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To Facebook or Not? What's a Company to Do?
12/02/07
With the rapid growth of social networking phenom Facebook—and note that this growth is fastest in the 35 and older age group—its impact on the workplace is only becoming more and more apparent. How do you feel about Facebook? Are you using it at work and, in particular, for work—meaning for professional or business-related networking, whether within your own company, or to connect with customers, partners, or colleagues at other companies? Running a small company, I personally find it a valuable networking tool, especially to stay in touch with my highly dispersed network of contacts. And I find it so much more enjoyable—okay, FUN!—than alternatives such as LinkedIn, which I’ve used for years. Yes, the latter is a useful service, but what’s wrong with a little fun in one’s day in the course of staying in touch with colleagues?
Not all would agree, though, that Facebook should have a place in the workplace. I read a surprising statistic recently from a Forrester Research survey: 58.4 percent of 308 large companies they questioned prohibit the usage of social networks at work. I had no idea that such a policy was so prevalent. I was aware that one large Twin Cities-based firm (a retailer) prevents its employees being able to access their Facebook email at work, as part of a broader policy that disallows them to access any form of “webmail” while on the company’s network. Now, I’ve not heard of any employer backlash about LinkedIn yet—and that, in the strictest sense, is a social network, too. (Please tell me if you’re aware of any.) It seems the backlash is primarily against the most popular networks like MySpace and now Facebook. And I guess that’s understandable, with all mega media hype surrounding these two most popular social networks lately—and Facebook has been the most rapidly growing of the two. Let’s face it, reaching a figure of 55 million users (in the U.S. alone) is no small accomplishment for such a young company!
The problem as I see it is now, however, is this: companies need to reconsider and realize that Facebook is growing up. It’s becoming a professional or business network in its own right. In fact, I dare say that this kind of usage accounts for most of the growth it is now experiencing. Many adults are using it for much more than frivolous, personal, “leisure-time” purposes. They’re using it for professional networking. I know, because I’m doing it! I tend to invite people in as I meet them. And I’m on the receiving end of this networking as well, virtually every single day. Does it burn a lot of time? No. Do I find that the time I invest in it returns value to me? Most definitely. It took me about four years to get up to where I am now on LinkedIn—about 160 connections. Admittedly, I never worked real hard at it (spamming my friends with invites, etc). But guess how long it’s taken me to get up to almost that same amount on Facebook? Only about four months! And, again, that’s without having to try very hard—I’ve found that my network mostly builds naturally. People who have things in common with me, have similar interests and professional pursuits, simply find me....and I find them. I’m referring here to new “friends,” but there are many more connections I’ve made that are older contacts I had lost track of, but not lost interest in. It’s been great to find out what they’re doing now, where they’re located, their professional pursuits, their travels, etc. Without Facebook, I would simply not have been able to learn all these things, and also meet so many valuable new “friends”—the majority of whom I would consider business-related, or potentially business-related, contacts. At the very least, they become referrers or connectors to others that will have value to my business or my professional pursuits.
Some more great reading on this topic:
• Thank You, Facebook (Alex Barnett’s Blog)
• Slides from a webinar: “The Power of Facebook” (WebCommunity Forum)
• Should Companies Allow Social Network Usage at Work? (Reem Abeidoh’s Introspect blog)
And talk about a forward-thinking company! ....
• Serena Software Adopts Facebook as Intranet (BusinessWeek.com)
But there’s more! We haven’t even touched on the developing value of Facebook as a marketing tool:
• Facebook, A Marketer’s Friend” (Wall Street Journal)
More on that latter topic in subsequent posts!
Tell us what you think about Facebook. Do you use it? Does your company ban it? Will your usage of it increase, whether personal or work-related?
Keywords: Facebook, social networks, LinkedIn, employees, policy, social marketing, social media, professional networking
(800 character limit)
By: Randy
12/03/07 - 11:48am
In the end, I think Facebook is just a stepping stone to a social app that works professionally What app will succeed it and which company will develop it has yet to be determined but I doubt it will be Facebook.And, who knows, it could end up being LinkedIn. Or, with OpenSocial it will all splinter into many vertical social nets and users will belong to many and share between.
