Tag Archives: ROI

Social Business Balanced Scorecard V

Social Business Balanced Scorecard

This post builds on my previous work on the Social Business Balanced Scorecard and benchmarking the social intranet adds extra elements.

 

Goal Social Business Activities Candidate Social Business Metrics
Employee Engagement Increase employee engagement via genuine dialogue and polyphonic communication channels. Overcome Generational Shift. Discussing! Employee Satisfaction Surveys, Polls, Feedback from Social Media Channels (% Csat), CSAT on Generation – Y + Millenials + Boomers. Timkin’s 5 I’s: Inform, Inspire, Instruct, Involve, Incent.
Platform Usage Using the social platform to collaborate, innovate and share Core platform metrics, logins & actions: ‘Contributing, Participating and Active’ Users; content posting, number of discussions, blogs, wikis, documents created; documents, images, video uploaded; Groups, Communities & Spaces created. etc.
Innovation Increase level of innovation via Innovation Wikis (e.g., Cisco I-Zone), Competitions and ‘wisdom of crowds’ gathering of info activities. Listening! Number of ideas submitted, number of successful ideas turned into pilots, number of pilots entering the market as new products. Time to market ratios.
Increase Productivity Increased productivity % increase, contribution in $/£ per employee
Improve Customer Experience Increase revenue per customer, increase engagement from the customer, social marketing, brand protection Customer retention / satisfaction, inputs into marketing process, overall cost of marketing $/£ per $/£ sale. Brand insurance.
Social Engagement Connections, sociality of employees via Enterprise Social Networks, 2.0 profiles, Tagging across the Enterprise, Expert Locators, Silo Busting Social Network Analytics, (NodeXL), Measure of Relations, Overcoming Geo/Time barriers with synchronous & asynchronous comms / collaboration = decreased travel budget. ratio of flights/meetings vs online engagement.
Learning Social Learning, sharing of information, 2.0 Training, e-learning, EMS. Cost of training, number of courses taken/passed, diversity of learning offerings, Customer satisfaction/CSAT Degree of ‘Knowing what we know’ better.
Sales & Turnover Social Software as cumulative competitive Advantage. Increased Sales and Turnover + Productivity Sales figures, sales generated per employee at employee cost (as above inc productivity).
Information Flows “Semantic analysis, Big Data techniques and better tracking in general will help us to develop better insight into the who, what, when, where and why of information flow. In other words, how much of the right stuff is getting to the right place in the right context and the right time? Can we depend on it and when? Can we juice the system? Can we game it? How?” Deb Lavoy – see below  TBC

Notes and Updates
Added to this framework:   core platform usage – this should always have been part. The second is Bruce Timkin’s 5 I’s of employee engagement. The third is information flows. Information flows are something I need to articulate – it’s one of those slow-burner ideas, formulated in part when I was engaged with Critical Theory and Continental Philosophy. Thanks to Deb Lavoy for Timkin and for reminding me on flows. In doing so, this could lead to a need to synergise some of the headings.

Please see Balanced Scorecard search for my ‘working out loud’ on this topic over the last few years. Next phase will bring in ‘Big Data’ and look at closing the loop in terms of employees, customers and partners for the more holistic view of the social business.

Refs
How to calculate the ROI of E2.0 / Social Business projects
Social Media Balanced Scorecard III
Determining the Value of Social Business ROI: Myths, Facts, and Potentially High Returns
How To Calculate the ROI of Enterprise 2.0
Creating the Social Media Balanced Scorecard, doing the undoable….
The Balanced Scorecard For IT: Value Metrics. Forrester
Measuring Social Media ROI is a pipe dream
2013 Prediction: Social Business Tech will Stop Blaming Culture for Failure – Deb Lavoy
Report: The Five I’s of Employee Engagement 

@theparallaxview

Some thoughts on Enterprise 2.0 ROI

Some interesting posts over what for us in the UK was an Easter Bank Holiday weekend, on E2.0, its progress and and its ROI. The discussions all centred the long roasted meme of when, when and what for Enterprise 2.0 will truly come kicking and screaming into the business world.

Trough of 2.0?

