How firms can increase quality of recruits and sales leads while cutting costs
Social networks can help organizations, whether commercial, nonprofit or government, to significantly improve their efficiency in business processes like recruiting, sales and service. This is what we call “Enterprise Process Innovation” because, by using social networks to create and nurture relationships with alumni, your employees can diminish the time required to accomplish tasks within these processes. It’s well known that most alumni, former employees, move to firms that are related to your business (adjacent in the value chain) or complementary in some way. Yes, some move to competitors, but they are usually in the minority. Social networks, by significantly reducing the cost of having relevant, quality conversations, make robust employee-alumni networks actionable as never before.
All organizations (I’ll use “firm” to denote for profit, government and nonprofit) have business processes that benefit from relevant insight and introductions from other people: insight about the situation of the prospect, where the best sources of new recruits, etc. Alumni 2.0 is an evolutionary approach to transforming firms’ relationships with employees. The legacy employment model is utilitarian: firms hire when they need skills and fire when business drops. End of story. Some firms make half-hearted attempts with sub-par email newsletters, but these don’t even begin to tap the potential of vibrant employee-alumni networks.
Here I will lay out an incremental, three-stage model that starts simply, pays dividends quickly and evolves to support more complex business processes over time.
