The Key to Social Media Success Within Organizations

What determines whether an internal social media initiative brings business benefits? One essential — but often overlooked — factor is how employees feel about the organization.

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Social Business

Social business research and more recent thought leadership explore the challenges and opportunities presented by social media.
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Many organizations have started using social media (a.k.a. Enterprise 2.0) tools internally to interact with their employees. A number of companies, including Best Buy and Dell, have succeeded in using social media internally to meet important objectives, such as reducing their costs, increasing revenues or stimulating innovation. However, many companies have either stayed away from using social media tools internally or failed to see beneficial results from their use within their organization. In a 2010 survey we conducted of 1,060 global executives, only about 50% said that their companies had adopted social media initiatives within their organizations; of those, about 60% reported that social media had positive effects on their company’s internal communications. Thus, only about 30% of executives whom we surveyed work for companies that have both adopted internal use of social media and seen positive effects on the company’s internal communications as a result. In our qualitative investigation of 34 companies’ social media experience, we found a similar dichotomy.

Why do so many companies either avoid using social media internally or fail to make it work very well within their organizations? Our finding is that to be successful, internal social media initiatives must focus first and foremost on the development of emotional capital, which we define as the aggregate feelings of goodwill toward a company and the way it operates. (See “What Is Emotional Capital?”) A company’s emotional capital with its employees can be built by the actions of executives; it represents the emotion-based assets that the organization has developed over time with its employees.

Topics

Social Business

Social business research and more recent thought leadership explore the challenges and opportunities presented by social media.
More in this series

References (7)

1. We disguised this company’s identity to preserve confidentiality.

2. S. Harter, “Authenticity,” in “Handbook of Positive Psychology,” vol. 27, ed. C.R. Snyder and S.J. Lopez (New York: Oxford University Press, 2002), 382-394; C. Morgan and J.R. Averill, “True Feelings, the Self and Authenticity: A Psychosocial Perspective,” in “Social Perspectives on Emotion,” vol. 1, ed. D.D. Franks and V. Gecas (Greenwich, Connecticut: JAI Press, 1992), 95-124; and M. Salmela, “What Is Emotional Authenticity?,” Journal for the Theory of Social Behaviour 35, no. 3 (2005): 209-230.

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Acknowledgments

The authors wish to acknowledge the support of Annet Aris, Fares Boulos, David Champion, Soumitra Dutta and Peter Zemsky at different stages of this project. We are also grateful to the companies and individuals who participated in our survey and interviews.

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Comments (6)
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ankit bajpai
Wouldn't building emotional capital in very large organisations be a task involving a lot of effort.

Isn't the solution more applicable in small companies?