Hi John,
My first experience (many subsequent) of management uncertainty over social media occurred back in 1995. At the time I was tasked with managing a project to implement the web and community presence for one of our largest NPO's; potentially providing an online community for 70,000 volunteers and a larger community of interest of 2.5 million people.
After numerous meetings, presentations and representations we placed a pilot online and introduced it to the larger volunteer community-base... people began to use it... people began to participate and contribute... people began to speak their minds about certain aspects of the NPO... and senior management promptly pulled the site offline.
Lesson number 1 - Always make sure management knows what to expect when considering social media. It will open a very public doorway into the organization (whether acknowledged by SM promoters or not).
So the next part of this project was even more interesting - having been given a voice and had it so promptly taken away again many people simply moved to different forums and continued the conversations they had started; notably this time even less complimentary of the NPO and more in the public space.
We had opened Pandora's Box...
What followed was a lengthy process of rediscovery, albeit the process we probably should have commenced with (we really were one of the first large NPO's ever to travel this road so it was a huge learning curve) - We conducted interviews and surveys of what people wanted from a social media experience. We explained the implications to management, and we listened to management concerns. We created smaller pilots and involved all the NPO's stakeholders. We created structures able to address concerns raised in the public space so they wouldn't become wildfires. We involved people who could promote and educate on the online space.
What we really learned was that incorporating social media into an NPO was just as complex, and just as requiring of effective management and processes as any other significant initiative. We needed to do a lot of work. Social media, is media.
The good news - This NPO's web presence remains as one of the largest NPO Internet community's. I haven't been involved with it now for quite a few years however I do think all this preliminary effort (after our first crash) was worthwhile - What we did worked, but it was a tough learning curve for all involved.