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Social Business Governance: 
A Framework to Execute Social Business Strategy 
By Ed Terpening and Charlene Li 
with Christine Tran and Brian Solis 
Includes input from 20 ecosystem contributors 
and a survey of 76 strategists and executives who 
are responsible for or influence social business 
governance at their organizations. 
A Best Practices Report 
November 13, 2014
Preview Only 
Executive Summary 
Achieving momentum for a social business strategy for many organizations is challenging 
enough, but execution is often fraught with unanswered questions: Who owns social? How are 
key decisions made? How do we organize to execute social? Left unanswered, organizations face 
significant risks, including threats to brand health as the result of inappropriate or disjoint social 
practices. Hidden between great strategic ideas and business results lies the messy mechanics 
of governance, which according to our research only 16% of organizations feel is well understood 
and deployed. Strategy and governance are natural partners: Strategy lays the groundwork for new 
opportunities while governance ensures safe execution, managing the risk of change. In this report, 
we define a social business governance system of 4 P’s: people, policies, processes, and practices. 
We use that framework to provide a maturity model to assess where you are, and we include 
best practices, policy templates, and a decision-making matrix that you can use to define Social 
Business Governance (SBG) that will help you both achieve the potential of your strategy 
and manage risk. 
Introduction ................................................................................................................................................................................................. 
The Social Business Governance System: The Four “P”s...................................................................... 
Best Practices for Developing Governance ........................................................................................................... 
Social Business Governance Maturity Map .......................................................................................................... 
Appendix ......................................................................................................................................................................................................... 
Social Business Community of Excellence................................................................................................................ 
The Decision Matrix: A Tool to Align Everyone.......................................................................................................... 
Bank of the West: Getting the Right People a Seat at the SBG Table................................................................... 
USAA’s Governance Model Aligns Its People and Culture...................................................................................... 
Employee Social Media Policy..................................................................................................................................... 
Social Business Practitioner Policy............................................................................................................................ 
Social Business Governance Checklist...............................-..................................................................................... 
3 
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Table of Contents
Social Business Governance: A Framework to 
Execute Social Business Strategy 
INTRODUCTION 
In our research, we found that 53% of respondents agree that 
social business strategy forms the basis for governance; 
yet only 16% believe that governance is well understood and 
deployed throughout the organization. Astonishingly, most 
organizations we surveyed (57%) say they lack confidence that 
the right governance is in place to succeed. This report seeks to 
address the disconnect between strategy and governance and 
to define a framework for developing an effective governance 
system in support of strategy. 
We see organizations struggling to mature from early “test and learn” stages 
of social business, typified by silos of innovation focused on narrow business 
objectives, to executing a social business strategy under a shared vision and 
customer experience1. It’s a big step to take, and critical for organizations 
to take if they’re to reach the potential of their investment in social. Most 
organizations develop governance organically as their strategy or other 
catalysts emerge, but this can result in a fragmented, uneven approach rife with 
inefficiencies and the inability to scale in support of a broad vision. We believe 
the relationship between strategy and governance is essential and that social 
business success is at risk without equal consideration. 
In a general sense, we think of strategy as defining what will be done and 
when, and governance as how it will be done and by whom. Your organization’s 
mission, risk tolerance, and objectives define the why and act as a common 
compass that guides and links strategy and governance (see Figure 1). There is 
a relationship between strategy and governance: You don’t know the full scope 
of what to govern without strategy, and you need a strategy to design the right 
supportive governance. 
3 
FIGURE 1 
The Strategy — Governance Relationship 
STRATEGY GOVERNANCE 
What 
When 
Who 
Company Mission 
& Objectives 
Why How 
Source: Altimeter Group 
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Defining Social Business Governance 
In the course of our research, governance was described as 
everything from social media policies to organizational structure. 
Moreover, governance can be a loaded word. “The word 
governance comes across like police,” said Paul Michaud, SVP of 
social media at Citi: “Rather, you have to approach it as helping: 
here’s how to approach social and be successful.” 
