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The Business of
Community

Rachel Happe!
Principal & Co-Founder
The Community Roundtable
A Perfect Storm of Change Is Rolling In
Technology Currents
• Social media
• Mobile
• Big data
• Pace of technology
Social Currents
• Economic insecurity
• Political polarization
• Demographic shifts
• Anxiety/Retrenchment
Source: http://www.time.com/time/interactive/0,31813,2048601,00.html
The Pace of Technology Keeps Getting
Faster…
775,000 Apps
1.2 Zettabytes of Data
And Human Performance Is Not
Improving
Source: http://pandasthumb.org/archives/2006/09/fun-with-homini-1.html
http://www.flickr.com/photos/zachdurland/445877994/
Cognitive Shock
Organizations
Have to
Change!
We’ve Done A Lot of Organizational
Optimizing
http://www.flickr.com/photos/smaku/1400436298/
But It Has Focused on Infrastructure
People have been treated as liabilities to be
managed vs. assets to be invested in
http://www.flickr.com/photos/kyra__m/4681259456/
People Are Now The Weakest Link
“It takes all the running
you can do, to keep in
the same place. If you
want to get
somewhere else, you
must run at least
twice as fast as that!”
- Red Queen
We Need to Play A Different Game, One
Focused on Enduring Relationships
Relationships Differentiate
Cost Savings 
•  Loyalty
•  Forgiveness
•  Time
•  Peer support
•  Issue reporting
Revenue
•  Preference
•  Patience
•  Advocacy 
•  Competitive lockout 
•  Authentic insights
These qualities require a different level of relationship
that traditional transactional relationships
Relationships & Culture Are A
Sustainable Competitive Advantage
Commoditized:
•  Technology
•  Information
•  Market access
Reduced Advantages via:
•  Products
•  Service
•  Process
Opportunities:
•  Relevance 
•  Meaning
•  Shared Value
•  Empathy
Relationships Require Time, Resources and
Ceding of Control
Encounter	
  
Awareness	
  
Recogni1on	
  
Awareness	
  
Resonance	
  	
  
Development	
  
Understanding	
  of	
  
compa1bility/fit	
  
Piqued	
  interest	
  
Acknowledgement	
  
of	
  rela1onship	
  
Friendship	
  
Contextual	
  Trust	
  
Contextual	
  Loyalty	
  
Contextual	
  
Advocacy	
  	
  
Partnership	
  
Forgiveness	
  
Advocacy	
  &	
  
Defense	
  
Universal	
  Trust	
  
Universal	
  Loyalty	
  
Social	
  Media	
  (Content-­‐Based)	
  Engagement	
  
Community	
  (Rela1onship-­‐Based)	
  Engagement	
  
Direct	
  Engagement	
  
Community

A group of people with unique shared values,
behaviors, and artifacts !
Why Are Communities So Powerful?
1.  Maximize investments
–  Disintermediate the organization from every
conversation while maintaining context
–  Speed information transfer & alignment
–  Build buy-in and shared ownership
–  Innovation
2.  Reduce costs
–  Build and reinforce relationships
–  Crowdsource expertise
–  Reduce duplication
–  Empower advocates
–  Eliminate waste
Communities generate the best
value that money can’t buy
5 Truths of
Community!
1. Measurable But Not Immediate
Investment
Return
2. Communities Mature & Change
Time
Impact
Phase 1 –
Strong Hierarchy
Phase 2 –
Emergent
Community
Phase 3 –
Community
Phase 4 –
Networked
Behavior	
  
Change	
  
Pull	
  
Growth	
  
Transform	
  
3. Community Success Depends on
Three Elements
Purpose	
  
Business	
  
Needs	
  
Member	
  
Needs	
  
4. Investment Required Depends on
Member Profile
Member Characteristics
•  Need to learn
•  Availability/Schedule
•  Degree of isolation
•  Competing sources
•  Technical literacy
•  Online social comfort
•  Aspirations
•  Cultural context
Investment Levers
•  Supportive & encouraging
environment (community
management)
•  Easy to use tools
•  Valuable information
•  Peer involvement
•  Unique access – to
content or people
5. Communities Have to Fit Into
Workflows and Behaviors
Information &
Data Inputs
Consolidation Analysis Report Stakeholder
Review
Go/No Go
Decision
Social	
  
Listening	
  
Data	
  from	
  
Network	
  
Discussion	
  
of	
  key	
  
points	
  in	
  
Community	
  
of	
  Prac1ce	
  
Discussion	
  
of	
  key	
  
points	
  in	
  
Func1onal	
  
Community	
  
Decision	
  
Posted	
  to	
  
Community	
  
Facilitated	
  
Discussion	
  in	
  
Communi1es	
  
WriQen	
  
together	
  
with	
  work	
  
group	
  
Community Maturity Model TM
Strategy
Leadership
Culture
Community
Management
Content &
Programming
Policies &
Governance
Tools
Metrics &
Measurement
Stage 1
Hierarchy
Stage 2
Emergent
Community
Stage 3
Community
Stage 4
Networked
Familiarize &
Listen
Command &
Control
Reactive
None
Formal &
Structured
No Guidelines for
UGC
Consumer tools
used by individuals
Anecdotal
Participate
Consensus
Contributive
Informal
Some user
generated content
Restrictive social
media policies 
Consumer & self-
service tools
Basic Activities
Build
Collaborative
Emergent
Defined roles &
processes
Community
created content
Flexible social
media policies 
Mix of consumer &
enterprise tools
Activities &
Content
Integrate
Distributed
Activist
Integrated roles &
processes
Integrated formal
& user generated
Inclusive
‘Social’ functionality
is integrated
Behaviors &
Outcomes
TakeAways
1.  You will not win just by going faster
-  People cannot keep up
-  Quality will suffer
2.  Relationships and culture are the new
competitive advantages
3.  Community building is strategic and urgent
-  Large first mover advantage
-  People have limited key relationships
-  Community building takes time
"
"
Download reports for free at: "
www.community-roundtable.com/"
"
Thank you!
"
Questions?
Rachel Happe
The Community Roundtable
rachel@community-roundtable.com
@rhappe

