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  • April 2009

    The Social Software Value Matrix

    Mom always told me, “It’s what’s inside that counts.”

    Companies are finally paying attention to how social media affects their business outside the company walls. They recognize the extent to which Twitter, Facebook, Wikipedia, and other mass-collaboration forums present both opportunities and risks. There is excellent thought leadership on the topic, including Wikinomics, Groundswell, and Jeremiah Owyang’s blog, just to name a few.

    Less well understood is the value of launching social software inside companies. Tapscott and Li/Bernoff each devote one chapter, late in their respective books, to “internal wikis” and the “internal groundswell”. External collaboration seems to be the main course for them, while internal is only dessert.

    There are good reasons why super-smart people like Tapscott, Li, Bernoff, and Owyang focus disproportionately on external collaboration. First, external is sexier. External collaboration has far-reaching consequences for a company’s strategy, and even its business model. That’s heady stuff. Internal collaboration, by contrast, is all about working across silos and accelerating decision-making. Only org geeks like me get excited about that. Second, external collaboration has an obvious business owner–the Marketing Department–and therefore an easily identifiable market for books, speeches, and consulting services. The market for internal collaboration is more diverse. It can be IT, the CEO, the COO, HR, Corporate Communications, or no one at all.

    But let’s think about that. If your Marketing department is driving collaboration and the rest of the company isn’t participating, then all you’re getting out of social media is marketing. Marketing is a nice thing, but companies social media generates much more value when companies engage on a deeper level. You want your Product people to have conversations directly with the people who use their products. You want your Support people to talk directly to the people they’re supporting. You want your Salespeople talking directly to their prospects. It’s not just about marketing, it’s about mobilizing your company to interact continuously with the individuals who drive your company’s performance.

    As the CEO of a marketing agency put it to me, “How can we collaborate with our customers when we can’t collaborate with each other?”

    Collaboration requires a huge cultural and operational change for most companies, and a steep learning curve for most employees. They have to overcome their fear of transparency, learn new tools, master new lingo and communications conventions, internalize new ways of working, and change their daily routines.

    It ain’t gonna happen by following Ashton Kutcher on Twitter. If you want your employees to embrace social media, you need them to learn how to use social media for real work. Professional and personal interactions follow completely different norms and patterns.

    The best place for your employees to learn professional social media is inside the company. Thomas Vanderwal was right when he told me that social media adoption is all about comfort. Most employees are intimidated by the openness and transparency of social media. By launching these tools internally–within teams, departments, divisions, business units, etc.–you acculturate your employees in controlled, comfortable environments. You can train them, educate them, watch them, and even (horrors!) let them make a few mistakes. Once your employees get used to using social software inside the company, it’s easy and natural for them to expand their interactions to include customers, channel partners, and even the general public.

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    I think of Enterprise 2.0 adoption as a journey through a succession of benefits. I’ve illustrated them in what I call the “Social Software Value Matrix.” The first step in the journey is pure operational improvement. You’re not really changing the way you do business, just enhancing existing interactions within existing silos. Over time, the tools lead employees to interact in new ways, across silos. This creates cultural change as the company reinvents the way the different pieces of the business interact to create value. Finally, and most dramatically, companies can create new interactions with customers and channel partners. That’s business model transformation, and it only happens when your business is ready for it.

    The good news is that there are benefits to your company all along the journey. By collaborating more effectively internally, your company will achieve better operations, faster decision-making, enhanced innovation, and accelerated cycle-times. Getting there is indeed half the fun.

    And once again, Mom was right.

    Twitter is the new headline: how blogging and social messaging are complementary

    Recently, media critic Jay Rosen mocked this post as dumbest newspaper column about Twitter ever. In the column, a game critic blogger at the New Orleans paper attempted to parody Twitter by writing his review of an xbox game in 140 character increments. The reason the reviewer’s approach is silly is that the columnist misses the complementary relationship between Twitter and blogging. If you are writing an article, you don’t write the article itself on Twitter. You write a normal essay, and then share the link on Twitter with a catchy phrase.

    Is Twitter really killing blogging?

    There is a common meme Twitter is killing blogging, since bloggers are now spending their time and sharing their ideas on Twitter. As Robin Hamman observed last fall in this Headshift post, Twitter (and Facebook) are siphoning off a lot of the energy from personal diary blogging – the proverbial post about what I ate for lunch – or blogging for simple link sharing. Anecdotally, some bloggers observe that they post less frequently because they tweet ideas more often.

