With all the hype around Social Media and a number of running research projects on the issue of online communities and social networking it is not strange that I am interested in educated views on the subject. One of my regular sources is Umair Haque who posted an interesting article in his HBR blog of 16 April. It is titled "The Efficient Community Hypothesis" and for sure worth reading (mainly from managers who wonder what the Social Media really mean to them) . According to Umair:
"Markets need communities. Yesterday's institutions are collapsing around us. In their remnants and rubble lies a lesson. Perhaps the biggest reason 20th century institutions failed so badly is that they replaced communities with markets. Yesterday, the primacy of the EMH (Efficient Market Hypothesis) said: communities were historical anomalies, sources of friction and waste, unethical barriers to "free" trade and exchange. Today, the ECH says exactly the opposite: it is only when markets are held together by communities that markets can move past the boundaries of mere informational efficiency; that they can do more than just suck in "all known information," only to misprice everything from tech to houses to people to the future itself." (Umair Haque, http://blogs.hbr.org/ 16 April 2010)
Businesses that do not realize the power of communities and social networking will have a big problem coming to terms with the 21st century markets. This is also a fact requiring attention from all of us who instruct the marketers of the future. The issue comes tenaciously to my mind for some years now every September when the new season of teaching the essentials of Marketing starts for me.
To be continued.
Showing posts with label HBR. Show all posts
Showing posts with label HBR. Show all posts
April 23, 2010
April 20, 2010
A piece of advice to CEOs (and everyone else interested): The Social Media is not the silver bullet
The response of businesses to the Social Media as marketing tools is overwhelming. It is getting hard to find any company home pages that do not display proudly Twitter, Facebook, YouTube, RSS and other social links. To many managers the Social Media hype has triggered euphoric expectations and the illusion that jumping on the Web 2.0 bandwagon will magically solve all their problems and give them “competitive advantage”.
The countless Social Media aficionados and self-proclaimed “gurus”, “experts”, “evangelists”, “specialists”, and “prophets” I wrote about earlier are also contributing to the confusion; a very similar picture to the dot.com frenzy that some of us still remember but obviously many of us have already forgotten.
One of the big management fallacies (shared and distributed by most of the ignorant “experts”) is that the logos of the trendy apps on the web site will make customers believe that things have suddenly changed: our products got better, the customer service works, we listen to the customer. Some serious research is of course necessary here to see whether these management perceptions have anything to do with reality and whether the introduction of Social Media is really by itself leading to any improvements.
Until such evidence is available I would rather advice some cautiousness: the Social Media is not the silver bullet. I consistently explain to those who follow my lectures on the subject that the Social Media is only part of the solution. Other parts are the Customer Advocacy and the of course the Marketing strategy on different levels. I explain them that you should not start investing (or rather throwing) money in social Media strategies if you do not first address the issues in the (E)-Marketing Strategy Pyramid.
Borrowed from the well-known Hierarchy of Needs Maslow model my pyramid simply says that in order to be able to apply any Web 2.0 / Social Media strategies you should consistently address ALL lower levels of the model. In simple words you can not have Social Media ambitions with lousy products and customer service, a marketing organization in a permanent state of winter sleep and a dysfunctional web site that was last updated in the previous century.
Anecdotal evidence indicates that indeed such situations are not the exception. I recently read the post of Tom Davenport and the post of Umair Haque in the HBR blog that discuss the problem from different angles.
For those who want to address effectively some of the issues arising I have a few simple advices. Before you start talking about Social Media Marketing:
- Place yourself in the place of your customer
- Try to listen (and hear) the real customer voice
- If you have outsourced your customer service to a Call Center break today the contract with them (if possible). If you do not do this you can never apply the first two advices
- Look to your organization carefully and without bias (or maybe let someone else to look to it).
- Have you ever heard the terms CRM (not the software packages that are called so) and Customer Advocacy? If not go to Google (or maybe in an old fashion library) and try to find out something about them.
The countless Social Media aficionados and self-proclaimed “gurus”, “experts”, “evangelists”, “specialists”, and “prophets” I wrote about earlier are also contributing to the confusion; a very similar picture to the dot.com frenzy that some of us still remember but obviously many of us have already forgotten.
One of the big management fallacies (shared and distributed by most of the ignorant “experts”) is that the logos of the trendy apps on the web site will make customers believe that things have suddenly changed: our products got better, the customer service works, we listen to the customer. Some serious research is of course necessary here to see whether these management perceptions have anything to do with reality and whether the introduction of Social Media is really by itself leading to any improvements.
Until such evidence is available I would rather advice some cautiousness: the Social Media is not the silver bullet. I consistently explain to those who follow my lectures on the subject that the Social Media is only part of the solution. Other parts are the Customer Advocacy and the of course the Marketing strategy on different levels. I explain them that you should not start investing (or rather throwing) money in social Media strategies if you do not first address the issues in the (E)-Marketing Strategy Pyramid.
Borrowed from the well-known Hierarchy of Needs Maslow model my pyramid simply says that in order to be able to apply any Web 2.0 / Social Media strategies you should consistently address ALL lower levels of the model. In simple words you can not have Social Media ambitions with lousy products and customer service, a marketing organization in a permanent state of winter sleep and a dysfunctional web site that was last updated in the previous century.
Anecdotal evidence indicates that indeed such situations are not the exception. I recently read the post of Tom Davenport and the post of Umair Haque in the HBR blog that discuss the problem from different angles.
For those who want to address effectively some of the issues arising I have a few simple advices. Before you start talking about Social Media Marketing:
- Place yourself in the place of your customer
- Try to listen (and hear) the real customer voice
- If you have outsourced your customer service to a Call Center break today the contract with them (if possible). If you do not do this you can never apply the first two advices
- Look to your organization carefully and without bias (or maybe let someone else to look to it).
- Have you ever heard the terms CRM (not the software packages that are called so) and Customer Advocacy? If not go to Google (or maybe in an old fashion library) and try to find out something about them.
June 9, 2009
Hippocratic Oath for MBA students: antidote to immoral (or incompetent) management
Something is moving in the horizon: according to the CNN a group of Harvard Business School MBA students, sensitive to "accusations leveled at business schools that they are failing to produce ethically accountable graduates" (CNN June 9, 2009) will give an oath underlying their ethical and societal responsibilities as managers. Readers of this blog know that there were a few occasions that I discussed the nature of the business education today as a possible cause for the corporate lack of responsibility and greediness that has lead to the well known corporate scandals of the last ten years and to the latest financial and economic meltdown. Let's hope that the initiative of the Harvard MBA students and the article of Rakesh Khurana and Nitin Nohria in the HBR, proposing the Hippocratic Oath for managers will be the beginning of change and improvement in corporate management ethics.
Subscribe to:
Posts (Atom)