Case Of The Month December 2013: Success And Failure In Transformation

John Ward

business transformation dataIn developing the BTM methodology, we carried out 13 case studies of different types of business transformation in large European corporations. Of these 30% were successful, 40% partly so and 30% were unsuccessful. Each case was assessed against the BTM methodology disciplines to understand why they were more or less successful. Many of the failures were due to lack of alignment with the business strategy, lack of clarity of the expected benefits and inadequate risk assessment. In implementation, the IT and process changes were often performed more successfully than the organizational changes, resulting in some benefits being delivered, even in some of the less successful cases. But this rarely was enough to enable the transformation to achieve its strategic objectives and the majority of the benefits. Overall the organizations whose approach to managing transformations included attention to the majority of the BTM component disciplines were more successful than those that did not.

This article reports the results of an analysis of 13 business transformation case studies. Some were successful, some failed and the rest were partly successful. It shows how the BTM2 disciplines influence the outcomes and explains why some are more successful than the others.

To remain competitive in increasingly global markets, many businesses need to transform either what they do or how they do it or both. Economic turbulence and uncertainty can also make the need to change more urgent but, at the same time, make it more difficult to accomplish successfully. Given these challenges, it is not surprising that studies show that only about 30% of transformation programs are completely successful, while 30% fail completely. Our study of 13 business transformation cases of different types in large European corporations is consistent with this pattern of success and failure:

  • 4 of the transformations were very successful achieving all the main objectives
  • 5 were partially successful as some expected benefits were achieved, but not all
  • 4 were unsuccessful, achieving none of the transformation objectives, or they were not completed

Most incurred substantial costs. Every business transformation is different but not unique and lessons can be learned from the experiences of others. Because these cases showed the same pattern of transformation success and failure as other studies, they were valuable in developing and testing the BTM methodology.

The cases were developed through interviews with those involved in the transformation and reviews of relevant documentation. They were carried out, analyzed and written up by teams consisting of experienced academics, consultants and senior company managers. Some have already been published in the BTA “360° – the Business Transformation Journal” and others will be in future. Each case was analyzed in terms of how extensively and how well the BTM component disciplines were performed. The results were compared to identify significant aspects which appeared to affect the level of success achieved. Analyzing these transformations of varying degrees of success shows that those organizations whose approach to managing transformations paid attention to the majority of the BTM disciplines were more successful than those that did not.

The case studies were in the following industries: automotive, pharmaceuticals, construction (see case study in issue 1 of this journal, page 38), food, oil (issue 2, page 46) and chemicals, financial services (issue 1, page 52), telecommunications (issue 2, page 54) and IT. The cases included transformations to develop new products and services as well as restructuring and reorganizing core business functions and introducing global processes and systems. All involved changes in organization structures and individuals’ roles, responsibilities and behaviors, including, in a few cases, large scale staff relocations and redeployments. All the cases included new and significant investments in IT to enable the business changes, but, in all except one of the cases, IT benefits were not the main rationale for the transformations.

The BTM methodology disciplines

As would be expected, the successful cases were largely green with some amber and even a few The direction and enablement disciplines (source: BTA)red. In the unsuccessful cases, the boxes were mostly red and amber, but there were also always a few that were green!

Findings for each of the eight methodology disciplines are now discussed, starting with the three direction disciplines, before considering findings regarding the enablement disciplines and the ‘Meta Management’ aspects.

1) Strategy Management

A transformation needs to be driven by a clear strategic rationale – a rationale which should be easy for every employee to understand, otherwise there will be little motivation to change. All the successful ones had imperatives to transform the business, not just one function. It was also clear that in all the unsuccessful cases the need for transformation was relatively low; either there was no pressing strategic need or it was not seen as a business priority at a senior level.

In three of the four successful transformations the need for change was endorsed at executive level and then time and effort was spent to gain the buy-in of the rest of the organization and develop the ability to undertake the changes. In most of those that were partially successful, the readiness to transform appeared to be ‘high’, as well as the strategic need. They were not entirely successful mainly due to over ambition, or even over enthusiasm; too many ‘positive’ assumptions were made with little assessment of the potential risks.

