Microsite header filler Microsite header
2014


This year’s MIT Sloan Management Review and Deloitte1 global survey found clear evidence that companies across industries are creating value with social business. A key finding is that social business value is a function of what we call social business maturity — the breadth and sophistication of its initiatives. In this year’s report, we detail the drivers of that maturity and how companies are using social business to transform their organizations and reap greater gains from their social business efforts. The following are highlights of our findings:

Social Business Grows Deep Roots

Social business is perceived as important both today and in the future.

After jumping from 52% in 2011 to 74% in 2012, 73% of this year’s survey respondents say that social business is important or somewhat important today. Nearly 90% see its importance on a three-year horizon.

Measurement sophistication is starting to prove its value.

In our first survey, “do not measure” was the most common response to questions about social business measurement. While more than half of the least socially mature companies in this year’s survey don’t measure their efforts, more than 90% of maturing companies actively do. These organizations are using a battery of measures, such as operational and financial metrics, to connect social initiatives to business outcomes. We also found a surprising common denominator among all companies, including the most socially mature: anecdotal evidence plays a major role in demonstrating the value of social business.

Social business is not just a B-to-C phenomenon.

In our two most recent annual surveys, we found that social business is important to very similar levels of respondents from B-to-C (business-to-consumer) and B-to-B (business-to-business). The impact of social business in these sectors is also comparable: nearly 60% of B-to-B companies agree or strongly agree that social business initiatives are positively impacting business outcomes. Among B-to-C respondents, the percentage is 68%.

Employees want to work for companies that excel at social business.

Some 57% of respondents say that social business sophistication is at least somewhat important in their choice of employer. That attitude is consistent among respondents aged 22 to 52.

Social Business Maturity Translates Into Value

Social business maturity is related to the level of results companies achieve.

Read the Full Article:

Sign in, buy as a PDF or create an account.

About the Authors:

Gerald C. Kane is the MIT Sloan Management Review guest editor for the Social Business Big Idea Initiative.
Doug Palmer is a principal at Deloitte Consulting LLP and leader of Deloitte’s Social Business practice.
Anh Nguyen Phillips is a senior manager within Deloitte’s U.S. Strategy, Brand & Innovation group, where she leads strategic thought leadership initiatives.
David Kiron is the executive editor of the Big Ideas Initiatives at MIT Sloan Management Review, which brings ideas from the world of thinkers to the executives and managers who use them.
Natasha Buckley is a senior manager within Deloitte’s U.S. Strategy, Brand & Innovation group, where she researches emerging topics in the business technology market.

Contributors

Bill Briggs, Jonathan Copulsky, Carolyn Ann Geason, Nina Kruschwitz, Daniel Rimm, Ed Ruehle

Acknowledgments

We thank each of the following individuals, who were interviewed for this report:
Chris Andrews, managing director for the UK and Europe, Hearsay Social
David Bray, CIO, Federal Communications Commission
Bonin Bough, vice president of global media and consumer engagement, Mondelez International
Kelli Carlson-Jagersma, vice president of internal collaboration, Wells Fargo & Co.
Blake Chandlee, vice president of global partnerships, Facebook
Dr. Donna Cuomo, associate director for knowledge information and collaboration solutions, Mitre Corporation
Laurie Damianos, principal artificial intelligence engineer, Mitre Corporation
Stan Drozdetski, user experience designer, Mitre Corporation
Larry Everson, Founder, Adjuvi
Melissa French, director of marketing systems, T-Mobile
John Glaser, CEO of the health services unit, Siemens Healthcare
Hannah Grove, executive vice president and chief marketing officer, State Street Corporation
Wendy Harman, director of management and situational awareness, American Red Cross
Dion Hinchcliffe, chief strategy officer, Adjuvi (formerly at Dachis Group)
Elizabeth Hitchcock, director of strategy and innovation, AT&T
Renee Horne, assistant vice president of social business, USAA
Cordelia Krooß, senior change management expert, BASF
Dr. CheeChin Liew, global community manager, BASF
Gary Liu, vice president of marketing, Hearsay Social
Holly Potter, vice president of brand communications, Kaiser Permanente Health Plan
Patrick Sullivan, research vice president, Gartner
Wayne St. Amand, former executive vice president of marketing, Crimson Hexagon
Martijn van der Zee, senior vice president for e-commerce, KLM
Kristin Waryas, vice president enterprise social collaboration, State Street Corporation

MIT Sloan Management Review

MIT Sloan Management Review leads the discourse among academic researchers, business executives and other influential thought leaders about advances in management practice that are transforming how people lead and innovate. MIT SMR disseminates new management research and innovative ideas so that thoughtful executives can capitalize on the opportunities generated by rapid organizational, technological and societal change.

About Deloitte University Press

Deloitte University Press publishes original articles, reports and periodicals that provide insights for businesses, the public sector and NGOs. Our goal is to draw upon research and experience from throughout our professional services organization, and that of coauthors in academia and business, to advance the conversation on a broad spectrum of topics of interest to executives and government leaders. You may contact the authors or send an e-mail to dupress@deloitte.com for more information.

Deloitte

This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte Consulting LLP and Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Member of Deloitte Touche Tohmatsu Limited.

References

1. As used in this document, “Deloitte” means Deloitte Consulting LLP and Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

2. J. Mann, T. Austin, N. Drakos, C. Rozwell and A. Walls, “Predicts 2013: Social and Collaboration Go Deeper and Wider,” Gartner Inc. report, November 28, 2012.

3. These three drivers were identified using a decision tree analysis. Out-of-sample testing indicated the decision tree was a good fit.

4. D. Kiron, D. Palmer, A.N. Phillips and N.Kruschwitz, “Social Business: What Are Companies Really Doing?” MIT Sloan Management Review, May 30, 2012.

5. The Conference Board CEO Challenge global survey in 2011, 2012, 2013, and 2014 ranked human capital as either the first or second ranked business challenge.

6. E. Openshaw, J. Hagel and J.S. Brown, “From Invisible to Visible...to Measurable: Social Analytics Extends Enterprise Performance Improvement,” Deloitte University Press, March 2014.

7. Ibid.