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A few weeks ago, I was up on my soapbox ranting about IR tools and how they were only as strong as the IR content they delivered. I'm sure to some I came across as a technophobe who prefers typewriters to computers, VCRs to DVRs and vinyl records to MP3s (okay, this last one is actually true but we'll save the topic for another day).
I fear I came across a bit "Suh-esque" and, in so doing, misrepresented myself with regards to IR and technology. For that, I apologize. I am not a technophobe. Shoot, I'm not even a technology hater. I absolutely embrace the opportunities technology offers IR - some of which, frankly, are long overdue.
For example, take a look at this piece on Coca-Cola and Best Buy.
I. Love. It.
This is such a smart application of technology in the IR space. Among other things, it ensures that IROs and the senior management team will hear all the voices that wish to be heard and not just those that speak the loudest (typically through SEC filings) and claim to speak for all investors. For those of you who have been in a contentious proxy contest, you know full well how important that perspective and input can be. Putting such a mechanism in place can also further demonstrate their commitment to listening each and every shareholder.
What's not to like about this?!!? No. Seriously. What's not to like?
In this installment of "Whatever happened to...?", I'd like to take a look at another phenomenon that seemingly vaporized long before its time - #irchat. Now, I don't mean the once weekly Twitter forum that devolved into a monthly forum that may or may not exist today... I mean the hashtag itself as a Twitter designation for useful information and thought-provoking discussions on a wide range of IR issues.
I don't know about you, but I rarely check this thread anymore. Where #irchat used to serve as a source for new ideas and healthy debate (admittedly some used it as a bully pulpit), it's now seems to be nothing more than a parking lot of retweets. Worse yet, its RT of stuff I suspect most tweeting haven't read as they go mute if you ask a question about the content. Seriously, not to go all "Lloyd Bentsen" on folks but I knew #irchat... #irchat was a friend of mine... #irchat is no (longer) #irchat.
I miss #irchat. I miss being able to throw out a question and get several different points of view to stretch my thinking and challenge my assumptions. I miss the laughs and the comradery.
Maybe I'm expecting too much... maybe that virtual, global community was never sustainable... maybe it just jumped the shark... I dunno... you tell me... whatever happened to #irchat?
I don't know about you but I love the shows on VH1 Classic (and its ilk) about "one-hit wonders" or child actors who seemingly evaporated from the celebrity ranks long before their bar/bat mitzvah. It's not that I like to marvel in someone else's apparent fall from grace, rather these shows give you a chance to see what exists behind all the packaging and the pomp.
Wouldn't it be interesting to turn that "Whatever happened to...?" lens on the world of corporate governance and investor relations? Obviously, it would have to be less about the people (though we could get snarky and name some names) and more about the concepts or alleged best practices. For example, WHATEVER HAPPENED TO... WEB DISCLOSURE?
Remember web disclosure? Seems like just yesterday that everyone was arguing about web disclosure (some even argued with themselves about it). Man, last year's NIRI National Conference was just littered with vendors hocking oddly similar looking web disclosure "black boxes"... errr... technology "solutions" that promised instant cost savings, increased investor reach and heightened web traffic. There were white papers on web disclosure, and webinars about web disclosure, and epic Twitter fist fights about web disclosure and... then nothing. Not a peep.
No "new and improved" web disclosure 2.0 solutions (though it could be waiting for us at this year's NIRI National conference).
No webinars on lessons learned in web disclosures.
No "I told you so" chest thumping on Twitter.
Just quiet... as if it had all been a dream.
Weird if you ask me.
So I've got to ask: anyone know what happened to web disclosure? Did I miss something? It's highly possible that I did but, even so, going from "can't get away from it" to "missing something" is a pretty big leap in less than a year! Thoughts on why the conversation on web disclosure seemingly stopped so abruptly (not to mention the Twitter fist fights)? I've got a few theories... would love to hear yours.
Also, any predictions as to what this year's "web disclosure" will be or what we should consider for in the next installment of WHATEVER HAPPENED TO... ?
We've talked before about the intersection of IR and the media. While some of you scoffed... even smirked... many of you agreed that this intersection was one to pay close attention to. For those of you among the latter, I strongly encourage you to visit (more) - the new blog by the head of Dix & Eaton's media relations practice. For those utilizing financial media as a component of an IR strategy, (more) will help make sure your sights are set properly.
As some of you know, I like to talk to myself... particularly on my morning walks... and particularly on subjects like web disclosure that tend to be as polarizing as Justin Bieber. Well, thanks to the nice folks at Thomson Reuters, I had the opportunity to talk to others about this subject (web disclosure that is, not Justin Bieber) at an NYSE event the other week.