Fig. 2: Example pattern for a partially successful case (source: SAP) (see also journal issue 1, page 25)


Having a clear vision of the intended future business and organizational models and then allowing compromises and trade-offs in the detail of how they are implemented, is most likely to achieve stakeholder commitment. However, in some cases, when the drivers demand urgent action, a top down, mandated approach to implementation can also work, but it tends to achieve stakeholder acceptance rather than positive commitment. Most transformations involve at least two distinct phases – to create a new capability and then to deploy it. In most of the cases the capability was created, but not (yet) always exploited; hence the benefits achieved were often less than those originally envisaged. Creating a new capability can be done separately from business as usual, but deploying it usually competes with other operational priorities.

2) Value Management

In the unsuccessful transformations the objectives and business cases were often vague, based on a ‘benefits vision’ rather than evidence based benefits and an understanding of how to realize them. This made it difficult for some stakeholders to believe the transformation was worthwhile and commit the required time and resources.

There was also often confusion between ‘changes’ and ‘benefits’: for example introducing
common global processes is a change, not a benefit, although it may create the potential for benefits, such as reducing costs or higher service levels. Too often business benefits were overestimated, while the risks and the problems in making the changes were underestimated – perhaps deliberately, otherwise it would be difficult to get funds and resources?

3) Risk Management

Risk management was often glossed over, but given the high failure rate it makes obvious sense to identify and anticipate what could go wrong, before it happens! As a result many risks only became apparent during implementation, leading to increased costs, delays, scope reductions and even abandonment. This reluctance to explore the risks earlier may have been influenced by executive instigation of the transformation, which can discourage negative feedback, making it inadvisable, even career limiting, to point out the potential risks!

To maximize the probability of delivering the intended benefits, the transformation should be planned in short deliverable stages, if possible. This also reduces vulnerability to changing business conditions and makes it easier to adjust the transformation to retain strategic alignment.
In essence, the outcome of the transformation could be predicted from the predominant ‘color’ in the assessment of the directional disciplines. How clearly and comprehensively the transformation strategy, value and risks have been understood and communicated provides a strong indication of likely success. Had the organizations undertaken this analysis early in the transformation, some failures and the significant resulting waste of money and resources could have been avoided.

Having considered how the direction disciplines affect the level of success of a transformation, our attention turns to the enablement disciplines and how well they were performed in the cases.

4) Process Management

The IT and process changes are usually performed more successfully than organizational changes, resulting in some benefits being delivered, even in some of the less successful cases. But this was not enough to enable the transformation to achieve its objectives and the majority of the benefits. In some of the cases IT or process methodologies dominated the overall transformation approach, making the implementation of other changes more difficult. In two of the unsuccessful cases the IT function tried to satisfy all the expressed user needs, which increased the scope and consequently the costs considerably outweighed the benefits.

5) Program and Project Management

Transformations cannot be fully planned in advance and have to adapt to both changing business conditions and program achievements. This is not necessarily a comfortable position for senior management and requires an empowered governance group to oversee and, as necessary, adapt the program. Effective management of the change content and benefits delivery is more important than the efficiency of the process. In some unsuccessful cases the organization relied heavily on the knowledge and capabilities of a third party supplier throughout, which changed aspects of the transformation towards what the supplier could do, rather than what was required. The transformation manager should have expert knowledge in the area that is being changed and also how to manage change in the organization. A key skill is being able to reconcile the differing views of the change and resource implications between senior managers and operational line management. The priority early in the program should be to gain agreement between senior and line management as to what changes the transformation involves, before ‘negotiating’ for the funds and resources required. In some of the less successful cases the ‘contract’ between the program team and senior management was agreed before the views of line managers had been taken into account.