    While Twitter may be siphoning blog energy from very short posts, Twitter also increases interest in more substantive blog posts and discussion around blog ideas. An increasing amount of blog traffic is driven by status updates from Facebook and Twitter. Through link posting and “retweets” – the social custom of forwarding a link or quote to one’s Twitter followers, , the social network is used to share and spread interesting posts and call attention to good bloggers. Essentially, Twitter is the new headline.

    Professionals use social messaging to develop ideas.

    On the public internet, reactions and conversation about blog post ideas are taking place in Twitter, in comments on Facebook status updates, and on FriendFeed, a site that aggregates and enables discussion about links and updates from many social media sites together. A number of online journalists are developing rich processes for developing ideas using these social media. Journalism professor Jay Rosen uses phased process, using Twitter for mindcasting short thoughts and links, Friendfeed for assembling links and ideas together with discussion, and his blog to publish long-form essays based on the ideas. Scientist and science blogger Bora Zivkovic writes about a similar social journalistic workflow, carrying the process from ideas shared in Twitter through composing articles and books. Yahoo social design expert and blogger Christian Crumlish has used the workflow starting with Twitter and extending through writing a book, using a wiki as a tool for book editing and feedback for O’Reilly’s Designing Social Interfaces. Using these workflows, these professional journalists and bloggers are developing higher quality ideas and documents through turbo-charged idea sharing and peer review.

    Value in the Workplace

    The relationship between social messaging and blogging can be particularly valuable in the workplace, where social messaging is used to call attention to timely and relevant work-related posts and updates. Sharing blog posts, links and wiki updates using Socialtext Signals enables timely discussion without interrupting people’s work day.

    Making it easy to share and discuss motivates people to write useful posts, and update information on wiki pages, because they know they know the content will be shared, discussed and used with colleagues – they are not just contributing content into a black hole. Socialtext Signals is designed to facilitate this sort of sharing – when adding new content, writers are prompted to share a summary of the update on Signals. And we’re sensitive to business confidentiality – only people who have permission to see the content can see the Signal about the new content.

    In summary, social messaging and blogs are highly complementary. The role of Twitter and Socialtext Signals isn’t to limit thoughts to what can can be expressed in 140 characters or less, it’s to call attention to longer-form writing, and to improve those ideas within the social network. Using the techniques of turbo-charged peer review being developed by professional bloggers and journalists, organizations can use social tools to be smarter and more responsive.

    Diversity Matters

    Today at 10am I Tweeted (and posted to Facebook) “Two new Socialtext employees in Palo Alto today – bringing great energy!”.

    At 11:54 I followed up with “I just realized that one reason why I’m excited by our two new Socialtext employees is that they’re both women!”

    I immediately received several DMs, Facebook wall comments, emails, and other responses saying things like “yikes that last tweet could be taken out of context (possible HR issue)”, or “Should you really be saying that on Twitter?”

    My first reaction was “how could that possibly be misinterpreted?” But then I realized that there are a lot of people who see my tweets who don’t know anything about my personal philosophy and/or could take a short statement out of context. So I decided this was a good opportunity to put some clarifying context out there.

    I grew up on the east coast and was raised pretty much on the Socratic method; as a result I believe that the best ideas should always win, regardless of the source. From a leadership perspective this requires a set of things to be true:

    • The company culture (and the tools and processes that support the environment) need to encourage debate and discourse
    • Norms have to support and encourage debate of ideas on their merits, and discourage debate based on personalities or power – “attack the idea, not the person”
    • The more diversity of experience, perspective, thinking/analysis methodology, and style of debate, the more likely the “best idea” will truly emerge
    • Finally, in order to execute, everyone needs to be able to “disagree and commit”

    It’s the 3rd point here that’s relevant today. I am a true believer in the power and importance of diversity – not just of gender, ethnicity, age, or some other demographic variable – but of experience, business models, and analysis frameworks. That said I have always especially appreciated the different approaches that men and women bring to analytic and problem-solving situations, and have always tried to create environments where different approaches yield better thinking and decisions.

