networks                                                           17
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                    The Role of Governance in Achieving Results

 The role of Governance is how to manage the community day to day behavior to
 achieve the goals….

        Key tactics
        • Define roles and responsibilities, including cross functional involvement within the
          organization
        • Establish continuous improvement programs, success metrics and budgeting and
          planning cycles




Copyright © 2009 Leader Networks                                                                 18
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                            Governance Structure

                                   Time < 6   Time > 6
                                   months     months (post
                                   (now to    launch if      Organizational
Role/Function          Ownership   launch)    different)     Impact (+ or - )

Technology

Content
Member services
(Community Manager)

Strategy &
measurement

Sales/Partnerships

Executive sponsor
Marketing & audience
    acquisition


                                     19
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       Best Practice Methodology for Effective Community
Community         Company,             Branding &         Technology         Content &                  Community         Continuous
Framework         Engagement &         Marketing                             Communication              Evolution         Improvement
                  Governance           Execution


Strategy &        Goals, models,       Identity,          Strategic          Editorial plan,            Profile, target   Leading metrics,
                  revenue,             competitive        feature            sourcing, calendar         audience          program
Plan              investment,          positioning,       mapping,                                      definition,       management
                  milestones,          target audience    Identify                                      staffing plan
                  ownership            research &         challenges &
                                       validation,        acquisition
                                       marketing plan     needs



Launch            Revise milestones,   Campaign           Select, acquire,   Develop “initial”          Member &          Revise metrics,
                  set performance      management,        implement          content, acquire           sponsor           establish reporting
Execution         metrics, establish   press/PR, design                      and/or assign              acquisition,      process & tools
                  reporting &          elements                              editorial, load            moderation
                  advisory structure                                                                    process, hiring


Evolve &          Review/revise        Refresh design,    Maintain,          Monitor trends, react      Member            Revise leading &
                  revenue model,       monitor digital    revise, upgrade,   to activity, hot topics,   retention, new    lagging metrics,
Improve           investment &         impact,            secure,            repurpose, provide         segment           respond to
                  staffing             competitive        business           analytical value           acquisition,      issues/problems,
                                       assessment,        continuity                                    customer          process
                                       refine message                                                   satisfaction      improvements


 Copyright © 2009 Leader Networks                                 20
L E A D E R NETWORKS


                                        SAMPLE Work Plan

ACTIVITY                             GOAL                                                  TIMEFRAME
Strategic planning                   Build consensus and create draft straw model          Workshop

User Experience profiles             Interview audience segments to develop profiles of    4-6 weeks
                                     users
Benchmark Competition & Best of      SWOT analysis of competitors and best of breed        5-6 weeks
    Breed                            out of industry models
Design Features & Functionality      Create BRD (business requirements document)           4-8 weeks

Select technology architecture and   Define technology platform; RFI and/or RFP for        6 to 24 weeks
software vendor & deploy             vendor platform; contract, design, test, deploy
Content planning                     Content strategy                                      4-5 weeks
                                     Inventory assets and content gap analysis
                                     Editorial planning, content generation and loading
Marketing/member acquisition         Segment audience, audience acquisition tactics,       4-6 weeks
planning                             short and mid-term
Beta group                           Formulate beta group and launch involvement plan      6-8 weeks

Engagement plan                      Keeping users involved                                3-4 weeks

Launch                               Strategic and tactical planning for launch event      2-4 weeks

 Copyright © 2009 Leader Networks                                                                          21
L E A D E R NETWORKS


                                   Twitter Questions

 @Stuart616What characteristics                maurocardarelli@vdimauro what are
   does a business have to have to               best practices to get commitment
   benefit from developing an online             (visits and contributions) from
   community?                                    the community?

