In an era of crisis & revolution, is your company the next target?

We are living in interesting times indeed. Geo-political revolutions, financial crises, economic uncertainty. Try as we might to ignore them, the fact is that the very fabric of capitalism is being re-evaluated, and perhaps even rewoven.

What we have assumed and known for at least 150 years is at the very least being questioned. Institutions that have spanned generations are now vulnerable.

Banks are still closing down weekly. The situation in Europe is increasingly fragile as previous whispers of dramatic austerity and potential collapse of the Euro become potentially viable outcomes.

In the United States, President Obama’s approval rating is at an all time low. Congress approval rating is at 14% – FOURTEEN PERCENT! – also an all time low.

Civil unrest has spread from oppressive dictatorial regimes in the Middle East and Africa to the developed world (see London riots).

Corporate America is obviously feeling the effects of many of these issues as they affect all of us, directly or indirectly.

You are likely familiar with the recent collapse of these famed organizations:

  • Lehman Brothers
  • Merrill Lynch
  • Blockbuster Video
  • Borders Bookstores

Power to the People

Friends, we are living in a unique era. While world leaders collectively wrestle with the greatest economic challenges in the last 70 years, many corporations find themselves doing the same. Customers are voicing their opinions about companies they do business with, as constituents voice their displeasure about the poor job their leaders are doing on their behalf.

The following incidents caught executives by surprise as specific cries against corporate actions rallied the hearts, minds, and activity of thousands in revolt against insensitive corporate interests.

  • Dell Hell
  • United Breaks Guitars
  • Kevin Smith’s Southwest Airlines Incident
  • Greenpeace and Nestle

Jeremiah Owyang chronicles a more complete list of corporate social media crisis here

What’s perhaps most interesting is that these recent revolutions and crises, whether political or corporate, are being fueled and enabled by the reach and connectedness of internet based social networks.

While Jeremiah and the team at The Altimeter Group once again published a quality open research report titled “Social Readiness: How Advanced Companies Prepare” , it is possible to miss some of the larger, more important underlying issues.

The Seeds of Revolution

Surely, rapid uprisings and revolutions don’t just happen because someone tweets about it, or posts a YouTube video. It’s not the medium that really matters. It’s the ability for the message to spread, and for people to self-organize quickly – to out-think, out-flank, and out-number their oppressors or aggressors.

Revolution happens because a latent frustration finds an outlet. It happens because enough people unite and take action around an idea of change. Connected by a common interest or frustration, the network effect takes place as people unite in a flash mob around a common goal. It happens because the thought of things staying the same becomes more fearful and oppressive than the uncertainty and risk associated with standing up and going a different direction.

According to BJ Fogg’s behavioral model (Hat tip to Dr. Graham Hill and Dr. Michael Wu for pointing me his way), there are three primary factors that lead to behaviors:

  • Motivation
  • Ability
  • Trigger

You see, I believe that there are tons of latent motivations out there that never turn into anything because the other two factors don’t exist. Social Networks and ubiquitous connectivity are providing the ability to actually do something once a trigger occurs. With latent motivations and now the ability to do something now in place, a trigger event becomes a spark that can quickly flame into a roaring fire.

In a world that is increasingly connected, increasingly digital, and access to anything and anyone is available in real time, corporate leaders should be considering the following questions.

The fabric of global society is transforming from a collection of lots of small, geographically connected groups to groups that are connected in a new geography that transcends previous space and time limitations.

Much of the new global infrastructure has been laid and it will continue to become more pervasive and more powerful.

People can now aggregate across boundaries, and organize beyond the constraints and management comforting silos. Al Quaeda and WikiLeaks quickly come to mind. In the same way, business units are self-organizing around the constraints of their IT departments.

Guess what? Our prospects and customers now have the ability to do the same.

The question every executive should be asking right now

So then the next question is, will your organization lead the next revolution in your marketplace, empowering and giving voice to the latent motivations of your customers, or will it become a victim of a more agile, more united group of customers who will self organize around their collective needs and jobs, leaving your outdated organization in their wake?

Let’s continue the discussion

If you are in Southern California or Arizona, please join me on September 21 and 22 as I lead discussions centered around this topic in a series of Executive Breakfasts sponsored by NICE.

Advertisements

The Future of Customer Relationships: Where is all this heading?

Shifts in technology and human behavior are rapidly changing customer’s expectations of companies. Things are moving so fast, that most executives are not only trying to catch up with the changes, but identify what some of the changes are. Understanding what those changes mean to each business is a more complicated matter altogether.

Ross Dawson brilliantly lays out his observations of the mega trends happening around us in the charts below.

