Recently in Business relationships Category

On my earlier post on Social CRM Larry Irons asked a great question about how organizations can engage effectively with their customers and partners when much of their customer support is outsourced.

While there are no easy answers, there are two organizational capabilities that are increasingly critical for success. The first is developing clear strategies for what should be done inside the organization, and what should be done outside. These are difficult decisions to make, and even harder to implement well.

The second capability is aligning business processes with your external partners. In the following excerpt from Chapter 3 of Living Networks (available for download here), I describe the approaches call center giant Convergys takes to try to align culture and process with its clients.

At 6:53pm on November 9, 1989, an official of the East German government stated in a press conference that a new policy had been instituted to allow its citizens to travel to the West. Within minutes mobs formed outside the Berlin Wall. Before long the first bold few scrambled over the Wall unscathed, unlike the 61 people shot dead trying to escape during its grim 28-year history, while others grabbed hammers and anything else they could find to begin destruction of the hated barrier to freedom. An artificial, rigid, and guarded boundary dividing a country and millions of families had succumbed to the fluidity of the times. The same sense of rigidity and boundaries were also evident in the Eastern Germany economy. The East Berlin post office, before the fall, incorporated not just a restaurant and kindergarten for its employees, but also an auto repair shop and fishery. The difficulties in getting anything done meant that managers put boundaries around their organizations and tried to do everything possible inside them, resulting in immense duplication within the economy.

I recently had a chat with R "Ray" Wang of Altimeter Group about what we're up to and our respective business models. Among other things, Ray said that Altimeter wants to work in new spaces that others aren't covering. ERP is boring. But Social CRM, for example, is on the leading edge of where value is being created, but traditional analyst firms are not working.

As a recent entrant to the market (the firm was founded in July 2008 by Charlene Li and now has 7 partners), Altimeter has the flexibility to use different approaches to the existing large firms. In this case, instead of charging in the thousands of dollars for a cutting-edge analyst report, it has launched Social CRM: The New Rules of Relationship Management for free, enabling anyone to embed it on their own site, as I have below.

I was recently interviewed for a report created by the executive forum Vistage, titled 12 Trends That Will Define Business in the "New Normal".

One of the key trends covered in the report in which they drew on my thoughts is reputation management, excerpted below.

Trend 7: Reputation Management

Earlier this week I did the opening keynote at the AMP Hillross annual convention, with the title of Embracing the Future. Hillross, one of the most upmarket of the wealth management networks, is seeking to lead the rest of the market by shifting to a pure fee-for-advice model, and rapidly developing a true professional culture. My keynote was designed to bring home the necessity of individual and firm leadership at this key juncture in industry structure.

One of the central themes of my talk was the increasing importance of reputation for professionals. Clearly reputation has always been critical for any professional, and there are some parts of professional services markets where reputation is already highly visible, such as prominent M&A lawyers, who are identified by numerous client surveys. While clients of other professional services (for example audit or management consulting) tend to be more focused on engaging firms rather than individuals, there is a fundamental shift from corporate to individual reputation under way.

I am running a two-day executive program on Relationship Management for Financial Services in Kuala Lumpur on 28-29 January, organized by IBN International. The workshop will be attended by executives from a variety of local and global financial institutions in South-East Asia.

Over the last few years I have spent less time on these issues as I've broadened my scope to look at the future of business, however much of my earlier career was in financial services, working at Merrill Lynch and Thomson Financial, and my focus was for a number of years on high-value client relationships, best expressed in my book Developing Knowledge-Based Client Relationships. As such , in the late 1990s and the first years of the following decade I did considerable work with major financial institutions on enhancing their client relationship capabilities.

Increasingly, the key client programs applied in corporate and insitutional banking and the CRM initiatives implemented in retail and private banking are coming together. The shift to online and data-driven relationships has facilitated that shift.

To help explain some of the key drivers of CRM programs from a "knowledge-based" perspective, I have created a Knowledge-Based CRM Framework which I will use in the executive program in KL. This will complement my existing content and frameworks on high-value relationships, which are summarized in Chapter 6 of Developing Knowledge-Based Client Relationships. Hopefully the framework below is largely self-explanatory, however I will try to find the time at a later stage to explain the framework in more detail.