Other leaders, like Wendy Arnott, VP of digital marketing and 
social media at TD Bank, position governance as a form 
of empowerment. Said Arnott, “It is a license to operate. 
Governance is the articulation of all the things we must do, as 
well as the plan for how we do it, and finally who’s involved in 
the many pieces of it.” 
We found that organizations are not protecting themselves and 
are not organized to make social media more effective. As social 
spreads throughout organizations beyond traditional functions 
like marketing and communications, governance is needed to 
achieve consistent, safe, aligned, and efficient execution. 
In the absence of a common definition, Altimeter studied the 
key building blocks of social business governance to define it 
this way: 
Social Business Governance (SBG) is an integrated system 
of people, policies, processes, and practices that defines 
organizational structure and decision process to ensure 
effective management of social business at scale. 
FIGURE 2-1 Few Organizations Have Robust Social Business Governance in Place 
4 
“Below are statements regarding social business governance. Please state how strongly you agree 
or disagree with each statement (1 = strongly disagree to 5 = strongly agree).” 
“Our social business strategy forms the foundation 
and informs our social media governance.” 
“I am confident that our social business governance prevents avoidable 
incidents and prepares us to deal with any crisis or decision that arises.” 
“I am confident that the right people, processes, policies, and 
platforms are in place to govern social business.” 
“Executive leadership at my company are educated and aligned 
to effectively support social business governance.” 
“Social business governance is 
well understood and deployed 
throughout all parts of the 
organization.” 
53% 
agree or 
strongly agree 
46% 
16% 
43% 
40% 
Source/Base: Altimeter Group’s Survey of Social Business Strategists, December 2014 (n=76)
The State of SBG Today 
Before we explore what good governance looks like, let’s step 
back to understand what is driving the need for it. The reality is 
that few organizations take a systematic approach to developing 
governance; instead it grows organically in an ad hoc fashion. 
We see this occurring as brands focus on strategy alone as the 
imperative, without making the connection to governance as a 
means to execute. 
To better understand the state of SBG, we surveyed 76 people 
familiar with how governance works in their organizations. 
We found that only 53% use social business strategy as 
the foundation for governance and that a startlingly 16% of 
respondents agreed that SBG is “well understood and deployed 
throughout the organization” (see Figure 2-1). With such low 
confidence that governance is in place, it’s not surprising that 
a minority of organizations (46%) are confident that they are 
prepared to deal with a crisis or that leadership is educated and 
aligned to support social (40%). 
FIGURE 2-2 Scaling Social Business and Optimizing Customer Experience Drives the Need For Governance 
“What is driving your attention to social business governance?” 
Overall Rank 
1 SCALING SOCIAL BUSINESS: 
Need to scale use of social media across the company. 
2 CUSTOMER EXPERIENCE: 
Use of governance to ensure an optimal customer experience across digital/social/mobile. 
3 EMPOWER EMPLOYEES: 
Need employees to use social for sales, advocacy, recruiting or other official business. 
4 MANAGE RISK: 
Use of governance as a risk control, 
5 SOCIAL PLATFORM COMPLEXITY: 
Complexities of social platforms, such as managing user-generated content, community management and 24x7 dialog. 
6 EMPLOYEE USE OF SOCIAL: 
The need to define what employees can and cannot do on their personal social media accounts as it relates to company business. 
7 COORDINATE: 
Need to drive efficiencies between silos using social to reduce redundancies. 
8 REGULATIONS: 
Complying with government rules and regulations. 
Source/Base: Altimeter Group’s Survey of Social Business Strategists, December 2014 (n=76) 
5 
If organizations are not developing governance in sync with 
strategy, what is driving it? We found that organizations were 
focused primarily on four drivers: scaling social business, 
optimizing customer experience, empowering employees, and 
managing risk (see Figure 2-2). 
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6 
To download the full report at no cost, please visit our website at: 
http://pages.altimetergroup.com/social-business-governance-report.html
About Us 
Ed Terpening, Senior Consultant 
Ed Terpening (@EdTerpening) is a Senior Consultant at Altimeter 
Group and leads advisory projects on social business education 
and governance at Altimeter. To date, he has trained more than 300 
professionals in social media for business, and while at Apple he 
was awarded “Teacher of the Year” for his work at Apple University. 
