Key Messages in Investor Relations:
Making the Most Important Stuff Stick

by Kristiana Barber

A public company is only as good as the capital markets understand it to be. In the markets, perception is reality. That's why smart companies stick to three or four clear, concise and consistent messages to help bridge the gap between actual results and market perception.

It's in a company's interest to have the same simple messages in its presentation, website and investor calls as in analyst reports, third-party media interviews and broker-client discussions. If this is accomplished, these key messages will become part of a company's meaningful and memorable investor relations brand.

Patti Shannon of McLean and Partners Wealth Management says the benefit of focusing on a key message is "longer retention of the information in the reader's mind." This retention in turn defines the difference between assimilating information in the short term and successfully anchoring the viewer's perception in a fair reflection of value over the medium and long term.

There are three main elements vital to communicating a successful key message: delivery, dynamics and direction.

Delivery of information should always be concise and to the point. Redundant or unnecessary information creates a lack of focus and can often result in a document being merely skimmed by the reader. "Superfluous information restricts the accessibility of a document," says Shannon. "Most people are time constrained and will not bother to read anything that looks overly long and hard to find the key point in." When an author or speaker strays from focusing on their key message the reader is pulled in too many directions and the text begins to lack credibility and strength.

While the accuracy and precision of information being delivered is imperative to the communication of a successful key message, a balance must be maintained between brevity and dynamics - the facts need to be illustrated with context. Creating an active message that communicates the dynamism of a business sparks curiosity, participation and interest in what is being said.

Finally, giving an element of communication proper direction and context is vital and requires the communicator to be cognizant of the audience. It is important to keep in mind the type of information and amount of disclosure required by the reader and ensure those needs are fulfilled.

A focus on key messages should never stand in the way of adequate details and proper disclosure. Whether contained in a two-page profile or an annual report, the key messages should be the beating heart of an investor relations document. Clearly articulated key messages benefit everybody by ensuring important information is retained and passed on, allowing perception and reality to become one.