6) IT Management

The transformations whose main benefits were seen as IT cost reduction or rationalization or were led by IT were not successful. Some business transformations become ‘IT replacement projects’, as the first phase is about replacing old technology and systems and IT methodologies and approaches are used with little business involvement. It then usually proves very difficult to regain business interest when the IT part is completed. IT is often in a weak position in the context of a business transformation due to a lack of real business knowledge, but with a perception that they know how it works, but they only know how the IT systems work. These notions created conflict in some of the transformations. When IT ‘won’ the argument the transformation was unsuccessful, but when it was ‘business- led’, any potential conflict was more easily resolved.

7) Organizational Change Management

These cases suggest that organizations should manage business transformations as orchestrated, continuous, incremental sets of changes – co-evolving and coexisting with business as usual priorities. The successful transformations usually addressed the organizational, people and capability aspects first, then the process and IT components. The less successful tried to do the reverse. Understanding and addressing stakeholder issues and having a strategy for accommodating or dealing with them as early as possible in the transformation is vital. The longer the time available to transform, the more the stakeholder views can and should be included in how the transformation is conducted. The methodologies used should enable all the main stakeholders to directly contribute their knowledge and plan their involvement, instead of relying on experts to interpret the stakeholders’ ‘needs’. Stakeholder engagement is a critical success factor in almost every transformation, and early alignment or reconciliation of multi-stakeholder interests is very important in order to avoid, for example, dominance by a minority of stakeholders or destructive negotiations between dissenting groups. The ‘transition curve’ (see figure 3), describing how people and organizations experience major change should be respected. A comprehensive and sustained approach is needed to minimize the period that people spend in the ‘valley of tears’, which is characterized by uncertainty and even disillusionment. Figure 4 shows that different groups reach this point at different times in the transformation. Senior management interests may have moved on, just when many line managers and staff are under stress, usually due to change and business as usual pressures colliding.

Fig. 3: The transformation experience curve (source: SAP)


Fig. 4: Employees experience the effects of the transformation at different times (source: SAP)


8) Competence and Training Management

Assessing existing competences as part of the ’Readiness’ is important in order to determine the strategy, because what can be achieved is a function of two factors: first, the amount of work required to make the changes and second, the knowledge and skills that can be made available at the required times. If some essential competences skills are limited is needed early in the transformation. In the successful transformations people were informed and educated about what the intended future business should look like. This helped them apply their existing knowledge to determining how the vision could be achieved, but it also exposed where knowledge was inadequate. Where suppliers are providing essential competences, those also need to be appraised and managed – in case they have over-estimated their capabilities. Organizational and individual experience cannot always be transferred from transformation programs in other organizations. In addition to the eight direction and enablement disciplines discussed so far, ‘Meta Management’ considers themes which influence the performance of any type of organizational transformation. From the case studies a number of lessons about leadership, communication, culture and values can be learned.


The successful transformations had ‘CEO’ sponsorship and a C level executive leading the transformation. Involvement should be real and visible or other executives will not see it as important. The evidence from these cases suggests that continuous personal involvement in the governance of the transformation is what is needed, but it is not always easy for a busy executive to sustain this over the extended period of most transformations. But the cases also show that the early transfer of ‘ownership’ to a coalition of business managers, who will actually deliver the changes and benefits, is the best way to develop the capability to change. One key decision that needs to be taken is the mode of ‘change agency’ to be adopted. Either an ‘expert task force’ or devolving change responsibilities to operational managers can work, but a lack of role clarity is likely to cause fragmentation and even disintegration of the initiative.


A common lesson from many of the cases – even the successful ones – is that no amount of communication is ever enough! Informing everyone in the organization why change is necessary and about the consequences of not changing usually needs regular repetition. Equally important is being open about what the changes are going to mean, even if they will be unpopular with some stakeholders. Evasiveness builds distrust or suggests ignorance, both of which reduce credibility and hence commitment.

