Why Board members need to ask the tough questions about social media

Who in an organization should be a catalyst for a implementing a mind shift to get companies engaged in social media? Who should take on the risky role of being a change agent to advocate the new rules of engagement?

While I think anybody from a Public Relations intern all the way up to the CEO can take on this role, a particularly influential person to push companies forward is a non-executive director.

I've been delivering a bunch of talks in Australia over the past week. I was invited by PwC Australia to lead a discussion with their Non Executive Director (NED) community on the implications of social media for companies. In three separate meetings - Sydney, Brisbane & Melbourne - the NEDs were very engaged.

A NED is someone who sits on a board of directors but is not an employee of the company. Outside directors have a responsibility to ask the difficult questions and push the executive team on uncomfortable issues. I know. I've sat on two boards of directors: NewsWatch (sold to Yahoo Japan) and Kadient (merged with Sant).

Social media questions at the Board level

When an outside director asks: "What’s the company's social media policy?" the management team listens.

If a Director asks: "Does the company block access to Facebook and Twitter?" the question is taken seriously.

When a NED asks: "How does the company measure marketing success?" the answer is telling.

If you're an outside director, you need to ask the tough questions. It is essential that you learn the answers and become a catalyst of change if required.

This is no longer an option for boards and NEDs. The power of social media to make and break company reputations now needs to be a board level discussion - it's that important.

Attention NEDs: You have a fiduciary responsibility to act.

Comments

[steve macalpine]

I posed this very question of Jeremiah Owyang yesterday..

http://www.web-strategist.com/blog/2011/04/04/program-plan-the-social-media-center-of-excellence/

"The (Social Media) 'Centre of Excellence' model that spans all departments is a great model to work with. As you point out, you need a someone to champion the Center Of Excellence'

From your experience, who is the best one to target within an organization to be
this champion ?

Is it a predictable position? eg CEO or CMO or does it vary ?"

I had forgotten of the power of the Non Executive Director, it makes perfect sense....

Great to meet you at the PwC event.

[Scott Moreno]

Thanks David for this eye opening post (for some...) It is true, social media is changing the way of marketing. Many companies still don't get it or how to effectively do it, which will very soon be their downfall. There are so many benefits to using social media (cost for one) and all companies should be putting a great deal of effort into understanding how to effectively utilize this marketing strategy. Yet, so many companies ban the use of social media at work, but why? Because they know that their employees will not say good things about their company. But this is a problem that should be addressed, rather than just covered up by internet usage restrictions.

[David Meerman Scott]

Steve - Good to meet you. I think the best initial catalyst for change can be anyone. Usually it is someone active in the social networks who just sees the silliness of allowing people to communicate on the phone and email but not on Twitter. The idea of a NED being an important change agent came to me while speaking with the PwC community. I think that outsider view is a good one. Many times, marketers tell me that when I tell a company to change they listen (because I write books and am considered an "expert") even though the insiders have been saying so already.

Good point, Scott, on what people will talk about. So are those companies that are not engaged hiding something?? That's perhaps an implication of inaction weather true or not.

[J_shimmy]

Time is now for companies, boards, management, business owners to embrace and use online marketing tools to give them a competitive edge. To quote David Meerman Scott "you must unlearn what you have learnt".

It is great to see NEDs and excecutives engaging in Social Media discussions.

John Shim, Partner, Private Client Services, PwC Australia

[aluminium kozijnen]

Before start your work you must do a strategic plan for that marketing whatever it is.. That is very important to achieve a goal.. Then board members ask tough or easy whatever it is they can give better results for them.. Thanks for sharing this informative post about social media.. Nowadays this social media is more competitive compared to others..

[Elizabeth Kaylene]

I wonder if the company I'm working for has an NED... They've limited how much they want me to do with social marketing, and have me doing SEO instead -- even though I was hired as a social marketing coordinator. Sigh. At least I've been learning a lot about SEO, right?

[David Meerman Scott]

Elizabeth - maybe you need to find a new employer.

[Tanner]

Somebody has to ask the hard questions (and push for change), how else does anything get done in the world?

[Brad Stewart]

Absolutely agreed. If you’re not catching on you’re falling behind. Social Media is not a fad and even the crusty old board members are realizing it, even if they’re not doing it themselves. It’s amazing to be on the front edge of this thing and I can’t wait to see how it develops.

[Nick Stamoulis]

It's important that whoever is in charge of the social media strategy fully understands the concept. It's about much more than just setting up a page. In order to utilize social media well it can take a few hours a day.

[PwC Australia]

Thanks David for the fascinating insights into real time communication and the implications for business, particularly the crucial role that Non-Executive Directors can play in relation to social media and their organisation.

[MBT Katika]

Thanks very much, I have learned a lot from your post. Well done, really.