 1)     Community must accelerate a            1)   Communities can not be bought –
        business process or solve a problem         they are earned through trust and
 2)     Must directly reflect the needs and         commitment
        goals of the members                   2)   Engage a beta group in the
 3)     Must offer thought leadership or a          community design and early
        POV,                                        guidance
 4)     Have an active customer base of a      3)   Foster co-ownership of ideas and
        sizable nature – its, to some degree        outcome
        a numbers game,                        4)   Outreach is key
 5)     Openness 2 dialogue and                5)   Reciprocity
        commitment to action
                                                                                        22
Copyright © 2009 Leader Networks
L E A D E R NETWORKS


                                   Critical Success Factors

        •     Demonstrate high integrity and transparency at all times
        •     Fix the rules of engagement and do not change them
        •     Create rich member care programs
        •     Trust and support UGC
        •     Solve their professional needs and even the busiest exec will use
              the network




Copyright © 2009 Leader Networks                                                  23
L E A D E R NETWORKS


                                   The Sum Of The Parts

 The combination of strong feature sets and a comprehensive membership
    support program can create a trusted, vibrant community engaging in
    deep professional collaboration world-wide.

        – The members will solve problems together, share information with each other
          and make plans to connect in person using the network.

        – The members will trust the network and view it as a true membership
          organization of great strategic value.




Copyright © 2009 Leader Networks                                                    24
L E A D E R NETWORKS


                               Get Involved In The Question




         Participate in the Research: Http://www.NewSymbiosis.com
Copyright © 2009 Leader Networks                                            25
L E A D E R NETWORKS



                       Thank you!
      Vanessa DiMauro         About Leader Networks
             CEO              Leader Networks is a strategic
      Leader Networks         research and consulting firm that
         617 484 078          specializes in helping clients harness
                              the power of new digital rules and
   www.leadernetworks.com     tools to drive measurable business
vdimauro@leadernetworks.com   benefits from social media and social
         @vdimauro            leadership.

                              http://www.leadernetworks.com




                                                                   26

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How to Build an Enterprise Online Community

