The Role of Community in Business: Why does it matter? Why is it hard? What

next?

Kitchen Table TakeawaysMarch 8, 2013

Hosted by:Brent Wagner

Rick WolfeAmy Young

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Characteristics of Communities

Characteristics of Communities

1. Shared passion

2. Common goals

3. Behavioural norms

4. Credentials/Language

5. Interdependence

6. Shared experience

7. Induction/expulsion mechanisms

REVISED

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Community can differentiate your business by getting better results, faster

Lasting permission to

interact• People are more

receptive to others from within their community

• They open up faster and are more likely to offer assistance

Source of insight

• Common passion and language facilitate communication and innovation

• Ideas are shared, seeded and developed more easily

Fewer barriers to selection

• People are more likely to do business with someone who has demonstrated a commitment to the community’s goal

• Competitive advantage relative to outsiders

Smoother execution

• Shared purpose and experience make it easier to move to action and reduce the variability of outcomes

Examples:

Commercial bankers earn the trust of prospects more easily by being present in community venues (eg. rotary clubs, kids hockey)

Lululemon’s interactions with its customer community yield product enhancements that are highly relevant

It is easier to secure a conference speaking slot after demonstrating commitment to learning about the community’s needs

The Ocean’s Eleven team was able to mobilize quickly because each had a clear role to play and their skills were known to each other

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Leaders must strike a balance of inclusion and exclusivity that aligns with their objectives

Inclusion- New entrants bring lots of new ideas, but they might not be high quality or suitable for the organization’s current situation

- Breaking in is easy, but internal cohesion is weak (ie. Participants can leave as easily as they came)

Exclusivity- Barriers to entry are high; you really need to “wear the clothes”

- Once you’re in the community, trust and cohesion are strong

- Limited participation can restrict access to new ideas

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Whether you’re building a community or trying to break into one, accurate assessment is key

Norms

Credentials

Shared Passion

Common GoalsInterdependence

Shared Experience

Induction/expulsion

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Framework for Community Assessment

Fashion Magazine Hockey Team

1. Map the attributes of communities that are important to your business

2. Prioritize where you are likely to fit best

3. Tailor activities so they are aligned with community characteristics