Investor Relations: 5 Key Stakeholder Communications

When it comes to stakeholder communications, a clear, concise, and consistent message is key.

Knowing your audience and their topics of interest helps to tailor your message and gain credibility.

#1. Investors

We have talked a lot about investors and the information that is critical in their decision-making.

Investors can read the numbers, but what they really want is to understand the story behind the financial results. Confidence in the strategy and the executive leadership team’s ability to pivot when needed goes a long way toward building credibility.

The corporate narrative must well position the business for the long-term. Investors want a return on their investment and choose to invest in companies with strong growth, high profitability, and sustainability in the market. Therefore, it is important that the message be transparent and focus not only on the quarter but—more importantly—on the long-term financial model.  

#2. Board

The Board shares the oversight of the business with the CEO. The Board is a group of individuals elected by shareholders to represent shareholder interests as is their fiduciary duty. The Board must know the true picture of the company’s performance and be brought along for approval on large investments such as mergers and acquisitions, to ensure they align with the long-term strategy.

In addition, the Board must also monitor investor sentiment, which requires frequent updates and information sharing from the investor relations officer (IRO).

#3. Executive Leadership Team

The CEO and the executive leadership team are responsible for day-to-day operations. They are typically compensated based on company performance and, at times, have an investor mindset. The leadership team is tasked with coming to the table with solutions to challenges and fresh ideas based on market trends in their industry.

The best leadership teams can have candid conversations without ego. The more open and honest the sharing of information is from their respective organization, the better the dialogue is to reach the best outcome. The leadership team is responsible not only for the company but also for its employees.

#4. Employees

Keeping a pulse on employees helps attract, engage, and retain key talent. Cultivating a culture of community and purpose can influence a company’s differentiation.

Employees want to work for a company with a purpose. They want to understand the strategy and performance metrics in an easily digestible way—when times are good and bad.

The more employees can see themselves in the strategy, the more they understand the impact they can make as individuals. That is powerful for engagement and community. Keeping a pulse on employee sentiment is crucial to know how to enhance internal communications.

#5. Customers

Customers want to partner with companies they can trust and that can support them with solutions to their business challenges. Innovative companies try to stay ahead of the technology their customers need while making the right bets with R&D investment. In the end, it is about adding value to customers and expanding reach over time to gain more share of wallet.  

Corporate trust is directly tied to reliability. Is the business sustainable, and will it be around to support products and services for years to come? Does the business share customers’ values and priorities? A customer-centric mindset allows a business to meet its customers where they are and understand where they are going to plan accordingly.

Using Data to Create Understanding

The best IROs build a strong partnership with the finance and accounting team. The F&A leaders will provide final performance metrics, but an experienced investor relations officer (IRO) will pull the strategy and numbers together in an engaging narrative. Investor relations is tasked with the critical layer of visibility, explaining the “why” behind the “what” to check for understanding and concerns from shareholders.

And remember, should your competition enter the conversation, do not give them a “free commercial.” Always pivot the conversation to your business and your differentiation in the market.

Level-Up Your Stakeholder Communications

Our experienced consultants are well-positioned to help you scale and elevate your stakeholder communications. It is important to share the most relevant information while creating a message that resonates with your audience’s needs.

CCN provides consulting services for investor relations programs of all sizes. Whether you are pre-IPO, scaling your program, or preparing to engage with investors at various events, we can support you in your objectives.

Related Posts

Grow your business with industry news and resources from CCN.

Investor Relations: Executive Presence and Communicating with Confidence

As the former VP of Investor Relations at NI for more than 15 years, I understand the…

Read More

Investor Relations: 5 Key Stakeholder Communications

When it comes to stakeholder communications, a clear, concise, and consistent message is key. Knowing your audience…

Read More

Marissa Vidaurri Talks Investor Relations

Marissa Vidaurri recently joined the CCN team, launching a new service area for investor relations and communications….

Read More