Transparency and transformation:: Being Open Without Giving Away the Store

If you aren’t already aware of Alimeter Group, Charlene Li or Joseph Owyang it may already say all that needs said about your social media strategy!

Whether you dismiss social media as a fad or are waiting for the right time to consider or  implement an SM strategy is, to a certain extent, irrelevant because THE ISSUE is the…understandable…public clamour for TRANSPARENCY.

It is a word that strikes fear into the very heart of institutions so, if Warren Buffett knows anything (and I reckon he does!), there is a HUGE opportunity for those who can afford transparency to “get greedy”.

“What’s often missing when leaders try to decide how open they should be is a coherent open strategy, something I call ‘open-driven objectives.’ With an open strategy, decision shifts from if you should be open—because social technology demands a certain amount of openness—to how open you need to be to accomplish your overall strategic goals. In today’s world, organizations and their leaders must be open or suffer the consequences—distrust, leaks, resentment, and institutional sclerosis.”

via Change This – Being Open Without Giving Away the Store: The Secret Is a Sandbox Covenant.

The term “sandbox covenants” is a new one on me. I get it and I like it! Then again I am a fan of transparency. Primarily because of the number of firms to whom the concept is entirely alien and which, if they are delivering value to their customers, they should be in a position to adopt a strategy with wider market appeal. Of course there are also firms whose model cannot afford transparency and others whose outward appearance belies financial frailty. There are too many examples of collapsed companies whose financial standing has been independently rated &/or certified based upon “unreliable” or outdated information.

Put another way, the need is for more than a common language and platform. In turbulent economic times there  is a need for a reliable,  quantitative, objective and cost effective means of verifying the CURRENT financial credentials of “interested parties” without disclosing sensitive information.

Ontonix Complexity analysis and rating services offer, not only a “common language” but the means to build trust through mutual transparency.

Is YOUR business

Find out  ON-LINE! !cid_part2_01060409_08020107@ontonix

Banks need to waken up to the potential of social media

According to Datamonitor The rise of social media has facilitated a fundamental shift in the way consumers receive information, especially in the UK, where Datamonitor research shows that 50% of consumers are using online tools to make financial decisions, compared to 41% globally. UK traditional banks must therefore recognize the value of social media if they are to retain customers in the thawing economic climate….: Research Store – Banks need to wake up to the potential

Of course they DO have a point but the reality for banks (and General/Corporate insurers) is slightly different in so far as, whist they crave TRUST, they are nowhere near a position to get it.

WHY? Because they need to earn it.

They can no longer rely upon a customers’ indebtedness as a means of building or maintaining market share for the longer term. In truth they have preferred this method to the more expensive course of earning loyalty through quality and consistency of service and products. In which case Facebook, twitter and the like can only be a case of “dabbling” in social media. Still, it may be a more effective means of marketing than costly TV and press “noise” trying to tell the populous how nice, caring and downright cuddly they are…whilst the truth is that they are starving business, squeezing homeowners and punishing individuals with credit card debt by milking the lowest Bank of England rate in a generation.

How do they earn it? Well a good start would be to work toward offering their customers a better overall proposition with TRANSPARENCY at its core. Engaging with their customers. Listening. Incentivising, rewarding and retaining customers’ whose risk profile merits it. Investing in quality rather than spending on sales, to develop competitive advantage and attract new customers.

SO, if it is really so simple why isn’t it happening? PLEASE FEEL FREE TO SUBMIT YOUR OWN THEORIES but, from what I have seen, it is a case of it being such a dramatic cultural change that it would require an admission of how badly served their customers have been which would be contrary to the prevailing culture and could (should) lead to a loss of office…with associated power and wealth.

IF I am even part right don’t expect to see your bank offering to interact with you or your business on a digital platform in the near future UNLESS of course one decides to jump (others WILL WAIT UNTIL THEY ARE PUSHED!) to seize the moral high ground and all that goes with it!


‘Power curves’: What natural and economic disasters have in common

The following extract is taken from a thought-provoking article from McKinsey. Power curves are much loved by authors, such as Clay Shirky, Seth Godin, Charles Leadbetter to illustrate the potential for conversation, collaboration and innovation, through adoption of: web 2.0; social media; crowdsourcing; collective intelligence, etc.
They are, therefore, very much “in vogue” and, I suspect, will continue to be so for some time to come…probably not a great surprise that economic theory is enjoying a renaissance in difficult times!
However, from the perspective of “financial regulation” in UK, it is difficult to believe that, if FSA chose to IGNORE the warning signs [generated by financial modelling] about Northern Rock and HBOS, they would be any more effective by monitoring “the system”!!!
“Make the system the unit of analysis. You can’t assess the behaviour and performance of a specific agent—for example, a financial-services company—without gauging the behaviour and performance of the system in which it is embedded. Proponents of a systemic financial regulator that would span multiple subsectors and geographies are making a similar argument”.
Click on the link and feel free to give me your thoughts: Power Curves…