Do You Deliver A Superior Customer Experience?

The answer would be NO.  Chances are your company is NOT delivering a superior customer experience.  So is this what's important about social media?  The answer is... Partially. 

Now take a moment to consider just what comes between a traditional institution or organization and its customers.  You have a business with all the internal barriers that exists in all companies.  Now you have traditional media to communicate with your customers.  You rely on interruptions and disruptions to message to your clients and potential customers.

Is it any wonder businesses are disconnected from their customers and their experiences?

So What The Hell Does This Have To Do With Social Media?

Social media, or let's say the platforms created to support it, have created a slight paradigm shift (well maybe a bit more than slight).  In order to understand the enormity of this shift, you have to start looking at this phenomena a little differently -- from a holistic point of view.  This new dynamic has created an environment where communication, collaboration and coordination exist without barriers.  It gives power to individuals to compete with institutions at a level unprecedented.  Institutional containment as we know it does not exist.  Market barriers no longer exist as we know it.  Let's think about social media thru another lens.  Let's look at it around "coordinating effort" or, from the basis any institution is created which is, getting things done:

This Is What's Important About Social Media

Institutions and organizations are wondering what to do about social media.  Policies are being written, consultants are being brought in to figure out how it can be used as a marketing channel.  Companies are missing what's really important about social media and the platforms that support it -- and here it is.

Cooperation cost is the economic burden of coordinating effort.  Traditionally, the solution for coordinating effort was to create an institution.  More recently, since the cost for people to communicate with each other has fallen thru the floor, many are rethinking the system in which people communicate, collaborate and coordinate.  A great example of this is found on social networking platforms -- platforms where coordination and communication are designed into the system.  Systems that allow group output without regard to traditional institutional models.

Looking At Things In New Ways Is Hard To Do

So what does this mean for the traditional institutional model?  It means that business leaders have to get comfortable with reviewing something very core -- their original purpose -- their existence.  In the end, I really think there are only 2 choices:

1. Embrace and leverage communication, collaboration and coordination platforms.  Institutions and individuals alike all have access to a world of new opportunities.  This is difficult because it requires us to forget what we think we know and look at our circumstance dispassionatly and objectively.  It will also require us all to get involved and learn.  You can't fake this
2. Denial, Anger, Bargaining, Depression and Acceptance.  You might make the connection to the Kübler-Ross model's 5 discrete stages of how people come to terms with dying.  This is how many institutions and organizations will come to terms with these new, communication, collaboration and coordination platforms.

So here we are.  This is happening.  The ultimate importance of the web is coming to fruition.  It's the ultimate communication platform.  It gives institutions the power to outdistance their competition by breaking down communication barriers between their employees, their customers and their suppliers.  We all have the power to create personal networks to coordinate effort and accomplish anything.  Thomas Friedman said "what can be done, will be done."  There is nothing standing in our way.  Let's get busy getting things done

There continues to be mass-adoption of social media as a way to build brands (both personal and corporate), communicate, collaborate and coordinate in a social network architecture.  Today we are going to talk about the big guys:  Midsize to Enterprise.  It is undeniable that this has, and will, continue the way we work and share information.  This paradigm has completely altered the way customers relate to brands and the way that corporate brand managers should operate.

Social Media Is Not Your Typical Marketing Channel

So to begin with, let's separate the notion of buying adspace in social networks from using the space in it's intended function.  Yes, you traditional marketers can buy adspace and talk about all the "eyeballs" that your corporate brand was exposed to.  You can use this KPI to show a good ROI.  You may even get kudos for this due to the lack of understanding of the space.  However, this is not "participating" in social media.  The real ROI a corporate marketer can realize comes from developing communities, creating content, listening and talking directly with their customers.  In short, it's not about "eyeballs" or ad buys.  It's about driving direct interaction between your employees and your customers.  It's about creating an open forum for your subject matter expertise to shine with visibility to all.  This is a hard thing for many companies to embrace.  But the ones that do and do so fearlessly are the ones who win.

