forrester organize for social computing r3mq4qfx

8/8/2019 Forrester Organize for Social Computing r3MQ4QfX

1/13

Making Leaders Success ul Every Day

J e 24, 2009

How To O g ize Yo Comp yFo Soci Comp ti gy Je emi h K. Owy go I te cti e M keti g P o essio s
http://www.forrester.com/


2/13

2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. In ormation is based on best availableresources. Opinions refect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective companies. To purchase reprints o this document, please email clientsupport@ orrester.com . For additional in ormation, go to www. orrester.com.

Fo I te cti e M keti g P o essio sIncludes Forrester research panel data

ExECuTIvE SuMMarYTe biggest challenge brands o en have to overcome isnt technology but managing cultural changewithin the enterprise. With an ever-increasing number o brands engaging in social media marketingin recent years, companies need to not only be properly budgeted but also well organized. Once brandsexperiment with social activities, they must then organize rom the inside out or risk not properly sta ng or responding to customers. Brands need to integrate social into their companies by developing

a sa e place or employees to experiment, creating a process to manage and measure these programs,and integrating social into other marketing and enterprise systems. Above all, brands must organizetheir companies in the hub-and-spoke model, which allows business units to be exible with their socialprograms but provides a grounded center that enables the company to act e ciently.

TablE OF COnT EnTSSo ia Media Use Is Mainstream, But BrandsAre Not So histi ated

Brands Organi e In Three Wa s

a Dist i ted a d O g ic G o dswe

res ts I The Ti eas a re ctio , Comp ies Ce t ize To Fo m

The Towe

a te assem i g Dedic ted reso ces, b dsSho d E o e To The H a d Spoke

rECOMMEnDaTIOnS

Brands Must Deve o A Hub And S okeMode

Su ementa Materia

nOTES & rESOurCESFo este i te iewed th ee e do d

se comp ies: Ede m , IbM, I te , newer e m id, vig ette, d We s F go.

Re ated Resear h Do umentsHow To C e te a Soci app ic tio Fo li eScie ces Witho t Getti g Fi ed ap i 20, 2009

Soci Medi P ytime Is O eM ch 16, 2009

rede i g att i tio I The Soci Comp ti gE M ch 3, 2009

The I te cti e M keti g M t ity Modeno em e 19, 2008

How To St Fo Soci Comp ti gFe y 28, 2008

J e 24, 2009

How To O g ize Yo Comp y Fo SociComp ti gb ds M st O g ize usi g a H -a d-Spoke Modeb Jeremiah K. Ow angwith Pete S ge t, Tom C mmi gs, d Emi y bowe

2

6

9

10
mailto:[email protected]://www.forrester.com/http://www.forrester.com/go?docid=53435&src=47666pdfhttp://www.forrester.com/go?docid=53435&src=47666pdfhttp://www.forrester.com/go?docid=47665&src=47666pdfhttp://www.forrester.com/go?docid=53600&src=47666pdfhttp://www.forrester.com/go?docid=53600&src=47666pdfhttp://www.forrester.com/go?docid=43521&src=47666pdfhttp://www.forrester.com/go?docid=45127&src=47666pdfhttp://www.forrester.com/go?docid=45127&src=47666pdfhttp://www.forrester.com/go?docid=43521&src=47666pdfhttp://www.forrester.com/go?docid=53600&src=47666pdfhttp://www.forrester.com/go?docid=53600&src=47666pdfhttp://www.forrester.com/go?docid=47665&src=47666pdfhttp://www.forrester.com/go?docid=53435&src=47666pdfhttp://www.forrester.com/go?docid=53435&src=47666pdfhttp://www.forrester.com/http://www.forrester.com/mailto:[email protected]


3/13

2009, Fo este rese ch, I c. rep od ctio P ohi itedJ e 24, 2009

How To O g ize Yo Comp y Fo Soci Comp ti g Fo I te cti e M keti g P o essio s

2

SOcIAl MEDIA USE IS MAINSTREAM, BUT BRANDS ARE NOT SOpHISTIcATED

O the interactive marketing rms that we surveyed, 85% are currently using some orm o social media in their eforts to reach consumers (see Figure 1). About hal o these rms considerthemselves aggressive in their approaches to social media. Yet despite this enthusiasm, 52% o brands are still experimenting with how to make these social tools work optimally. While thesenew tool sets require brands to maneuver up the learning curve, a deeper organizational maturity model can be set that ocuses on organization, technology, measurement, and planning (see Figure2).1 o date, many brands are struggling to develop a de nitive approach to their social marketingstrategies. In act, or many organizations (see Figure 3):

Obje tives or so ia media are un ear. Brands must think strategically when it comes todeveloping their social programs. oo many brands xate on the latest social technologies ratherthan ocusing on de ning their objectives. One consequence o a misdirected approach to

program planning is that brands miss out on the key organizational changes they must make tosupport their objectives.

