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Another year, another NIRI National Conference. I don't know about you but this year's annual conference left me feeling a little flat. For every positive there seemed to be a negative that - at the end of the day - kept this "vehicle" stuck in neutral (imho).
For example, it was great to see the sponsorship hall filled this year... but it was disappointing to see that few had anything interesting or different to show (and some looked as confused as to why they were there as I was to see them there). Don't get me wrong, it was nice to see everyone but I'd be lying to you if I said I had any "ah ha!" moments while navigating the showcase.
Likewise, it was great to see a broader array of topics covered in the breakout sessions this year... but it was disappointing to see that none of the panels I attended utlized panelists with opposing views on the subject. Viva debate and critical thinking! Down with the seemingly pervasive "chummy" factor that underpinned the sessions. Likewise, the panels I saw were surprisingly locked into "101-level" content.
For that matter, it was great to see attendance was up this year... but I found the crowd a bit more (read: a lot more) cliquish or preoccupied with their iPhone than in past years. (Nice meeting you too.)
See what I mean... one step forward, one step back... I had planned on handing out some ROBBIE awards but found myself bouncing back and forth between cheers like:
BEST LINE: Harvey Hudes, who described someone as having "an itchy Twitter finger." Pure gold and, frankly, was one of several great lines from Harvey.
BEST NEW PANELIST: Keith Gottfried, who brought a real-time, no-nonsense perspective to the activist climate around us.
SHOULD HAVE BEEN A GIVEAWAY: zu's "What's Your Story" t-shirts were flat-out awesome... I cannot tell you how disappointed I was that they didn't have any to give away.
... to jeers like:
WORST PANELIST: Name Withheld... but he/she served as a panelist on more than one panel and used essentially the same presentation. Thanks for [not] going the extra mile, pal. Sure hope you didn't get two presenter gifts for that single presentation.
LONELIEST EXHIBITOR: Mandarin Oriental New York... be honest, did you ever see anyone at that booth? I'm not even sure that booth was even staffed.
... so... I just decided to bag the idea as I didn't want the awards to spiral into such snarky catagories as PANELIST WITH MOST OUT-OF-DATE PERSPECTIVE or MOST AGGRESSIVE VENDOR NOT CAGED IN A BOOTH.
Since I was raised to "be part of the solution, not part of the problem," here are two ideas I had on the plane ride home from FLA on how to increase the effectiveness of future NIRI Conferences:
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Make the conference an every other year event rather than annually - it would allow more time for panel development and panelist recruitment; would allow vendors more time to bring thoughtful solutions or concepts to the showcase floor, etc.
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Rotate the location between U.S. and non-U.S. locations - it would further encourage diversification of attendees, panelists, sponsors, etc., as well as would better reflect the global stock exchanges IR now serves. Shoot, all the really innovative IR "stuff" is coming from Canada anyways.
Maybe... just maybe... it's me. Wouldn't be the first time and, likely, won't be the last. Were you there? What did you think? If you weren't there, why didn't you go?
(NOTE: Let me make something perfectly clear: I've got nothing but love for NIRI. I am active on both a national and local level, and have been a vocal advocate/ambassador for the organization for more than 20 years so you can hold your "conspiracy theories" or any other "NIRI-hater" nonsense. Frankly, if I didn't care as much as I do, I wouldn't waste my time or yours with this post.)
Some random takeaways from the 2010 NIRI National Conference (in no particular order):
1. Meet the Street seemed to be this year’s ‘industry darling’ - and deservedly so. Very cool offering from a very smart guy. Think eHarmony for non-deal road shows.
2. The sponsor hall was surprisingly void of consulting or design firms. In the past, it was not uncommon to see 4 to 5 design shops and 2 or 3 consulting firms. This year, I saw only one consulting firm in the showcase space.
3. On the other hand, the sponsor hall was SWIMMING in with technology vendors selling what seemed to me to be essentially the same thing. I don’t know about you, but I found it nearly impossible to keep one “black box” to enhance Web capability straight from another.
4. The mood among IROs was clearly brighter this year than in previous years. Would love to read too much into that phenomenon and conclude that’s an early indicator of a strong second half of the year.
5. Still seems like CEOs and CFOs are looking for essentially different skills and services from their IROs. No wonder the profession continues to struggle with clear and consistent assessment metrics.
6. Can’t tell if the number of supporters for social media and IR is growing or if the supporters are just more vocal. I suspect it’s the latter as I didn’t get the sense from the various conversations I had that non-believers were being converted.
7. Don’t overlook index funds. Since they can be important allies come proxy season, you should be in touch with their compliance folks regularly (and long before their vote is needed) to keep them current with the company’s strategy and performance, as well as answer any questions they may have.
