{"id":18343,"date":"2014-08-22T15:34:07","date_gmt":"2014-08-22T15:34:07","guid":{"rendered":"https:\/\/enterprisestrategies.com\/?p=18343"},"modified":"2015-07-30T13:37:05","modified_gmt":"2015-07-30T13:37:05","slug":"show-money-one-reason-enterprise-social-failure","status":"publish","type":"post","link":"https:\/\/enterprisestrategies.com\/2014\/08\/22\/show-money-one-reason-enterprise-social-failure\/","title":{"rendered":"Show Me The Money: One Reason For Enterprise Social Failure"},"content":{"rendered":"
Businesses are consumed with ROI, always concerned about\u00a0the profitability of any business decision or investment, and rightfully so. Though most\u00a0executives understand the benefits of enterprise social networks <\/a>(ESNs)–productivity, engagement, on and on–those are intangible advantages and challenging to quantify in ROI or similar figures. As a result, companies are struggling to justify the expenses of purchasing, investing, and driving adoption of ESNs without proof of such tools driving profits. To be fair, it is challenging to measure the impact of internal social using traditional measurements–which is why the right monetary-related goals and objectives need to be established\u00a0for ESNs<\/a>\u00a0from the beginning.<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’5′ up=” down=”]<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’5′ up=” down=”]<\/p>\n However, how they are measured and how companies manage their expectations often cause ESNs to fail because of missing the financial mark. Why? Three core reasons:<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’10’ up=” down=”]<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’5′ up=” down=”]<\/p>\n Companies generally talk in terms of sales figures and profit margins–not in terms of number of posts and active groups. However, the measurements\u00a0of ESNs<\/a> today don’t necessarily follow the traditional business language. Social business is still a new and emerging area, so metrics are still maturing as technology is evolving. Few dispute the positive impact ESNs have on increasing collaboration, strengthening communication, and facilitating cross-geography work, but those advantages are difficult to calculate in hard and fast numbers. For now, anecdotal evidence is often the strongest evidence of an ESNs’ financial impact, such as proof that\u00a0connections made, introductions facilitated, and information shared helps close deals, finish client deliverables, etc. As those examples become more commonplace, ways to monetize that impact will surely follow. Currently, companies that want numbers to illustrate ESN<\/a> results may have to use creative, not-always-scientific methods, such as engagement surveys or rough calculations on time saved.<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’10’ up=” down=”]<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’10’ up=” down=”]<\/p>\n In this download, you will find the following information:<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’10’ up=” down=”]<\/p>\nGet Your Free Download<\/a>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’30’ up=” down=”]<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’5′ up=” down=”]<\/p>\n For enterprise social networks to make the maximum contribution to\u00a0business success, they need to be connected to key business objectives–whether quarterly or annually. Without being tied to the current focus areas of teams and executive leaders, ESNs<\/a> will lose relevance and be largely ignored. If they are not a critical part of business processes, ESNs will be unable to contribute significantly to financial results. By being mapped to supporting specific, client-facing goals, companies will better prove the value to of ESNs to employees and promote usage across departments. Business objectives are largely, if not always, tied to increasing revenues and profits. \u00a0If ESNs are seen as integral to goals that Wall Street is watching in annual reports, they will easily demonstrate\u00a0their worth when those\u00a0objectives are attained.<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’10’ up=” down=”]<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’5′ up=” down=”]<\/p>\n Enterprise social networks will not\u00a0solve all your problems (unfortunately) right away. It takes time for ESNs to gain traction inside even the most technologically advanced companies. Like other social tools, ESNs represent a completely new way of working–as well as ways of tracking and measuring work. In order to accurately and appropriately measure progress of ESNs, businesses need to reframe their\u00a0perspectives to concentrate on long-term achievements and not only short-term strides. Though ESNs make quick wins possible, the true value will come as ESNs are fully integrated into everyday workflows and such a transition\u00a0requires a longer timeline. As a result, business leaders used to seeing almost immediate profit turnarounds\u00a0from investments will need to make\u00a0their performance expectations more realistic because of the workforce\u00a0transformations that must occur.<\/p>\n [vc_separator type=’transparent’ position=’center’ color=” thickness=’10’ up=” down=”]<\/p>\n One of the top\u00a0reasons enterprise social networks fail is because they do not deliver financial results, or at least the financial results businesses expect right now. However, ESNs<\/a> offer immense value that can eventually be measured–businesses need to adjust their thinking to determine the correct metrics, reflect the right financial objectives, and extend their success timelines. By taking these three factors into consideration, businesses mitigate the risk from initial financial performance struggles and ESNs have greater chance to thrive and contribute to companies–making more money in the long-term.<\/p>\n Why Enterprise Social Network Pilots Don’t Take Flight<\/a><\/p>\n Context, Key To Enterprise Social Success (a.k.a. Why most social initiatives fail)<\/a><\/p>\nLet’s be clear, ESNs<\/a> do and will impact the bottom line.<\/h3>\n
Enterprise Social Success Is Not (Always) Defined By Financial Results<\/h2>\n
<\/a>Free Download: Top 5 Reasons Enterprise Social Initiatives Fail<\/h2>\n
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Lack Of Connection To Key\u00a0Business Objectives<\/h2>\n
Focus On Long-Term Gains, Not Short-Term Strides<\/h2>\n
To see previous posts in the series\u00a0<\/span>5 Reason Enterprise Social Initiatives Fai<\/strong>l<\/strong><\/span>\u00a0<\/a>click below:<\/span><\/h4>\n