The communication must explain what is going on and what the intentions are, and it must be conveyed in the ‘language’ of the different stakeholder groups. Delivering it at the appropriate times when it is relevant to the working context of the recipients is also critical if it is to be effective. Also communication is a twoway process; this is sometimes forgotten – and in some of the less successful cases little attention was paid to questions, concerns or feedback which the transformation team (wrongly) felt to be distracting or unimportant.

Culture and values

All the transformations included significant changes in organizational roles, responsibilities, and behaviors, and in many cases the changes were counter to the prevailing culture. The successful transformations recognized this was either desired or inevitable and addressed the organizational issues first to create a new context within which to bring about further changes.

In some cases the transformation also demanded a change in the organization’s values: for example, loss of autonomy and reduced discretion for local investment, consolidation to achieve corporate control of resources or standardization to achieve corporate rather local business advantages. Inevitably these changes created tensions and exposed cultural and value differences across the business units and functions, which had to be either reconciled or over-ridden to succeed with the transformation. In the less successful transformations these tensions were not addressed and existing power structures prevented or subverted the changes.

The structure and mode adopted to bring about the transformation should normally reflect the organization’s overall management style. The ‘task force’ approach, which exercises the use of power, worked well in a situation when the need to transform was urgent, the objectives were very clear and the means of achieving them were known. In the opposite situations, a more devolved approach enabled at least one successful organization to increase the scope and ambition of the transformation, through knowledge sharing across the organization and individual managers learning from experience as the program evolved.

As the transformation proceeds, it may be necessary to change modes and in turn the governance of the program. In particular the creation of a new capability can be carried out by a task force largely separated from day to day operations. However, deploying the new capability usually competes with other business as usual pressures, which can cause unexpected problems, delays or even unsuccessful deployment.


About John Ward

I'm a blogger with SAP and enjoy writing about the success of our customers.



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13 Scary Statistics On Employee Engagement [INFOGRAPHIC]

Jacob Shriar

There is a serious problem with the way we work.

Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.

The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.

The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.

Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.

1.  Encourage side projects

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.

2.  Encourage workers to engage with customers

At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.

3.  Encourage workers to work cross-functionally

Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.

This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.

4.  Encourage networking in their industry

This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.

13 Disturbing Facts About Employee Engagement [Infographic]

What do you do to increase employee engagement? Let me know your thoughts in the comments!

Did you like today’s post? If so you’ll love our frequent newsletter! Sign up here and receive The Switch and Shift Change Playbook, by Shawn Murphy, as our thanks to you!

This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.


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Supply Chain Fraud: The Threat from Within

Lindsey LaManna

Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:

  • Falsified labor
  • Inflated bills or expense accounts
  • Bribery and corruption
  • Phantom vendor accounts or invoices
  • Bid rigging
  • Grey markets (counterfeit or knockoff products)
  • Failure to meet specifications (resulting in substandard or dangerous goods)
  • Unauthorized disbursements

LSAP_Smart Supply Chains_graphics_briefook inside

Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).

Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.

Build a culture to fight fraud

The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:

  • Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
  • Market the organization’s supply chain policies internally and among contractors.
  • Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
  • Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
  • Require two employees to sign off on any proposed changes to suppliers.
  • Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.

About Lindsey LaManna

Lindsey LaManna is Social and Reporting Manager for the Digitalist Magazine by SAP Global Marketing. Follow @LindseyLaManna on Twitter, on LinkedIn or Google+.


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The Future Of Supplier Collaboration: 9 Things CPOs Want Their Managers To Know Now

Sundar Kamak

As a sourcing or procurement manager, you may think there’s nothing new about supplier collaboration. Your chief procurement officer (CPO) most likely disagrees.
Forward-thinking CPOs acknowledge the benefit of supplier partnerships. They not only value collaboration, but require a revolution in how their buying organization conducts its business and operations. “Procurement must start looking to suppliers for inspiration and new capability, stop prescribing specifications and start tapping into the expertise of suppliers,” writes David Rae in Procurement Leaders. The CEO expects it of your CPO, and your CPO expects it of you. For sourcing managers, this can be a lot of pressure.

