This is the first episode in a 3 part series produced for business executives who are considering the role of enterprise social networks in their business or public sector organization.

It begins by addressing the 5 questions that every executive should ask:

1. (1)How can my organization best use a social network?
   

2. (2)Would we create value with a social network - what are the expected returns?
   

3. (3)What would it cost to build, implement, and maintain a social network?
   

4. (4) Does my organization have the skills necessary to be successful in managing a social network?
   

5. (5)How will one or more social networks drive results in my profit and loss statement and balance sheet?
   

The next segment addresses something that we all know - social networks are actually a variation of something that we have done in business for years - connected people and organizations to each other. Today we call it “collective cognition”. In English it simply means that there are some problems better solved by groups than individuals. They are not mysterious.

The third segment of this episode speaks to 6 elements of the investment decision that are unusual. What should your business consider in developing a social network?

It addresses:

6. (6)The fact that for most businesses there are many unknowns in setting up social networks.
   

7. (7)There are many factors in establishing social networks that are beyond the control of most organizations.
   

8. (8)Social networks require businesses and public sector organizations to reorder the value equation and their expectation of what creates value. Value may not always be monetized - that is okay. The members of networks need incentives to participate in networks. They too create value. Ultimately, everyone wins.
   

9. (9) Being successful with networks in an intricate endeavor, full of risks.
   

10. (10)Investment equations for business implementation of social networks is poorly defined.
    

11. (11)Points 1-5 must be weighed against the business opportunity of leveraging existing business assets and customer, partner and employee networks. For public sector, they must be weighed against the opportunity to leverage stakeholder and citizen networks.
    

The final segment presents 2 possible perspectives, both of which are logical starting points for virtually all executives as they decide whether and how to implement enterprise social networks. They both meet the paradox that failure to act, even in light of uncertain results, could quickly put your organization at a competitive disadvantage. This paradox is compounded by the fact that success in the networks are in part determined by the level of investment.

The next episode is going to define the building blocks for value creation in enterprise social networks, and the final episode will describe value metrics by which we can measure the results of implementing enterprise social networks.

Music credit: George Wood.