Many firms have unveiled social media practices, here's why KPMG hasn't
As other large firms unveiled social media practices in recent months, KPMG chose not to do so. Instead the firm integrated social media insights and services into its existing offerings. If the widely shared sense that social business will one day represent the way all organizations do business comes to fruition, KPMG may be a step ahead of its competitors. After all, what firms maintain e-business or Internet offerings these days? Consulting caught up with three KPMG leaders—Advisory Principal and U.S. Digital Services Leader Sanjaya Krishna; Advisory Director and Social Media Governance Leader John Hair; and Advisory National Leader, Customer Strategy and Growth Alton Adams—to find out more about the ways the firm is helping craft, implement and execute new social media programs.
Consulting: What types of social media services and expertise are companies looking for?
Sanjaya Krishna: Initially companies have been looking for assistance in social media strategy development and execution. Specific components include things like development of social media marketing programs, development of processes to use social media to improve customer service, assistance with selection and implementation of social media monitoring tools, and assistance with customer analytics related to data derived from social media.
In addition, we are now seeing a marked increase in companies looking for help related to social media governance. Specific areas they are looking for help with include governance over how they externally engage in social media and over workforce use of social media. Looking forward, we are seeing clients thinking more about enterprise collaboration tools, and are finding that the governance story related to this area is also resonating.
Alton Adams: In addition to the risk aspect of social media, companies are also waking up to its power to drive customer acquisition and loyalty. Incorporating social media into product definition, competitive positioning and customer experience management may have a pronounced impact on a company's growth trajectory.
Consulting: To date, a number of high-profile "social strategists," smaller software vendors and other social media gurus have been driving the organizational social media discussion; what does the current collection of social media consulting services look like, and what do you make of this field?
John Hair: The opportunities are exactly what you would expect from a rapidly evolving and disruptive technology. The historical evolution is that you start with the technology providers selling application solutions to the market to attract more mass market attention in the early stages. Closely following are boutique consulting groups comprised of specialists in the new technology, indicating that the emerging trend is of interest to leading-edge organizations. Social media has followed this evolution over the last year. Both technology providers and consulting firms are delivering value-add social media services to the marketplace with these services primarily being strategy and marketing focused.
Consulting: What opportunities exist?
Krishna: The opportunities for KPMG are numerous. We are currently leading the discussion on social media governance, which plays to KPMG's strong roots in risk management. We have active engagements in our risk consulting group helping clients assess the governance model they have or need to have to manage the risks of being both directly engaged in social media, and providing guidance on the expectations of personal use of social media across the workforce. Our people and change practice is also beginning to see many more opportunities to help organizations better manage the risk of workforce use of social media through policy and training development.
Adams: At the same time, our customer growth and strategy practice is helping companies more effectively compete by using social media information to drive product development, customer targeting and customer loyalty programs. Viewing social media as an opportunity for real-time discussions and research with customers gives marketers a powerful tool that most companies have yet to take advantage of. We help with the integration of social media data into the customer profile, analyze that data to provide actionable insights, and utilize theses insights to create a truly holistic digital strategy.
Consulting: Can you compare social media opportunity to other recent opportunities, such as CRM, e-business or ERP?
Hair: While the similarities, such as requirements collection, strategy design and vendor selection are clear, we see that the core concept of market engagement and dialogue bring a new set of criteria in this area. KPMG defines social media as online media tools and channels that foster communication and conversation, not only delivering content, but also allowing interaction and participation in the development of the content being discussed. When you factor in the needs to respond to market input from that interaction, you see where moderation, retention and governance around the management of the data brings a set of considerations that goes beyond the opportunities listed above.
Consulting: How do consulting firms and practices develop social media consulting offerings that resonate with clients?
Hair: We are finding that traditional skills in the areas of assessment or development of technology strategy, regulatory compliance frameworks, and complex risk management models are highly relevant in these opportunities. KPMG's long-standing qualifications in these areas are key in helping clients with the creation of social media programs that deliver greater value while mitigating the risks that come with digital market interaction.
Consulting: Describe an engagement that involves social-media; also, what types of client-side titles typically are involved in these engagements?
Krishna: Social media governance engagements, for example, involve looking at the risks to the organization of being engaged in social media. In these engagements, we typically have participation from CIOs, CMOs, heads of HR, legal, compliance officers (especially for more heavily regulated industries) and chief audit executives.
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