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Developing a Measurement Framework
              for the Social Enterprise
        Susan Etlinger, Industry Analyst, Altimeter Group
Please Welcome!

                  Susan Etlinger
                  Susan@altimetergroup.com
                  www.susanetlinger.com
                  Twitter: setlinger
Altimeter’s Research Themes


Dynamic                        Adaptive
Customer                       Organization




                     Sentient World




                                              3
Where Are We?




© 2011 Altimeter Group
Social Media Proliferation in the Enterprise




                                          5
Who’s using external social media
Who’s deploying ESNs




                       7
The primary use cases




                        8
Social business still emerging




                                 9
The challenge, and the opportunity




                                     10
Designing a Measurement Framework




© 2011 Altimeter Group
Current metrics focus on engagement




                                      12
Translating collaboration into business value




                                            13
A Step-By Step Process




                         14
Step 1. Define Strategy
§  Don’t simply adopt social media metrics and apply to your
    organization.
§  Start with your business objectives and strategies:
    Corporate, Line of Business/Geography, Department.
§  Ask some thought starter questions.
§  Identify the use cases that are most relevant to you.
§  Based on those use cases, develop a prioritized list of the
    most valuable things you can learn about your social
    media initiatives.



                                                             15
Thought Starter Questions: Examples
Encourage Sharing
1.  Does participation improve organizational
    culture?
2.  Does it promote best practices that lead to
    quality improvement?
3.  Does it correlate to reductions in issue resolution
    time?
4.  Does it correlate to an improvement in audit
    scores or other measures of risk reduction?

                                                    16
Thought Starter Questions: Examples
Capture Knowledge
1.  Does collaboration shorten learning curves and/
    or training time?
2.  Does it lead to reductions in onboarding time?
3.  Does it translate to competitive advantage?
4.  Does it reduce operational costs and better
    leverage employee talent?




                                                     17
Thought Starter Questions: Examples
Enable Action
1.  Does it correlate to improvement in top-line
    revenue via customer retention?
2.  Does it enable process improvements that lead
    to reduced costs?
3.  Does it help speed products or services to
    market?




                                                   18
Thought Starter Questions: Examples
Empower People
1.  Does participation promote employee
    satisfaction?
2.  Does participation correlate with employee
    loyalty?
3.  Does more collaboration correlate with stronger
    employee performance?
4.  Does it correlate with innovation?


                                                  19
Step 2. Identify Appropriate Metrics
§  Determine method
   •  Top-down, bottom-up
   •  Qualitative and quantitative methods
   •  A/B testing, correlation
§  Prioritize your metrics based on:
   •  Value
   •  Ability to measure
   •  Resources required
   •  Priority to the organization

                                             20
Step 2: Sample Metrics
Employee-Based
•  Performance
•  Satisfaction
•  Retention
•  Promotion



Organization-Based
•  Productivity
•  Onboarding time
•  Risk reduction
•  Audit scores
•  Speed to market


Customer-Based
•  Revenue/Lifetime Customer Value
•  Satisfaction or Net Promoter Score
•  Loyalty



                                        21
Step 3. Evaluate Organizational Requirements

§  Identify your
    organizational model
    for social media.
§  Outline the roles and
    responsibilities of
    your measurement
    team.
§  Determine how you
    will staff.
§  Build workflow and
    communication
    processes.

                                          22
Step 4. Choose Your Tool Set
                                       “The biggest takeaway we
§  Choose your technology based       found from our vendor
    on the relationships you want to   interviews is that
    build, not features.
                                       organizations who come
§  Prioritize technology options      in with a committee-
    based on your objectives.          generated list of features
§  Have simple guidelines in place.   they want in an ESN are
                                       the ones most likely
§  Deploy in partnership and in one
    department first. Look at          to fail in their
    usability, governance, data        implementation.”
    integration, analytics.
                                       − Charlene Li, “Making the
§  Consider how and whether           Business Case for
    multiple tools will complement
    each other.                        Enterprise Social
                                       Networks, Altimeter Group,
                                       2012

                                                                23
How ESNs Mature




                  24
Maturity Model for Enterprise Collab Metrics




 Volume Metrics     Correlated       Holistic Metrics
      (from           Metrics        (Integrated with
  collaboration   (Compared with        Enterprise/
    platform)     Enterprise Data)    External Data)




                                                   25
Final Thoughts
§  Enterprise social is different from consumer
    social; not all measures are relevant
§  Consider your company, industry, employee and
    customer types when building metrics
§  We are still in the earliest evolution of enterprise
    collaboration
§  Learn by doing, and benchmark as you go.




