As 2009 and the decade of the 00’s come to an end, it is interesting to think about what will make a truly good company in the years to come. In the past, companies that made a profit, paid taxes, and provided employment were thought to be ‘good’ based on financial success alone. When they exceeded financial expectations, they were considered great. The higher the profits, the stronger the brand image became.
Then the economic crisis hit, along with the potential destabilization of the entire system, and the wisdom of pursuing profits at all costs turned out to have a price tag after all.
Now once again, times are changing. Post our entry into the Great Recession, a ‘good’ company has been redefined as one that adds value outside the realm of financial success. At the same time, social media has deconstructed the closed corporate culture, creating a transparency that provides consumers with an inside look at a company’s guiding principles.
The rise of Corporate Social Responsibility (CSR) has taken hold, and consumers are increasingly choosing to support companies that hold dear their own values, rather than simply produce a profit.
Here is a current snapshot of Consumer Sentiment, courtesy of Tim Sanders in Saving the World at Work:
-65% of Americans are willing to switch to brands that are associated with a good cause if the price and quality are relatively equal
-Two thirds of recent college graduates surveyed claim that they will not work for a company with a poor reputation for social responsibility
-Almost half of all consumers say they use the Internet to figure out if the products they buy are socially responsible
As it turns out, CSR is good for business as well. A recent global McKinsey survey indicated that a corporation’s environmental, social and governance programs create financial value by enhancing the reputation of companies. New philanthropy is not about writing checks, but rather leveraging corporate resources to help the communities address problems like hunger, poverty, and literacy. Smart companies are satisfying customer needs while letting them feel good about their patronage.
Just like anyone who has gone through a crisis and come out the other side, Americans have recently grown up some. We now recognize the benefits of being outwardly focused, and are smart and connected enough to become very powerful advocates for change.
As we turn the page on this decade, it is encouraging to see that the change in ourselves as consumers has brought about a powerful change in the culture of American business. We now save our admiration for companies that deliver financially, but that are also grounded by a value system that mirrors our own. As Warren Buffet recently said at Columbia University, “Having sound principals takes you through everything.”
Let’s hope next year more companies start to realize that they can do well by doing good.
Thursday, December 10, 2009
Tuesday, November 10, 2009
Winston Churchill is Now on Twitter
Defining Leadership for the 21st Century
Winston Churchill was a leader that would fit right in with today’s social media culture. In his time, Churchill’s astute observations delivered with brevity and wit helped to build what would become his towering reputation. Although public speaking was the primary medium of the day, Churchill was a prolific writer who came up with some of the best, less-than 140 character quotes in history. Consider this example:
“History will be kind to me, for I intend to write it.”-Winston Churchill
A true leader can be defined as someone whom others are willing to follow, no matter the consequences. The ability to communicate a vision and set a new course of action during times of crisis is especially difficult. Churchill’s commanding presence on the world stage was a result of his talent to use language to persuade, convince and sway public opinion toward his way of thinking.
Today, the entire structure of communications as we know is irrevocably changed. While Twitter documents the minutia of our daily lives, Facebook showcases our weekend updates, and LinkedIn tracks our every career move. Corporate leaders have to work harder than ever to communicate their vision and get others to follow them. Social media has become the great equalizer. We now expect heads of companies to talk to us directly, to engage in online brand discussions, and to respond to questions in real time.
Many CEOs today are notoriously reluctant to engage social media. The confidence to share ideas and enter into public discussions through micro blogging does not come easily. The very idea of opening up to customers, constituents, and colleagues can be unnerving for business leaders. A common reaction is analysis paralysis. Companies decide to stay on the sidelines, opting for security over strategy.
Prior to the onslaught of social media, this may have worked. CEOs were shielded from public scrutiny. Companies controlled their message, and minimized communication channels. Today this is no longer an option. Companies can either talk about themselves, or somebody else will. The blogosphere is filled with commentary about brands, companies and the executives who lead them.
Those reluctant to engage in social platforms are missing the point. New ways to communicate directly with constituents is empowering. Leaders now have the potential to use words and ideas to build follower communities and brand enthusiasts. Micro blogging creates a personal narrative, which allows executives to be seen as real people. This skill can be learned and integrated into a company’s communications strategy. CEOs can directly influence public perception about themselves and their brands.