As VP of Social Media at Wells Fargo, Ed led the charge to develop 
the first blog by any major US bank and led the first dedicated social 
media team at a major financial institution. He led social media 
strategy at Wells Fargo for seven years. While at CNET, Ed created 
the company’s first community team in 1999 and launched user 
ratings and reviews on CNET.com and “Talkback” on NEWS.com. He 
is a founding member of SocialMedia.org. 
Charlene Li, Founder and Principal Analyst 
Charlene Li (@charleneli) is Founder of Altimeter Group and author 
of the New York Times bestseller, Open Leadership. She is also the 
co-author of the critically acclaimed bestselling book, Groundswell, 
which was named one of the best business books in 2008. She 
is one of the foremost experts on social media and technologies 
and a consultant and independent thought leader on leadership, 
strategies, social technology, interactive media, and marketing. 
How to Work with Us 
Altimeter Group research is put to use in our client engagements, which help organizations succeed through disruptions, such as 
social business governance (SBG). 
• SBG Audit. This research-based, quantitative assessment of your social business governance includes a scorecard 
and best practice recommendations to move to the next level. 
• SBG Roadmap. After a discovery/audit process, we help you create a high-level roadmap for building a SBG system 
specific to your organization, aligned with strategy for the next three to five years. 
• SBG Advisory. This hourly advisory service addresses your specific governance questions. 
• Social Business Strategy. Because governance follows strategy, Altimeter also helps organizations develop a 
cohesive social business strategy that evolves over time. 
• Speeches. We will present internally or externally facing webinars or speeches on SBG for both brands and 
governance industry vendors. 
To learn more about Altimeter’s offerings, contact sales@altimetergroup.com. 
7 
Altimeter is a research and 
consulting firm that helps 
companies understand and 
act on technology disruption. 
We give business leaders the 
insight and confidence to help 
their companies thrive in the 
face of disruption. In addition to 
publishing research, Altimeter 
Group analysts speak and 
provide strategy consulting 
on trends in leadership, digital 
transformation, social business, 
data disruption and content 
marketing strategy. 
Altimeter Group 
1875 S Grant St #680 
San Mateo, CA 94402 
info@altimetergroup.com 
www.altimetergroup.com 
@altimetergroup 
650.212.2272 
Preview Only

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[Report] Social Business Governance: A Framework to Execute Social Business Strategy, by Altimeter Group

  • 1. Preview Only Social Business Governance: A Framework to Execute Social Business Strategy By Ed Terpening and Charlene Li with Christine Tran and Brian Solis Includes input from 20 ecosystem contributors and a survey of 76 strategists and executives who are responsible for or influence social business governance at their organizations. A Best Practices Report November 13, 2014
  • 2. Preview Only Executive Summary Achieving momentum for a social business strategy for many organizations is challenging enough, but execution is often fraught with unanswered questions: Who owns social? How are key decisions made? How do we organize to execute social? Left unanswered, organizations face significant risks, including threats to brand health as the result of inappropriate or disjoint social practices. Hidden between great strategic ideas and business results lies the messy mechanics of governance, which according to our research only 16% of organizations feel is well understood and deployed. Strategy and governance are natural partners: Strategy lays the groundwork for new opportunities while governance ensures safe execution, managing the risk of change. In this report, we define a social business governance system of 4 P’s: people, policies, processes, and practices. We use that framework to provide a maturity model to assess where you are, and we include best practices, policy templates, and a decision-making matrix that you can use to define Social Business Governance (SBG) that will help you both achieve the potential of your strategy and manage risk. Introduction ................................................................................................................................................................................................. The Social Business Governance System: The Four “P”s...................................................................... Best Practices for Developing Governance ........................................................................................................... Social Business Governance Maturity Map .......................................................................................................... Appendix ......................................................................................................................................................................................................... Social Business Community of Excellence................................................................................................................ The Decision Matrix: A Tool to Align Everyone.......................................................................................................... Bank of the West: Getting the Right People a Seat at the SBG Table................................................................... USAA’s Governance Model Aligns Its People and Culture...................................................................................... Employee Social Media Policy..................................................................................................................................... Social Business Practitioner Policy............................................................................................................................ Social Business Governance Checklist...............................