2. What's New in the Digital
World: A Director Briefing
Moderator Fay Feeney - CEO, Risk For Good
Colleen Cunningham - Global Managing Director,
Resources Global Professionals
Robert Magnuson - CEO, Magnuson & Company
3. “The Beginning is Near“
The Internet has fundamentally
changed the way people find,
discover, share, shop & connect.
7. 2011 GLOBAL SNAPHOT OF THE SOCIAL CUSTOMER
EUROPE (EMEA)
31% comment on blogs
27% comment in forums
20% uploaded a video online
39% uploaded a photo online
63% watch a video online
13% actively blog
ASIA PACIFIC
42% comment on blogs
LATIN AMERICA
43% comment in forums
49% comment on blogs
29% uploaded a video online
35% comment in forums
50% uploaded a photo online
41% uploaded a video online
65% watch a video online
56% uploaded a photo online
37% actively blog
74% watch a video online
27% actively blog
8. CEO CHALLENGES ON INTERNAL CHANGE
• The social brand has caused
chaos and organizational
anarchy in many companies
• Bring Your Own Technology
• Employees are operating their
own equipment (mobile phones,
Ipads, etc.) with little to no
guidance, direction or
governance
• Different geographies and
business units are creating social
communities externally and not
sharing or communicating
internally
9. THE EVOLUTION OF SOCIAL BUSINESS
2008 to present
2003 to present SOCIAL BUSINESS
1995 to present SOCIAL BRAND
SOCIAL CUSTOMER
• Technology Innovation • Companies and brands • Organizational silos are
gives customers a voice join Twitter, Facebook torn down between
• They are Influential and create corporate internal teams to include
blogs social media
• Social Customers are
trusted amongst their • Engage with the social • Social becomes an
peers as influence customer in various essential attribute of
grows channels organizational culture
• Social Media teams are • Governance models and
forming slowly social media policies are
created
10. Digital: IT, Social Business & Communication
Where is your Business? Where is your Board?
Where are You?
11. How is Digital Managed?
Who Bridges the Gaps?
Operational Conflicts of Financial Build
People Strategy
Execution Interest, Reporting
Attract & And
Retain Talent Regulatory and
Suppliers Liquidity Reputation
and
and Compensation Capital Nurture
Value Creation
and Litigation Structure Brand
IT Benefits
Human Chief Legal Chief Financial CEO,
Chief Operating Resources Officer Officer Sales and Senior
Officer Marketing Management
Executive & Board Capabilities
14. Your Board’s Risk Map XYZ Company
Higher
Management
3 1
7 Integrity
4 1
2 Financial performance
Relative Importance
6
2 3 Whistle blowing
5
Shareholder communications
4 (proxy & disclosure )
9
5 Risk oversight
8
10 6 CEO comp – Say on Pay
Negative media/social
7 media -Reputation & Crisis
Mgt
8 Relevant Business Strategy
Higher
Lower Relative Uncertainty Attracting, Retaining &
9 Exiting of Mgt & Board
10 Board composition
15. Current Phase of Digital: SOCIAL
S : is for speed — everything is now happening faster
O: stands for open. If you don’t have an open environment inside
your company or country, these new tools will blow you wide open
C: collaboration because this revolution enables people to organize
themselves within companies and societies into loosely coupled
teams to take on any kind of challenges — from designing a new
product to taking down a government.
I: individuals, who are able to reach around the globe to start
something or collaborate on something farther, faster, deeper,
cheaper than ever before — as individuals
A : alignment
L : leadership that aligns
17. The Goal:
Crisis Prevention
“Values Audit”—Are you values
aligned with your business? Lesson’s
Learned
Ensure A Culture of Integrity
Communicate Your Values
18. Where is Your Reputation?
• Facebook status
updates that
promote blog
content • Youtube channel and new
Your videos to link back to your
• Content shared
NEEDS to add
Message message
value: • Videos can be shared on
conversation and Facebook, YouTube
• Your message on:
community website, blog, etc.
• Content should be
optimized for search
w/terms that are relevant
to your business
• Occasional tweets • Optimize Google+ page
on promoting blog with relevant links and
content content back to other
• Cross promoting channels
other social • Unique content
channels, when
relevant
19. Print Media Missed
The Digital Revolution A Case
Study
240
250
200
150 31 124
100 55.7
2000
50
2010
0
Total Daily U.S.
Newspaper Number of •Didn’t listen
Circulation Americans Using
the Internet
• Failed to adapt
(Million)
(Million)
• Too little, too late
20. Print Media Missed
The Digital Revolution A Case
48.6 Study
50
40 22.8 26
30
20 2000
10 8
2010
0
Newspaper
Online
Classified
Advertising
• Now The Business Is On The Ropes
Advertising
Revenue ($B)
Revenue ($B) • Old (Ad) Revenue Model Defunct
• New (Paid Content) Revenue Model
A Tough Sell
21. Digital Business Disruption
Impact on your Business
The
1. What is the most significant
impact digital has had on your
Boardroom
business?
2. What is your CEO doing to lead
the effort?
3. What is your board chairman
doing to prepare your board to
oversee the digital challenges?
22. What about your Board?
•Do you Know?
•Where your company stands on key digital
issues? Assessment
•What is your Plan for 2011 – 2012?
Evaluate
and Plan
•Reinforce values and brand equity Enhance
•Enhance shareholder & stakeholder
communications
Actions Resources
•Address Dodd-Frank Act specifics
•Messages the CEO & board’s qualifications
and skills
23. Start Learning About Digital Now!
It is not too early to take action.
• Business Model Disruption
• Social Business & Social Media
• Board Visibility: Yahoo, News Corp &
HP
Understand how your business is being
perceived by shareholders and stakeholders?
Who is going to talk to your CEO about
digital and social business?:
Leading, managing, monitoring and
crisis prevention