Social Capital Value Add

Michael Cayley is a web entrepreneur that studies culture and communication and prognosticates on the future of social networks. Those of us who read the scraps of wisdom he leaves lying around in his posts hope to profit by actualizing his ideas.

I met Michael Cayley on Sept 4th 2008 at Timothys coffee shop in the Carrot Common on Danforth Avenue in Toronto. We spoke for two hours. After the meeting I walked away with a profound new understanding of social media, and a bold new vision of the charitable future of Canada Blog Friends.

Social Value Capital Add is one of the most prophetic and important blogs in Canada.  It contains a lot of graduate level ideas, and I find myself cross referencing terms and rereading phrases… Yes the material is rich like good chocolate cake.

Here’s the skinny: the world has changed since broadband has become more popular than dial up. All of mankind’s corporations have moved online, and all of us individuals too. The way we do business has changed and is still changing as findability becomes pivotal to success.  In short, the Internet business world has outgrown contemporary business valuation models. And I say this not from a venture capital ‘how much will I make from this deal?’ perspective, but also from a risk management ‘why are we not making our bottom line anymore?’ stand point. The enterprise 2.0 age needs better social value metrics; the role of the corporation could change dramatically as profits are spent developing positive social capital.

On October 24th 2007, Microsoft bought a 1.6% share of Facebook for $240 Million and that placed the valuation of Facebook at $15 Billion or thereabouts… and I say wow. But tell me how did they arrive at that number? The SCVA outlines the fundamental precept that ‘understanding how and why messages are transmitted electronically from one person to another is a source of power and value’.

Michael Cayley, a Principal at Context Creative, has just been published in the Change This manifesto along with other web gurus and visionaries Seth Godin and John Kotter – Leading Change, The Heart of Change. Andrew Abela, a PhD, consultant, and the New York Times best selling author Vince Poscente.

Michael announced the publication of his SCVA work in a quirky piece of writing entitled How did this dog get in the boardroom? which I interpret as a metaphor for how hard it is for corporations to pick the perfect logo, tagline, and image in the age of memetic brands. How do you make your message resonate in an online world filled with user submitted media? And of course the dog is barking for change.

The Social Value Capital Add has been proposed as a guide to new investors and corporate mangers alike. The theory is an extrapolation of traditional brand management that Michael hopes will bring talent and resources to the undervalued social components of online business.