-..................................................................................... 3 8 17 20 23 23 24 25 26 27 28 29 Table of Contents
  • 3. Social Business Governance: A Framework to Execute Social Business Strategy INTRODUCTION In our research, we found that 53% of respondents agree that social business strategy forms the basis for governance; yet only 16% believe that governance is well understood and deployed throughout the organization. Astonishingly, most organizations we surveyed (57%) say they lack confidence that the right governance is in place to succeed. This report seeks to address the disconnect between strategy and governance and to define a framework for developing an effective governance system in support of strategy. We see organizations struggling to mature from early “test and learn” stages of social business, typified by silos of innovation focused on narrow business objectives, to executing a social business strategy under a shared vision and customer experience1. It’s a big step to take, and critical for organizations to take if they’re to reach the potential of their investment in social. Most organizations develop governance organically as their strategy or other catalysts emerge, but this can result in a fragmented, uneven approach rife with inefficiencies and the inability to scale in support of a broad vision. We believe the relationship between strategy and governance is essential and that social business success is at risk without equal consideration. In a general sense, we think of strategy as defining what will be done and when, and governance as how it will be done and by whom. Your organization’s mission, risk tolerance, and objectives define the why and act as a common compass that guides and links strategy and governance (see Figure 1). There is a relationship between strategy and governance: You don’t know the full scope of what to govern without strategy, and you need a strategy to design the right supportive governance. 3 FIGURE 1 The Strategy — Governance Relationship STRATEGY GOVERNANCE What When Who Company Mission & Objectives Why How Source: Altimeter Group Preview Only
  • 4. Preview Only Defining Social Business Governance In the course of our research, governance was described as everything from social media policies to organizational structure. Moreover, governance can be a loaded word. “The word governance comes across like police,” said Paul Michaud, SVP of social media at Citi: “Rather, you have to approach it as helping: here’s how to approach social and be successful.” Other leaders, like Wendy Arnott, VP of digital marketing and social media at TD Bank, position governance as a form of empowerment. Said Arnott, “It is a license to operate. Governance is the articulation of all the things we must do, as well as the plan for how we do it, and finally who’s involved in the many pieces of it.” We found that organizations are not protecting themselves and are not organized to make social media more effective. As social spreads throughout organizations beyond traditional functions like marketing and communications, governance is needed to achieve consistent, safe, aligned, and efficient execution. In the absence of a common definition, Altimeter studied the key building blocks of social business governance to define it this way: Social Business Governance (SBG) is an integrated system of people, policies, processes, and practices that defines organizational structure and decision process to ensure effective management of social business at scale. FIGURE 2-1 Few Organizations Have Robust Social Business Governance in Place 4 “Below are statements regarding social business governance. Please state how strongly you agree or disagree with each statement (1 = strongly disagree to 5 = strongly agree).” “Our social business strategy forms the foundation and informs our social media governance.” “I am confident that our social business governance prevents avoidable incidents and prepares us to deal with any crisis or decision that arises.” “I am confident that the right people, processes, policies, and platforms are in place to govern social business.” “Executive leadership at my company are educated and aligned to effectively support social business governance.” “Social business governance is well understood and deployed throughout all parts of the organization.” 53% agree or strongly agree 46% 16% 43% 40% Source/Base: Altimeter Group’s Survey of Social Business Strategists, December 2014 (n=76)