"There is no such thing as public opinion. There is only published opinion." -Winston Churchill
While many executives see only the risk of social media, others see the potential to demonstrate their commitment to customers and causes. Leaders like Tony Tseih of Zappos, and Jeff Swartz of Timberland are excellent examples of CEOs that successfully use Twitter to provide an inside look at their business. Mr. Tseih has been credited with a social media strategy that attracted the attention of Jeff Bezos, who acquired the company last summer. Mr. Swartz uses social channels to focus attention on climate change initiatives. Founder of Digg, Kevin Rose, is a prolific micro blogger. With over a million followers and 3,000 Tweets, Rose shares both business and personal insights on a daily basis. Like many early adopters, he uses Twitter as his own private broadcast network.
One of my favorite Twitter CEOs is Blake Mycoskie, the founder of TOMS Shoes. TOMS provides a pair of shoes to a child in need for every TOMS shoe purchase. Mycoskie tweets about the people he meets, international travel, and ideas that interest him. Continuous updates about work, play, and core values help to humanize a CEO, which in turn humanizes the brand. Over time this creates a new breed of loyalty; as customers begin to feel that they are following the tweets of a trusted friend.
A New Kind of Leadership
Winston Churchill’s style was to communicate constantly. He interpreted events as they unfolded, and explained what he intended to do about them. He was a real time communicator, which is analogous to today’s social media culture. During some of the worst bombing raids in Great Britain’s history, Churchill provided comfort to an increasingly desperate country with a few, well chosen words:
"These are not dark days: these are great days - the greatest days our country has ever lived."
Today we are all engaged in writing our own history, one micro blog at a time. That history includes defining who we are as people, as corporate citizens, and demonstrating values that go beyond bringing products to market. In a relationship economy, people are looking for a reason to work with you, to buy your products and to trust you. With the widespread adoption of social media, companies can shine a light on all the good they are doing for their business, community, employees and customers.
Leaders cannot be all things to all people, but they can certainly be true to themselves. Developing a culture where executives are forthcoming and transparent will change the leadership dynamic forever.
If Winston Churchill really were on Twitter, this would have been his most insightful Tweet ever.
“You have enemies? Good. That means you've stood up for something, sometime in your life."
Winston Churchill was a leader that would fit right in with today’s social media culture. In his time, Churchill’s astute observations delivered with brevity and wit helped to build what would become his towering reputation. Although public speaking was the primary medium of the day, Churchill was a prolific writer who came up with some of the best, less-than 140 character quotes in history. Consider this example:
“History will be kind to me, for I intend to write it.”-Winston Churchill
A true leader can be defined as someone whom others are willing to follow, no matter the consequences. The ability to communicate a vision and set a new course of action during times of crisis is especially difficult. Churchill’s commanding presence on the world stage was a result of his talent to use language to persuade, convince and sway public opinion toward his way of thinking.
Today, the entire structure of communications as we know is irrevocably changed. While Twitter documents the minutia of our daily lives, Facebook showcases our weekend updates, and LinkedIn tracks our every career move. Corporate leaders have to work harder than ever to communicate their vision and get others to follow them. Social media has become the great equalizer. We now expect heads of companies to talk to us directly, to engage in online brand discussions, and to respond to questions in real time.
Many CEOs today are notoriously reluctant to engage social media. The confidence to share ideas and enter into public discussions through micro blogging does not come easily. The very idea of opening up to customers, constituents, and colleagues can be unnerving for business leaders. A common reaction is analysis paralysis. Companies decide to stay on the sidelines, opting for security over strategy.
Prior to the onslaught of social media, this may have worked. CEOs were shielded from public scrutiny. Companies controlled their message, and minimized communication channels. Today this is no longer an option. Companies can either talk about themselves, or somebody else will. The blogosphere is filled with commentary about brands, companies and the executives who lead them.