Institutional Silos Will Work Against You

One of the difficult hurdles companies have to overcome almost before they even get started in social media is the traditional silo'd structure of the institution.  Social media overlaps vertical silos in a horizontal fashion.  For instance, where do you put it?  It's part marketing, part sales.  It's part content creation, PR and communications.  It's part IT, web development and design.  So what this means is, right from the beginning, nobody knows where to "put" it.  To get past this, some companies will have to completely rethink and reinvent (which is coming sooner or later anyways).  For CEOs and business owners, think about this: You didn't start your company without taking 'bold actions' to carve out your niche or competitive advantage.  It's time to put that early entrepreneur hat back on, get involved and reinvent.  Really, it's an opportunity to get back to your passion if you choose to embrace it that way.

No Matter What Your Market, Your Audience Is Global

If you are a regional or even a national company, you now have a global audience.  This again is generally a hurdle that the successful big brands have fearlessly embraced.  However, in a world where there are plenty of "causes for concern," this is another roadblock that many companies have a hard time getting comfortable with.  Also, most marketing, sales and PR department objectives are structured either locally, regionally or nationally.  So again, concerns will arise as to who gets "credit" and how do you keep "Arizona" reps from stealing your "Texas" reps' territory.  Another mindshift to embrace but the upside could be boundless.

Gotta Get Past The Quarterly Goal And Look Long-Term

Social media is not a "marketing campaign" but a long-term endeavor.  When it comes to getting involved, building a network, and getting your audience engaged, expecting big results the first quarter you initiate your effort is just not realistic.  There's also another mindshift that generally needs to occur at the organizational level.  Most PR, communication, sales and marketing departments operate on short timelines and are looking for quick results.  This is just another example of where the management has to get comfortable embracing something new.

Change Is Hard

I have a theory.  The theory goes like this.  We are all indifferent unless we are inspired or desperate.  When you think about how fundamental shifts happen they are generally surrounded by a period of chaos.  In this current shift (the shift to doing business in a flat world), some people and companies will embrace what's next.  We've all said this; "If I knew what I know now back then...."  So now I'll ask the same question that I asked myself:  "Knowing what I know now, what am I doing to day to be prepared for when..."  Hopefully that makes sense to more people than just me

Stay tuned folks.  I'm working very hard to bring all this full-circle so we have a holistic lens to look at these changes and hopefully (you and I) will have a better perspective to deal with the surrounding chaos of this economic evolution.

Innovation refers to incremental, radical, and/or revolutionary change.  Change in thinking, products, processes, and/or institutions & organizations.   It's fueled by creative people on an unending journey to make things faster, smaller, cheaper, cleaner, simpler; people who put their heart and soul into their craft without regard.  Institutions or organizations are deliberately and intentionally created by people.  The development of functional institutions in society in general may be regarded as an instance of emergence; meaning, institutions arise, develop and function in a pattern of social self-organization, which goes beyond the conscious intentions of the individual humans involved.  It is the mechanical and traditional way effort is coordinated.

We live in exponential times.  Innovation grows in an exponential manner.  It's not linear.  We think and intuit in a linear fashion.  For example, if you walk 30 steps linearly (1,2,3.... 30) you've taken 30 steps.  If you take 30 steps exponentially (2,4 8 16.... ) you get to a billion.  Quite a difference, no?  So if we live in exponential times, what's the future hold for innovation as well as institutional organization?  Again, if we are to look ahead, we need to look to the past for some perspective.

Why Create An Institution?

How do we get anything done - traditionally speaking?  If you want to coordinate the work of a group of people, you start an institution.  You raise capital, develop resources in order to coordinate effort; basically, you start a company.  The company can be private or public.  So thinking of a company as an institution, you use the charter of this institution to coordinate the effort needed to create output.  What we are talking about are coordination costs.  As part of creating an institution in order to coordinate effort, part of that coordination costs includes the collaboration and innovation required to re-invent and stay relevant in your market.

Institutional Extinction?

We've seen the imploding of institutional imperatives coming to fruition for awhile.  I believe there is more to this than what this post is addressing (such as institutional anonymity leads to moral ambiguity).

