It's annual report planning season. Have you asked your investors what they thought of last year's report? A recent online survey conducted by the brand-consulting firm, Turner & Associates San
Francisco, polled 766 investors to gauge their biggest pet peeves in the world of annual reports (participants were allowed to name several). Of the respondents, 63% cited their top gripe as a report
that fails to clarify what the company does and why it might be a solid investment. Meanwhile, 57% bemoaned instances in which management comes across as indirect or less than honest in addressing
negative perceptions of the company. Other complaints:
- 48% The writing is in "corporate speak" and confusing
- 42% The company fails to provide adequate details about how it makes money
- 36% Customer lists and testimonials are used, but their meaning is not quantified
- 28% The company fails to offer a vision for the future
- 21% The company is out of touch with reality
- 19% Accounting methods have changed
- 15% Photos are boring and say nothing
Yet another common annual report mistake that corporations make is looking too much like the competition, says Ted Leonhardt, president of The Leonhardt Group, a Seattle-based branding firm. "In
financial services, everyone says, 'It's our people who make the difference.' In the oil business, it's all about the equipment and everyone has photos depicting stacks of pipes. In the auto industry,
it's factory technology and photos of robotic assembly lines," he observes. Dare to be different. (Leonhardt, 323/259-9222; Turner, 415/344-0990)