What is the biggest risk in social media?

I've led and been involved with various social media risk assessments.  It is a worthwhile exercise for any business, and should be reexamined on a regular basis.  One critical element is assuring that the assessment has equal focus on the benefits and the risks associated with social media.  Everything has risk.  The assessment needs to determine if the benefits outweigh the risks.  In many cases, the business will decide to accept the risk based on the perceived value.  Of course, risk should always be minimized by identifying and executing mitigation activities.

The biggest risk that repeatedly arises is the risk of not participating.  It's different that all the other risks which have a direct cause and effect.  This risk is having an effect due to inaction which could lead to loss of relationships and market share to competitors.  The impact is hard to quantify, but can be significant.  The mitigation for the risk is a tough one, since it involves culture change from the top.  Senior executives need to be convinced that there is a risk of not participating.  If companies don't recognize this risk, they may find themselves lagging the competition. 

What risks have you seen for your company? I'd be interested in your insights.

FTC's "do not track" implications to Social Business

There is an article in today's NY Times titled "F.T.C. Backs Plan to Honor Privacy of Online Users".  It describes the Federal Trade Commisions (FTC) proposal to create a "do not track" mechanism that would put the same type of controls on businesses as the "do not call" registry.   While I agree with providing users with information about how their information will be used, I do think it has to be balanced with an understanding of the benefits associated with the use of this information.   A few years ago, I know that many people were very concerned about having pictures of their house taken by google maps.  But, now many accept that risk knowing that the benefit of finding directions to other places is significantly improved. 

As governance policies are created to mitigate risk, there needs to be a careful analysis of the risk and benefits.  This takes careful analysis.  It becomes even harder when you consider the dimension of what the benefit could be in the future.  As another example, I first thought that location based services were 'creepy'.  Why would I want complete strangers to know where I am?  The risk is that some crazy person will do harm to me or my family.  However ... the benefits can be huge.  If I am driving by a department store, would I welcome a coupon to shop there for 20% off?  Or, would I like to have a 'free french fries' promotion sent to me on my mobile phone as I am walking past a McDonalds?   If I am never given the opportunity to experience the benefits, how will I know if they are work the risk?

I do agree that there needs to be continued work on mitigating risks (e.g. regulations on the collectors of the information to assure that it does not get into the wrong hands along with a strong mechanism to allow users to 'opt out'), but it must be done in the context of potential benefits.

This is a key turning point for Social Business.  Too much government regulation will choke innovation.  The ultimate loser will be the consumer.  I'm hopeful that we can strike the right balance, and educate consumers on the potential benefits of Social Business and let them then make the decision about risks of sharing information.

The new era: Social Business

A few months back, I can recall having some discussions around definitions.  What are the similarities and differences between social computing and social media, and how do they relate to things like Social CRM.  We created some charts about the nuances of the terms ... but does it really matter what it's called? 

For business, it comes down to being able to listen, participate and respond socially in a way that provides your business value.  At a summit hosted by IBM about a month ago, I heard a new term:  Social Business.  That really resonates for me.   It's about business.  Social is just another way to provide value, just as the internet was 10 years ago.  It requires changes to management systems, processes and culture in order to fully embrace it in a way that mitigates risk.  I'm sure we all remember the days when companies were 'afraid' to let their employees surf the web.   They thought that they would waste too much time, and it would negatively impact their productivity.  Fast forward to today.  Social is the new internet.  It will change your business in the same way. 

It's all about finding business value.  Start with what you are trying to accomplish.  Identify ways in which you can supplement your current processes with social business.  I am sure all businesses have a way to listen to customer feedback.  Social business now enables you to not only listen in real time, but to respond.  The key difference this time is that your customers will demand this.  The biggest Social business risk is not participating.  Jump in and get started today.

Loss of control requires employee trust

Many companies are encouraging employee use of social media (within the guidelines they publish).  The value of participating has a big opportunity to improve brand image, and drive future revenue.  As participation grows ... and grows ... and grows, it's very difficult for a company to be able to get a clear view of where their employees are participating.  If there was an 'inventory' of places, and a list of relevant topics, companies would be able to reduce duplicate communities and help to streamline a common message.  However, it's very difficult to have this without some very rigorous and 'heavy' process.  The majority of employees participate in places where the relevant conversations are happening.  It's a tough position, and is one (of many) culture shifts happening.  Control is distributed, with the major factor being trust of your employees.  Trust ... with the support of training ... becomes the most important element of a successful Social Media business strategy.  I'll talk more about trust in my next blog post. 

As always, I welcome your thoughts and opinions.

'Monkey see, Monkey do'

Once companies decide that they want to encourage social media participation by their employees, how can they encourage rapid adoption?  Viral enablement.  What does that mean?  Well, if 'people like me' are doing it, then so can I.  When employees can see their peers getting benefit from participation, they will want to 'jump in' as well.  Another key element to viral enablement is getting management and executives to establish a social presence.  This gives employees a sense of 'permission' for them to participate.  The key is to establish small pilots, recognize actives that demonstrate business value, and then communicate!  communicate!  communicate!

What motivates on-going social participation?

I highly recommend watching this video:  The surprising truth about what motivates us.  It uses entertaining animation  to summarize some insightful research on the topic of motivation and rewards. (how can people draw like that?)   Their conclusion is that money is not the motivating factor, but rather having a challenge, demonstrating mastery and making a contribution.  Wow!   Not money?  But, when you think about the open source movement and crowd sourcing, it does begin to make sense. 

So ... companies need take advantage of this need to be recognized for making a contribution.  Internally, this means on-going support from management, their close network, and co-workers from different organizations.  The hard part is keeping consistent focus on this ... every week, every day.  Employees need to be assured that their social participation is seen as having value within the organization. Externally, companies need to find creative ways to encourage conversation on topics that benefit their business.  Recognition by your brand goes a long way, but does come with risk.  It's an area that needs a careful strategy with a thoughtful analysis of the organizations ability to support it for the long haul.  Once you start, you have to keep it going!

I welcome any ideas that you have had in the area of motivation and recognition.

Can 'one size' fit all for employee participation in Social Media?

As companies begin to realize that employee participation in Social Media is a key component of future strategies, they often jump right to the conclusion that all employees should be trained and encouraged to participate.  This has worked in previous deployments, so why not for social participation?  Shouldn't it be as easy as training employees on how to use the tools?  Or, perhaps an across-the-board HR initiative to have managers include participation in everyone's performance reviews? 

We are learning that there will be a spectrum of participation, based on many factors,many of which are not related to social.  Think about it:  it's dependent alot on one's personality.  Some people are outgoing, while others prefer to work in small teams.  Some are good communicators, while others prefer to focus more on project execution.   It's clear that you can't force participation.  If you attempt to require and measure participation, people will find a way to 'game' the system to meet the numbers.  Unfortunately, this will not help to achieve your overall business goals.  The recommendation is to encourage and enable those employees who are interested.  Allow them to put together their personal plans, provide them with easy ways to help them measure their progress, and set appropriate levels of expectations.

This is a journey, not a sprint.  Motivation will come by showcasing successful examples of people who have gained benefit (both personal and business) from participation.  It's helpful to showcase a wide range of people, from peers through executives.