Measurement ra ti es are in om ete . Sixty-eight percent o brands indicate that theirprimary objective or social media is to listen to customers. And while many are measuringbasic metrics such as the amount o increased participants in the program, brands o en ail toinclude the perspectives o other company stakeholders who wish to measure the interaction o members and their qualitative messages, which can be key to measuring social initiatives againsttheir corporate objectives.

Governan e over so ia media is not estab ished. Social tools tend to bubble up rom thegroundswell. But this can cause con usion among managing groups as governance o such toolsis dispersed across several departments. In act, 17% o the marketers who know o their socialmedia programs said the program was distributed with no ownership (see Figure 4). A lack o accountability can not only slow social initiatives to market but can also lead to mismanagemento messaging that can alienate customers or (worse yet) violate ederal regulations or somebrands. 2


4/13

2009, Fo este rese ch, I c. rep od ctio P ohi ited J e 24, 2009


3

Figure 1 I te cti e M kete s Shi t b dgets To Soci Medi M keti g

Source: Forrester Research, Inc.

Assuming that the economy is in a recession in the next six months,

how would you change your investment in the following marketing channels?

0% 20% 40% 60% 80% 100%Display ads

Game marketingRSS

Email marketingPodcasting

WidgetsOnline video

Search marketingMobile marketing

User-generated contentBlogging

Social networking

Base: global interactive marketers at companies with 250 employees or more who use each channelSource: Q4 2008 Global Social Media Planning Online Survey

Increase Stay the same Decrease

N = 116N = 37N = 102N = 129N = 92N = 74N = 119N = 135N = 79N = 105N = 118N = 119

47666


5/13



4

Figure 2 Si actio Items To Get Yo Comp y O g ized Fo Soci Comp ti g

Source: Forrester Research, Inc.47666

Action item Requirement Risks Best practices

Strategy A clear plan based onunderstanding howcustomers use socialtechnologies, coupledwith business objectives,recalling the tenets of thePOST methodology

Starting a strategy byfocusing on the latest toolsis dangerous, as it doesntfocus on customer usage.

Dont just build your planin a vacuum. Get broadsupport from the otherimpacted departments orrisk a fragmentedexperience to users later.

Corporatebuy-in

Obtaining the sponsorshipfrom executives as well asimpacted line of business(e.g., Dell obtained buy infrom Michael himself)

Failing to obtain buy-infrom all departments,including customertouchpoints like customersupport and service willresult in a fragmentedexperience for customers.

Handhold executivesthrough social programs;encourage them toexperiment. Embrace line-of-business stakeholdersto take ownership and getinvolved.

Roles Social programs oftenrequire brands to talk back.Dont fail by not havingsomeone on point torespond.

Strategists are oftencentralized within theorganization with P&Lresponsibilities. Put in placemultiple communitymanagers as communitiesgrow to fulll the hub andspoke.

Have the key roles neededfor success. Ensure that yourSocial Computing strategistand community managerare in place.

Education Brands need externalsupplements as they deploynew media programs suchas external speakers,Webinars, conferences, andbooks.

Dont keep your team inthe dark only to commit asocial faux pas. Instead,learn early and deploycorrectly.

Create an ongoingexternal speaker seriesthat brings in fresh voices,but also allow internalteams to share their goodand bad learnings.

Process Develop a system that keepsteams informed andefficient.

Not having a process willresult in multiple teamsoverlapping work or someteams not doing anythingat all. Get organized bysetting up a way to ensurethat customer needs arequickly met.

Eliminate the red tape andempower a rapid responseteam within the hub torespond to situations evenduring weekends oroff-hours.