Those reluctant to engage in social platforms are missing the point. New ways to communicate directly with constituents is empowering. Leaders now have the potential to use words and ideas to build follower communities and brand enthusiasts. Micro blogging creates a personal narrative, which allows executives to be seen as real people. This skill can be learned and integrated into a company’s communications strategy. CEOs can directly influence public perception about themselves and their brands.
"There is no such thing as public opinion. There is only published opinion." -Winston Churchill
While many executives see only the risk of social media, others see the potential to demonstrate their commitment to customers and causes. Leaders like Tony Tseih of Zappos, and Jeff Swartz of Timberland are excellent examples of CEOs that successfully use Twitter to provide an inside look at their business. Mr. Tseih has been credited with a social media strategy that attracted the attention of Jeff Bezos, who acquired the company last summer. Mr. Swartz uses social channels to focus attention on climate change initiatives. Founder of Digg, Kevin Rose, is a prolific micro blogger. With over a million followers and 3,000 Tweets, Rose shares both business and personal insights on a daily basis. Like many early adopters, he uses Twitter as his own private broadcast network.
One of my favorite Twitter CEOs is Blake Mycoskie, the founder of TOMS Shoes. TOMS provides a pair of shoes to a child in need for every TOMS shoe purchase. Mycoskie tweets about the people he meets, international travel, and ideas that interest him. Continuous updates about work, play, and core values help to humanize a CEO, which in turn humanizes the brand. Over time this creates a new breed of loyalty; as customers begin to feel that they are following the tweets of a trusted friend.
A New Kind of Leadership
Winston Churchill’s style was to communicate constantly. He interpreted events as they unfolded, and explained what he intended to do about them. He was a real time communicator, which is analogous to today’s social media culture. During some of the worst bombing raids in Great Britain’s history, Churchill provided comfort to an increasingly desperate country with a few, well chosen words:
"These are not dark days: these are great days - the greatest days our country has ever lived."
Today we are all engaged in writing our own history, one micro blog at a time. That history includes defining who we are as people, as corporate citizens, and demonstrating values that go beyond bringing products to market. In a relationship economy, people are looking for a reason to work with you, to buy your products and to trust you. With the widespread adoption of social media, companies can shine a light on all the good they are doing for their business, community, employees and customers.
Leaders cannot be all things to all people, but they can certainly be true to themselves. Developing a culture where executives are forthcoming and transparent will change the leadership dynamic forever.
If Winston Churchill really were on Twitter, this would have been his most insightful Tweet ever.
“You have enemies? Good. That means you've stood up for something, sometime in your life."
Monday, October 19, 2009
In Wine there is Truth. Social Philanthropy has Arrived.
Last week Biz Stone announced that Twitter will launch a program in partnership with Room to Read, the non-profit literacy organization headed by CEO John Wood. Crushpad, whose mission is to democratize the wine industry, will collaborate with Twitter, whose mission is to democratize access to information throughout the world.
Social Philanthropy has arrived. Twitter staff will participate in making two wines, a Pinot Noir and a Chardonnay with Crushpad (www.crushpad.com), a San Francisco based custom winery. We the people are invited to follow the progress of winemaking on Twitter, and pre-order the wine at a reduced $20 dollars per bottle here www.fledglingwine.com.
The best part is that $5 from every bottle will go directly to Room to Read, an organization that BRANDfog supports through our work and that of our CEO clients. Room to Read enables literacy programs in some of the poorest regions in the world. BRANDfog supports this organization based on one simple truth. If you can read, you can do anything.
You can follow updates, participate in a Social Philanthropy, and feel good all at the same time at: www.fledglingwine.com. What a great corporate holiday gift idea.
Social Philanthropy has arrived. Twitter staff will participate in making two wines, a Pinot Noir and a Chardonnay with Crushpad (www.crushpad.com), a San Francisco based custom winery. We the people are invited to follow the progress of winemaking on Twitter, and pre-order the wine at a reduced $20 dollars per bottle here www.fledglingwine.com.
The best part is that $5 from every bottle will go directly to Room to Read, an organization that BRANDfog supports through our work and that of our CEO clients. Room to Read enables literacy programs in some of the poorest regions in the world. BRANDfog supports this organization based on one simple truth. If you can read, you can do anything.