Here are nine things your CPO wants you to know about how supplier collaboration is changing – and why it matters to your company’s future and your own future.

1. The need for supplier collaboration in procurement is greater than ever

Over half (65%) of procurement practitioners say procurement at their company is becoming more collaborative with suppliers, according to The Future of Procurement, Making Collaboration Pay Off, by Oxford Economics. Why? Because the pace of business has increased exponentially, and businesses must be able to respond to new market demands with agility and innovation. In this climate, buyers are relying on suppliers more than ever before. And buyers aren’t collaborating with suppliers merely as providers of materials and goods, but as strategic partners that can help create products that are competitive differentiators.

Supplier collaboration itself isn’t new. What’s new is that it’s taken on a much greater urgency and importance.

2. You’re probably not realizing the full collective power of your supplier relationships

Supplier collaboration has always been a function of maintaining a delicate balance between demand and supply. For the most part, the primary focus of the supplier relationship is ensuring the right materials are available at the right time and location. However, sourcing managers with a narrow focus on delivery are missing out on one of the greatest advantages of forging collaborative supplier partnerships: an opportunity to drive synergies that are otherwise perceived as impossible within the confines of the business. The game-changer is when you drive those synergies with thousands, not hundreds of suppliers. Look at the Apple Store as a prime example of collaboration en masse. Without the apps, the iPhone is just another ordinary phone!

3. Collaboration comes in more than one flavor

Suppliers don’t just collaborate with you to provide a critical component or service. They also work with your engineers to help ensure costs are optimized from the buyer’s perspective as well as the supplier’s side. They may even take over the provisioning of an entire end-to-end solution. Or co-design with your R&D team through joint research and development. These forms of collaboration aren’t new, but they are becoming more common and more critical. And they are becoming more impactful, because once you start extending any of these collaboration models to more and more suppliers, your capabilities as a business increase by orders of magnitude. If one good supplier can enable your company to build its brand, expand its reach, and establish its position as a market leader – imagine what’s possible when you work collaboratively with hundreds or thousands of suppliers.

4. Keeping product sustainability top of mind pays off

Facing increasing demand for sustainable products and production, companies are relying on suppliers to answer this new market requirement.

As a sourcing manager, you may need to go outside your comfort zone to think about new, innovative ways to collaborate for achieving sustainability. Recently, I heard from an acquaintance who is a CPO of a leading services company. His organization is currently collaborating with one of the largest suppliers in the world to adhere to regulatory mandates and consumer demand for “lean and green” lightbulbs. Although this approach was interesting to me, what really struck me was his observation on how this co-innovation with the supplier is spawning cost and resource optimization and the delivery of competitive products. As reported by Andrew Winston in The Harvard Business Review, Target and Walmart partnered to launch the Personal Care Sustainability Summit last year. So even competitors are collaborating with each other and with their suppliers in the name of sustainability.

5. Co-marketing is a win-win

Look at your list of suppliers. Does anyone have a brand that is bigger than your company’s? Believe it or not, almost all of us do. So why not seize the opportunity to raise your and your supplier’s brand profile in the marketplace?

Take Intel, for example. The laptop you’re working on right now may very well have an “Intel inside” sticker on it. That’s co-marketing at work. Consistently ranked as one of the world’s top 100 most valuable brands by Millward Brown Optimor, this largest supplier of microprocessors is world-renowned for its technology and innovation. For many companies that buy supplies from Intel, the decision to co-market is a strategic approach to convey that the product is reliable and provides real value for their computing needs.

6. Suppliers get to choose their customers, too

Increased competition for high-performing suppliers is changing the way procurement operates, say 58% of procurement executives in the Oxford Economics study. Buyers have a responsibility to the supplier – and to their CEO – to be a customer of choice. When the economy is going well, you might be able to dictate the supplier’s goods and services – and sometimes even the service delivery model. When times get tough (and they can very quickly), suppliers will typically reevaluate your organization’s needs to see whether they can continue service in a fiscally responsible manner. To secure suppliers’ attention in favorable and challenging economic conditions, your organization should establish collaborative and mutually productive partnerships with them.