  • 1. L E A D E R NETWORKS How Can You Build Community For The Enterprise? Vanessa DiMauro CEO, Leader Networks & SNCR Fellow Podcamp Boston August, 2009
  • 2. L E A D E R NETWORKS Framing Questions • What is different about enterprise communities (vs. consumer communities)? • How do you build a community for the enterprise? • What are the models? • What does the building process look like? • What are critical success factors? • What can go wrong? • What do you want to add?..... Copyright © 2009 Leader Networks 2
  • 3. L E A D E R NETWORKS Three General Community Models B2B B2C Hybrid Select, narrow target Open call, all interested audience Tiered membership Member directed Acceptance criteria Consensus/Trend driven Public forum Protected dialog Public forum w/ private area Big bang Facilitated discussion Thought leadership Moderated discussion (responsive) Managed topical agenda Ad generated support Hybrid Revenues Sponsor supported and sometimes member fees 3 Copyright © 2009 Leader Networks
  • 4. L E A D E R NETWORKS 12 Step Process Overview  Create Vision  Target & Segment Audience  Query Potential Members  Build Value Proposition  Architect Business Value Justification & Measurements  Benchmark Competition & Best of Breed  Determine Brand Positioning  Design Features & Functionality  Engage a Beta Group  Launch with Finesse  Manage Risk  Evolve Copyright © 2009 Leader Networks 4
  • 5. L E A D E R NETWORKS Good Enterprise Community Strategic Planning: Create Vision What does the What do community business need for members need the community to from the community be successful? to get value? Begin with the end in mind Find the overlap & build for relevance to both audiences Copyright © 2009 Leader Networks 5
  • 6. L E A D E R NETWORKS Target and Segment Your Audience Understanding who you serve and in what ways provides the driving business rationale for an enterprise community program. This leads to members who engage with each other and the enterprise and sustains their interest. The who dictates the where, when, why and how. Who are the key constituencies for your community? Copyright © 2009 Leader Networks 6
  • 7. L E A D E R NETWORKS Query Potential Audiences Survey or interview your target audience to find out what they are missing in their current experience with your company – Create a structured interview guide with semi-formal interview program – Follow up with quantitative study • Don’t ask about features – inquire about needs! – Also, Talk to marketing, sales, product development to learn what they are doing for clients and prospects that could be leveraged online Copyright © 2009 Leader Networks 7
  • 8. L E A D E R NETWORKS Build Value Proposition If-then arguments and causal relationships are key to building value propositions that are rooted in need and reality For example: – If we create a customer support forum then we can support more customers online and reduce human support costs – If we use a WIKI for a collaborative product manual then we will catch product errors quicker Copyright © 2009 Leader Networks 8
  • 9. L E A D E R NETWORKS Architect Business Justification • You become what you measure so select your measurements carefully – Interactivity ratios – Number or nature of deliverables to product marketing, management, clients – Cost/ ROI – Client retention statistics – tied to use of product features and services – New client data - impact analysis – Press and goodwill – Case studies, client testimonials etc. • Once launched, use the tools available to you to impact change – Log analysis, market segmentation, individualized messaging & outreach, knowledge gifts Copyright © 2009 Leader Networks 9
  • 10. L E A D E R NETWORKS Benchmark Competition & Best of Breed • Who is doing what with whom? – Look at direct and indirect competes – Analyze their web 2.0 strategies and initiatives • Help-wanted ads are a good way to predict competitors future efforts • Who is talking about your company and in what way? – Monitor the Blogosphere – Actively manage your reputation online Copyright © 2009 Leader Networks 10
  • 11. L E A D E R NETWORKS Determine Brand Positioning • Develop Market Plans – New users often means new markets – understand and target the members that matter most – Execute with the precision of any well-planned market strategy • Community is not a project it is a new line of business Copyright © 2009 Leader Networks 11
  • 12. L E A D E R NETWORKS Design Features and Functions • Use business goals and user needs as told through the user research to identify key feature sets – Don’t search for a vendor until you know the critical feature sets and how they should behave – Understand and map the business process that the community endeavors to support Copyright © 2009 Leader Networks 12
  • 13. L E A D E R NETWORKS Engage a Beta Group • Involve users in the social design of the community • Ask their opinion • Gather UGC from them such a member feature articles and interviews • Pre-populate the community before formal launch with their participation Copyright © 2009 Leader Networks 13
  • 14. L E A D E R NETWORKS Launch With Finesse • Design and create appropriate member acquisition materials & marketing assets – Keep company core messaging and brand extension ever-present The enterprise community is an extension of your brand – Remember that different messages can motivate different constituents of the same community – Project into the future and strike the right tone.. (Reasonable) Early success claims can motivate participation – Plan for a steady member acquisition drum-beat: the hard work *start* once the community is live! Copyright © 2009 Leader Networks 14
  • 15. L E A D E R NETWORKS Integrate Plans And Outcomes Into The Organization • Use your knowledge assets widely • Leveraging what you learn • Sales • Marketing • Customer Service • Product Development • Research & Development • Competitive Intelligence Copyright © 2009 Leader Networks 15
  • 16. L E A D E R NETWORKS Manage Risk Risk Factors Risk Mitigation Strategies Failure to launch The power of a Beta group Failure to vet Rules of engagement (who’s in who’s out?) Wacko factor and disaster scenario Lack of transparency planning Public criticism Governance policy Failure to thrive “Plan B” Successful community that doesn’t support Go / no-go decision point based on active business goals measures on quarterly basis Copyright © 2009 Leader Networks 16