You can follow updates, participate in a Social Philanthropy, and feel good all at the same time at: www.fledglingwine.com. What a great corporate holiday gift idea.
Tuesday, October 6, 2009
Panic Can Also Spread Virally
This fall the H1N1 Swine Flu has the potential to cause irrational fear and widespread panic, in addition to the real threat of sickness and death. The government is trying to ready themselves for both aspects of the potential epidemic. The real risk is the spread of the contagion across the population, but health officials are also bracing themselves for misinformation that can spread fast and furiously through social media channels.
Swine Flu vaccinations began this week, and health care workers, pregnant woman and child care providers are among the first to be vaccinated. Although deemed perfectly safe by the C.D.C, officials are worried that unrelated health problems may mistakenly be connected to the Swine Flu vaccine. Separating the incidents of naturally occurring strokes, heart attacks, miscarriages and death from the coincidence of receiving the vaccine will be a big challenge for health officials this year.
Managing the public perception about the Swine Flu, and keeping the population calm and well informed is shaping up to be the Super Bowl of public relations challenges for the government . With incessant social media chatter and the 24 hour news cycle, serious consideration needs to be given to the question of how we can control the flow of global information during times of crisis.
Fortunately, the C. D.C. is prepared to provide rapid-fire communications and information which is widely available through many social media channels. Press conferences can be seen live on the agency’s website, flu.gov, and updates are available through many social media outlets such as Facebook , Twitter, MySpace, and YouTube. All of these channels and more can be found at http://www.cdc.gov/socialmedia/.
So what else can the C.D.C. do for population? In addition to providing an outgoing, one-way flow of information, the C.D.C. would be wise to take advantage of the higher level of engagement that social media offers. By monitoring and then quickly responding to trending topics on Twitter, Facebook, YouTube and the blogosphere, they can build credibility and defuse rumors and fears before they can spread virally and cause real harm.
Swine Flu vaccinations began this week, and health care workers, pregnant woman and child care providers are among the first to be vaccinated. Although deemed perfectly safe by the C.D.C, officials are worried that unrelated health problems may mistakenly be connected to the Swine Flu vaccine. Separating the incidents of naturally occurring strokes, heart attacks, miscarriages and death from the coincidence of receiving the vaccine will be a big challenge for health officials this year.
Managing the public perception about the Swine Flu, and keeping the population calm and well informed is shaping up to be the Super Bowl of public relations challenges for the government . With incessant social media chatter and the 24 hour news cycle, serious consideration needs to be given to the question of how we can control the flow of global information during times of crisis.
Fortunately, the C. D.C. is prepared to provide rapid-fire communications and information which is widely available through many social media channels. Press conferences can be seen live on the agency’s website, flu.gov, and updates are available through many social media outlets such as Facebook , Twitter, MySpace, and YouTube. All of these channels and more can be found at http://www.cdc.gov/socialmedia/.
So what else can the C.D.C. do for population? In addition to providing an outgoing, one-way flow of information, the C.D.C. would be wise to take advantage of the higher level of engagement that social media offers. By monitoring and then quickly responding to trending topics on Twitter, Facebook, YouTube and the blogosphere, they can build credibility and defuse rumors and fears before they can spread virally and cause real harm.
Wednesday, August 12, 2009
Philanthropy is the Gateway to Power
“Philanthropy is the gateway to power… there are few people who decide what will happen in our world. You have been invited to join them – pull back the curtain and take your seat.” Roger Sterling, Mad Men
While watching Mad Men Season 2 last week, suddenly, mid-episode, I was brought up short by a show-stopping quote from Roger Sterling. Sterling, the senior partner at the fictitious Sterling Cooper Agency circa 1962, tells his Creative Director Don Draper that he’s been invited to join an arts foundation board. Looking puzzled, Don asks “What does that mean?” Without skipping a beat, Roger Sterling says “Philanthropy is the gateway to power.”
And so it was. For generations, it was the wealthy and powerful that sat on Foundation Boards and decided how important resources would be distributed and determined who had the most urgent need. Philanthropists from that era supported societal institutions, like the New York City Public Library, the Ballet, and the Metropolitan Museum of Art. Less attention was paid to local community organizations that struggled daily with the more pedestrian problems of hunger, unemployment, and education.