For example, Hutch Carpenter reckons we’re quite likely in the Gartnerian Trough of Disillusionment where the purported gains of 2.0 seem a far off promised land and any real gains, mere milk and honey of the mind.  Nonetheless:

What gives me comfort is that the Hype Cycle provides a fairly well-known model for how technology ultimately becomes core to the way businesses do work. So let the analysis show that Enterprise 2.0 cannot, in fact, solve every problem that companies have.

ROI of 2.0?

Dion Hinchcliffe asks the question of how do we determine the Enterprise 2.0 ROI and starts of by citing Andrew McAfee’s piece from a couple of years or so back, The Case Against the Business Case. Here Andrew points to the intangible nature of the gains and points to a “costs required to acquire capabilities” model as being far more preferable.

Dion is keen to stress that he does see actual gains, but asks if Enterprise 2.0 truly strategic in the unique way that information technology can so often be? Pointing out that  a third of companies (globally?) are already using 2.0 tools in one shape or another, Dion argues that they will see gains, but that:

Innovation often comes from where you least expect it and harnessing collective intelligence, the core principle of Web 2.0 as well as Enterprise 2.0, is the very art of eliciting value from emergent systems such as the Web and our intranets.

Why?

One aspect I think is interesting in all of this (amongst so many interesting ones), is this question of ROI itself – the why are we doing it? It’s similar in some ways to the discussion sparked off by my LinkedIn poll on ‘what’s the single most important aim of internal communications?‘. One could phrase this as are we there to just do some good, or to prevent a bad from happening, or can internal communications all be seen in the sense of the bottom line, the drive for profit?

Kicking butts

Indeed, for companies  Motorola are all too clear on why they’re using social media:

“I don’t beat Nokia or Cisco or Siemens by having better buildings or shinier cafeterias. Companies are human beings solving problems or responding to crises by working with each other. If you can make your company less of a top-down company at a higher speed than your competition, you have just kicked their butts.”

Motorola VP Toby Redshaw.

Thinking inside a box

Profit is (for once literally) the bottom line yet for a business in contemporary capital it cannot be a single strive for it.  It has to be  a combination of elements.   I tried to combine how these might function together for internal comms as so:

I wonder if it’s worthwhile to start to frame E 2.0 into the wider cultural frame. If we’re talking of Enterprise 2.0 ROI then the pattern might shift and the business element play a more pivotal role – perhaps Engagement comes Innovation – I’m not sure and need to mull on this more. What I don’t think we can avoid is the question of the Enterprise 2.0 ROI.

Post script on Red Herrings

I hope you like my Photoshop of some red herrings – I was going to call this post “2.0: ROI, the red herring that has yet to be caught!”  Maybe I’ll return to that, as I originally tried to cover far too much for a bear of little brains to write in one post.  There’s some snippets on the cutting room floor I will return to, esp about the’ Q of impossibility of cultural change’.

Motorola and TransUnion Social Media Case Studies added

2 new case studies added to the Case Study Hot List:

TransUnion – SocialText using SocialText as Wiki and IM in an environment with SharePoint. Best aspect – question asking to groups. Claimed total savings of $5-8M. Hard data on this would be v useful – savings can be slippery – real earnings or benefits are far harder to show…

Motorola’s Intranet 2.0 IT success “70,000 people using it every day, including partners. The company now has 4,400 blogs and 4,200 wiki pages and uses, among other technologies, social bookmarking and tagging by Scuttle and social networking by Visible Path.” 

“I don’t beat Nokia or Cisco or Siemens by having better buildings or shinier cafeterias. Companies are human beings solving problems or responding to crises by working with each other. If you can make your company less of a top-down company at a higher speed than your competition, you have just kicked their butts.” 

Motorola VP Toby Redshaw. 

Burton report on Enterprise Social Networks

Mike Gotta has produced a very useful Field Research Study for Burton: Social Networking Within the Enterprise (free registration required).  There’s a good exec overview at CIO.com: Report: Enterprises Struggle to Adopt Social Networking Internally. Note however, CIO’s somewhat negative angle there, a closer read shows that there are a number of key hurdles to overcome:

Culture

Winning over old ways of doing things is key – ‘we communicate top down’ is an issue to be turned into an opportunity. Cultural dynamics are central. Conservative practices will win through, unless countered with a winning and workable option. In this HR is pivotal- you need to have HR on side. For IT, the argument is  different – Gotta argues that IT need to see that the needs of the business are what counts, not their systems. As one respondent put it:

“[IT] people are  not thinking about what’s best for the company, but rather what’s best for SharePoint. Ops is a consideration, but at the end of the day, it’s the business that counts.”

