Revamping Strategy for the Social Era
Traditional business strategies are officially a thing of the past. At least, that’s the claim from Nilofer Merchant in her groundbreaking book, 11 Rules for Creating Value in the Social Era. She argues that in the 21st century, the old models of corporate strategy, where centralized decisions were made by powerful organizations, no longer work. Instead, control to collaboration is the new standard. In the Social Era, success hinges on social media platforms, flexible networks, and social networks that connect businesses with employees, customers, and partners in a way that creates valuable insights.
In this blog post, we break down Merchant's key lessons on how businesses—whether major companies like Bank of America or startups—can adapt and thrive in this connected world. If you want to stay ahead of the curve, this is the blueprint for creating a business that’s agile, innovative, and deeply connected with its extended community.
Connectivity & Contribution
In the Social Era, power comes from connectivity—connecting ideas, people, and opportunities. Merchant introduces the concept of onliness—the foundational element of value creation, where individuals bring unique contributions shaped by their backgrounds, experiences, and even factors like sexual orientation.
The most successful businesses today realize they don’t create value on their own. They involve individuals in the community in meaningful ways. Social media and social platforms now allow brands to build relationships beyond just customers—they create entire ecosystems.
Shift from a single unit operating model to a permeable organization where teams and customers engage collaboratively.
Adaptability in a Socially-Connected World
Gone are the days when consumers were just passive recipients of value. In the Social Era, they’re social objects—partners in innovation. Adaptability is crucial for organizations that want to stay relevant. Instead of striving for perfection from the get-go, businesses must focus on profound implications of continuous improvements through social networks.
The best companies today don’t try to control every aspect of their service; they embrace collaboration over control. A sophisticated approach to customer engagement involves embracing social media platforms, letting customers shape the product, and co-creating experiences.
Use marketing teams and social platforms to co-create with customers and evolve your brand based on their input.
Breaking Hierarchies with Networks
One of the core principles of the Social Era is that organizations must operate free of traditional hierarchies. Merchant compares the old-school structure to an 800-pound gorilla—strong but inflexible. Today, major companies must embrace flexible networks where ideas flow freely.
Traditional companies rely on centralized decisions, but modern businesses function best with decentralized, cross-functional teams that share knowledge openly. The companies that win are those that shift from rigid job functions to socially driven, collaborative teams.
Replace rigid hierarchies with social networks that allow for permeable organization and knowledge-sharing across the board.
Love, Not War – A New Marketing Approach
Traditional marketing has long been compared to warfare—fighting for intellectual property, protecting proprietary claims, and outmaneuvering competitors. Merchant flips this idea on its head, introducing the arc of romance—a model where marketing is about extended community engagement rather than direct competition.
In this model, your relationship with customers isn’t just transactional; it’s a sophisticated approach to relationship-building that goes through four stages:
Romance – Attract and engage through social media and social platforms.
Struggle – Build trust by overcoming objections and delivering value.
Commitment – Form long-term partnerships with loyal customers.
Co-Creation – Involve customers in product development and brand-building.
Replace outdated corporate strategy with relationship-driven marketing. Use the arc of romance to build meaningful customer loyalty.
Rethinking Business Models
Merchant asserts that traditional business models are proprietary claims on outdated thinking. In today’s world, the Social Era requires companies to find new ways to create value through social media, corporate social responsibility, and permeable organization structures.
Bank of America, for example, has leveraged Corporate Social Responsibility (CSR) to build customer trust and integrate social impact into its brand. Organizations that fail to evolve will struggle to maintain relevance in a socially connected marketplace.
Invest in Corporate Social Responsibility initiatives that align with your brand’s values and customer expectations.
Unlocking Talent in the Social Era
A successful business in the Social Era isn’t just about having the best technology—it’s about unlocking the full potential of its people. Talent isn’t just about proprietary claims anymore; it’s about how individuals contribute uniquely to their organizations.
Organizations that embrace permeable organization structures allow individuals to thrive in socially connected networks. This self-managed, hierarchy-free approach fosters major companies that are adaptable, innovative, and deeply engaged with their employees.
Focus on valuable insights from employees and encourage them to innovate and take ownership of their contributions.
A Purpose-Driven Future
A permeable organization in the Social Era isn’t just about profits—it’s about corporate social responsibility and creating real impact. Customers and employees alike want to engage with brands that align with their values and purpose.
Businesses that thrive in the Social Era understand that success is about extended community impact. Instead of focusing solely on sales, they aim to create social objects that people rally around.
Embed Corporate Social Responsibility into your brand and show customers that you stand for more than just profit.
The Future of Business is SOCIAL
Is traditional strategy doomed? Not necessarily, but businesses that adapt to the Social Era will have the edge. The key takeaway? Adaptability, social media, and permeable organization structures are the new drivers of success.
If you want to lead your business into the Social Era, you need to evolve your corporate strategy, leverage social platforms, and build a socially connected community. It’s time to go beyond centralized decisions and create real value.
Join The Swarm by becoming a member of the Limitless Leaders Club or hire a marketing sidekick from HivePowered.Ai to help you implement these principles and start creating value in the Social Era. Let's lead the charge together!
