Social Media Will Change Your Business

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How does business change when everyone is a potential publisher? A vast new stretch of the information world opens up. For now, it's a digital hinterland. The laws and norms covering fairness, advertising, and libel? They don't exist, not yet anyway. But one thing is clear: Companies over the past few centuries have gotten used to shaping their message. Now they're losing control of it.

Want to get it back? You never will, not entirely. But for a look at what you're facing, come along for a tour of the blogosphere.

Wednesday 7:38 a.m. Hmm. How to start this post? Idle talk about the weather, or maybe that red wine with dinner last night? No. Let's dive right in: One misstep Tim Bray, Sun's director of Web technologies, thinks we overstated the risks of company bloggers. He says that 4,000 bloggers at Sun, about 10% of the workforce, have had virtually no problems. And except for a few high-profile cases, like Mark Jen at Google, very few companies have had publicized problems with in-house bloggers. "I think there's a news story in the absence of carnage," he says. Jon Garfunkel responds on Blogspotting that a few punishments and firings could frighten in-house bloggers from "testing the limits"—and lead some of them to produce blog PR. and the blog world can have its way with you—even when the coolest, most tech-savvy companies are involved.

Google (GOOG) is regarded as a secretive company. So in January, when a young programmer named Mark Jen started blogging about his first days in the Googleplex, folks in the 'sphere instantly linked to him. Jen certainly wasn't dealing out inside dirt. But he griped that Google's health plan was less generous than his former employer's—Microsoft (MSFT)—and he argued, indignantly, that Google's free food was an enticement for employees to work past dinner.

Two weeks later, Google fired Jen. And that's when the 22-year-old became a big story. Google was blogbusted for overreacting and for sending an all-too-clear warning to the dozens of bloggers still at the company. A Google official says the company has lots of bloggers and just expects them to use common sense. For example, if it's something you wouldn't e-mail to a long list of strangers, don't blog it.

Jen clearly flunked that test. "As the media got hold of it, I was quickly educated," he says. He says he should have understood the company's goals and concerns better and been more sensitive to them. Still, his adventure turned him into an overnight celebrity. He was wooed by recruiters at Amazon.com (AMZN), Microsoft, and Yahoo! (YHOO) A month later, Jen landed a job at Plaxo, an Internet contact-management company. A key part of his job, says a company spokesperson, is to help coordinate Plaxo's blogging efforts—a pillar of Plaxo's promotional strategy. So what got him fired turned out to be his trump card. Plaxo, like many other companies, is now drawing up norms for blogging behavior, so that employees know what's in bounds, and what's not.

2:22 p.m. It sounds like the joke answer on a multiple-choice exam. Name a leading company in blog communications: General Motors?

That's right. For a company that's slipping in the auto biz, GM is showing a surprisingly nimble touch with blogs. GM uses them on occasion to steer past its own PR department and the mainstream press.

In January, Vice-Chairman Bob Lutz launched his own Bob Lutz blogs rarely these days on FastLane. He hands off much of the work to staffers, including PR. Many of the posts read like press releases. One recent post pointed readers to a speech that he said mentioned many of the points he had been too busy to blog! That said, FastLane still attracts lots of readers, and they leave comments. While the blog doesn't revolutionize GM's relations with customers, it provides a useful communications link. Perhaps equally important, it focuses some of the GM team on other blogs, where a lot of the car world is talking. FastLane Blog. Bloggers applauded, and car buffs flooded Lutz with suggestions and complaints. Lutz posted lots of barbs from outsiders and won points for balanced responses. Like his answer to criticisms of new Pontiacs: "Did you take a look at seat tailoring? Carpet fits?…hood gaps, hem flanges? We used to be bad at those, too."

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