social media the organisational change agent


Photo thanks to riklomas

I came across two new reports on how connectedness, new touchpoints and feedback loops are affecting organisations, the marketing function and “where it sits”, and also increased customer centricity. They sum up the greater context, and the combined reasons, for some of the organisational changes (or needs for) that need to happen. One report from McKinsey (We Are All Marketers Now) and one from Forrester commissioned by Dell (Social Listening).

Forrester found that organizations across various industries that have implemented listening and digital engagement initiatives are starting to see impressive business returns.
– Forrester

You often hear negative voices on showing ROI from social media within marketing and it’s a fair point because getting measurements right isn’t that easy and, obviously, neither is actually generating a positive ROI. But a positive ROI should be delivered through social media implemented into, and used by, the whole organisation and not just marketing, which changes the ROI conversation, the investments and the over-all value it brings. You might even argue that it redefines marketing, which is what McKinsey are arguing.

In the era of engagement, marketing is the company… In essence, companies need to become marketing vehicles, and the marketing organization itself needs to become the customer-engagement engine…
– McKinsey

In today’s marketing environment, companies will be better off if they stop viewing customer engagement as a series of discrete interactions and instead think about it as customers do: a set of related interactions that, added together, make up the customer experience.
– McKinsey

Which means there’s an increased need for designed and coherent interactions that stem from a better agreed understanding of who the brand is and its meaning in people’s lives. If it’s too much for one person to be responsible for customer engagement, then companies (realistically larger size ones) might consider having one for every function within the organisation, who can then liaise with each other in order to cross the boundaries that exist between sales, marketing, customer service etc.

The marketing organisations new look, 4 key dimensions identified by McKinsey

Distribute more activities
If marketing is the company, the distribution of marketing activities changes.

More councils and partnerships
As distribution of activities change, new needs for synchronization and collaboration cross-boundaries emerge.

Elevate the role of customer insights
With more and better feedback loops and data waiting to be tapped – all aspects of the company can and must benefit.

More data rich and analytically intense
Apparently Zynga generates and captures five terabytes of customer data every day. Wow!

Helping companies understand and benefit from social media is enough to realise that we’re looking at some major organisational issues. It’s all organisational, and organisations are tricky. It’s complex and it’s slow. It means shifting incentives, responsibilities and accountabilities. Many companies are going to have huge problems for a long time, and some companies offering organisational change management are going to get rich…

Social media is helping bring companies closer together internally, and perhaps it’s even the strongest catalyst for better cooperation, cross-department co-operation and incentivising for over-all collaboration. Quite an important roll.