The benefits for companies using social media to reach customers are much discussed. But there has been woefully little mention in the conversation of the benefits of using social media to increase the efficiency of communications inside the organization – and as a result, productivity and revenue.
A recently released McKinsey report finds that, while nearly three-quarters of organisations use social media to engage with external audiences, twice as much potential exists in using social tools internally. The report suggests that social platforms for internal comms could increase productivity by up to 25% and unlock up to (get this!) $1.3trillion in ‘annual value’, just across the 4 sectors its research covered.
In June, I reasoned in my blog post, Social At Work, that social media was a powerful conduit for information-flow and knowledge-sharing inside any organization (much like it is outside), enabling workers to more easily keep informed about, and engaged in, developments and events across the entire operation. How many times have you heard disgruntled employees lamenting that they ‘don’t know what’s going on?’ Enhanced product knowledge, increased morale, more relevance, and fewer hours wasted in meetings, being just some of the obvious benefits of adopting a ‘social-culture’ for internal communications.
If only half of the reported 3 billion meetings that occur in the US ever year are a waste of time, then I estimate the direct cost to US industry to be well in excess of $100bn (being ultra conservative) in employees’ time alone. Is this not reason enough to consider the social media alternatives?
McKinsey also reaffirms my point that the real challenge for companies hoping to adopt social media as a platform for internal communications is in affecting the requisite changes in culture – installing the technology is the easy bit.