Experimentalsandbox

A safe place that allowsbrands to experiment inprivate, then to slowlyperform experiments. P&Gcreated a Social Media Labthat helps to educate the

multiple brands within thecompany.

Brands that experiment inpublic and with customersrun many risks. Instead,when possible, experimentinternally to reduce risks infront of customers.

Procter & Gambleconducted the Tide Loadsof Hope viral marketingexperiment that resulted inthe teams learning whatworks and what doesnt.


6/13



5

Figure 3 Most I te cti e M kete s a e Sti I The E pe ime t St ges O Soci Medi P i g


Source: Q4 2008 Global Social Media Planning Online Survey

Novice: We are currently dening these tools:What is social media?

Advanced: Were sophisticated with these toolsand are deploying them broadly across the

company: How do I properly integrate acrossthe enterprise?

Beginner: We are currently gauging the value of these tools: Why does social media matter?:

Mature: After experimentation were developingbest practices: How do I do social media right? 52%

27%

15%

7%

What fundamental question is your company currently trying to answer?

Base: 123 social media marketers at companies with 250 employees or more

Figure 4 M keti g Is The M i Ow e O Soci Medi St tegy


Other

Executive team

IT

Research and development

Product teams: development,product management

Public relations

Distributed team, no oneownsthe strategy

Marketing 54%

17%

13%

5%

1%

1%

1%

9%


Base: 123 social media marketers at companies with 250 employees or more

Who is the main owner of the customer-facing social media strategy within your organization?


7/13



6

BRANDS ORGANIzE IN THREE WAyS

Like all new programs, brands approach new media in a variety o manners, with their culture largely driving how they organize. Depending on a companys experience with social media, brands organizearound new media in one o three ways. Each o these orms has strengths and weaknesses, but allorganizations must eventually evolve to what is called the hub-and-spoke model (see Figure 5).

Figure 5 Few Comp ies H e a Ce t ized Soci M keti g G o p


Not sure5%

Centralized: All social mediadeployment comes from a

single organized group.20%

Distributed: Employees adopt thesetools without centralized organization

As a result, different teams have launchedblogs, social networking sites, etc.

29%

Cross-functional team: An internalteam is assembled that includes

representative from many differentdepartments and groups and is

responsible for social media strategyand adoption.

42%


How is your company organized around social media?

Other5%

Base: 123 social media marketers at companies with 250 employees or more(percentages may not total 100 because of rounding)

A Distributed And Organi Groundswe Resu ts In The Tire

We ound that 29% o brands are organized in a distributed manner, where each business unitor group may create its own social media programs without a centralized approach. We call thisapproach the tire, as it originates at the edges o the company (see Figure 6). While its likely thatthese programs may be driven by passionate groups that appear authentic to customers, there aredownsides. Without a central connection, one group within the company may not know what theother group is doing, or worse yet diferent groups may be providing multiple messages to asingle customer. Additionally, there is urther dissonance as disparate groups may not be sharingcommon resources, technologies, or best practices.


8/13



7

As A Rea tion, com anies centra i e To Form The Tower

O en as a reaction to the distributed groundswell, 20% o brands have centralized social mediaactivity within an organization o en within the marketing department. We re er to thiscentralization as the tower a standalone group within a company thats responsible or socialmedia programs. While at rst, this centralized group may provide a single cohesive message tothe market, and bene t rom shared resources, it has serious pit alls. Brands that centralize socialmarketing as another marketing channel and dont realize its a two-way dialogue will run the risko not looking authentic to their markets. For example, brands that simply use blogs to rehash theircorporate press releases may be ignored or, even worse, criticized by their customers as not joiningthe conversation.

A ter Assemb ing Dedi ated Resour es, Brands Must Evo ve To The Hub And S oke

We ound that 42% o brands are organized in a cross- unctional manner we re er to as the hub

and spoke. Like the hub on a bicycle wheel, a cross- unctional group that represents multiplestakeholders across the company assembles in the middle o the organization. Te hub acilitatesresource sharing and cross- unctional communications (via the spokes in the wheel) to those atthe edge o the organization (or the tire). For example, Newell Rubbermaid has a centralized leadthat provides social media guidance and resources to its multiple brands and their management.Edelmans Digital Strategy Services group is a centralized team that serves to educate, provideresources, and act as council to global account teams. Yet at the regional level, a social expert onEdelmans client teams (called a surrogate) is empowered to support each appropriate spoke.Tis model works well, as one part o the organization is aware o what the other is doing. Suchcollaboration acilitates shared resources and cross-team learnings. Tis model doesnt comewithout tradeofs, however. In order to implement the hub and spoke, a brand will need: executivebuy-in, dedicated budget, and cultural agreement across multiple departments.