    In fact when I was going through the final discussions about my joining Socialtext as CEO back in the fall of 2007, I made it clear to the existing board members that I really wanted to recruit a woman to my board. I was really proud when we elected Julie Hanna Farris to our board of directors in May of 2008 (http://www.socialtext.com/blog/2008/05/welcoming-julie-hanna-farris-o.html) in which I said ”

    I also wanted to state that I had explictly wanted to add a woman to our board – not for PR reasons – but rather because I believe that diversity benefits decision-making. I’ve always believed that it’s the best idea that should win, and that the best ideas usually emerge from a diverse range of inputs, models, experiences, and perspectives.”

    So that’s the context and I hope it explains why I never even imagined that I could be misunderstood. Still, I thank my Twitter and Facebook friends for pointing out that filling in the context helped clarify my intent.

    How Asymmetry Scales

    Josh Porter predicts at his Bokardo blog that Facebook will go asymmetric. Until now, Facebook has had a “symmetrical” model of social network, where in order to establish a relationship, both sides need to have each other as connections. When you send a “friend request”, the recipient must friend you back so you can see their profile and activity. By contrast, Twitter has an “asymmetric” network. People can follow you, and you don’t need to follow them back for them to see your updates.

    Porter calls out two key reasons why Facebook may go asymmetric. Asymmetric networks are a a good fit for anyone with a level of community fame, not just organizations, consumer brands and popular bands. Facebook is making it’s “Pages” feature more robust – these are pages that a brand or organization can set up. People can choose to be “fans” of that organization, and the organization does not need a mutual connection. In addition to helping popular organizations and people, asymmetric networks help people manage their attention. If you are even modestly popular, with over 100-200 followers, the number of updates from followers can be deafening. In an asymmetric network, you don’t need to pay attention to every update from everyone following you.

    There are a couple of other key reasons why asymmetric networks scale better, in addition to helping the popular. In Twitter there are a number of ways where asymmetry in a public network provides good returns to scale, as I noted in a post on my personal blog on premature predictions of peak Twitter

    • In Twitter, it is common to “Retweet” an interesting link or quote, to share it with your followers. Retweets disseminate information across social networks
    • Twitter searches makes it easy to find information outside of one’s personal network
    • Visible “mentions” – the feature that shows that shows when someone mentions you even if you’re not following them, allow you to hail and engage people in conversation, and have others start conversations with you, even if you’re not following them.

    These features mean that the more people who join the network, the more interesting information will be amplified through it, and the more potentially interesting people you may discover. The level of context is fairly high – you can see what someone else has been Twittering, and see if they are interesting and relevant to you. And the level of obligation is low (you can follow someone without giving them the burden of accepting or rejecting you). In Facebook, I can see when someone that I don’t know has commented on the update of someone I do know, but then I need to “friend” a stranger in order to learn more about them. Facebook’s mostly-symmetrical, mostly closed network makes it hard to learn new things and meet new people outside your existing network.

    So, the reasons for asymmetry aren’t just about supporting fame, but enabling discovery with low social expense.

    This is an edited version of a post that first appeared here.

    Twitter in the Enterprise Webinar Series

    We’ve teamed up with leading microblogging researchers Laura Fitton and Marcia Conner of Pistachio Consulting to provide Twitterprise: a social messaging seminar series.

    Webinar 1: Twitterprise Overview
    April 9, 9am PDT

    If you’re wondering whether talk of “Twitter in the enterprise” is an overblown fad or an opportunity you need to understand now, this webinar is for you.

    Webinar 2: Twitterprise Use Cases & Case Studies
    April 23, 9am PDT

    The second webinar builds upon the first. Join this free webinar to get specifics on how companies are using social messaging and the value it creates for them. We’ll explore general use cases of social messaging technology, and a Socialtext customer will present how they are using Socialtext’s microsharing technology, Socialtext Signals.

    Webinar 3: Twitterprise Adoption & Achievement
    May 7, 9am PDT

    The third webinar gets practical about how to foster adoption for “Twitter-like” microsharing technologies in the enterprise. In this webinar you will learn how to foster adoption in a way that directs it towards a business goal. We’ll share lessons learned for implementing social messaging and for setting business goals for social messaging that deliver results.

    Click here to learn more about what you can learn, the background of the presenters and how to register.

    Putting Web 2.0 to Work

    This week I gave a talk at Web 2.0 Expo in San Francisco. The slides are below, and Holger Nauheimer live-blogged the session.

    Socialtext Closes New Round of Financing and Refines Operations to Drive to Profitability

    I am pleased to be able to share publicly the news that Socialtext has just closed a new round of financing. The total amount raised is approximately $4.5 million, and is a huge vote of confidence from our existing investors who are the participants in this round, including Draper Fisher Jurvetson, Omidyar Networks, and University Venture Fund. In the currently very challenging funding environment, we are truly fortunate to have such strong and supportive investors.