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Community conference 2013 - The Business of Community, Rachel Happe

  • 1. The Business of Community Rachel Happe! Principal & Co-Founder The Community Roundtable
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  • 7. A Perfect Storm of Change Is Rolling In Technology Currents • Social media • Mobile • Big data • Pace of technology Social Currents • Economic insecurity • Political polarization • Demographic shifts • Anxiety/Retrenchment
  • 11. And Human Performance Is Not Improving Source: http://pandasthumb.org/archives/2006/09/fun-with-homini-1.html
  • 14. We’ve Done A Lot of Organizational Optimizing
  • 16. People have been treated as liabilities to be managed vs. assets to be invested in
  • 18. “It takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!” - Red Queen
  • 19. We Need to Play A Different Game, One Focused on Enduring Relationships
  • 20. Relationships Differentiate Cost Savings •  Loyalty •  Forgiveness •  Time •  Peer support •  Issue reporting Revenue •  Preference •  Patience •  Advocacy •  Competitive lockout •  Authentic insights These qualities require a different level of relationship that traditional transactional relationships
  • 21. Relationships & Culture Are A Sustainable Competitive Advantage Commoditized: •  Technology •  Information •  Market access Reduced Advantages via: •  Products •  Service •  Process Opportunities: •  Relevance •  Meaning •  Shared Value •  Empathy
  • 22. Relationships Require Time, Resources and Ceding of Control Encounter   Awareness   Recogni1on   Awareness   Resonance     Development   Understanding  of   compa1bility/fit   Piqued  interest   Acknowledgement   of  rela1onship   Friendship   Contextual  Trust   Contextual  Loyalty   Contextual   Advocacy     Partnership   Forgiveness   Advocacy  &   Defense   Universal  Trust   Universal  Loyalty   Social  Media  (Content-­‐Based)  Engagement   Community  (Rela1onship-­‐Based)  Engagement   Direct  Engagement  
  • 23. Community A group of people with unique shared values, behaviors, and artifacts !
  • 24. Why Are Communities So Powerful? 1.  Maximize investments –  Disintermediate the organization from every conversation while maintaining context –  Speed information transfer & alignment –  Build buy-in and shared ownership –  Innovation 2.  Reduce costs –  Build and reinforce relationships –  Crowdsource expertise –  Reduce duplication –  Empower advocates –  Eliminate waste
  • 25. Communities generate the best value that money can’t buy
  • 27. 1. Measurable But Not Immediate Investment Return
  • 28. 2. Communities Mature & Change Time Impact Phase 1 – Strong Hierarchy Phase 2 – Emergent Community Phase 3 – Community Phase 4 – Networked Behavior   Change   Pull   Growth   Transform  
  • 29. 3. Community Success Depends on Three Elements Purpose   Business   Needs   Member   Needs  
  • 30. 4. Investment Required Depends on Member Profile Member Characteristics •  Need to learn •  Availability/Schedule •  Degree of isolation •  Competing sources •  Technical literacy •  Online social comfort •  Aspirations •  Cultural context Investment Levers •  Supportive & encouraging environment (community management) •  Easy to use tools •  Valuable information •  Peer involvement •  Unique access – to content or people
  • 31. 5. Communities Have to Fit Into Workflows and Behaviors Information & Data Inputs Consolidation Analysis Report Stakeholder Review Go/No Go Decision Social   Listening   Data  from   Network   Discussion   of  key   points  in   Community   of  Prac1ce   Discussion   of  key   points  in   Func1onal   Community   Decision   Posted  to   Community   Facilitated   Discussion  in   Communi1es   WriQen   together   with  work   group  
  • 32. Community Maturity Model TM Strategy Leadership Culture Community Management Content & Programming Policies & Governance Tools Metrics & Measurement Stage 1 Hierarchy Stage 2 Emergent Community Stage 3 Community Stage 4 Networked Familiarize & Listen Command & Control Reactive None Formal & Structured No Guidelines for UGC Consumer tools used by individuals Anecdotal Participate Consensus Contributive Informal Some user generated content Restrictive social media policies Consumer & self- service tools Basic Activities Build Collaborative Emergent Defined roles & processes Community created content Flexible social media policies Mix of consumer & enterprise tools Activities & Content Integrate Distributed Activist Integrated roles & processes Integrated formal & user generated Inclusive ‘Social’ functionality is integrated Behaviors & Outcomes
  • 33. TakeAways 1.  You will not win just by going faster -  People cannot keep up -  Quality will suffer 2.  Relationships and culture are the new competitive advantages 3.  Community building is strategic and urgent -  Large first mover advantage -  People have limited key relationships -  Community building takes time
  • 34. " " Download reports for free at: " www.community-roundtable.com/" " Thank you! " Questions? Rachel Happe The Community Roundtable rachel@community-roundtable.com @rhappe