9/13



8

Figure 6 Comp ies O g ize I Th ee W ys: Ti e, Towe , a d H a d Spoke


Company(employees)

Corporatecommunications

The marketplace

Company(employees)

Cross-functionalteam

The marketplace

The marketplace

Companycommunications

The tire

This distributed team has employees adopt these tools without centralized organization. As a result,different teams have launched blogs and social networking sites at the same time.

Company(employees)

The hub and spokeThis cross-functional team has an internal team assembled that includes representatives

from many different departments and groups. It is responsible for social media strategy and adoption.

The tower This centralized team has all social media deployment come from a single organized group.


10/13



9

r E C O M M E n D a T I O n S

BRANDS MUST DEVElOp A HUB-AND-SpOKE MODEl

Comp ies m st pp o ch soci s st tegic p og m, ot s o e-o c mp ig . as es t,ds m st oc s o i teg ti g these p og ms withi the o g iz tio d de e op p to

e o e to the h - d-spoke mode . b ds m st:

Bui d an interna sandbox. b ds m st de e op c t e th t s ppo ts the ope di og eo the soci sp ce. I o de to est comm ic te i the ope We , est ish i tecomm ity to e pe ime t i s e e i o me t. P octe & G m e c e ted Soci Medil o its io s ds th t co sists o i te e i gs, e s to e pe ime t, d e i o me t o e te soci medi e pe ts to sh e thei tho ghts. This i te o to yis st o g o d tio om which to i d c oss- ctio h - d-spoke mode .

Estab ish our so ia strateg interna , and then turn to third arties orim ementation. We o d th t most comp ies de e oped thei st tegies i te y sedo si ess o jecti es d the t ed to thi d-p ty e do s o too imp eme t tio . Foe mp e, We s F go hosts i te ow g sessio s to keep disp te g o ps ig ed. Its

ot o e, s vig ette ses i te ogs th t p o ide i te ed c tio o p od ct te ms.Whi e the h - d-spoke mode c ci it te sh ed de st di g o yo c stome s, socimedi e do s d ge cies c i ject esh ide s d est p ctices o imp eme t tio .

pro ess ustomer omments/o inions rom so ia rograms. Comp ies eed to de e op p ocess to m ge c stome i p ts om the soci medi sphe e. We o d th t 68% o

ds s y th t iste i g is thei p im y o jecti e. b ds m st e s e th t p ospect d

c stome opi io s e p ope y o ted th o gho t the comp y. as ds o g ize i theh - d-spoke mode , si ess its t e ch spoke sho d s mit i o m tio to the h ,e s i g i o m tio is sh ed.

Measure the efe ts o so ia media be ond routing ustomer issues. r the thme s e yo soci e o ts sed o which tech o ogy yo e si g, me s e sed o yo

si ess d i e s. Fo e mp e, i yo go is t ki g to c stome s i Twitte , the m eo o owe s yo d h s is most impo t t. O i yo go is e e gizi g those o owe s,the the m e o etweets is most e e t. Yo me s eme t tt i tes wi q ick ye o e eyo d simp e p ge iews ( o i st ce) depe di g o e ch o jecti e, so p o

ei g fe i e.

Integrate with other ustomer s stems. respo di g to c stome eq ests is t ythi gew. I ct, m y s ppo t te ms h e ee doi g this o dec des. The di e e ceow is th t c stome opi io s e o te comi g om o tside the o m ch e s d

c stome - ci g te ms m st e e dy. Comc sts s ppo t te m c e ted Twitte cco t j st to espo d to p o ems d q e ies withi the sm t st-g owi g mic o oggi gcomm ity. Whi e these i te ctio s m y come om s ppo t te ms (o the edges o theo g iz tio ), ce t ized m keti g te m m st ss me o e i o m ti g espo ses toc stome s i p ic o ms.


