New Power

Social media is bringing about a new paradigm in the realm of power: a transition from the typical Institutional view of power, to a larger, participation driven influence. With this change comes the struggle to adapt to the changing atmosphere. How can companies maintain their influence in this new era?

Power used to concentrated in the hands of a few. These institutions had the knowledge and used that knowledge to get customers to come to them. In the shifting world, knowledge is shared across networks, increasing the collective knowledge of all. This shared knowledge takes power away from the Institutions and makes it harder for them to use their typical sales approach of 'come to me'.

Even though the Institutions are making changes in an effort to adapt by creating social platforms and trying to engage with customers, they are struggling to do it effectively. These organizations need to focus on their customers and the influence they can have upon them. Engaging on a platform is not enough, they need to have a central theme, show value to their customers and provide a forum for ongoing discussion. When the Institution is able to actively engage with their customers in this new use of media, they will be able to expand their influence and garner greater power.

Reference
Heimans, J and Timms, H. (2014, December). Understanding 'new power'. Harvard Business Review.