The Social Network Business Plan – Review

SNBP_silverThe Social Network Business Plan: 18 strategies that will create great Wealth by David Silver

The central premise of this book is how to build “recommender networks“.

“The next great wave of online communities will focus on specific interests such as health, travel, improvement of government services, wealth, beauty, neighbourhood watches, hobbies, protecting one’s estate, and rating the abilities and prices of lawyers, realtors, electricians, hospitals, physicians, judges, school teachers, and vendors of a host of products and services for the home.”

David Silver is a venture capitalist and explains the type of online communities that he would invest in. He then goes on to explain several (18) models. You might think that Facebook already has the social network market cornered, but Silver thinks differently:

“Although the earliest social networks get their launch value by attracting massive memberships, the ones with highest revenues per member, are, at the end of the day, the social networks that have found the empty chairs in the musical chairs game of recommender social networks. It is the best execution of the cleverest business models that will decide the winners.”

This reminds me of the MD community of Sermo that charges sponsors about $100,000 each because it is a gated community for US registered physicians only.

Silver even thinks that recommender communities will one day usurp MySpace, Facebook, and other general communities. There are lots of specific tactics in this book so it’s quite appropriate for entrepreneurs. There is not much theory on groups or networks, but lots of anecdotes. For the theory behind social networks, read Connected: the surprising power of our social networks and how they shape our lives. For me, this is the kind of book to keep handy and refer to with the various communities that I’m engaged in. Who knows, maybe it’s time to start one myself.

Life, on the Net, is too short

Hugh Macleod at gapingvoid.com has decided that, after 10 years, he will no longer blog his cartoons:

But like a lot of the folk who have been blogging for a long time, I’ve started to feel that over the last few years, that the blogosphere has just gotten too big, noisy and anonymous. I’ve started longing for the days when things were ‘smaller’, ‘clubbier’, intimate and, well, human. When the people I met were truly like-minded.

Like many bloggers, I’ve used Hugh’s cartoons to illustrate my posts and presentations and today’s reflects the zeitgeist, especially amongst my fellow free agents:

life is too short

Hugh’s decision reminds me of Virginia Yonker’s observations about blogging:

I am feeling that I am coming into the middle of a conversation (or the end of a conversation) that was started somewhere else (such as twitter or facebook). It appears that blogging is the reflective or summary of those conversations. Karyn Romeis still has a very conversational style, but she will refer to other conversations she has had on facebook. Harold Jarche will refer to others at aggregated blog sites where he is collaborating with colleagues. As a result, I don’t feel that there is as much “conversation” on blogs as there used to be. In addition, I have noticed that Michael, Harold, Karyn, and Tony all have easy access to Twitter on their sites. Ken Allan has moved into a different rhelm this year: 2nd life. His posts often include graphics taken from 2nd Life. In fact, some blogs that I have been reading for the last couple of years either took hyatises or have not had posts in months.

It’s amazing that as new as blogging is, it’s already feeling old. These changes in media are only going to speed up and soon we’ll be wishing for the good old days of Facebook and Twitter. I don’t think that the answer is to constantly look for the next big thing, but each person has to find their own rhythm in the digital flow. Life in perpetual Beta is interesting, if nothing else.

Work is learning, learning work

My Twitter bio reads, “Work is learning, learning work – that is all Ye know on earth, and all ye need to know [apologies to Keats]. That’s pretty much what I believe will be a necessity for the post-industrial and post-information era that we are beginning to enter. Some call it the knowledge economy or perhaps even the learning age. Whatever it will be called, our networks of networks are making life and work more complex. We need to adapt to better ways of working with abundant information and expanding connections, as I said in sharing tacit knowledge:

Our current models for managing people, training and knowledge-sharing are insufficient for a workplace that demands emergent practices just to keep up. Formal training has only ever addressed 20% of workplace learning and this was acceptable when the work environment was merely complicated. Knowledge workers today need to connect with others to co-solve problems. Sharing tacit knowledge through conversations (the only way to do this) is an essential component of knowledge work. Social media enable adaptation (the development of emergent practices) through conversations.