But times have changed. With the emergence of global social media and the lightning speed of the Internet, the ease of mobilizing people through Twitter, Facebook, LinkedIn, and a hundred other channels is staggering. We can now use technology to unleash support and create awareness with a broad base of social givers. People of all stripes are engaged with causes, political events and environmental issues. The term for this is “new philanthropy,” which means employing accountability and entrepreneurship to address some of the most troublesome societal problems of our time, such as poverty, global literacy, and disease.
In my business, we help CEOs to get involved with philanthropy on a number of levels. Without exception, the CEOs we work with are high achieving, passionate, hard driving individuals by nature. Powerful and influential, they are natural-born leaders whom others tend to want to follow. When it comes to philanthropy, they lead by example.
When CEOs engage with a cause they care about, everybody wins. The philanthropic organizations benefit from the passionate enthusiasm of a leader who spreads the word and influences others to get involved. The CEO experiences a deep level of satisfaction from producing results, and truly making a difference in the lives of others. The companies enjoy the invaluable benefits of brand association with a philanthropic enterprise. Employees have the opportunity to get behind a good cause, and take ownership over what their brand represents to the outside world. Not a bad way to become a good corporate citizen.
To use a quote from JKF’s 1961 inaugural speech that even Don Draper would appreciate,
“The torch has been passed to a new generation of Americans…. The world is very different now, for man holds in his mortal hands the power to abolish all forms of human poverty. “
While watching Mad Men Season 2 last week, suddenly, mid-episode, I was brought up short by a show-stopping quote from Roger Sterling. Sterling, the senior partner at the fictitious Sterling Cooper Agency circa 1962, tells his Creative Director Don Draper that he’s been invited to join an arts foundation board. Looking puzzled, Don asks “What does that mean?” Without skipping a beat, Roger Sterling says “Philanthropy is the gateway to power.”
And so it was. For generations, it was the wealthy and powerful that sat on Foundation Boards and decided how important resources would be distributed and determined who had the most urgent need. Philanthropists from that era supported societal institutions, like the New York City Public Library, the Ballet, and the Metropolitan Museum of Art. Less attention was paid to local community organizations that struggled daily with the more pedestrian problems of hunger, unemployment, and education.
But times have changed. With the emergence of global social media and the lightning speed of the Internet, the ease of mobilizing people through Twitter, Facebook, LinkedIn, and a hundred other channels is staggering. We can now use technology to unleash support and create awareness with a broad base of social givers. People of all stripes are engaged with causes, political events and environmental issues. The term for this is “new philanthropy,” which means employing accountability and entrepreneurship to address some of the most troublesome societal problems of our time, such as poverty, global literacy, and disease.
In my business, we help CEOs to get involved with philanthropy on a number of levels. Without exception, the CEOs we work with are high achieving, passionate, hard driving individuals by nature. Powerful and influential, they are natural-born leaders whom others tend to want to follow. When it comes to philanthropy, they lead by example.
When CEOs engage with a cause they care about, everybody wins. The philanthropic organizations benefit from the passionate enthusiasm of a leader who spreads the word and influences others to get involved. The CEO experiences a deep level of satisfaction from producing results, and truly making a difference in the lives of others. The companies enjoy the invaluable benefits of brand association with a philanthropic enterprise. Employees have the opportunity to get behind a good cause, and take ownership over what their brand represents to the outside world. Not a bad way to become a good corporate citizen.
To use a quote from JKF’s 1961 inaugural speech that even Don Draper would appreciate,
“The torch has been passed to a new generation of Americans…. The world is very different now, for man holds in his mortal hands the power to abolish all forms of human poverty. “
Wednesday, July 22, 2009
Social Media Engagement Leads to Increased Revenue
In a compelling study just released by Charlene Li and the Altimeter Group, a link was firmly established between social media engagement and better financial performance for 100 most valuable corporate brands. This was accomplished by correlating the company revenues of these brands with their social media activities over the past 12 months. The brands that had the most strategic interaction through social media platforms enjoyed revenue increases of 18%, while the least engaged companies saw revenues drop by 6% on average over the same period.
