HI POD - The changing world of annual reporting

Listen to HI POD - The changing world of annual reporting

Tony Heywood is a Fellow of the Design Institute of Australia, founder of Heywood Innovation in Sydney Australia and joint founder of BrandSynergy in Singapore.

Are you keeping up with changing technology?

Web2 and social networking sites are wielding significant influence on the way we access information online. "But I'm an Investor Relations professional - what has this got to do with me?" you ask.

Well, as we're all well aware, legislation implemented last year now allows listed companies to use the internet to communicate with shareholders rather than mail printed documents.

Moving on from Print
Over the years we have all become familiar with print and the related time-frames and processes. Printing your annual report however in full colour as a marketing document is becoming a thing of the past. Many companies that want to maintain their communications in print are moving to a smaller more economical version called the Shareholder Review.

The Shareholder Review is written in plain English and contains only the 'bare essentials' from the annual report, usually within 28 pages. This serves well for those shareholders who do not have access to a computer or the internet. It also serves as a means of keeping in touch with shareholders once a year more cost-effectively.

Thinking of online
In our experience most companies that have canvassed their shareholders are pleasantly surprised that around 80 to 90% are happy to access their information online. So how are you going to engage this new online majority with an experience that they will be happy to come back to? One things for sure - shareholders want more than a PDF of the printed report and are welcoming HTML 'website' reports with open arms.

While on the subject of the web most Investor Relations professionals are unaware of how easy/difficult it is to access investor information on their own website. It is often not as easy as it should be. The viewer inevitably has to dig through several layers to get there. As this is the No.1 destination to which most investors are headed to access information, Investor Relations professionals need to be more intimately acquainted with their website, its functionality and attraction for shareholders.

Content is king. It's one thing getting them to the information as quickly and easily as possible, but is the online information engaging and not just a dump of 'old-style' content formatted for print consumption? Is it viewed more as an after thought than a new opportunity to impress shareholders with a new experience that will endear them to your company?

The company brand
The online experience you create for visitors will influence the way they perceive your brand. This is a critical consideration that is often reserved for consumers but this is rarely carried through to investors. In the print mindset the Annual Report performed some of this function when it had a marketing flavour to it. New considerations are required to satisfy the online needs. How a company treats its shareholders on the web says a lot about its attitude to all its stakeholders.

Web2
So what has all this got to do with Web2? It is becoming increasingly clear that regulators are using different means to disclose and disseminate information. The SEC in the US for example are thinking of using Twitter and Blog Talk Radio to disseminate information on XBRL. Most people would not have heard of these Web2 technologies. Australia might be a little behind the US but soon these will hit our shores and Investor Relations Professionals will be caught off-guard unless they consider becoming familiar with technology and its many uses.

Be prepared and get ahead of the pack
Heywood Innovation in Sydney is holding workshops and presentations to help companies get a better understanding of new Legislation-inspired choices and issues. In the 21st Century a year is a long time to get to grips with a new way to do something.

Partner with us and we will keep you informed and one step ahead of the pack in your communications with investors.

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