7. Suppliers can help simplify operations

Cost optimization will always be one of your performance metrics; however, that is only one small part of the entire puzzle. What will help your organization get noticed is leveraging the supplier relationship to innovate new and better ways of managing the product line and operating the business while balancing risk and cost optimization. Ask yourself: Which functions are no longer needed? Can they be outsourced to a supplier that can perform them better? What can be automated?

8. Suppliers have a better grasp of your sourcing categories than you do

Understand your category like never before so that your organization can realize the full potential of its supplier investments while delivering products that are consistent and of high quality. How? By leveraging the wisdom of your suppliers. To be blunt: they know more than you do. Tap into that knowledge to gain a solid understanding of the product, market category, suppliers’ capabilities, and shifting dynamics in the industry, If a buyer does not understand these areas deeply, no amount of collaboration will empower a supplier to help your company innovate as well as optimize costs and resources.

9. Remember that there’s something in it for you as well

All of us want to do strategic, impactful work. Sourcing managers with aspirations of becoming CPOs should move beyond writing contracts and pushing PO requests by building strategic procurement skill sets. For example, a working knowledge in analytics allows you to choose suppliers that can shape the market and help a product succeed – and can catch the eye of the senior leadership team.

Sundar Kamak is global vice president of solutions marketing at Ariba, an SAP company.

For more on supplier collaboration, read Making Collaboration Pay Off, part of a series on the Future of Procurement, by Oxford Economics.


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4 Biggest Risks In NOT Using Social Media

April Crichlow

These days social media is critical for success in business. Early adopters have made great strides, using it to engage with customers online and find new clients. For the laggards — typically small businesses that think they don’t have the resources or need for social media — the question looms: “Is social media a fad, or is it here to stay?”

Unfortunately for these companies, social media is here to stay. There are four major risks in not using social platforms as a business tool:

  1. You risk being out of the loop. Social media is a key channel for consumers collecting information and connecting with other consumers. It is also a great opportunity for companies to engage with current customers, as well as potential customers, all over the world. By not using social media, you run the risk of losing customers, credibility, and crucial information that can benefit your business. Even if you choose not to actively participate in discussions, you need be aware and stay informed regarding conversations about your company. Don’t stick your head in the ground and hope for social media to “blow on by.”
  1. You can’t respond to negative comments about your business. When customers are not satisfied with your product or service, one of the first things many will do is complain on Twitter or Facebook, or they will write a bad review online. If you are not actively keeping tabs on these discussions and reviews, they can hurt your reputation and cost you potential business. How can you protect your brand if you don’t know what’s being said about it online? Social media is now the default platform for customer service. Instead of calling an 800 number, consumers want to send businesses a tweet or post something on a Facebook page. When they can’t find you online, they will go to a review site such a Yelp or Merchant Circle to complain and warn other customers. However, if they have a relationship with your company, they are much less likely to take such actions and will instead send you an email or a private message about the problem.
  1. You risk missing the positive comments about your business. Customers also leave positive feedback online about companies with which they do business. However, if they believe their comments won’t be read by the companies they are praising, satisfied customers are less likely to leave feedback.
  1. You risk giving your competitors an unfair advantage. If your competitors are active on social media and you are not, your rivals have a leg up on winning business from potential customers. You don’t allow for comparisons and can’t answer questions in real time. Unless your product or service is overwhelmingly superior, this is one risk you cannot afford to take!

Social media is an excellent forum to participate in discussions happening right now about your business and your industry. Building an active presence on social sites offers numerous opportunities to promote your products and services, provide outlets for customer service, and check up on your competition. It’s not too late to start using social media as a business tool…but one day soon, it might be.

If you are an SAP partner and would like to learn more about this topic, join me on Dec 1st for How to Spend 15 Minutes a Day on Social Without Breaking a Sweat. Register now: (s-user) #SAPMarketingAcademy


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