By: Graeme
12/03/07 - 7:08pm
Seriously, you can choose not to like it yourself, but the numbers don't lie. By far the fastest growth for Facebook is in the "over 35" age group. The term "adolescent" does not describe Facebook -- that would be MySpace! Sure, FB began some years ago as a site for college students -- but these aren't adolescents, they're young adults. Sure, they did some goofy things on the site that college students do. God bless 'em. But that's beside the point now, considering where the site has come and where it's headed -- which is very definitely to older adults wanting to network. Nielsen's latest numbers showed Facebook had a 125% growth rate over the same month last year.
So, I say, if some other social site is going to overtake Facebook, it had better hurry!
I do not disagree, by the way, that niche social networks are proliferating (I belong to some myself). But even all of those taken together are not likely to displace Facebook anytime soon.
Ning, one of the leaders in that space, hosts more than 100,000 niche social networks already -- and has absolutely no monetization strategy at all for them! (By the way, it's estimated the average size of these networks is less a few hundred members.)
Facebook, on the other hand, is leading the charge to make social networks a viable medium for marketers -- and it has some serious numbers that matter to those marketers. The company is bound to take some arrows as it tries to figure out this whole thing. Whether it stays a so-called walled garden, or goes "open" itself with the Open Social spec that Ning and others are pushing, remains to be seen.
Essentially, I maintain that one gets out of Facebook what one puts into it -- as with any networking endeavor. And millions of people appear to be getting something out of it.
By: Randy
12/03/07 - 10:59pm
By: Graeme
12/04/07 - 9:48am
By: Randy
12/04/07 - 1:54pm
My one is a badge of honor :-)
By: Graeme
01/02/08 - 10:40pm
Graeme
By: Graeme
01/02/08 - 10:41pm
network of friends is in the range of 150
so, somebody, please -- tell Scoble he's gone like 33x over the limit! :-)
Graeme
Recommended Reading:
The Corporate Blogging Book
Absolutely Everything You Need to Know to Get It Right
by: Debbie Weil
This book presents all the principles we practice here at NMW. It's the one we would have written on this very important topic ourselves -- if we weren't so darn busy!
The Godfather of the Valley
by: Gary Rivlin
Ron Conway, who I've had the privilege of meeting, is also the reigning godfather of the angel investing community. He gives passion and drive a whole new meaning.
Endorsements:
A random sampling of testimonials from clients and colleagues (refresh page for more)...
"Graeme has incredible insight about the tech world...(and) can turn those insights into compelling words that motivate regular people..."
Mike O'Connor
Founder
GoFast.net and several other ventures
"You do a great job of research...I always enjoy reading your material."
Clint Jurgens
Cofounder/VP Bus Dev
NuSpeed (acquired by Cisco)
Blogroll:
Blogs I read regularly (refresh page for more)...
Feld Thoughts
by Brad Feld...One of the most active and plugged-in early stage investors in Web 2.0 and Enterprise 2.0 technologies.
Tech~Surf~Blog
by Graeme Thickins...Technology innovation -- it comes in waves...Graeme's *other* blog.
Correlate
by Lou Paglia ...Connections, relevancy, and everything else, including the relationships and linkages only the web can drive.
Venture Blog
by Dave Hornick..."A Random Walk Down Sand Hill Road" -- thoughts of a leading Web 2.0 VC.
Alltop - Social Media
by Guy Kawasaki...All the top stories and blog posts on the topic of social media and marketing .... including yours truly!
SoftTech VC Blog
by Jeff Clavier...An active seed-stage investor in Web 2.0 ventures, Jeff has unique insight into the world of new media.
Linkroll:
Some tech / Internet / content sites I find useful in my work (refresh page for more)...