Therefore IT need to be won over if effective ESN is to see the light of day.

Business Case and ROI

What was really interesting was the business case and ROI for Enterprise Social Networks. The data shows a lack of clarity on either in the respondent’s minds. What this highlights is the need for the technologies to solve specific solutions rather than being a nice to do exercise. After all, no other project would be rolled out without such. However, and here’s the rub – as Gotta reminds us, there’s no set and agreed way of measuring ROI in this area. These are the dichotomies that make funding more and more difficult to ‘attain (and sustain)’:

•  ROI is the wrong focus vs. ROI is still appropriate.

•  Current approaches for analyzing web systems are sufficient vs. no best practices on what to measure in social  environments.

•  Current  web  usage  analysis  tools  are  “good  enough”  vs.  social  network  analysis  tools  are  needed  (but  not mature).

People in Userland

Early adopters are essential.  Make it easy to use. Pitfalls to avoid are actually trying to mimic Facebook inside the firewall – this confuses people. Instead build communities, bring people together as Profiles, based on their need to collaborate and share expertise.

Plan

Plan + Legals & Governance – do it upfront, or pay later. We know this – why do people forget it?!

Platforms

One thing the Burton Report shows very clearly is that platforms are coming to the fore. Lotus Connections, Microsoft’s SharePoint and Jive Clearspace at the fore.

Conclusion

I think CIO’s conclusion is too negative. We are still at the watershed however and which way the current flows is still undecided.  From what I’m seeing in the UK, there’s a great deal of interest in the Enterprise Social Network, but equally the confusion and suspicion Burton has identified also prevail. There’s also an ascendancy of SharePoint here. Almost whenever social media comes up in any of the major career sites, it’s SharePoint MOSS that’s cited as the platform being used. This may have interesting consequences for the UK. Take for example Thomas Vander Wal’s SharePoint 2007: Gateway Drug to Enterprise Social Tools:

SharePoint has value, but it is not a viable platform to be considered for when thinking of enterprise 2.0. SharePoint only is viable as a cog of a much larger implementation with higher costs.

If this becomes the de facto E 2.o platform in the UK, will the ‘larger implementation’ ever really succeed?

Footnote

This list of benefits is one I personally am going to learn off by heart!

•  We need to connect people globally.

•  We need to address generational shifts.

•  We need to break down barriers.

•  We need to “know what we know.”

•  We need to collaborate better.

•  We need to innovate from the bottom up.

•  We need to learn differently.

Adapt or Perish: Spinning Mule 2.0

An excellent post from Bertrand Dupperin on the future of E 2.0: Enterprise 2.0 : my predictions for 2009. One item stood out and that was:

The end of “soft value” : Enterprise 2.0 ROI have been a taboo subject for a long time.

Over at Bill Ives’ Blog, there’s a review of an IBM report on Social Media –Even More Research on the Use of Social Software in the Workplace from IBM. Bill says the next step is the hard $ question and we need to:

…see if there are ways we can tie these behaviors [behavioral ones] to level four financial impacts. I feel confident that this can be done.

I don’t think it’s going to be easy. If we go down the route of hard-cost savings then it potentially loses the richer benefits of social media which are much less harder to measure. IBM looks at the engagement factor by looking at societality, the element that interests me though is the degree to which E2.0 is a business enabler and a business transformer. Engagement might be measured in churn or satisfaction,even in increased profitability for the business, but E2 as business transformation provides more.

That more is the Mule effect…It’s an effect that will be measured after the event, by profound competitive advantage. That’s why there’s an edge to E2.0, time is of the essence. 2.0 may well dissolve into the enterprise as Bertrand believes, but those that get there 1st will be the winners. The laggards will be like those handloom weavers who in a generation moved from sporting £5 notes in their hats to, well, utter destitution. This may seem apocalyptic, but then we’re in uncharted times, with seemingly ‘timeless’ brands suddenly realising their mortality. E2.0 will only quicken that process.