Story that was never told

A company’s story begins when it is founded—or even before that: as an idea, a vision, a mission. It lives on in the company’s history, present, and future, within and beyond its walls, and in the minds and actions of every employee, customer, and partner. A good story captivates, hooks, and engages. Company owners and investors want to know how that story translates into concrete numbers that reflect the company’s value over time.

It is therefore important to remember that investing is largely about interest—both in one’s own portfolio and in the target company. To be interesting, a company must feed investors’ curiosity and provide them with value. In investor communications, the story is woven around numbers and precisely defined core messages, while simultaneously building the company’s reputation as an interesting investment opportunity. There is, however, a subtle difference between a story and a fairy tale: fairy tales aren’t actually believed. That is why everything starts with the company’s own crystal-clear vision of its operations and future, its ability to convey that vision as a coherent and understandable story, and its commitment to delivering on its promises.

The wise keep silent? Not true.

In investor communications, as in life in general, transparency and timeliness are key. No life journey is ever a steady climb or a smooth ride; along the way, there are inevitably twists, turns and setbacks. As nice as it is to show only the best moments of life on social media, we all—including the narrator himself—know that everyday life isn’t all a party.

A company’s (or an individual’s) conduct is transparent when it dares to share difficult truths as well, because nothing is worse than uncertainty. In the business world, uncertainty breeds unrest and instability both within and outside the organisation. Usually, by that point, a tarnished reputation has already weakened the company’s valuation, clouded investors’ visibility, and shaken their confidence in management’s capabilities.

An essential part of investor communication is explaining where the company stands at any given time and building an understanding of its business operations—and thus trust—that extends beyond a single quarter. A committed investor who believes in the company’s story will not jump ship at the first sign of trouble but will trust in its ability to navigate even stormier waters. It is wise to understand that the wind may change or that skilled leadership may alter course along the way. That is why the importance of strategic work cannot be overstated, nor can the importance of storytelling be underestimated. Stories live on and are remembered in the age of data overload. Therefore, a story that is not told does not exist.

THOUGHT:
If a tree falls in the forest and no one is there to hear it, does it make a sound? – an old Chinese riddle