Essential Annuals
by Carla Cichos
In light of the increasing disclosure requirements and the expectation to adapt to budding technology, some companies figure they're better off not creating an annual report. So why, considering the ordeals one must go through while creating this document, is it important to produce an annual report? Well, there are several reasons.
It's true that an annual report communicates facts and figures, but it's also a company's main opportunity to review their overall direction and communicate their story to a wide range of stakeholders. The annual report translates into a document that serves as a marketing tool, a reminder of accomplishments and a great opportunity to share a corporate vision with investors. Keep in mind that an annual report can also serve as a first impression of the company to many potential investors. This is a company's chance to create a document that stands out amongst the crowd and draws people in to their story.
The annual report should reflect the company and management style while giving investors a sense of how the company does business. The theme, style and design of a report can say a lot about the company itself and how it is run. A report with a bold style and unique design can tell investors that management is forward thinking and stays ahead of the trends. Companies that opt to concentrate more on the theme and writing of their report may be conveying themselves as strategic thinkers. A report that is sparse on design or one that's been scaled back in regards to printing can portray the management team as one that's concerned with the budget, or one that's made up of conservative businesspeople who are ultimately concerned solely with the bottom line. Finally, a company that chooses a technologically advanced method of displaying their annual, such as an interactive report on their website, is telling investors that they keep up with the latest technology and are perhaps a team that thinks outside the box.
One of the most important aspects of the report, which speaks directly to the personality of the management team, is the message to shareholders. This piece of writing is an opportunity for the President or CEO to convey their vision and strategy using their own distinctive approach. Many readers look to this section of the report to get a profile of the key players. As the face of the company, what is said by the president is often considered the selling point to the current or potential shareholder. The letter is a persuasive tool if it accurately portrays a knowledgeable and effective leader.
When a company is strategizing about how to lay out the writing of their annual, and what key points to concentrate on, what should they consider? In this case, the readers should be kept in mind. Every individual is interested in different information and everyone retains information in different ways. Keeping this in mind while sorting out an annual's content will lead to a more thoroughly read document. All the people who will read the annual report are looking to find the information that's key to them. They're also hoping to find this information in a format that's easiest for them to read and comprehend. There's the person who wants to scan the annual and retain key information without reading the whole document. This person would enjoy seeing bulleted information, such as financial and production highlights. This allows them to grab the most essential information without delving into the details. A more visual learner would appreciate information laid out in charts and graphs. As with above, this allows the reader to search out relevant information quickly and they may be more likely to remember it.
Overall, exceptional annual reports take a great deal of tactical thinking and planning, but the resulting product is an in-depth profile of the company that is appreciated by the investment community. Having all the required information in one document and pairing it with content that represents the style of the management team is helpful to those trying to understand not just the financials of a company, but the personality and drive behind it.