Click on the image to download Knowledge-based CRM Framework

Last week I did the keynote presentation in a webinar run by ITNews and Oracle on How to spark sales using social media apps.

My presentation was titled The Future of Sales is Social. The slides are below, and you can listen to the on demand webinar here (registration required).

Taken in the context of many people being unsure about the value of social media for business, it is worth looking at the many ways that social media are directly applicable to the B2B sales process. Just some of those are in this slide from my presentation.

I absolutely believe that the future of sales is social, and that social media in their various forms will quickly become central to the way salespeople and sales teams work.

Given my background in high-value client relationships as well as social media I expect to be spending a lot of time over the next while exploring precisely how sales teams can best use social media in successfully engaging with their clients and prospects. I'll keep you posted.

In March I gave the opening keynote at the Direct Selling Association's conference, talking about the breadth of opportunities in the economy and the role online social networks and communication might play in the future of the industry. From what I learned by preparing for and giving the keynote, I wrote a brief piece Six Key Insights into the future of the Direct Selling Industry.

Last week ABC TV did a short segment looking at the success of the direct selling industry during the downturn, and where it is likely to go from here, shown below. An excerpt from an interview with me was included in the program. During the interview I discussed the perception challenges of the industry, the role of generational change, and the use of social technologies in direct selling.

While it wasn't included in the final TV segment, in the interview I discussed the emergence of 'social commerce' as the likely center of much economic activity, and the potential for elements of the direct selling industry as we know it to morph into creating real in that space. The opportunity is there, however we have yet to see whether the industry will take it.

I was interviewed this morning on Sky Business Tech Report. Some of the things we discussed in the interview are:

* How social media such as Facebook, Twitter, YouTube and many others change how companies engage with customers, become more efficient, and being competitive.

SmartCompany magazine is running a webinar on Monday 16 November at 2pm: How Small and Mid-Sized Companies are Using Technology to Drive Business Success.

The webinar will provide a preview to some of the outstanding content at SME Technology Summit.

Amanda Gome, Publisher of SmartCompany, will moderate the discussion and share some of her insights in running a young and rapidly growing company, as well in covering the best of what's happening in small and mid-sized business in Australia.

Matt Barrie, CEO of Freelancer.com, will discuss how companies can best take advantage of online outsourcing to build efficiencies, scale operations, and grow companies rapidly.

Suzi Dafnis, Community Director of Australian Businesswomen's Network, will draw on her extensive experience in building online communities using blogs, forums and other tools.

David James, CEO of Brasserie Bread, will share how he has rapidly grown a real-world business using Twitter and other social media tools.

See the full SME Technology Summit agenda for details of what they will be speaking about and where they fit into the array of valuable content available on the day.

And be sure to register for the webinar to get these speakers great insights! There will be three complimentary passes to the Summit drawn at the end of the webinar.

The Age today has an interesting article titled Outsourcing on steroids that looks at the array of online technologies that are enabling the outsourcing of small tasks and the crowdsourcing of design, innovation, and other key business functions.

I've noticed that in just the last few weeks mainstream media coverage of online service exchanges and crowdsourcing tools is picking up. As the article in the The Age concludes, "it’s certain crowd sourcing is a key business trend for the future". The

The article quotes me in two different sections:

Although odesk and similar sites such as elance.com are known for being a meeting place where businesses can access very low cost services, crowd sourcing is not just about finding the cheapest service provider possible.

Futurist Ross Dawson says: “Online services exchanges are places where anyone anywhere can get people to perform services; it’s about the development of a global talent economy. Some services are commoditised – you might want someone to count the number of tennis balls in a photo for the lowest price possible. But they also allow you to find the best person for the job and price isn’t always the primary factor why you hire someone, sometimes it’s more about finding talented people. I use odesk and the last person I hired wasn’t in Egypt or Latvia he was in New York.”

This idea of how best to tap the most talented - rather than the cheapest - professionals in the global market is the subject of my next book. I'll be writing a lot more about this on my blog.

