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Holtz Communications + Technology

Shel Holtz
Communicating at the Intersection of Business and Technology
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My top five reasons companies resist social media

I spoke last week about the uses of social media for industrial organizations. The venue was the annual conference of a trade association representing these companies that employ lots of blue-collar workers who go to outdoor job sites every day; they never sit in front of computers except, maybe, at home.

The audience was made up of owners of smaller companies and senior management from larger ones. About 200 people or so were in my room (I was never very good at those eyball headcounts). I was taken aback when I asked, “How many of you know what a wiki is?” and two raised their hands.

The same two guys also knew what Twitter is; nobody else did.

I could use this experience to rebut yet again the notion that we have entered an era in which companies can just blog everything. But I’ve beaten that horse to death and the people who insist that it’s true are just going to keep right on insisting that it’s true.

As I took questions from this group, it occurred to me that there are a lot of reasons why companies resist adopting social media as part of their communications mix. That got me wondering about which barriers I’ve heard articulated most often to justify barring social media. Here’s my top 5 list.

What would you add to it? I’m interested in reasons you hear all the time, but if you have some off-the-wall rationale that you’ve only heard once, hit me with that, too.

#1 - IT won’t let us

IT doesn’t want to spend the time or money to test social media software on company networks, claiming it can cost tens of thousands of dollars and take up to a year to make sure applications don’t conflict with existing programs. They also resist external hosting, asserting that it puts company data at too much risk. (Makes you wonder how much they care about our 401(k) data, since that’s never housed on internal servers.)

#2 - It will be abused

Employees will say inappropriate things. Customers will complain. Bad language will appear on comments. People will insult management. We’ll end up spending time on issues we don’t really think are important. Care to add to the list?

#3 - Management fears loss of control

The company has invested considerable time, effort, and money to craft a brand image that will be completely destroyed if we open it up to the masses. Besides, transparency is a bad thing and we don’t need our internal workings on display.

#4 - Legal and regulatory risks

Nobody likes a lawsuit. Besides, the Securities and Exchange Commission will the company if an employee inadvertently makes a forward-looking material statement. Pharmaceutical companies fear the FDA’s punitive powers for promotion of unapproved indications while the financial services industry fears fines from the bodies that regulate their activities.

#5 - We don’t have the time or resources

Communicators are already overworked. Where are they supposed to find the time to do all this new stuff? How can they even stay on top of the ever-shifting social media landscape?


Incidentally, at a Ragan/Simply-Communicate conference in London last year, participants addressed obstacles to social media implementation while providing feedback through an interactive system. Simply-Communicate’s Marc Wright summarized the results.

Comments
  • 1.I am a PR student at Centennial College and as a part of our online PR course we are required to write blogs; a task incredibly intimidating for many students. The course has been very helpful in initiating us into the social media world, but I can understand why so many industries are still apprehensive about blogging.

    Even though we are required to blog, some students are holding back because they simply don't know what to write about. Although this is not a problem for most companies, I can see how the fear of an online presence is holding people back.

    So as a new blogger, I feel many companies are resisting taking part in social media due to fear.

    As a side note, if anyone is interested in reading 40 student blogs they are listed on our course blog, http://onlineprcourse.wordpress.com/

    Megan Ramsay | February 2008 | Toronto

  • 2.My previous post is a perfect example of why students are afraid to blog. Once it's on the web it's there for everyone to see.

    megan ramsay | February 2008 | toronto

  • 3.Not to worry, Megan. I can fix the duplication.

    Shel Holtz | February 2008 | Concord, CA

  • 4.It’s time to stop being afraid…

    ...

  • 5.Blogging is very helpful. You can freely share your thoughts to anyone in the world. You may not be aware of it you're already inspiring another person, uplifting someone's spirits when he or she's been feeling so down. And blogging I think is an effective marketing tool. Companies should try and invest on it.

    Estela | February 2008

  • 6.Shel,
    Your list looks pretty similar to one I posted on my blog a little while ago:
    http://richarddennison.wordpress.com/2007/12/03/five-reasons-not-to-let-social-media-tools-onto-your-intranet/

    Richard Dennison | February 2008 | Devon, UK

  • 7.One (unexpected) barrier I've come up against is people thinking/pretending they *do* know about social media when they don't. This could be a problem with (often top) management wanting to seem on top of everything. I've given sessions where they say they know about this or that, but midway through it becomes plain that they do not. They've been bluffing!

    Brendan Cooper | February 2008 | London

  • 8.What's interesting is that these "reasons," which are really excuses applies to anything new and innovative. Every company needs a guy or team whose sole responsibility is to search out, find and learn how new technology can be applied make a company more efficient and effective.

    Rodger Johnson | February 2008 | Indianapolis, IN

  • 9.Good post Shel. I was thinking that all of these objections are a smoke screen for a wider industry issue. People are not blogging because their colleagues and friends are not blogging. If you went to another conference dominated by tech people, I suspect the response would have been most hands raised. Maybe the social media evangelist community needs to pick one or two technologies, and one or two industries and make a concerted effort to change minds in that one industry. As I look across the Fortune 500, 85-90% of companies are not even blogging. And those that are blogging are in the tech sector. I think the issue is that social media is not yet seen as mainstream in corporate America. Election 2008 will change some minds, but we still have a long way to go.

    John Cass | February 2008 | Boston, MA

  • 10.Megan, Canadian college students must be a (in)breed of their own, because blogging, social media sites like Facebook and MySpace and sharing personal information are second nature to American college students!

    Ashley | February 2008

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