  • 17. L E A D E R NETWORKS Sample Metrics for an Enterprise Community Financial Metrics: Revenue generated (direct and indirect i.e. client retention or pass through revenue gained through bundled services) – Minus operational costs Operational Metrics: Fully burdened costs of community operations including technology, development, content acquisition, staffing. Business Metrics: Click-throughs/logins, industries serviced, # of members who are clients, title portfolio of membership, Marketing Metrics: New member acquisition costs, Cost per Member (CPM) against Revenue per Member (RPM), Event or campaign outcomes Editorial Metrics: Cost of content creation, % of UGC, content ratings/rank Member Metrics: # of members login/time, % of profiles complete, return rate, premium conversion rate, revenue generated per member, number of posts per member, average page views per member or group, member engagement ratios Copyright © 2009 Leader Networks 17
  • 18. L E A D E R NETWORKS The Role of Governance in Achieving Results The role of Governance is how to manage the community day to day behavior to achieve the goals…. Key tactics • Define roles and responsibilities, including cross functional involvement within the organization • Establish continuous improvement programs, success metrics and budgeting and planning cycles Copyright © 2009 Leader Networks 18
  • 19. L E A D E R NETWORKS Governance Structure Time < 6 Time > 6 months months (post (now to launch if Organizational Role/Function Ownership launch) different) Impact (+ or - ) Technology Content Member services (Community Manager) Strategy & measurement Sales/Partnerships Executive sponsor Marketing & audience acquisition 19
  • 20. L E A D E R NETWORKS Best Practice Methodology for Effective Community Community Company, Branding & Technology Content & Community Continuous Framework Engagement & Marketing Communication Evolution Improvement Governance Execution Strategy & Goals, models, Identity, Strategic Editorial plan, Profile, target Leading metrics, revenue, competitive feature sourcing, calendar audience program Plan investment, positioning, mapping, definition, management milestones, target audience Identify staffing plan ownership research & challenges & validation, acquisition marketing plan needs Launch Revise milestones, Campaign Select, acquire, Develop “initial” Member & Revise metrics, set performance management, implement content, acquire sponsor establish reporting Execution metrics, establish press/PR, design and/or assign acquisition, process & tools reporting & elements editorial, load moderation advisory structure process, hiring Evolve & Review/revise Refresh design, Maintain, Monitor trends, react Member Revise leading & revenue model, monitor digital revise, upgrade, to activity, hot topics, retention, new lagging metrics, Improve investment & impact, secure, repurpose, provide segment respond to staffing competitive business analytical value acquisition, issues/problems, assessment, continuity customer process refine message satisfaction improvements Copyright © 2009 Leader Networks 20
  • 21. L E A D E R NETWORKS SAMPLE Work Plan ACTIVITY GOAL TIMEFRAME Strategic planning Build consensus and create draft straw model Workshop User Experience profiles Interview audience segments to develop profiles of 4-6 weeks users Benchmark Competition & Best of SWOT analysis of competitors and best of breed 5-6 weeks Breed out of industry models Design Features & Functionality Create BRD (business requirements document) 4-8 weeks Select technology architecture and Define technology platform; RFI and/or RFP for 6 to 24 weeks software vendor & deploy vendor platform; contract, design, test, deploy Content planning Content strategy 4-5 weeks Inventory assets and content gap analysis Editorial planning, content generation and loading Marketing/member acquisition Segment audience, audience acquisition tactics, 4-6 weeks planning short and mid-term Beta group Formulate beta group and launch involvement plan 6-8 weeks Engagement plan Keeping users involved 3-4 weeks Launch Strategic and tactical planning for launch event 2-4 weeks Copyright © 2009 Leader Networks 21
  • 22. L E A D E R NETWORKS Twitter Questions @Stuart616What characteristics maurocardarelli@vdimauro what are does a business have to have to best practices to get commitment benefit from developing an online (visits and contributions) from community? the community? 1) Community must accelerate a 1) Communities can not be bought – business process or solve a problem they are earned through trust and 2) Must directly reflect the needs and commitment goals of the members 2) Engage a beta group in the 3) Must offer thought leadership or a community design and early POV, guidance 4) Have an active customer base of a 3) Foster co-ownership of ideas and sizable nature – its, to some degree outcome a numbers game, 4) Outreach is key 5) Openness 2 dialogue and 5) Reciprocity commitment to action 22 Copyright © 2009 Leader Networks
  • 23. L E A D E R NETWORKS Critical Success Factors • Demonstrate high integrity and transparency at all times • Fix the rules of engagement and do not change them • Create rich member care programs • Trust and support UGC • Solve their professional needs and even the busiest exec will use the network Copyright © 2009 Leader Networks 23
  • 24. L E A D E R NETWORKS The Sum Of The Parts The combination of strong feature sets and a comprehensive membership support program can create a trusted, vibrant community engaging in deep professional collaboration world-wide. – The members will solve problems together, share information with each other and make plans to connect in person using the network. – The members will trust the network and view it as a true membership organization of great strategic value. Copyright © 2009 Leader Networks 24
  • 25. L E A D E R NETWORKS Get Involved In The Question Participate in the Research: Http://www.NewSymbiosis.com Copyright © 2009 Leader Networks 25
  • 26. L E A D E R NETWORKS Thank you! Vanessa DiMauro About Leader Networks CEO Leader Networks is a strategic Leader Networks research and consulting firm that 617 484 078 specializes in helping clients harness the power of new digital rules and www.leadernetworks.com tools to drive measurable business vdimauro@leadernetworks.com benefits from social media and social @vdimauro leadership. http://www.leadernetworks.com 26