                                                       26
Primary sources for this report




http://www.altimetergroup.com/research/reports



                                                 27
28




Thank you

            Susan Etlinger
            Susan@altimetergroup.com
            www.susanetlinger.com
            Twitter: setlinger
Sessions You Must See

•  Implementing Facebook Measurement
 Wednesday @ 3:50 pm

  •  Megan Douglas. Manager of Consulting
     Services, Webtrends
  •  Julie Gillison. Program Manager, Product
     Development, Webtrends
Rate
 Session
   &
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Panelists
Engage 2013 - Measuring the Social Enterprise

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Engage 2013 - Measuring the Social Enterprise

  • 1. Developing a Measurement Framework for the Social Enterprise Susan Etlinger, Industry Analyst, Altimeter Group
  • 2. Please Welcome! Susan Etlinger Susan@altimetergroup.com www.susanetlinger.com Twitter: setlinger
  • 3. Altimeter’s Research Themes Dynamic Adaptive Customer Organization Sentient World 3
  • 4. Where Are We? © 2011 Altimeter Group
  • 5. Social Media Proliferation in the Enterprise 5
  • 6. Who’s using external social media
  • 8. The primary use cases 8
  • 10. The challenge, and the opportunity 10
  • 11. Designing a Measurement Framework © 2011 Altimeter Group
  • 12. Current metrics focus on engagement 12
  • 13. Translating collaboration into business value 13
  • 14. A Step-By Step Process 14
  • 15. Step 1. Define Strategy §  Don’t simply adopt social media metrics and apply to your organization. §  Start with your business objectives and strategies: Corporate, Line of Business/Geography, Department. §  Ask some thought starter questions. §  Identify the use cases that are most relevant to you. §  Based on those use cases, develop a prioritized list of the most valuable things you can learn about your social media initiatives. 15
  • 16. Thought Starter Questions: Examples Encourage Sharing 1.  Does participation improve organizational culture? 2.  Does it promote best practices that lead to quality improvement? 3.  Does it correlate to reductions in issue resolution time? 4.  Does it correlate to an improvement in audit scores or other measures of risk reduction? 16
  • 17. Thought Starter Questions: Examples Capture Knowledge 1.  Does collaboration shorten learning curves and/ or training time? 2.  Does it lead to reductions in onboarding time? 3.  Does it translate to competitive advantage? 4.  Does it reduce operational costs and better leverage employee talent? 17
  • 18. Thought Starter Questions: Examples Enable Action 1.  Does it correlate to improvement in top-line revenue via customer retention? 2.  Does it enable process improvements that lead to reduced costs? 3.  Does it help speed products or services to market? 18
  • 19. Thought Starter Questions: Examples Empower People 1.  Does participation promote employee satisfaction? 2.  Does participation correlate with employee loyalty? 3.  Does more collaboration correlate with stronger employee performance? 4.  Does it correlate with innovation? 19
  • 20. Step 2. Identify Appropriate Metrics §  Determine method •  Top-down, bottom-up •  Qualitative and quantitative methods •  A/B testing, correlation §  Prioritize your metrics based on: •  Value •  Ability to measure •  Resources required •  Priority to the organization 20
  • 21. Step 2: Sample Metrics Employee-Based •  Performance •  Satisfaction •  Retention •  Promotion Organization-Based •  Productivity •  Onboarding time •  Risk reduction •  Audit scores •  Speed to market Customer-Based •  Revenue/Lifetime Customer Value •  Satisfaction or Net Promoter Score •  Loyalty 21
  • 22. Step 3. Evaluate Organizational Requirements §  Identify your organizational model for social media. §  Outline the roles and responsibilities of your measurement team. §  Determine how you will staff. §  Build workflow and communication processes. 22
  • 23. Step 4. Choose Your Tool Set “The biggest takeaway we §  Choose your technology based found from our vendor on the relationships you want to interviews is that build, not features. organizations who come §  Prioritize technology options in with a committee- based on your objectives. generated list of features §  Have simple guidelines in place. they want in an ESN are the ones most likely §  Deploy in partnership and in one department first. Look at to fail in their usability, governance, data implementation.” integration, analytics. − Charlene Li, “Making the §  Consider how and whether Business Case for multiple tools will complement each other. Enterprise Social Networks, Altimeter Group, 2012 23
  • 25. Maturity Model for Enterprise Collab Metrics Volume Metrics Correlated Holistic Metrics (from Metrics (Integrated with collaboration (Compared with Enterprise/ platform) Enterprise Data) External Data) 25
  • 26. Final Thoughts §  Enterprise social is different from consumer social; not all measures are relevant §  Consider your company, industry, employee and customer types when building metrics §  We are still in the earliest evolution of enterprise collaboration §  Learn by doing, and benchmark as you go. 26
  • 27. Primary sources for this report http://www.altimetergroup.com/research/reports 27
  • 28. 28 Thank you Susan Etlinger Susan@altimetergroup.com www.susanetlinger.com Twitter: setlinger
  • 29. Sessions You Must See •  Implementing Facebook Measurement Wednesday @ 3:50 pm •  Megan Douglas. Manager of Consulting Services, Webtrends •  Julie Gillison. Program Manager, Product Development, Webtrends
  • 30. Rate Session & Speakers/ Panelists