Emergent practices are developed collaboratively while solving problems for which there are no definitive answers. For instance, what’s the “best” Internet business model? Where once we could document knowledge and develop guidelines and practices followed by most workers, we now need to let workers develop their own practices, according to their particular context, which is constantly in flux. This is a very different approach from the way we designed jobs and training in the past.

Social media are the tools that can help us develop emergent practices. They enable conversations between people separated by distance or time. The organizing framework for using social media for business is the learning network. Learning networks are not just for what we used to call training & development, but can also help us engage (not target) our markets. Chris Koch, marketing and sales strategist, shows no doubt with: There is only one objective in social media: create learning networks

The purpose of social media is to create learning networks that buyers want to join. The enticements are ideas and education. That means social media are extensions of our content development and dissemination processes. By creating content that offers relevant, timely, and useful ideas and education for buyers at all stages of the buying process, we create the incentives for buyers to engage with us in conversation and community. Whether it’s blogs, Twitter, LinkedIn, or private communities that we build ourselves, the common thread is that by focusing on learning we build and retain buyers’ interest.

Social media are the vehicles by which we can share our tacit knowledge through conversations to inform the collaborative development of emergent work practices.

emergent practices

Context and Community

Wayne Hodgins raises the issue that information can be both a product and a service.

Information is a noun/product when it is in the form of a report or document created on spec or in advance of a specific use or client. Whereas it is a verb/service when it is a collection of “just the right” information matched to a specific person/group and context. I would posit that information in and of itself has little to no value.  The value of information comes when it is Snowflaked or “just right” as in just the right information for just the right person(s) at just the right time in just the right context on just the right medium/device, etc.

Lee Lefever described this product/service aspect of information as Stocks & Flows:

Flows = Timely & Engaging (e.g. radio, speeches, email, blogs)

Stocks = Archived, Organized for Reference (e.g. web site, database, book, voice mail)

In my experience, I’ve seen that with ‘products’, price tends to zero; or that the same item will continue to get cheaper over time. Services, on the other hand, remain stable, and may even go up in price as they become more popular. Note how famous speakers and consultants charge more money.

For example, generic educational course content keeps getting cheaper, with many free options now available, like wiki-how. Content (information as a product) is no longer king in the online learning world.

For a successful business model, content needs to be combined with both Community and Context — two critical factors in supporting learning environments. For example:

  • Online Courses where Community = your cohort & Context = a relevant (to you) credential
  • Performance Support where Community = your co-workers & Context = current need
  • Knowledge Management (and PKM) where Community = those with shared interests & Context = sense of belonging to a community.

The Chinese Pod model gets this right by understanding the user/learner. Their three step model is a good one for Web learning businesses — Reward Attention, Support the Community, & Keep Tweaking the Business Model.

Taking Wayne’s advice could be the first step in creating a successful online learning business model, by providing “just the right information for just the right person(s) at just the right time in just the right context on just the right medium/device”.

Sharing tacit knowledge

H.L. Mencken, American satirist, wrote that, “For every complex problem there is an answer that is clear, simple, and wrong.” That pretty much sums up the problems we are facing today in our organizations and institutions. We are using tools that assume simple, or at most complicated, problems when many are actually complex. A mechanistic approach to problem solving is inadequate in complex adaptive environments. Global networks have made all of our work, and all of our problems, interconnected. We live in one big, unfathomable complex adaptive system.

Managing in complex systems is more about influencing possibilities rather than trying to determine any predictability. This requires tacit knowledge, or ways of thinking that cannot be codified and written up as best practices. It’s a continuous process of trying things out, sensing what happens and developing emergent practices. This is the great potential of web social media. Social networking supports emergent work practices.  The true value of social networking is in sharing tacit knowledge.

What hinders the adoption of social media is that hierarchical leaders (those in power by virtue of their position, not their knowledge or ability) are not able to function when ideas and knowledge flow laterally as well as vertically. Hyperlinks subvert hierarchy. Social media bypass the organization’s information gatekeepers and render hierarchical leadership useless.

Over the past century, large organizations have simplified and codified their processes in order to get economies of scale. They have also centralized as many functions as possible, including anything related to learning and performance. This is the modern institution and corporation. The problem is that this will not work any more. Biological, technological, environmental and societal change are accelerating. Moore’s Law states that computational power doubles every 18 months while human knowledge doubles every year.

