CEOs finally start to cotton on to social media changes

Social media is at last becoming a board-level issue.

Unless you have been living on a different planet for the last five years, you will have noticed that your business or practice has changed. Or rather, you will have noticed that the conversations around you and your organisation have changed, and either you have adapted and adopted new ways or you might soon be losing business to rivals who have. The change in question is the arrival of social media. What five years ago seemed like an interesting fad for a few geeks and the better-connected type of nerd has blossomed into a major part of most business life.

While professional services may be some way behind the most up-to-minute, youth-oriented, consumer-facing brands, more forward-thinking firms within the sector have nevertheless reacted to this increasing demand for a meaningful social conversation and have put in place some sort of social media strategy.

The full impact of some of these changes is well highlighted in a new report by Useful Social Media (USM). In its third annual State of Corporate Social Media briefing, it reveals the extent to which social media is maturing. Having been introduced to organisations largely as an addition to the marketing function (which itself partly explains why B2C firms are much more comfortable with the subject than B2B firms), social media has, according to the USM report, started to spread across organisations. Issues as diverse as gaining better customer insight, protecting (and improving) corporate reputation and even developing stronger employee engagement are all being tackled through social media. With the exception of the employee engagement element, B2C companies are more likely to use social media for all of these things than their B2B counterparts.

So what are the lessons for professional services firms from the latest trends in social media? It’s unlikely that many accountancy firms, however large, will benefit from the kind of resource put into social media by a consumer-facing company such as American Airlines, which reportedly responds to over 8,000 tweets a month. And each within 15 minutes. But there are clear advantages from central marketing departments learning to let go and encouraging social media for business purposes to spread through the organisation. One lesson is that the most prolific and effective social media users allow at least four named individuals to run the social media and often have more than six working on it. While for the world of B2B that mostly means LinkedIn, along with Twitter and some Facebook, for B2C that means Facebook as well as a host of newer growing social media outlets such as Pinterest and Instagram.

But statements about the effectiveness of social media highlight the area of greatest concern. How do you measure return on investment in social media? What does an effective social media campaign look like? Is it simply about driving traffic to a website or (worse still) about simply counting the number of followers you have? As the USM report makes clear, this is one area where there is still much to be learned right across the market. If consumer brands sometimes struggle to understand exactly why they are engaging so heavily in social media (are they keeping in touch with consumers or keeping up with competitors?), then how much rarer must it be to find an accountancy firm that understands what it is all for?

Of course, some accountants and firms have managed to build up impressive reputations and followings on Twitter, while LinkedIn is bursting with groups of finance directors and practitioners sharing grievances and sometimes solving problems together. In a profession that’s all about people, it follows that building a strong reputation as a key expert and knowledge point within a community can help you to build influence and might ultimately lead to more business. The issue is that so far there is very little real evidence to back up this common sense.

According to the USM report, it is apparent that “the advent of corporate social media adoption has had a deep and lasting impact on organisational structures”. It is clear that social media for some will become a catalyst for change within large organisations. What was once a grand experiment is now a routine part of how firms interact and learn about customers. As the USM report explains, “It has forced organisations to re-think how, when, where and why they communicate with their customers.”

For larger global firms, social media is also boosting global collaboration. Previously, where organisations were often highly compartmentalised or stuck in silos, the development of new models for working with social media has led to new ways of thinking more generally and is forcing teams to realise social media cannot be “owned” by the marketing team or any other single business unit.

Perhaps most importantly, social media is at last becoming a board-level issue and a concern for CEOs and senior partners. It may feel like something for younger practitioners or smaller firms, but even if you’re not sure why it matters just yet, and regardless of what type of business or practice you work in, social media will only get more important in the years ahead.

This article first appeared on economia

Twitter. Photograph: Getty Images

Richard Cree is the Editor of Economia.

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Former Labour leader Ed Miliband tells Jeremy Corbyn: "I would have gone"

Jeremy Corbyn's predecessor broke his long silence to say the leader's position was "untenable". 

The former Labour leader Ed Miliband has swung his weight behind the campaign to oust Jeremy Corbyn after describing his position as "untenable" and declared he would have resigned already.

His intervention is seen as significant, because since losing the general election in 2015, Miliband has taken a step back and refused to publicly criticise his successor. 

But the day after Labour MPs voted they had no confidence in Corbyn, the former leader has finally spoken. 

Miliband told BBC Radio 4's World at One that his position was "untenable". 

He said:

"We are at a time of acute national crisis, a crisis I haven't known in my political lifetime, probably the biggest crisis for the country since World War II.

"At that moment we in the Labour party need to think about the country.

"I've supported Jeremy Corbyn all the way along from the moment he was elected because I thought it was absolutely the right thing to do. A lot of what he stands for is very important. But I've relcutantly reached the conclusion that his position is untenable."

 

But with Corbyn already defying the opinion of most of his parliamentary colleagues, this alone is unlikely to have much effect. It's what Miliband says next that is crucial.

Corbyn has argued the vote of no confidence against him was unconstitutional. Miliband thinks otherwise. He said: "You are the leader of the Labour Party, the leader of the party in parliament and the leader of the party in the country. Some people are saying this is unconstitional. In our constitution it says if a fifth of MPs support another candidate there is another contest."

And he implied it should not even get to a leadership contest: "No doubt that will follow if Corbyn decides to stay. but the question then for him is what is the right thing for the country and the party and the causes he stands for."

Miliband also hit out at accusations of a conspiracy to oust Corbyn:

"I've never been called a Blairite. I'm not a plotter. I'm somone who cares deeply anpout this country, deeply about my party, deeply about the causes I think Jeremy and I care about. I think the best thing on all of those criteria is that he stands down."

Asked what he would have done in the same situation, he replied: "I would have gone.

"One of the reasons I'm speaking out is because of what people are saying about this proceess. If you look at the people saying Jeremy should go, it's not people on one wing of the Labour Party.

"I had my troubles with certain people in the Labour Party. Some of them ideological, some on other issues, but this is not ideological." Some of Corbyn's ideas could continue under a new leader, he suggested. 

Miliband shared his views just minutes after his former rival, the Prime Minister David Cameron, told Corbyn it was not in the national interest for him to remain as leader. "I would say, for heaven's sake man, go," he told the Opposition leader at Prime Minister's Questions. 

Although the Brexit vote was a devastating blow for the PM, the aftermath has unleashed equal waves of turmoil for the Labour Party.

Corbyn's refusal to resign sparked a series of resignations from the shadow cabinet. Unmoved, he replaced them. Meanwhile Momentum, Corbyn's grassroots political organisation, held a rally in support outside Parliament. 

On Tuesday, Labour MPs voted 172 to 40 in favour of a no confidence motion, which paves the way for a leadership challenge.

But Corbyn described the vote as unconstitutional and pledged he "would not betray" the Labour Pary members, who gave him a sweeping mandate in 2015.