Later in the article:

There's a great article in the latest issue of B&T Today on how Westpac, one of Australia's big four banks, is approaching working with its advertising and creative agencies. Here are a few choice excerpts from the article, which is well worth a read in its entirety.

Jee Moon, director of brand and marketing at Westpac [said] that an agency roster based on co-creation, not simply collaboration, is key to establishing and maintaining a strong brand identity.

She added the “one stop shop”, integrated agency model in Australia had “never materialised” and that a rostered agency model based on co-creation in which agencies do not simply coexist but coproduce was key to developing and maintaining a strong brand positioning.

“At Westpac we have moved from a contractual agency model, which we had with the Red House when there was little to bind the agencies together apart from a piece of paper, to a system of collaboration where our partners work together as a community of experts, and are currently striving for a true, co-creation model,” Jee said of her agency partners The Campaign Palace, Yello and Lavender.

ABC TV ran a segment a few days ago on how companies are using Twitter to create value, including an interview with me on how businesses can use Twitter effectively.

This should be a topic of particular interest to small and mid-sized companies. If you are interested in learning more, SME Tech Summit in Sydney on 1 December will include specific in-detail coverage of how your company can use Twitter (as well as other social media tools) to build your success.

Comments made during the program include:

* Experts say Twitter is here to stay
* Twitter has become a legitimate business tool
* When you don't have much money to spend, Twitter can be an excellent way to promote your business
* You need to be conversational and human to engage your customers
* There are ways that companies in any industry to use Twitter
* It is hard to do properly, and you do need to be consistent if you start
* Twitter is here to stay as part of companies' branding strategy

A couple of years ago Deloitte tempted John Hagel away from independent consulting to co-chair a new think-tank, now called the Deloitte Center for the Edge. I have been a long-time fan of John’s work, and find many parallels with my own path and research.

The Center recently released its first major study, the Shift Index, which was accompanied by an article in the July-August issue of Harvard Business Review, titled The Big Shift: Measuring the Forces of Change.

When the Shift Index was first announced, I was immediately drawn to look more closely because of its first key finding:

The performance gap between winners and losers has increased over time, with the “winners” barely maintaining previous performance levels, while the losers experience rapid deterioration in performance.

This matches exactly one of the main messages I have been preaching since the beginning of the recession, for example in my keynotes at the MegaTrends conference in Abu Dhabi and my TEDx presentation in San Francisco on Future of the Enterprise: this is a time of increasing divergence in organizational performance, and adopting new strategies and activities is essential to avoid rapid erosion in competitiveness.

The Insight Exchange is going from strength to strength. Its next major event is the SME Tech Summit, to be held on 1 December in Sydney. The Insight Exchange’s CEO Beth Etling has put together an extraordinary agenda for what will be a landmark event in the space. Keynote speakers include Tim Pethick of Nudie fame (see interview with Tim on the event blog) and the always-provocative and insightful Mark Pesce. Check out the complete agenda for the rich array of content and learning that will be available on the day.

Go to the registration page to see the very attractive offers and great early bird specials, which expire 31 October.

How did the event come about? It is now clear to anyone in business that technology is fundamental to how they work and bring in revenue. However only a small minority of companies have both the resources to use technology effectively, and the ability to keep on top of fast-moving but absolutely critical trends such as cloud computing and social media. There is a massive opportunity to assist smaller and mid-market businesses to deal with these issues.

Yesterday I did a keynote for Publishers Australia on Creating the Future of Media, pointing to driving forces, key strategic issues, and action items for media companies today, with Iggy Pintado also presenting on leveraging social media in publishing.

The event attracted more attendees than any similar event organized by Publishers Australia so far, so clearly these issues are at the top of the agenda for the industry.

The slides to my presentation are below. As always, note that these slides are designed to accompany my presentation, NOT to be meaningful as stand-alone information. However many people tell me they still find value in the slides even without being able to attend my keynotes, so feel free to peruse them!

To complement the slides, here is a brief description of the Six Strategic Issues I covered in the presentation:

1. Scaling