Our current models for managing people, training and knowledge-sharing are insufficient for a workplace that demands emergent practices just to keep up. Formal training has only ever addressed 20% of workplace learning and this was acceptable when the work environment was merely complicated. Knowledge workers today need to connect with others to co-solve problems. Sharing tacit knowledge through conversations (the only way to do this) is an essential component of knowledge work. Social media enable adaptation (the development of emergent practices) through conversations.

In the 21st century, conversation is learning and learning is work.

complexity

2010: year of the CM

Community Managers by Luc Legay
Community Managers by Luc Legay

I’ve watched the demand for online community managers (CM) build tempo this past year. Perhaps it follows last year’s frequent request from clients and others for “facebook in a box” for their organization. Now they need someone to make it work. I wonder if those 16,000 social media specialists on Twitter will re-brand as community management specialists?

Of course I’m not the only one to call 2010: The Year of the Community Manager. I have collated several community manager bookmarks over the year, based on client demand for examples and guidelines. I also summarized what I’ve learned about community management and work.

Traci Armstrong thinks that journalists and copywriters could make good community managers. While good writing skills are necessary, community managers need to be engaged, empathetic and willing to live in perpetual Beta. Online communities don’t seem to stabilize. These comments, given by active community managers, provide a good snapshot of what it’s really like:

  • CM is not a 9-5 job – Using twitter a lot, commenting on blogs, using back-channels for private communications takes a lot of time & the role changes as the needs of the community change.
  • CM is a very time-consuming job and the results are not always tangible and visible.
  • CM can bridge the gap between inside & outside the organization, such as explaining what is happening in online communities to other members of the organization. This type of communication is more often face-to-face.
  • Communities often don’t grow the way they are planned and may be taken over by a sub-group (hence the need for an active manager who can try to influence by example).
  • CM doesn’t fit into any single departmental silo and the role can be similar to an ombudsman.
  • A CM should not take oneself too seriously.
  • Communities don’t want to be “managed” – they want to be nurtured.
  • Building community means giving up control.
  • How do you get executive buy-in?
    • find someone with an existing community mindset
    • get executives into a real network experience in order to understand
  • The launch phase requires a small group that is passionate and “transacting” (communicating) a lot.
  • Building community is not about collecting as many people as possible.
  • There is a constant dynamic tension in communities over control versus member empowerment (experienced CM’s seem to be at ease with this loss of control).

Co-operation: from soft skill to hard skill

What are known as soft skills, like getting along with others, are becoming much more important than commonly known hard skills. This is still not a general perception amongst business leaders; as recently as last year, Management-Issues reported:

The annual CEO study by PricewaterhouseCoopers has argued that what companies around the world are crying out for is CEOs with technical and business expertise, who have global experience, are strong leaders, innovative, creative and who can manage risk effectively.

People skills, while a bonus, were not seen as an essential, despite the fact that fewer than half of CEOs globally (and around a third in the UK) felt their HR department could manage the people agenda adequately by itself.

Work in networks requires different skills than in directed hierarchies, which have nurtured these CEO’s for the past decades. Co-operation is a foundational behaviour for effectively working in networks, and it’s in networks where most of us, and our children, will be working. Co-operation presumes the freedom of individuals to join and participate so that people in the network cannot be told what to do, only influenced. If they don’t like you, they won’t connect. That’s like being on Twitter with no followers and never getting Retweeted (RT). You are a lone node and of little value to the network. In a hierarchy you only have to please your boss. In a network you have to be seen as having some value, though not the same value, by many others.

Co-operation is not the same as collaboration, though they are complementary. Collaboration requires a common goal while co-operation is sharing without any specific objectives. Teams, groups and markets collaborate. Online social networks and communities of practice co-operate. Working co-operatively requires a different mindset than merely collaborating on a defined project. Being co-operative means being open to others outside your group and casting off business metaphors based on military models (target markets, chain of command, line & staff).

cooperation

We are moving from a market economy to a network economy and the the level of complexity is increasing with this hyper-connectedness. Managing in complex adaptive systems means influencing possibilities rather than striving for predictability (good or best practices). Co-operation in our work is needed so that we can continuously develop emergent practices demanded by this complexity. What worked yesterday won’t work today. No one has the definitive answer any more but we can use the intelligence of our networks to make sense together and see how we can influence desired results. This is co-operation and this is the future, which is already here, albeit unevenly distributed.