By and large, I thought the panel turned out to be an interesting session. Though, like so many recent debates about IR and technology, I came away from the session with a sinking feeling that the more we talk about web disclosure, the more adamant the advocates will get and the more resistant the doubters will get. Oddly enough, I remain somewhere in the middle - I'm a big proponent of the use of technology for IR purposes, yet I have not heard anything still changes my belief that web disclosure may not be for everyone (and I think it's okay if it's not for some companies). Frankly, I wish the IR community would spend half as much time talking about ways to improve the quality of the content in disclosures as it is talking about the various of distribution channels for disclosures. Just feels to me like we're putting the cart before the horse in some respects.
Anyway, back to the topic at hand... if you find yourself in the middle on this topic as I do, here are just some of the questions that I think you should be asking yourself and your colleagues:
1) How strong and reliable is our company's current Web server and IT function? You'll need enterprise-level hosting and accessibility, plus mobile access. You'll also need a contingency plan in the event of a server outage.
2) Do we have the internal resources - both from a time and knowledge standpoint - to handle the issuance of timely disclosures? Believe it or not, there are many companies that still want their communications firms to oversee the dissemination of corporate news as they simply cannot afford any added distractions the morning of a major announcement.
3) Is our IR website a recognized channel of disclosure (i.e., do you have a Reg FD compliant website)? I suspect this is/will be the biggest hurdle for most companies... and, sadly, it seems to be also the least discussed as most folks - particularly those with a dog in the fight - want to debate cost savings or system security or distribution scope and reach. All important considerations, but none relevant if the site isn't FD compliant.
Have you heard/seen anything relating to web disclosure lately that's swayed you in one direction over another? Are there other considerations you are weighing?
The final installment of my three-part series on Radian6‘s blog ran last Friday. This time, I spent 500 or so words discussing ways to go about getting approval to add a social media component to your IR program.
Take a look and let me know what steps were particularly helpful to you as you navigated with discussion with your C-Suite.
Part two of my three-part series on social media and investor relations is now up on the Radian6 blog. Obviously, there were a number of contenders for my list of “real world” examples but I had to be somewhat sensitive to the space allotted.
Take a look and let me know who you would have showcased as worthy examples of IROs putting social media to work on the Street…
You could almost hear a hush fall over the room of cool kids as I walked in the room…
No, that’s not a quote from “Are you there, God? It’s Me, Margaret” - it’s how I felt last Friday when the first of my three-part series on investor relations and social media ran on the Radian6 blog. Talk about a fish out of water?!!? Here’s this community of uber-cool / beautiful / techie marketing folks and I come stumbling in like the newly elected president of the A/V club. (note: If you’ve not yet looked at the Radian6 tools, you owe it to yourself to do so… really impressive capabilities.)
I’ll be interested to see what insight and/or advice these savvy social media brethren will offer. I’ll keep you posted. In the meantime, are there any additional questions you’re asking yourself as you evaluate the pros/cons of a SM component to your IR program?
Have you heard about this? It’s big news around here - almost as big as the fate of Le-Icon... errrr… LeBron James and the Celtic-slaying Cavaliers.
Without question, it is absolutely unthinkable that someone supposedly so well-versed in the law and ethics as a judge could be accused of the things Judge Shirley Strickland Saffold is being accused of doing through the online username of “lawmiss.” If the allegations prove to be true, I would love to know what decision-making process she went through to conclude that posting such comments was the right way to go.
This, my friends, is precisely the reason why your general counsel HATES social media, particularly as it relates to investor relations.
So - if you have done your homework* and come to the conclusion that social media needs to be a component of your IR strategy - how do you create the buy in you need from this critical constituent within your organization? Here are a few suggestions:
1. Be sure the usage of social media tools is clearly delineated in your overarching corporate disclosure policy. To most GCs, social media is still the wild, wild west so it will be important to show them that there is a new sheriff in the virtual town.
2. Make sure that there are systems in place to monitor the conversations taking place - both by the corporation and about the corporation. I suspect your PR colleagues are already tracking certain things that you could leverage by adding a few choice search terms.
3. Stress that the conversation about the corporation is already taking place (In fact, you may want to capture examples of this to share with the GC). That way, you can move the conversation to a more productive question to explore: is the corporation safer or more vulnerable having no voice in this conversation?
4. Work with your GC, not around him/her. At the end of the day, you both want the same thing, which is what’s best for the corporation. By making him/her a true ally, you’ve not only strengthen your argument with the C-Suite but eliminated potentially your biggest stumbling block.
I’d be curious to know how others have been handling this issue with in-house legal teams… thoughts?
*I cannot emphasize enough the importance of an unvarnished, objective evaluation of the pros and cons of social media for your IR program.
Did you read the fine print of Dominic Jones’ recent blog post? Hysterical. I literally LOL‘ed when I read that. Never knew Dominic needed a quasi-Oliver North/Fawn Hall to justify a posting.
All kidding aside - I do agree with Dominic’s thoughts on this piece by McCarthy Tétrault. The harder we push to police social media content, the harder it is going to be to ignore similar “belts and suspenders” for private, one-on-one discussions with investors.
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