Institutional failures are happening all around us.  In a nutshell, there is no faith in our government institutions, financial institutions, educational institutions or our corporate institutions.  The net outcome creates an environment ripe for solutions.  Small grass-roots solutions that have the ability to spread globally in seconds, take root in weeks and evolve tangentially into real organic solutions devoid of institutional friction or myopic disconnects.  There is also a pattern of indifference until it's too late which reminds me of a great quote:

"Every CEO will at least give lip service to the idea that the world is moving faster and that we need to do a better job at innovation. But if you go into an organization and ask people to describe their innovation system, you get blank looks.  They have none."
-- Gary Hamel

"Built To Last" Doesn't Mean What It Once Did

The problem with the traditional institutional model more relevant to this post is that it is outdated.  The fundamental requirement for innovation is communication.  Communication between the "creative people on an unending journey to make things faster, smaller, cheaper, cleaner, simpler."  Another problem is, this model is not well suited for the "people who put their heart and soul into their craft without regard."  There is institutional friction that is unavoidable and deflating to the best and the brightest.  Don't believe me?  Look at what's has been happening over the past 80 years.  You cannot help but notice the lifespan of an average institution is falling thru the floor.

This graph is powerful, no?  Notice how the market corrections are a big driver.  So why else do you think this is happening?  You agree that we live in exponential times, right?  Well if we live in exponential times, then the speed at which we need to adapt, relearn, change or in essence, Innovate, doubles every year or two.  Larger institutions, by their very nature, are incapable to respond.  Consider that in many cases that takes at least one or two years to recognize there is a problem to even begin to solve it.  By the time many of them solve it; well guess what.  They're stuck solving a problem that is now irrelevant and distracting them from solving the new issues at hand.

The Lack Of Institutional Effectiveness & Agility

What else has happened during this timeline?  Think about the methods and means at which we are able to communicate.  Telegraph, Telephone, Travel, Logistics, Radio, Television and now cram all of the affect of those communication tools into the internet and you have increased the effectiveness and cut the cost by almost a trillion.  There is "Flat World Coordination" that has real potential to allow smaller companies to better serve the larger's customer base at a fraction of the cost while adding more product and/or service value.  It's this "Flat World Orchestration" that is changing the competitive landscape for the larger institutions.

Are You Saying That Institutions As We Know Them Are Dead?

Successful ones as they traditionally operate?  Yes.  I am saying that in shorter and shorter lifespans become... dead (hence the above graph).  Traditional institutions will survive and thrive when management, board members and/or shareholders are able to step out of the "what we did yesterday will work for us tomorrow" mentality.  In order to survive for the longterm, one has to recognize that the things that got you where you are will not get you where you optimally should be.  I was asked by a mid-market CEO recently about what are the most important things to understand in order to adapt and compete.  I came up with 6 that I feel are undeniable and universal:

• Institutions Are Inherently Exclusionary - Solve This
• Your Best Ideas Aren't Necessarily Your Own - Accept This
• Innovation Is Now A Global Collaborative - Leverage This
• The Tools Of Innovation Are Ubiquitous - Believe This
• Combine The Best Talent And Tools Without Institutional Regard - Break Down Silos
• Your Best Agent Of Change Is Probably Already Working For You - Forget Consultants

Embrace This Paradigm And You Will Stumble On Bigger And Better Opportunities.  Plan, Do, Study, Act... Repeat.  So what else is happening in market corrections?

Small Will Be More Influential And More Plentiful

So stepping back a bit, what are the type of companies that are winning in this environment?  In 2 words, Small Business.  What to you think the net outcome of layoffs from the financial mess?  It will be more small business who are more capable to adapt and who will drive us out of our current situation.   Look in the troughs in the above graph that represent market corrections.  People are still working, more and more companies are being created.  Every correction leads to wider acceptance of newer innovations and knowledge that people take from their corporate institutional jobs they lost to their new ventures as business owners.  The other paradigm is the concept I put out as "The Rise Of The Individual In A Flat World."  There is a great book that will describe this phenomena better than I called Free Agent Nation: The Future of Working for Yourself.

There is a huge upswell of activity and opportunity for entrepreneurial groups and individuals who find themselves either inspired to and/or laid off and in a different predicament due to mass layoffs.  As history begins to repeat itself, this is the best time to find your niche and create now and competitive value.  Small business activity flourishes in economic downturns and it has every single time there has been one.  So if you are recently laid off or are worried you might be.  Start taking some bold actions toward finding what you can put your heart and soul into without regard.  Rest knowing that there is no better time to be an entrepreneur.  Small IS your competitive advantage.