Co-operation is a soft skill? I think not.

2009: year of the tweet

Twitter has significantly changed how I communicate online. Though I registered in 2007, after having tried out Jaiku, I didn’t really adopt micro-blogging until mid 2008. This past year I made around 5,000 Tweets or about 13 a day.

Twitter’s constraint of 140 characters is its greatest asset. You can only get one thought or comment out at a time. Once you get used to the medium, it’s much easier than trying to write a blog post, which of course is easier than writing a feature article, let alone a book. In some ways, it’s communication for the masses, due to the low barrier to entry. As a blogger, it’s even easier to jump onto Twitter because you are used to publishing in public and you’re probably connected to a lot of people online. Charlene Croft explains how Twitter is especially good for:

Connectors are individuals who know lots of people and who use those connections to their advantage.  Connectors are people who have invested in social, cultural and identity capital and who can convert those intangible resources into pretty much whatever they decide to.

Mavens are the senders and receivers of information.  They are the people who always have the pulse on the good deals and breaking stories of the day.  Mavens are the trendsetters and the people who you turn to to find out about this thing or that.  Citizen Journalists are types of Mavens, often scooping the mainstream media in reporting “from the ground”

Salesmen are the persuaders of society.  They are the people who dedicate a great deal of their lives to selling people on their ideas.

lawfew

It seems that everyone is a Maven today, as @amandachapel recently tweeted that “self-proclaimed Social Media Gurus on Twitter are multiplying like rabbits”. About 16,000 people on Twitter say they are social media specialists, indicating that being a Maven in this space has some perceived value.

Connectors bring ideas and people together. One of my favourites is @valdiskrebs who is not only an expert in social network analysis (a real Maven) but makes an effort to introduce people and sends out ideas like confetti. I like to follow Connectors because they share a lot. I no longer read BoingBoing or SlashDot or several other media sources because I know that if something interesting is published, someone in my network will post it. Choosing the right mix of Mavens & Connectors to follow can increase serendipitous learning opportunities, without being overwhelmed by noise.

The truly effective Salespeople on Twitter are not selling things but building relationships. For instance, following @kanter keeps me in touch with many social and non-profit causes. Given the number of followers that Beth Kanter has (+250,000), it’s obvious she’s a Maven, Connector and a Salesperson.

Twitter has connected me to more people and ideas than several years of blogging could possibly do. My blog still has immense value as part of my personal knowledge mastery process, but Twitter has a greater reach to more, and more varied, communities. For example:

I met @fdomon through Twitter and we have subsequently launched Entreprise Collaborative.

Through Twitter I can follow Canadian writer @MargaretAtwood; cycling professional @LanceArmstrong or Tehran-based @ThinkIran.

I can talk in public about things that would not go on my blog, either because they are off-topic or I don’t have time for a full blog post.

I learn an enormous amount from Twitter and for the past several months have summarized this with my weekly Friday’s Finds posts [due for a format change in 2010].

Twitter may not be for you and it’s probably not going to save the world, but I am certain the format of micro-blogging will be around for at least as long as blogging.

Commons coming along

On Friday, we had our open house to get feedback on the Sackville Commons. There was a good level of interest and some suggestions. I’m positive that we can build interest and get the project going this Winter. With 40 members we should be able to have one floor (second floor) dedicated to the Commons. There is not a lot of work to be done in this building and some people said that they could even donate furniture for the venture.

Let’s keep the conversations going and please send me any suggestions. There is a lot of background and related material here, under Commons.

Here are some photos of the building that would make a wonderful home.

Looking Up!
Looking Up!

Getting Social Learning

chat_icon_01.png

We were discussing social learning yesterday and I think it boils down to this:

We are all inter-connected because

technology has enabled communication networks on a worldwide scale,

so that systemic changes are sensed almost immediately,

which means that reaction times and feedback loops have to be better, therefore

we need to know who to ask for advice right now,

which requires a level of trust, but

that takes time to nurture.

Therefore we turn to our friends and trusted colleagues,

who are those with whom we’ve shared experiences,

which means that we need to share experiences in order to trust each other [get it?].

It’s called social learning.