8. I am a sucker for a really clever shirt. Almost embarrassingly so. Best in show goes to Q4, whose shirts were almost as good as their products!
9. “Say on Pay” might be old news by next year’s national conference - keep an eye open for “Say on PAC” as unions become increasingly active in shareholder matters.
10. Succession planning is another critical board-level issue that will be drawing increased attention from investors.
11. U.S. companies need to remember to adapt their non-deal road show to local cultures and “norms” when targeting abroad.
12. Your mother was right - thank you notes add a nice personal touch after 1:1 meetings with investors.
Be curious to hear what caught your eye or ear during the NIRI sessions.
I had brunch with my brother and his family yesterday to celebrate my oldest nephew’s 17th birthday. Amid all the surreal conversation about what colleges he’s considering and my utter confusion at how he can possibly walk, let alone be comfortable, with his jeans that are in a constant struggle with gravity, I had an epiphany - I am definitely old school at heart.
I still have a record player and a sizable collection of music on vinyl. I still have - and use - a VCR. I actually think most NFL “throwback” jerseys are better than the current game day uniforms (I said most, not all. Sorry NIRI Rocky Mountain Chapter). I am convinced that droopy jeans will prove to be the leading cause of hip displacement for my nephew’s generation. And I still believe media relations is a key component of a forward-thinking investors relations program.
I know - nutty, eh?
Listen, if you’ve ever read this blog before, you know how strongly I believe that investor relations needs to be embrace the power and potential of new technology. And I firmly believe that. That said, I am growing increasingly concerned that more and more IROs are overlooking media relations when building their IR programs. Research continues to show that the media - both financial media and trade media - are a highly influential source for investment ideas for buy- and sell-side investors. And, not only is it influential, it’s an effective and efficient channel too - particularly for smaller companies who can use the market cap-ambivalent trade media to further demonstrate their new product pipeline and thought leadership, among other things (read: the key intangible assets investors look for when conducting due diligence).
Before I go all Oliver Stone with my conspiracy theories, do you agree that media relations is becoming a dusty tool in the IR tool box?
Just digging myself out from beneath the pile of “stuff” that grew on my desk while I was presenting at NIRI’s latest Intro to IR seminar and wanted to pass along some things from Santa Monica while they’re still fresh in my mind:
1. The folks at Aflac deserve all the IR awards they win. Wow, that’s an impressive team and program. One of the things I love that they do is their yearly Financial Analysts Briefing Book that they use to help educate investors on the various components of the business (think: a mashup of an annual report and an offering memorandum but on steroids). While not the most aesthetically pleasing piece I’ve ever seen, it is truly a disclosure piece of art. Talk about treating IR as a customer service function!
2. Along those same lines, one of the other presenters said that he sends a copy of their quarterly conference call transcripts to his investors to save them the step of having to find it online themselves. Brilliant. I will steal that one.
3. The message from the sell side and the buy side was identical - “make it easy for us.” By that they meant both make the company’s business easy to understand and make it easy for them to get the information they are looking for.
4. There was a lot of discussion on disclosure policies, which was good to see as I think this document is too often overlooked or under developed. During one of the discussions, someone mentioned that they include a policy on participating in corporate surveys (e.g., CSR practices). Very smart idea. I will also steal this one.
5. I was surprised at how little discussion there was on intangible assets, particularly given how much influence they have on valuation. Transparency on these mostly invisible growth catalysts is a critical component of an effective investor relations program. I’ll have to remember to ask the NIRI powers-that-be why that aspect was all but omitted from the program.
6. Similarly, there was very little discussion on how to effectively leverage financial or trade media within an IR program. Research continues to show that media coverage is a top source for investment ideas among buy-side investors. I’ll have to add that to my NIRI follow-up list.
On a slightly unrelated note, Kirk Cameron was apparently in Cleveland two weeks/weekends ago as he was on my flight to LAX. Who knew?!!?
First the Jets beat the Patriots.
Then the Yankees clinch.
And now this mind-numbing rant from a self-professed leader of the NIRI/Boston chapter.
Wow, Boston, you must be so proud.
Through this piece, Beth Kurth ensures her place in history - right between U.S. President Rutherford B. Hayes who, in 1876, said of the telephone, “That’s an amazing invention, but who would ever want to use one of them?” and IBM Chairman Thomas J. Watson, who reportedly remarked in 1943, “I think there is a world market for about five computers.”
I had a chance recently to listen to Darrell Heaps of Q4 speak at a NIRI luncheon. Now, this is not the first time I’ve had Q4 Kool-Aid, but it was another reminder that IROs who are not aggressively exploring how social media networks can improve the effectiveness of their IR strategies are simply missing the boat.
As FDR said, “The only thing we have to fear is fear itself.” What am I missing?
