Social Capital Value Add

by Michael Cayley | Dec 12, 2008
866 reads | 4 Comments
Competition Finalist

This entry has been selected as a finalist in the
The Power of Us: Re-Imagine Media competition.

Project Street Address

13 Browning Ave.

Project City

Toronto

Project Province/State

ON

Project Postal/Zip Code

M4K 1V8

Project Country

Canada

Will you launch your idea as a business or non-profit?

Business

Name Your Project

Social Capital Value Add

Describe Your Idea

What is your idea? What makes it innovative? Why is it important?

Let's reprogram the corporation with the power of us.

Social Capital Value Add (SCVA) is a corporate management & valuation methodology that links social media to corporate value in terms that investors & senior managers can act on.

SCVA is rooted in accepted financial theory and previously introduced methods such as Economic Value Added & brand valuation. Like these methods SCVA can effectively change the way corporations behave.

SCVA identifies social media as a scaled up form of social capital. It helps corporations recognize that people, empowered with broadband communications, are its most important assets for creating & defending value. Investors will bet on companies that understand that for the first time since the onset of the industrial revolution people cannot be reduced to mere factors of production. People are the best source of comparative advantage.

SCVA ushers in new motives for corporate social responsibility. It highlights that bait & switch CSR tactics are not enough. Stable future earnings & the next leap forward in productivity will go to corporations who engage employees, customers, suppliers, distributors, etc, in activities that they can be proud to share with their friends and colleagues, who will in turn, recognize and reward these activities.

What will be the impact of your idea?

SCVA will catalyze changes throughout the corporate ecosystem due to the shift from broadcast media to social media. Here are 8 slides to help you visualize this concept: http://twurl.nl/e4r3pf

Whereas networks for broadcast media to shape shared perception could be rented with flexibility (i.e. the 30 second spot), access to social networks, the infrastructure of social media, is a function of social capital.

SCVA places a dollar value on a company’s most promising social capital, calculated as today’s value of earnings that a company’s social capital is accountable for in the future. This number will become the best top line measure of how social capital is driving a company’s economic performance.

Investors will demand to see it. Boards, CEOs and the market will monitor it to understand how to optimize corporate activities to drive results.

SCVA is a shibboleth designed to change the way corporations are motivated and managed.

This Entry is about (Issues)

People: We are looking for ideas from people who can make them happen.

Please review my background http://www.linkedin.com/in/michaelcayley.

I recruit great teams & lead them. I have served as a Board Member of the American Chamber of Commerce in Shanghai and as the first CEO of a Microsoft/VC backed social media startup.

SCVA was conceived as my MBA thesis in Paris in 2007. I sent the idea to thought leaders. The SCVA story has taken off. See: http://twurl.nl/dpd7vk

SCVA was the 8th most demanded proposal in history at www.changethis.com. It was published by ChangeThis in September 2008. http://socialcapitalvalueadd.com/2008/09/11/changethis-50th-issue-includ...

Global volunteers have started to help spread and develop the idea. See http://twurl.nl/raza2n.

I have started receiving invitations to introduce SCVA at conferences like forthcoming confirmed speaking engagements in Ottawa & Boston.

The SCVA ebook http://twurl.nl/vqw70i is the basis of a business plan & software development road map.

Sustainability

(read more >)(hide <)

How much will it cost to launch your idea?

This application marks the commencement of fund raising activities related to SCVA.

Use of funds:
- $2,000 compelling SCVA visual presentation,
- $10,000 development of open source SCVA resource generator (see e-book),
- $10,000 travel re: fund raising, conferences & development,
- $3,000 legal (incorporation, trademarks, etc.)

In 1988, John Murphy conducted the world’s first brand valuation for RHM Group in the UK. The wave of brand acquisitions in the late 1980s exposed hidden value in highly branded companies and brought brand valuation to the fore. Murphy's team evolved into Interbrand, a global agency. The cornerstone of the business was their brand valuation method. They complimented this with advisory services, accounting for more than 80% of revenues and rapidly grew globally via mergers & acquisitions.

This is an inspiration for SCVA, however unlike Interbrand we will adopt open source methods to make change happen faster and more efficiently.

manha alabane said: _____________________________ Password Manager? about this idea. - 395 days ago read more >
Brendon Hewlett said: Congratulations on a great initiative; I can really see some potential in this as a core driver to gain traction for further ... about this idea. - 403 days ago read more >
Michael Cayley said: Thank you to everyone who has stopped by here to comment, rate and vote to support Social Capital Value Add. It is up to the judges ... about this idea. - 421 days ago read more >
Mick Smith said: This entry, similar to the 4Capital Center entry, should have big impacts on social entrepreneurship as well as have huge positive ... about this idea. - 430 days ago read more >

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