11/13



10

SUpplEMENTAl MATERIAl

Methodo og

Forresters Q4 2008 Global Social Media Planning Online Survey was elded to a total o 323global interactive marketing pro essionals rom our ongoing Marketing & Strategy Research Panelas well as to marketers who were invited through several interactive channels including personalblogs and witter. Te panel consists o volunteers who join on the basis o interest and amiliarity with speci c social media topics. For quality assurance, panelists are required to provide contactin ormation and answer basic questions about their rms revenue and budgets additionally,respondents rom outside sources were screened both be ore and a er they completed the survey.

Forrester elded the survey rom November 2008 to January 2009. Respondent incentives includeda current research report and a uture research report that uses the data rom this survey.

Exact sample sizes are provided in this report on a question-by-question basis. Panels are notguaranteed to be representative o the population. Unless otherwise noted, statistical data isintended to be used or descriptive and not in erential purposes.

I youre interested in joining one o Forresters research panels, you may visit us at http://Forrester.com/Panel.

com anies Interviewed For This Do ument

Edelman

IBM

Intel

Newell Rubbermaid

Vignette

Wells Fargo

ENDNOTES1 Marketers are ar rom mastering the per ormance and integration o interactive channels. o mature, they

should use Forresters interactive marketing maturity model to classi y their rms into one o our levels:

Skeptics, Experimenters, Practitioners, or Conductors. Best practices or maturing will vary by phase. Still,in order to move gradually rom one level o maturity to the next, all marketers should benchmark theirmaturity against industry peers, promote internal interactive successes, and adopt new technologies whenthey resonate with business objectives and customer behavior. See the November 19, 2008, Te InteractiveMarketing Maturity Model report.
http://www.forrester.com/go?docid=43521&src=47666pdfhttp://www.forrester.com/go?docid=43521&src=47666pdfhttp://www.forrester.com/go?docid=43521&src=47666pdfhttp://www.forrester.com/go?docid=43521&src=47666pdf


12/13



11

2 People with health problems naturally orm mutually supportive communities and seek out in ormationabout drugs and treatments. And yet, because o restrictive FDA regulations, pharmaceutical and other li esciences companies are terri ed to take advantage o this power ul channel. Our advice to pharmaceutical,

biotech, and medical device companies: First, determine whether the people who use your products areready to connect socially around their health challenges. And second, choose a strategy that ts not only your objectives but also the risks you ace. Options include a private community, an application with limitson customer-generated content, or a uller application with appropriate sa eguards built in. As socialnetworks become a bigger part o the healthcare ecosystem, pharma companies will need to become adeptin dealing with them, even i they dont create them. See the April 20, 2009, How o Create A SocialApplication For Li e Sciences Without Getting Fired report.
http://www.forrester.com/go?docid=53435&src=47666pdfhttp://www.forrester.com/go?docid=53435&src=47666pdfhttp://www.forrester.com/go?docid=53435&src=47666pdfhttp://www.forrester.com/go?docid=53435&src=47666pdf


13/13

Forrester Research, Inc. (Nasdaq: FORR)

is an independent research company

that provides pragmatic and orward-

thinking advice to global leaders in

business and technology. Forrester

works with pro essionals in 19 key roles

at major companies providing

proprietary research, consumer insight,

consulting, events, and peer-to-peerexecutive programs. For more than 25

years, Forrester has been making IT,

marketing, and technology industry

leaders success ul every day. For more

in ormation, visit www. orrester.com.

Australia

Brazil

Canada

Denmark

France

Germany

Hong Kong

India

Israel

Japan

Korea

The Netherlands

Switzerland

United Kingdom

United States

Headquarters

Forrester Research, Inc.

400 Technology Square

Cambridge, MA 02139 USA

Tel: +1 617.613.6000

Fax: +1 617.613.5000

Email: orrester@ orrester.com

Nasdaq symbol: FORR

www. orrester.com

M k i g l e d e s S c c e s s E e y D y

For a complete list of worldwide locations,visit www.forrester.com/about.

Research and Sales Ofces

For in ormation on hard-copy or electronic reprints, please contact Client Support

at +1 866.367.7378, +1 617.613.5730, or clientsupport@ orrester.com .

We o er quantity discounts and special pricing or academic and nonproft institutions.
mailto:[email protected]:[email protected]://www.forrester.com/

forrester organize for social computing r3mq4qfx

Documents