What goes around comes around—and the same goes for investor communications

Investor communications need to be supported by a narrative that the company communicates openly and consistently across various channels. Adapting to the markets and the global situation, wise leadership maintains and, when necessary, updates the company’s strategy, giving the story a solid foundation (not just fluff), and actively communicates it to its stakeholders and followers.

With the advent of new channels, companies have had to expand their storytelling methods. Images and engagement are created on social media through photos, videos, and hashtags—covering everything from the company’s day-to-day operations and people to events, products, and services. And this is how it should be, as companies must be where consumers, current and potential employees and customers, as well as stakeholders and investors, are active. The distinctive use of communication channels is an opportunity to increase a company’s visibility and brand awareness. The same logic applies to highlighting the personal strengths of key individuals as part of communications; personality leaves a lasting impression and brings leadership closer to people and everyday life.

Digital channels still offer plenty of bandwidth and opportunities to increase the company’s visibility and recognition among investors. However, it is important to remember that investor communications cannot rely solely on perceptions; in addition to storytelling, facts and figures are needed, as well as an understanding of market expectations. We believe that bold investor communications make the company more interesting and transparent, and build a dialogue between company management and investors. At the same time, the goals of investor communications become measurable and fact-based. This is what we strive for!

Investors value honesty and timeliness in communication, and they show their appreciation by placing their trust in the company, even when it communicates its challenges. According to Warren Buffett, times of open challenges are actually the most favorable situation from an investor’s perspective: “The best time to buy a company’s stock is when the company is facing temporary problems.” Trust and distrust in a company’s operations and future prospects are, in fact, easy to measure: investors and shareholders communicate their intentions by buying, holding, or selling their shares. When measurability can be demonstrated through goal-oriented and active operations, we are already a big step closer to a situation where the company can reveal more about itself and respond quickly to open questions regarding it. It is important to remember that the company and investors are on the same side and want the same thing: mutual success.

THOUGHT:
“The bold eat the stew; the timid do not get even a cabbage leaf.”
— Finnish proverb