How Good Is Your Social Business Governance?

Gavel GovernanceIn our research and client work at Altimeter, one of the most misunderstood issues we see is social business governance. I’ve seen it defined as everything from social media policies and risk management to organizational structures. My colleague Ed Terpening and I just published a report on how to think about governance – and in particular, the crucial role it plays in supporting strategy (download here).  Strategy and governance are natural partners: Strategy lays the groundwork for new opportunities while governance ensures safe execution, managing the risk of change.

Yet our research found that only 16% of organizations feel that governance is well understood and deployed. Many organizations can’t answer crucial questions such as: Who owns social? How are key decisions made? How do we organize to execute social? How do we manage risk as we scale social across the organization? Left unanswered, organizations face significant risks, including threats to brand health as the result of inappropriate or disjoint social practices. More importantly, organizations can’t truly scale social into a business strategy unless governance is addressed.

Our definition of social business governance is:

An integrated system of people, policies, processes, and practices that defines organizational structure and decision process to ensure effective management of social business at scale.

How Does Your Social Business Governance Stack Up?

The report is filled with data, sample policies, checklists, and case studies. In the end, you need to ask yourself how your social business governance actively supports the execution of your strategy. The capstone of the report is a social business governance maturity map, which I’ve included below. Where does your organization fall on this chart?

15781450195_dbf05822fd_o

We’d love to hear where you are in your social business governance – and to contact us if you have any questions or need help with your governance roadmap. My report co-author Ed Terpening is far too modest to toot his own horn so allow me. He led Wells Fargo’s social media efforts for 7 years from its inception in 2005 until he joined Altimeter two years ago. At Altimeter, he’s helped numerous organizations design governance systems along with their social business strategies. You’ll have a chance to talk with me and Ed in an upcoming webinar, on Tuesday, December 9th at 10am PT. Bring your questions as well as your best practices and war stories – we’re looking forward to learning together with you at the webinar, and in our continued mutual quest to master social business governance.

Blogging as a State of Mind: Reflections on 10 Years of Blogging

people in the information spaceTen years ago today, I wrote my first blog post, entitled “Blogging as a State of Mind”. I still vividly remember the moment — my palms were sweating as I pressed the “Publish” button on my Typepad blog for the first time. I was excited, but nervous about what was going to happen. What would people think? What if I made a mistake?

What happened was that I became completely transformed by the interactions and relationships of people I’ve met through my blogging and subsequently, social media activities. I’m eternally grateful to everyone who has encouraged, supported, and engaged with me — I have grown and learned so much. [Read more…]

How to Tell If You’re Just Dabbling with Digital

Digital transformation is hot — in a new Altimeter Report, “The State of Digital Transformation”, we found that 88% of organizations we surveyed said that they were undergoing a formal digital transformation effort, which Altimeter defines as “the re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience lifecycle.”

But the research found that only 25% had mapped their out the customer journey, while another 12% were in the process of a mapping effort and were awaiting results. What was striking was that 42% of respondents said that while they were not officially researching the digital customer journey they had made efforts to update those digital touch points with new social and mobile investments and initiatives. [Read more…]

Help with My New Report: Employee Engagement & Advocacy

Businessman holding paperI’m passionate about Open Leadership, and the imperative to be open, authentic and transparent in the way we lead. This is all the more important when looking at how to engage employees, and tapping them for the bright shiny object de jour “employee advocacy”.

To that end, my colleague Jon Cifuentes and I are working on a new Altimeter report on how companies create holistic strategies that increase internal employee engagement and external employee advocacy. The report looks at the fundamental disconnect between organizations wanting active and engaged employees and the actual execution of employee collaboration, engagement, and advocacy efforts. [Read more…]

The Twitter IPO: Some Initial Analysis

Twitter just tweeted that it has filed a confidential S-1, with the appropriate disclaimer. Here are a few reasons why this filing and IPO warrant close scrutiny.

  • Twitter is the last of the Big Four to go public. In the social networking ecosystem, Twitter is seen as a must have in terms of a social strategy, and is the only major player left that is still up for grabs — YouTube (owned by Google), LinkedIn (IPO), and Facebook (IPO) are all spoken for. Other upstarts like Pinterest are just getting started so Twitter is going to be the talk of the town into 2014, which is the earliest the IPO can be expected. There will be a certain “last call” mentality to the Twitter IPO that wasn’t there for Facebook.
  • Confidential filing gives Twitter control. Twitter took advantage of the JOBS Act pass last year, which allows firms with less than $1 billion in revenue to file an S-1 confidentially. This means that unlike Facebook, Twitter won’t be subjected to a microscopic dissection of every word of its filing. This is a good thing, because Twitter’s business model isn’t the easiest to explain. As Twitter begins the roadshow, they’ll be able to roll out their story to investors in a systematic, orderly way that enables them to tell their growth story to the world.
  • Timing and Friends benefit Twitter. Twitter should be saying a big “Thank You” to Facebook for carving out the path before them. Facebook has spent the past year educating the market about social media advertising, doing much of the heavy lifting and laying out the red carpet for Twitter.
  • Challenge: Twitter’s Advertising Model. The biggest challenge that Twitter has is that its main form of revenue comes from “sponsored tweets” which is a form of native advertising (see Altimeter’s just-published report on Native Advertising). The problem with these sponsored tweets is that they are not, at present, a standard ad format that can travel outside the Twitter platform. That makes ad buying — and scaling to media buyers — more difficult.
  • Discipline to Stick to the Business. The tweet that Twitter posted one minute after the “filing” one shows everyone at the computers with the next, Now, back to work.” The company has been preparing for this day, and realize that it’s a long, long slog for the next approximately six months before the actual IPO. The team will need discipline to focus on the work, rather than pulling out spreadsheets to calculate their potential net worth. Not an easy thing to do!

These are still early days, and I anticipate that we’ll learn a lot more about Twitter’s business over the next few weeks and months. I, for one, am eager to not just see the numbers, but also to hear their story. Because as one of the four foundational platforms of the social space, they have the ability to shape the future as they envision it unfolding. And the vision that Twitter CEO Dick Costello and his team roll out is sure to be interesting.