Ross Dawson Map of the Decade

Ross Dawson Zeitgeist 2011

Two growing and intertwining concepts (influence and reputation) are rapidly gaining ground and creating controversy as to their accuracy, adaptability, and use. There is a growing gap between those who believe that these scores and algorithms are the key to priority and leverage, opening up the door for profitable arbitrage, and others that believe that this is the emergence of a new caste system based on false measurements.

Just today, Klout just released a plugin for Twitter that displays an “influence” score (see the screenshot below), but this type of technology and scoring is currently in its infancy, and still marginally beneficial in the context of real life. However, some large and well known organizations are already giving perks and preference to customers with a high klout score.

Twitter Klout Plugin

Dr. Michael Wu, Chief Scientist, of Lithium Technologies, has been doggedly trying to uncover the meaning of influence, its impact on relationships, and ultimately corporate profit structures. Target the influencers, and you can move the crowd. There are seemingly vast opportunities in understanding and leveraging influencers within networked communities.

Influencer Network Graph

But, in reality, the influence/reputation conundrum is just one small movement in a massive tectonic shift happening that is disrupting geopolitical structures (Egypt, Bahrain, etc.), macro-economic theories and assumptions (the financial meltdown and the current response(s), human behavior, and corporate sustainability.

In late 2009, in one the most popular posts ever on customer focused portal, CustomerThink, Graham Hill outlined 15 tenets in his “Manifesto for Social Business


No1. From Individual Customers… to Networks of Customers

No2. From Customer Needs, Wants & Expectations… to Customer Jobs-to-be-Done

No3. From Company Value-in-Exchange… to Customer Value-in-Use

No4. From Delivering Value to Customers… to Co-Creating Value with Customers

No5. From Marketing, Sales & Service Touchpoints… to the End-to-End Customer Experience

No6. From One-Size-Fits-All Products… to a Long-Tail of Mass-Customised Solutions

No7. From Competing on Products, Price or Service… to Competing over Multi-sided Platforms

No8. From Company Push… to Sensing and Responding in Real-Time to Customers

No9. From Technology, Processes & Culture… to Complementary Capabilities and Micro-Foundations

No10. From Made by Companies for Customers… to Made By Customers for Each Other

No11. From On-premise Applications… to On-demand Solutions from the Cloud

No12. From Stand-alone Companies… to an Ecosystem of Networked Partners

No13. From Hierarchical Command & Control… to Collaborative Hybrid Organisations

No14. From Customer Strategy… to a Portfolio of Emergent Customer Options

No15. From Customer Lifetime Value… to Customer Network Value

Add to these, the fast growing mobile, always connected individuals, and you have the making of a perfect storm, for those who understand where things are headed.

Join the Conversation

On Wednesday, February 23, 2011 at 1 pm PST / 4 pm EST, please listen in to a conversation as some of the world’s brightest minds will evaluate and debate where we’re heading, project how multiple trajectories might collide, and what your organization should be preparing for now.

I’ll be participating in a roundtable, hosted by Focus.com featuring experts Ross Dawson, Dr. Graham Hill, Dr. Michael Wu, and analyst and futurist Denis Pombriant as we explore topics such as:

1) Influence and Reputation: How forward thinking companies will leverage these new measurements to attract and keep customers
2) Co-Creation: What it is and why it’s next in the evolution of customer centricity
3) The Impact of rapidly maturing mobile and collaborative technologies on organizations, their customers, and society as a whole

Here’s the call-in information – I hope you have the chance to join us:

Toll-free Dial-In Number: (866) 951-1151
International Dial-In Number: (201) 590-2255
Conference # : 4999006

International Toll Free Numbers
United States +1 (866) 951-1151
Canada +1 (866) 951-1151
Australia +61 1800886154
Austria +43 080010251987
Belgium +32 080039174
Brazil +55 08007611761
China +86 108002652569
South China +86 108006500596
North China +86 4001243742
Czech Republic +420 800088444
Denmark +45 80901917
France +33 0800945173
Germany +49 8003304331
Hong Kong +852 800905500
India +91 0008006501664
Ireland +353 1800944771
Israel +972 1809494119
Italy +39 800976322
Japan +81 (0) 120953763
Luxembourg +352 280080918
Malaysia +60 1800815377
Mexico +52 018006070190
Netherlands +31 8002658468
New Zealand +64 0800452184
Philippines +63 180016510700
Poland +48 008001213973
Portugal +351 800784454
Republic of Korea +82 007986517457
Singapore +65 8001205610
Spain +34 900801632
Sweden +46 200125312
Switzerland +41 800741205
Taiwan +886 00806651824
Thailand +66 001800658109
United Kingdom +44 08003581576