To sum up the study’s findings, the key to brand success for the top 10 companies was effective engagement across more than 10 discrete social media channels, including blogs, Facebook, Twitter, wikis, and discussion forums. The winners took a conversational approach to social media channels, and really listened and responded to the comments of constituents.
The reason I like this study is that it helps to validate the ROI of Social Media Branding for companies, and from there it is just a short intellectual leap to understanding the importance of Social Media Branding for CEOs as individuals.
Others have written about the urgency for professionals to make the most of their own unique “personal brand” to advance their careers. I know from experience that executives can derive great benefits from leveraging social media to brand themselves, and to use this platform to wield a great deal of influence among their peers. In other words, social media can solidify personal brand reputations and help executives realize their full potential in the marketplace.
If there is one thing we’ve learned at BRANDfog, it is to believe in the power of social media branding as a tool to broaden life experiences, reshape reputations, and cultivate a wider circle of influence. Social media branding provides senior executives with the means and opportunity to become thought leaders, influence the market, attract new talent, build relationships and expand professional networks.
To sum up the study’s findings, the key to brand success for the top 10 companies was effective engagement across more than 10 discrete social media channels, including blogs, Facebook, Twitter, wikis, and discussion forums. The winners took a conversational approach to social media channels, and really listened and responded to the comments of constituents.
The reason I like this study is that it helps to validate the ROI of Social Media Branding for companies, and from there it is just a short intellectual leap to understanding the importance of Social Media Branding for CEOs as individuals.
Others have written about the urgency for professionals to make the most of their own unique “personal brand” to advance their careers. I know from experience that executives can derive great benefits from leveraging social media to brand themselves, and to use this platform to wield a great deal of influence among their peers. In other words, social media can solidify personal brand reputations and help executives realize their full potential in the marketplace.
If there is one thing we’ve learned at BRANDfog, it is to believe in the power of social media branding as a tool to broaden life experiences, reshape reputations, and cultivate a wider circle of influence. Social media branding provides senior executives with the means and opportunity to become thought leaders, influence the market, attract new talent, build relationships and expand professional networks.
Friday, June 26, 2009
Using Social Media to Do Good
We've all seen Ashton Kutcher rise to Internet glory by amassing a Twitter following that now numbers more than 2.3 million. So in a year of soaring unemployment, housing & health care misery, and political instability, who cares about a movie star with a megaphone?
Well sometimes people can surprise you.
A few celebrities and big brands are turning their captive Twitter audiences into “followers” of another sort, by asking them to join into conversations about helping others and donating their time to worthy causes.
Ashton Kutcher and Demi Moore are working with KelloggCares to raise funds to feed the hungry in the US, and using their substantial Twitter following to get people involved. Mashable is transforming social media influencers into cause-marketing advocates by launching The Summer of Social Good. This is the first large scale online charitable campaign to raise funds strictly through the power of Social Media and the Internet. The best part, 100% of the funds collected will be donated to four charities, including Livestrong and the Humane Society.
Social media, celebrity endorsements and the interactive Web have enabled many charitable organizations to extend their geographic reach and increase awareness for many of the philanthropic causes that are especially relevant in today’s economic climate.
It’s always a good time to unite people toward the common good.
Well sometimes people can surprise you.
A few celebrities and big brands are turning their captive Twitter audiences into “followers” of another sort, by asking them to join into conversations about helping others and donating their time to worthy causes.
Ashton Kutcher and Demi Moore are working with KelloggCares to raise funds to feed the hungry in the US, and using their substantial Twitter following to get people involved. Mashable is transforming social media influencers into cause-marketing advocates by launching The Summer of Social Good. This is the first large scale online charitable campaign to raise funds strictly through the power of Social Media and the Internet. The best part, 100% of the funds collected will be donated to four charities, including Livestrong and the Humane Society.
Social media, celebrity endorsements and the interactive Web have enabled many charitable organizations to extend their geographic reach and increase awareness for many of the philanthropic causes that are especially relevant in today’s economic climate.
It’s always a good time to unite people toward the common good.
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