IR is not ALL about the numbers - or is it?

Well, IMO everything in business is about numbers and it doesn’t matter if you are the CEO, CFO or the IRO.  But there is a difference of course in what numbers each individual focuses on.  I know when I make my IR goals what numbers the CEO and other members of management are looking at.  I also know what numbers the investors are looking at.  The interesting dynamic for me is how a CEO interprets data so differently than a shareholder.  We all know that everyone wants to see numbers going up - so your question is rhetorical. 

I think what you are trying to put your finger on is what is left when we get past the compliance requirements.  And what is left IS what really matters.  People have intimate relationships with their money and investors are people.  So, the question IRO’s should be asking is, “What type of relationship exists between my company and our individual investors?”  And the answer to that question doesn’t have any numbers in it.

Great post Rob, I agree that it’s ultimately about valuation. I very much like your point about companies that view IR as a compliance function are leaving money on the table. What could be more motivating to get companies to change!

Yes, IR is ultimately about one number: how to achieve a fair valuation. But the markets routinely get this number wrong (interesting perspective/findings on this here: http://bit.ly/9jOoJt). Also, it is rare that management has a robust view of the intrinsic value of the firm. IR is still a relatively young field. Companies are not nearly as proactive as they should be in pursuing the goal of a fair valuation. I think this is changing, although slowly. Several of my clients have started working in a more “data-driven” way and spend more time on analysis. I also believe that IR can learn a lot from the marketing field, not least when it comes to measurement and accountability.