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It Is Like 1996 All Over Again

by Lee Kowarski

On Tuesday, I spoke on a panel for the ICI's Public Communications Committee about social media. I wanted to share a few key take-aways from our discussion:

• The question isn't "Should We?" but "How?" - Back in the mid-90s, many clients asked me whether or not they should have a Web site. While that question seems laughable today, I used to tell people that every firm needed to be on the Web and that their focus should be on developing a well thought-through strategy to use the Web effectively. The same thing is true today for social media: firms shouldn't just run out and join Facebook and Twitter, but rather sit down and formulate a clear social media strategy. Every firm will not end up joining every social media site, but every firm will have a social media presence of some kind.
• Regulators are open to social media - A representative from FINRA that was on the panel shared that the organization is actively working on establishing clearer rules regarding social media through a Task Force and as part of the new Regulatory Notice 0955. Perhaps more importantly, it became clear through the discussion that most firms are under the belief that the regulators are far more restrictive when it comes to social media than they actually are, and that it is typically firms' internal departments that are holding them back.
• Have clear policies - Whether your firm jumps into the social media space head first or not, every firm should have a clear, well-communicated policy around what employees can and cannot do on various social media sites. IBM made its policy available online and may serve as a guide for firms looking to articulate their own.

Today, the focus of the buzz is on Twitter and Facebook. A few years ago it was Friendster and MySpace. Tomorrow, it may be UStream and a community that doesn't even exist yet. Regardless of the specific site(s), social media (like the Web) is here to stay. You shouldn't be asking if you need to join the fray, but rather thinking about how you can most effectively embrace social media.