New Year, New IR: Rethinking Resolutions for Real Results
Dear Colleagues and Friends,
Another year has come and gone, and with the confetti swept away, we’re all facing that familiar January tradition: New Year’s resolutions. Gym memberships surge, promises of healthier eating abound, and we vow to finally learn that new language. But how often do these resolutions actually stick? If you're anything like me, the initial enthusiasm often fades by February, leaving those well-intentioned goals gathering dust.
This year, I’ve been reflecting on why that happens. And I’ve realized that the problem isn't necessarily a lack of willpower, but rather a lack of rethinking our approach to resolutions. We often set the same vague goals year after year, expecting different results. But as the saying goes, doing the same thing and expecting different outcomes is the definition of insanity.
So, how does this relate to investor relations? Well, I believe the same principle applies. If we want to see real improvement in our IR efforts, we need to not just set new goals, but also re-evaluate our strategies and make some fundamental changes. We need new resolutions for new results.
Let’s be honest, IR can sometimes feel like Groundhog Day. We go through the same motions: quarterly earnings calls, investor conferences, roadshows, and countless emails. But are we truly maximizing our impact? Are we building meaningful relationships with investors? Are we effectively communicating our company’s story? See how I just repeated the same questions we’re always addressing? And yet—surprise, surprise—these are the very same things that are either a) done completely wrong, or only half-heartedly, and b) are constantly shifting beneath our feet.
This year, instead of setting generic resolutions like “improve investor communication,” I’m focusing on more specific, actionable changes. I’m challenging myself to rethink some of the core aspects of my IR approach. And I encourage you to do the same.
1. From Broadcast to Dialogue: Rethinking Communication
For years, much of IR has been about broadcasting information. We release press releases, publish quarterly reports, and deliver presentations. But true communication is a two-way street. It’s about listening, understanding, and engaging in meaningful dialogue.
Old Resolution: Improve investor communication. New Resolution: Implement proactive investor outreach and feedback mechanisms. (And truthfully, I consider myself a proactive star!)
Instead of simply sending out information, I’m committing to actively seeking feedback from investors. This means conducting more one-on-one meetings, hosting interactive webinars, and utilizing online platforms to foster ongoing dialogue. I want to understand their concerns, address their questions, and build genuine relationships based on trust and mutual understanding. Of course, this only works if they are in it as well… But that is why it is a challenge.
Example: So, here is something I am looking to try out this year. Instead of just publishing our quarterly earnings, we'll host a live Q&A session on social media, allowing investors to ask questions in real-time. We’ll also conduct post-earnings surveys to gather feedback on our communication and identify areas for improvement.
2. From Transactional to Relational: Rethinking Engagement
Historically, many IR interactions have been transactional. We meet with investors to discuss financial performance, secure funding, or address specific concerns. But building long-term value requires a more relational approach. It’s about establishing trust, building rapport, and creating a sense of shared purpose.
Old Resolution: Increase investor engagement. New Resolution: Develop personalized engagement strategies based on investor profiles and investment horizons.
I have never been one to use a one-size-fits-all approach to engagement, but the core message was always the same. Now, I want to understand each investor’s unique investment strategy, their risk tolerance, and their long-term goals. This will allow me to tailor my communication and provide them with the information that is most relevant to them.
Example: For long-term institutional investors, I’ll focus on providing in-depth strategic updates and discussing our long-term vision. For shorter-term investors, I’ll emphasize key performance indicators and near-term catalysts. Finally, I’ll utilize scheduling software to maximize my availability for both brief and extended discussions, ensuring accessibility beyond the typical roadshow schedule.
3. From Reactive to Proactive: Rethinking Storytelling
Too often, IR becomes reactive, responding to events rather than shaping the narrative. We need to be more proactive in telling our company’s story, highlighting our unique value proposition, and communicating our long-term vision.
Old Resolution: Improve our corporate messaging. New Resolution: Develop a compelling and consistent narrative that resonates with key investor audiences.
I’m committing to crafting a clear and concise narrative that articulates our company’s mission, values, and strategic priorities. This narrative will serve as the foundation for all our communication efforts, ensuring consistency and clarity across all channels.
Example: We’ll develop a series of short videos that showcase our company’s culture, innovation, and impact. We’ll also create dedicated online resources that provide investors with easy access to key information about our business.
4. From Short-Term to Long-Term: Rethinking Value Creation
In today’s fast-paced market, it’s easy to get caught up in short-term fluctuations. But true value creation is a long-term endeavor. We need to focus on building sustainable growth, fostering innovation, and creating long-term value for all stakeholders.
Old Resolution: Increase shareholder value. New Resolution: Communicate our long-term value creation strategy and demonstrate our commitment to sustainable growth.
I’m shifting my focus from short-term performance to long-term value creation. I want to communicate our strategy for building a sustainable business, investing in innovation, and creating long-term value for our shareholders.
Example: This year, we’ll prioritize a holistic view of our strategy, ensuring clear communication of our expectations regarding operations, performance, sustainability, and digitalization. In addition, we’ll host investor days designed to provide easy access to in-depth information about our long-term strategic plans.
5. From Isolated to Integrated: Rethinking Collaboration
IR shouldn’t operate in a silo. It needs to be integrated with other key functions within the company, such as finance, communication, marketing, and operations. By working together, we can ensure that our communication is consistent, our messaging is aligned, and our efforts are maximized.
Old Resolution: Improve internal communication. New Resolution: Establish cross-functional team meetings to ensure consistent messaging and coordinated investor outreach.
I’m prioritizing building stronger relationships with colleagues across different departments. This will ensure that everyone is on the same page and that our communication with investors is consistent and coordinated.
Example: We’ll implement targeted cross-functional meetings to address key issues with relevant departmental representatives. Weekly social media meetings, bringing together communications, sustainability, HR, and IR, will further align messaging and facilitate rapid communication of time-sensitive information, including internal events
These are just a few examples of how we can rethink our approach to IR and set new resolutions for new results. The key is to move beyond generic goals and focus on specific, actionable changes that will drive real impact.
As we embark on this new year, I encourage you to take a moment to reflect on your own IR efforts. Are you simply going through the motions, or are you actively working to build meaningful relationships with investors? Are you effectively communicating your company’s story, or are you simply broadcasting information?
By rethinking our resolutions and embracing a more proactive, relational, and long-term approach, we can elevate our IR efforts and create real value for our companies and our investors. One-step at a time.
It’s not just about setting new goals; it’s about changing the way we think and the way we operate. And that, I believe, is a resolution worth keeping.
So, what are your New Year Resolutions for your IR operations? Looking forward to hearing from you!
Wishing you a good start into 2025!
Muge
Your fellow IR Enthusiast!
Yücel, currently Director of Investor Relations and Sustainability at Galata Wind Enerji (GWIND.IS), initially began her investor relations career in 2008 at Dogus Otomotiv (DOAS.IS). She promotes proactive strategies utilizing digital technology and AI, and she specializes in shareholder targeting. Galata Wind , traded on the Istanbul Stock Exchange, operates wind and solar farms in Turkey, and plans further expansion into Europe, reaching a capacity of over 1000 MW by 2030.
Yücel has recently published "The Investor Relations Playbook - Achieving Sustainable Success", a hands-on guidebook on investor relations operations with templates, checklists and how-to guides. The book is available in print in Turkish and in digital form in English.