Ed. Note: Deloitte Touche Tohmatsu Ltd. (Deloitte Global) has announced that Punit Renjen, formerly Deloitte U.S. member firm chairman of the board, has been selected as Deloitte Global's new chief executive officer. He will assume the new role on June 1. The following is an article that he wrote for the First Quarter 2013 edition of Directors & Boards, which had as its theme, “Recruiting the Digital Director.”
During the next minute, 100,000 tweets will appear on Twitter, 684,000 pieces of content will be shared on Facebook, 48 hours of fresh video will be uploaded on YouTube and 3,600 photos will be shared on Instagram. Social media is the leading reason people visit the Internet — and the implications for business are profound.
But according to thesocialskinny.com, 40% of companies admit to having no training on or governance of social media.
By adding social media as a topic for management oversight and strategic input, boards can help their organizations capitalize on a powerful force that's here to stay.
Social media know-how is a distinct skill set needed in the boardroom. But should such expertise be bolted on or baked in?
Less Than 5% of Directors
Research indicates that less than 5% of directors admit to having ever used social media. Although no one skill should be a litmus test for board membership, savvy boards should seek access to social media expertise — either through knowledgeable board members or outside experts. Currently, social media proficiency is a welcome addition to any director's skill portfolio. Eventually, I believe it will become a de facto requirement.
In the meantime, boards can begin a necessary dialogue with management by asking some key and perhaps inconvenient questions about social media:
• Do we understand its vast potential to transform our business?
• What is our strategy for protecting and creating value via social media?
• Do we have mandatory training for our people and a well-articulated policy for mitigating risk?
• Who owns the responsibility for social media? If shared across organizations, is there strong collaboration?
• Have we allocated the resources needed to ensure an effective social media presence?
While these issues relate to oversight and strategy, two other aspects of social media merit special consideration:
Talent:
Understanding how and when to engage employees through social media is important and also different from your external strategy. A recent survey found that 78% of respondents would prefer to work for organizations whose leadership is active on social media. However, another study sponsored by Deloitte found that significantly more executives than employees believe that social media has a positive impact on workplace culture. One possible conclusion: business leaders may be using social media as a crutch merely to appear accessible.
Measurement:
Social media is personal in nature. Outcomes such as awareness, sentiment, and trust may be hard to quantify. Developing metrics that matter — such as a consistent measurement for ROI — can help organizations assess social media's potential for risk and reward.
A Hinge Point
An exciting era has arrived. A few years ago, boards greeted social media as a source of continuous concern. Today, we're at a hinge point where boards can also embrace social media as a source of ongoing opportunity.
Yet, like time, social media waits for no one. Standing idle while others advance their social business capabilities presents enormous competitive risk. In an emerging market where valuable relationships can evolve with each passing minute, boards have a straightforward choice to make about social media — lead or be left behind.