Pulse Legacy Archive March / April 2011 | Page 52

ASK THE EXPERT Charlene Li or years, most companies have run their business with a “closed culture”—guarding so-called “proprietary information” and “corporate communications” like sleepless watch dogs at night. But with the dawn of the social media age, the new world order demands “openness and authenticity” which this Pulse issue’s expert Altimeter Group founder Charlene Li claims “inevitable” in today’s business world. In her New York Times best-selling book “Open Leadership,” this Harvard Business School graduate introduces the concept of transforming traditional leadership using social media. She assures reluctant leaders that an “open strategy”—which many major brands and companies like Best Buy, Kohls, Comcast and Dell are slowly embracing—is not about total transparency, but strategic planning on how to create a culture of trust while engaging a broader audience. Named one of the 100 most creative people in business by Fast Company in 2010 and former vice president at Forrester Research, Li is a sought-after expert on social media regularly featured on leading media channels like The Wall Street Journal, New York Times, USA Today, 60 Minutes, CNN and CNBC. She is also the co-author of “Groundswell” which was named one of the best business books in 2008. Here, she explains what “open leadership” is all about, how to engage the right audience and what guidelines to follow when creating a social media policy. F 1. What is “open leadership” and how is this concept going to play out in social entrepreneurship? Open leadership is defined as having the confidence and humility to realize that EDITOR’S NOTE: Open Leadership is a concept that some leaders are reluctant to embrace for fear of sharing information and “losing control.” See example of conversations that may go behind closed doors in relation to Li’s response about creating new skills and mindsets. For a quick guide on how to create a social media policy or guideline, download Altimeter Group’s Social Media Guidelines Checklist on digital Pulse at experienceispa.com. 50 PULSE ■ March/April 2011 CMO: We need a blog and a Twitter strategy. VP Customer Service: We’ll just get complaints. VP Product Development: But we need feedback and new ideas to beat the competition. VP Sales: Competitors will steal the ideas and unhappy customers. CMO: With reviews, we’ll know what’s wrong and can then fix it. CEO: Negative reviews will kill sales. VP Biz Development: Dell does this. CEO: We’re not Dell. you have to give up the need to be in control while at the same time being able to inspire people to achieve specific goals and objectives. The key is to realize that as a leader, you aren’t actually in control, and that in a world where relationships are started and deepened in many different ways, new skills and mindsets are required. 2. What are among the practical ways businesses like spas and related wellness and beauty brands effectively use the “open leadership” concept from a management and marketing standpoint? One of the most important things to keep in mind is that people won’t respond to traditional one-way communications and dictates. Leadership is a relationship between leaders and the people who follow them—and you simply can’t