  • 5. The State of SBG Today Before we explore what good governance looks like, let’s step back to understand what is driving the need for it. The reality is that few organizations take a systematic approach to developing governance; instead it grows organically in an ad hoc fashion. We see this occurring as brands focus on strategy alone as the imperative, without making the connection to governance as a means to execute. To better understand the state of SBG, we surveyed 76 people familiar with how governance works in their organizations. We found that only 53% use social business strategy as the foundation for governance and that a startlingly 16% of respondents agreed that SBG is “well understood and deployed throughout the organization” (see Figure 2-1). With such low confidence that governance is in place, it’s not surprising that a minority of organizations (46%) are confident that they are prepared to deal with a crisis or that leadership is educated and aligned to support social (40%). FIGURE 2-2 Scaling Social Business and Optimizing Customer Experience Drives the Need For Governance “What is driving your attention to social business governance?” Overall Rank 1 SCALING SOCIAL BUSINESS: Need to scale use of social media across the company. 2 CUSTOMER EXPERIENCE: Use of governance to ensure an optimal customer experience across digital/social/mobile. 3 EMPOWER EMPLOYEES: Need employees to use social for sales, advocacy, recruiting or other official business. 4 MANAGE RISK: Use of governance as a risk control, 5 SOCIAL PLATFORM COMPLEXITY: Complexities of social platforms, such as managing user-generated content, community management and 24x7 dialog. 6 EMPLOYEE USE OF SOCIAL: The need to define what employees can and cannot do on their personal social media accounts as it relates to company business. 7 COORDINATE: Need to drive efficiencies between silos using social to reduce redundancies. 8 REGULATIONS: Complying with government rules and regulations. Source/Base: Altimeter Group’s Survey of Social Business Strategists, December 2014 (n=76) 5 If organizations are not developing governance in sync with strategy, what is driving it? We found that organizations were focused primarily on four drivers: scaling social business, optimizing customer experience, empowering employees, and managing risk (see Figure 2-2). Preview Only
  • 6. Preview Only 6 To download the full report at no cost, please visit our website at: http://pages.altimetergroup.com/social-business-governance-report.html
  • 7. About Us Ed Terpening, Senior Consultant Ed Terpening (@EdTerpening) is a Senior Consultant at Altimeter Group and leads advisory projects on social business education and governance at Altimeter. To date, he has trained more than 300 professionals in social media for business, and while at Apple he was awarded “Teacher of the Year” for his work at Apple University. As VP of Social Media at Wells Fargo, Ed led the charge to develop the first blog by any major US bank and led the first dedicated social media team at a major financial institution. He led social media strategy at Wells Fargo for seven years. While at CNET, Ed created the company’s first community team in 1999 and launched user ratings and reviews on CNET.com and “Talkback” on NEWS.com. He is a founding member of SocialMedia.org. Charlene Li, Founder and Principal Analyst Charlene Li (@charleneli) is Founder of Altimeter Group and author of the New York Times bestseller, Open Leadership. She is also the co-author of the critically acclaimed bestselling book, Groundswell, which was named one of the best business books in 2008. She is one of the foremost experts on social media and technologies and a consultant and independent thought leader on leadership, strategies, social technology, interactive media, and marketing. How to Work with Us Altimeter Group research is put to use in our client engagements, which help organizations succeed through disruptions, such as social business governance (SBG). • SBG Audit. This research-based, quantitative assessment of your social business governance includes a scorecard and best practice recommendations to move to the next level. • SBG Roadmap. After a discovery/audit process, we help you create a high-level roadmap for building a SBG system specific to your organization, aligned with strategy for the next three to five years. • SBG Advisory. This hourly advisory service addresses your specific governance questions. • Social Business Strategy. Because governance follows strategy, Altimeter also helps organizations develop a cohesive social business strategy that evolves over time. • Speeches. We will present internally or externally facing webinars or speeches on SBG for both brands and governance industry vendors. To learn more about Altimeter’s offerings, contact sales@altimetergroup.com. 7 Altimeter is a research and consulting firm that helps companies understand and act on technology disruption. We give business leaders the insight and confidence to help their companies thrive in the face of disruption. In addition to publishing research, Altimeter Group analysts speak and provide strategy consulting on trends in leadership, digital transformation, social business, data disruption and content marketing strategy. Altimeter Group 1875 S Grant St #680 San Mateo, CA 94402 info@altimetergroup.com www.altimetergroup.com @altimetergroup 650.212.2272 Preview Only