Missing from the Corporate Balance Sheet: the Enterprise Social Capital
Readers of the financial press are surely well versed in the analysis of balance sheets. However, there is a critical corporate asset that you are not going to find on any balance sheet: the Enterprise Social Capital. Now, thanks to the partnership between Reachable, Leadership Directories and S&P Capital IQ, the Enterprise Social Capital can be analyzed and systematically managed for the benefit of a business.
What is Enterprise Social Capital and what role does it play in the success of a business?
In order to scale, businesses had to develop task specialization. The founding team of the business scaled by dividing tasks in increasingly thin slices. Now the role of recreating the original “can do,” “we are in this together” and “everybody is in sales” attitude that made the business succeed falls on the management team and its culture experts, and modern Social Enterprise tools.
Social Selling tools emerged with the rise of Social Networks, in particular Facebook and LinkedIn. These tools are based on the premise that everyone is connected on a “social graph.” Social Selling tools posit that the nature of the social and professional links between people can be analyzed to generate insights about who would buy what from whom, and to trigger purchasing decisions by activating influencers.
There is strong logic behind this approach. There might come a day when businesses will buy from other businesses without human intervention, perhaps purely based on algorithms. But until that day arrives, relationships and the trust they carry have a distinct influence on what gets bought, from whom and how quickly. Relationships do matter.
But businesses are not leveraging relationship as well as they could.
Most Social Selling tools are geared to helping an individual connect to other individuals on a social network — mostly to people that they don’t know. That only goes so far. Relationships you make on a social network are superficial — it takes a while to know what to expect, what can be asked and what is proper. Often, people connect, exchange niceties and that’s that.
Further, corporate marketing departments are increasingly leveraging the personal accounts of employees as a channel. They want employees to push a corporate message. This commercialization makes Social Networks less and less the place where people develop genuine, trusting relationships.
Reachable takes a different approach. We start by analyzing the people you already know. We create a cloud-based contacts vault where you can store contacts acquired on Social Networks or off-line. Reachable’s algorithms figure out whether these contacts could be connectors to people and companies you are trying to reach.
To perform these complex analytics, Reachable has partnered with Leadership Directories and S&P Capital IQ to access its verified profiles of people and companies — millions of profiles that are developed and maintained with exacting standards. What these profiles tell us is where people have been and what they did there and for how long. Using big data analytics, Reachable is then able to create its own graph of professional connections for millions of people. Reachable can not only recommend connectors to people and companies but also explain why it would make sense to go through these connectors to reach a target. These “relationship insights” are essential in helping you navigate the opportunities that your connections can deliver.
But Reachable went a step further and tackled the enterprise challenge. Our “Team” solution enables a group of people to inter-connect their contacts without exposing them. No one in a “Team” gets to see anyone else’s contacts, nor can the enterprise that created the “Team” for its employees. This is the first time that you can get a complete view of the Social Capital of an enterprise — all the contacts of the company in a data set that can be analyzed and leveraged. All that is possible provided that the people who participate continue to own their data and no one can violate the privacy protections that are inherent in the Reachable platform.
The value of this new collective data set is immense. If you are looking for a connection to a specific person or company, you will be shown which of your teammates can make the connection. You can measure how well connected is your sales team to the entire list of accounts you expect to generate revenues from this year. You can hire people who truly have the connections you need to break into new accounts and keep existing customers. This can be done instantly and at enterprise scale.
This makes the enterprise “Team” a unique and powerful asset for the enterprise. But it’s an asset that you will not find on the balance sheet of any business.