One post has been helpful and noted “This manifesto only speaks about demand-side social capital. A more complete theory would estimate internal social capital, supply-side social capital, and government social capital.”
Most of the examples that I use in the paper focus on “demand-side social capital” but I do point out that the change in media paradigm from broadcast to the Individual as Medium has implications throughout the corporate ecosystem:
click for link to slides
A link showed up in my inbox a few days ago through an investment banker friend (investment bankers are so much nicer than those quant finance folks!) and the McKinsey quarterly newsletter that provides some good examples of these effects playing out in product development, etc.
If you are reading this post you likely already understand that social media is “game changing”.The challenge ahead is to make this case to seasoned decision makers in boardrooms globally.
Perhaps it is because I watched as the public relations profession worked over the last 20 years to attempt to tune the corporation into being more socially motivated. Perhaps it is the lingering fear of the first Internet bubble. But every time I read a blog post about what is better Twitter or Plurk or see a debate raging about whether one has to be a blogger to “get” social media, I hear Johnny Depp as Hunter S. Thompson and this song in my head (sorry – not every time and minus the first 51 seconds, heh, heh).
I don’t want this second wave of the internet coming to crest before crashing through the boardroom door. The prospect of changing the dialog about Web 2.0 and social media is what prompted me to start down the the path of writing “Introducing Social Capital Value Add” last May.
SCVA is a management method rooted in accepted financial theory that connects the pioneering intellectual enterprises of social capital and social network analysis to value based management and the priorities of marketers.SCVA proposes that we establish the link between social media and corporate valuation, in a way similar to the connection made between brand and corporate value in the late 1980s.
Investors and managers need to access the risks to future earnings and stock value associated with social media.When we evangelize Web 2.0 and social media in these terms … risk, future earnings and stock value … the focus will change from saving a few thousand dollars on a web campaign and the quest for that elusive viral story.This is the opportunity to stress the commitment, investment and special management methods required to develop the social capital that underwrites long term success in the networked age.
Over the last month many people have joined in to support the idea of “Introducing Social Capital Value Add” at www.changethis.com/proposals. Thank you very much. It is not over yet. Voting closes sometime, probably end of day, June 19th. It might not come together tomorrow.
UPDATE 1: Social Capital Value Add ended up being the 8th most demanded proposal in ChangeThis history and it was published in September 2008 as a ChangeThis manifesto along with new releases from Seth Godin, Jonathan Salem Baskin & Harvard Change expert John Kotter.
Symbols (like a brand) are valuable indicators. Some symbols tell us that the environment that businesses operate in has profoundly changed. Netscape is a good example. It is a symbol of great corporate value creation (and new risk) enabled by the introduction of the browser. The term Web 2.0 and the Facebook/Microsoft deal are symbols of the new environment that has emerged since mid-2004 when broadband over took dial up.
Examination and discussion of these symbols is the preoccupation of a lot of great bloggers. Who did what deal? What one ego said about another? The death pool mentality … that benefits from the energies of risk takers, but also may stifle some. It is too bad that Randal Graves was right, “There’s nothing more exhilarating than pointing out the shortcomings of others, is there?”.
Dwelling on the symbols can only take us so far in changing corporate management and dealing with the complexities of an “inflection point” for business that is the result of so many factors that challenge us in so many different ways.
Social Capital Value Add is designed to focus the attention and efforts of investors, managers and their agents beyond the symbols towards building out corporate social networks that are maximized for social capital.
Over the first 20 posts or so of this blog, we’ll introduce the SCVA argument with short pithy little gems like this.
UPDATE, Sept.6, 2008 – this was before Seth suggested posting “Introducing Social Capital Value Add” and things shifted from me taking this idea as far as I can, to following the idea as far as I can.