    Socialtext has really been on a roll in the past few quarters! Since the end of September we have delivered a dramatically expanded platform of Enterprise 2.0 capabilities, adding social networking (Socialtext People) , customizable dashboards (based on the Google Gadgets standard), secure enterprise “Twitter-style” microblogging (Socialtext Signals), an Adobe AIR-based desktop client that integrates all aspects of our platform into a rich and engaging user experience (Socialtext Desktop), and are in beta with Socialcalc, the industry’s first social spreadsheet – all while extending and building on the world-class enterprise wiki and blog foundation that Socialtext has delivered for several years. Despite the severe economic downturn we have continued to drive year-over-year growth, we are seeing our new and existing customer sizes continue to increase, and the fantastic innovations that our product team has delivered are yielding faster and larger adoption rates than we’ve seen before.

    It is with a heavy heart, though, that I’ve had to make the toughest decision every CEO makes – trimming our expenses to make sure we drive the company to profitability despite the uncertainty of the economic recession. Although the entire executive team had already taken pay cuts at the beginning of the year, we have just today taken the painful act of performing a small (6 employees) reduction in force. From a personal perspective, although in my career I’ve had to participate in executing layoffs on a much larger scale (I was at Cisco when we laid off 9000 people in one day), this is much harder on me because of the tightness of our team and the distributed family culture that we’ve worked so hard to build – and because of how much admiration and respect I have for every member of this team that I am so honored to be a part of. The whole company is committed to helping each of our affected employees through this difficult transition and we’re going to do everything we can to help them find their own great next thing. We also expect that it will not be too long before we are able to hire back into these affected positions, and these talented individuals will be our very first phone calls.

    Our vision and commitment remains the same going forward. We believe that our approach to building and delivering Enterprise 2.0 software in an integrated user experience, with the economic and cost-of-ownership benefits of our SaaS model, our uniquely flexible deployment options (shared hosted, dedicated hosted, and on-premise SaaS appliance), and our strategic professional services, all combine position Socialtext uniquely in helping companies of all sizes tap into the true potential of their people, helping them work smarter, not just harder.

    We’ll be provide much more frequent updates via this blog and on Twitter, where we’ll be sharing insights from customers, best practices on enterprise social software adoption, repeatable use case examples, and even more exciting product innovation that we have coming.

    Socialtext 3.5 Released

    Today we announced the immediate availability of Socialtext 3.5, enhancing the leading social software platform for business. This release provides enhancements across all of our products, but primarily provides two new substantial capabilities:

    • Socialtext Desktop is outta beta. Our dynamic Adobe AIR(TM) desktop application moves beyond the ability to view and post Signals (a private Twitter for businesses), and Activity Streams that let you discover new people through your content and content through your content. A new People tab lets you search and explore the social networks you build for employees, partners and customers. A new Workspace tab lets you search and browse through content with drag-and-drop sharing of attachments. Download it now to experience what might be the most powerful and productive collaboration desktop application to be delivered for Adobe AIR on Windows, Mac and Linux.
    • Socialtext Dashboard enhanced for group-use. Socialtext Dashboard is a personalized and customizable homepage for managing your attention across Socialtext and other enterprise and web systems. Socialtext 3.5 provides new capabilities for administrators to add OpenSocial standards-based widgets to the gallery and push them directly to user’s Dashboards. Socialtext customers are using this to deliver content, applications to get team members on the same page and enhance the participation in intranets and extranets. Start your own free trial to try it now.

    Details of this release and others can be found on the Release Blog in the Customer Exchange.

    The capabilities of 3.5 have really changed the way I work. Desktop makes Socialtext more of a real-time experience, where I feel constantly connected with my colleagues and find people and content at my fingertips. We are using Dashboard to roll out widgets from Salesforce.com to our sales team so they manage their attention even more effectively.

    If you are a Socialtext customer, I’m interested in how it is changing how you work and please share screenshots of the Dashboards you create on the Customer Exchange.

    About This Blog

    Weblog on gaining business results from social software.

    On this blog, Socialtext staffers and customers explore how companies can gain the most business value from their use of enterprise social software, including microblogging, social networking, filtered activity streams, widget-based dashboards, blogs and wikis.

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