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"Thus, many businesses now realize they’ve lost intellectual control over a seemingly galactic number of social media projects and that there is too much duplication, inconsistency, and poor coordination between them. As a result, organizations are seeking ways to consolidate, optimize, and bring focus to their social media efforts. What’s emerging is something that for lack of a better term I’ll call a Social Business Unit. It’s actual name varies in organizations and might just be a group inside Corporate Communications or it could be a full-out, dedicated Social Business Unit that’s been created as a new organizational entity."
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Now, I should be clear that top-down hierarchy and central control is not the name of the game for a Social Business Unit. In fact quite the contrary, and I’ve previously explored why this is with push vs. pull management models and CoIT. Instead, the Social Business Unit is much more of a facilitator that enables local success by providing needed guidance, best practices, coordination, and occasionally actual resources such as community management and social listening.
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# When large companies are organized in the traditional division structure, strategic decisions too often fall to managers under pressure to meet budgetary demands. Success in one unit masks underperformance in others, while ventures that promise strong future growth go underfunded because they don’t contribute to short-term bottom-line numbers.
# One way to shake things up is to review the strategy and performance-management processes and to make decisions at the more granular level of value cells. Value cells are smaller units (20-50 for a large company) that represent the economics of the individual, simple businesses that any company is built of, such as customer segments, product groups, geographic markets, and new technologies.
# By emphasizing these value cells rather than aggregated bottom-line division numbers, this approach sheds light on which activities should be the target of additional investment—and which should be divested entirely. Changing managers’ roles won’t be easy, but in the long run, it will be worth it.
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