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© 2011 Risk for Good – Please do not duplicate or use
     for commercial purpose. For review only.
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
“The Beginning is Near“
The Internet has fundamentally
 changed the way people find,
discover, share, shop & connect.
The Cloud: Transforming IT
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
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
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
Digital: IT, Social Business & Communication
Where is your Business? Where is your Board?
          Where are You?
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
Who Should Fix the Boardroom?
WHY DOES ALL THIS MATTER?
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
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
Social Business
    Listens
The Goal:
               Crisis Prevention

“Values Audit”—Are you values
aligned with your business?        Lesson’s
                                   Learned
Ensure A Culture of Integrity

Communicate Your Values
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
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
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
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?
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
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
THANK YOU!


(c) 2011 All Rights Reserved

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Digital Update USC #CorpGov Summit

  • 1. http://www.good.is/post/intermission-watch- the-recording-industry-s-demise-in-30- seconds/ © 2011 Risk for Good – Please do not duplicate or use for commercial purpose. For review only.
  • 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.
  • 4.
  • 5.
  • 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
  • 12. Who Should Fix the Boardroom?
  • 13. WHY DOES ALL THIS MATTER?
  • 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
  • 16. Social Business Listens
  • 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
  • 24. THANK YOU! (c) 2011 All Rights Reserved