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From traditional business to social business

When businesses ask for a social media strategy, what they are often really asking for is: Get me a presence on Facebook, Twitter and the like. The mantra of cultural and organisational change that is required in the social web seems to ring hollow. To be fair, it is not their fault. With a traditional business mindset it is hard to see why a presence on Twitter or Facebook is different from the corporate website. After all, these tools can seem to be just another communication channel.

When I talk to clients about the social web and its impact on businesses, I often use four key concepts. These concepts seem to help to explain the broader implications of social tools and why a mere presence on the social web will have a very limited business impact.

From Transaction to Interaction

Traditional Business - TransactionIn the good old days traditional businesses produced a product or service and the customer bought it. End of transaction. Over the years, they have distanced themselves from their customers. Traditional businesses live in their ivory tower from which they look down on their customers. They introduced call centres to shield themselves from customer complaints. Every so often, they introduce a new product and market it heavily using print and digital channels. Nowadays, they can also be found on Facebook and Twitter talking about their new product. They produce it, the customer buys it. End of transaction.

Social Business - InteractionA social business however, is all about interaction. It sees itself on an equal footing with their customers. Of course, it still wants their money. After all it is a business and not a charity. But a social business listens to what its customers have to say. It is eager to get feedback, both positive and negative. Negative feedback is acknowledged and addressed in an honest and transparent way. It sees it as an opportunity to co-create new products with the help of its customers. A social business operates in public and not from the heights of an ivory tower. A social business does not simply sell products, it sells customer experience.

Example
A customer of Zappos once tweeted that she had ordered shoes for her birthday. A customer representative got in touch with her asking about her order number just to make sure that the shoes would arrive on time for her birthday. You think that is difficult? Not for a social business. It is where its customers are and listens to what they have to say. It is all about interaction and customer experience.

From B2B / B2C to P2P

Traditional Business - B2B:B2CA traditional business has successfully created a wall between its customers and itself. Only particular departments are allowed to interact with the outside world, for example Marketing, HR, Customer Service. The rest of the business is shielded away from any external distraction to ensure employees are productive. Humans work in a traditional business. They have a face, but they can only show the company’s face. Sorry, company policy. Nowadays, traditional businesses have developed their own recruiting platforms. They also have a presence on Facebook, where HR advertise for new vacancies and post recruiting tips. They are really proud of this achievement. The traditional business can connect with potential recruits on Facebook. But actually, when they join they will see that Facebook is blocked. Sorry, company policy.

Social Business - P2PA social business understands that people want to connect with people and not with businesses. If customers are looking for help, they want to talk to a real person, not a company. A social business acknowledges and is proud to employ many smart people not just in HR, Marketing or Customer Service. It employs them, because it trusts them. It wants the world to know about them and enables them to connect to the outside world. That is why social networks are open for everyone and people are still productive. A social business manages by objectives, not by presence.

Example
Mary from the HR department posts new tips on Facebook, and not the HR department. A small but subtle difference. A highly talented engineering graduate asks on Facebook what life is like on an oil rig in the North Sea. Mary has never been on an oil rig, but she knows engineers who have. One engineer answers the question on Facebook, visible for everyone. It is John, not the company. People connect with people, not with companies.

From Gatekeeper to Platform Provider

Traditional Business - GatekeeperA traditional business clenches on to its old powers. It believes it still owns all the connections between customers and partners. If a partner would like to talk to another partner, he needs to go through the company. It manages in order to survive. According to a traditional business, shared knowledge is only worth half as much. Better to control the gates.

Social Business - Platform

A social businessunderstands that today’s technology enables anyone to connect with anyone, whether the business likes it or not. The gates are open. A social business knows if it simply keeps managing connections, it will survive, but if it facilitates connections it will thrive. Hence, it provides a platform for customers and / or partners. It is comfortable letting people discuss the business, its products or completely different matters. It facilitates and does not manage.

Example
Dell, a computer manufacturer runs a Facebook Page about Social Media for Business. Yes, Dell is not in the business of providing social media services. But it uses the group as a platform to stay connected with existing customers and potential customers. Dell provides more value than it can capture (in the beginning). That way, Dell stays in people’s minds. Dell may not always be the best choice, but I bet, the next time a member of the FB page is asked for computer advice by a friend, he will also mention Dell.

From Hierarchy to Network

Traditional Business - HierarchyA traditional business has a rigid top-down communication structure. News from the top is passed down through the ranks of the organisation. The middle management is powerful as it acts as gatekeeper (see above). Open and transparent dialogue between the top and the bottom of the traditional business is difficult if not non-existent. Furthermore, technology provision in traditional businesses have manifested in department silos. Few employees know what other departments or teams are working on. Cross-departmental connections are made in the cafeteria, at the water-cooler or in the smoker’s corner.

Social Business - NetworkContrary to popular belief hierarchy still exists in a social businessbut it is heavily supported by an underlying network. Communication flows are bi-directional and cross-departmental. The middle management has lost its power as gatekeeper and is now functioning as platform provider. It provides a platform for the management and employees to communicate and connect. Employees can see what other teams and departments are working on. Increased visibility leads to better decision-making, improved customer service, superior products and ultimately higher sales. At the same time a social business also acknowledges that people connect with people not just because of work but also interests. Therefore, it encourages employees to form communities of interest or purely social groups. This creates stronger bonds between employees which leads to lower turn-over rates. If an employee does leave, they are more likely to stay in touch with colleagues, not the business. Remember, people connect with people, not with companies. (see P2P concept).

Example
By now, many organisations have or are in the process of implementing a social business platform which enables employees to communicate with the senior management and also across teams and departments. Some of the most advanced and innovative organisations that have adopted this approach can be found in the Social Business Council.

No doubt, more concepts exists. However, I believe many of them are part of the ones I have outlined above, i.e. From Control to Trust (B2B/B2C to P2P; From Transaction to Interaction), From Management to Open Leadership (From B2B/B2C to P2P; From Gatekeeper to Platform), From Employee to Brand Ambassador (From B2B/B2C to P2P; From Transaction to Interaction).

If your social media strategy is all about setting up a social media presence, jump right in. It only takes a couple of minutes to set up accounts. There are gazillions of tips out there telling you how to increase your follower or “Like” counts. However, if your social media strategy is about business impact, you need to go back to basics. Understanding the key concepts and the broad impact of social tools on businesses, will help to deliver value. In the end, that is what business is all about, delivering value!


© Picture Credit: Christoph Schmaltz

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