By Andrew Gilman
A question CEOs often ask corporate communications involves priorities: If I can only show up in one of three places, which is most important: a news media interview, a meeting
with industry analysts, or a grilling by Wall Street researchers?
An effective CEO will talk to all three audiences: the press; industry peer reviewers; and the financial community -- the Continuous Business Loop. And rather than view each
communication as an infrequent, one-time event, these strategic communications should be planned and focused.
Why the loop? Because the day after (or before) you've been to see a trade press reporter, your main competitor has been there. And the day following, a breaking news event may
change the story you just told. And each of these -- positive media story, a good review by an industry analyst, and a favorable report from a Wall Street researcher -- build
internal and external momentum for your business.
The old school of limited interaction, or interaction through press releases and controlled statement, was adequate before the days of instant and non-stop communications via
Web sites, financial and hard news services. But a CEO can no longer gear up for the annual event and then retreat to whatever passes as business as usual.
Even in the absence of "hard news" or new product introductions, companies need to frequently touch base with "influencers," those industry analysts, business, consumer and
trade press, and security analysts. Each of the influencers feeds off communications with the other. Media quotes are noticed by industry and security analysts.
Similarly, industry analysts and security analysts notice positive write-ups in both industry and consumer press. Security analysts can be influenced by positive references in the
other two areas.
There is no definitive rule to guide the order in which you reach each audience. Each of these audiences requires specific types of proofs that support a company's overall
statements and "headlines."
For example:
- Media audiences ask the 5W "fact-based" questions Who, What, Why, Where and When. They also want anecdotal proofs, stories and analogies.
- Industry analysts seek comparative facts, figures and product specifications vs. direct and near competitors.
- Security analysts primarily seek financial information related to budgets and results that are consequences of company actions, policies and programs.
None of these types of proofs is independent of the other. Security analysts and industry analysts also want to hear the "stories" and "sound bites". Good reporters want a
detailed, factual presentation. Business reporters want comparative information about products. But each has his or her separate audience that they "write" for.
Sara Gilbertson, director of marketing for ePlus (Nasdaq ) in Reston, Va, states, "Our CEO tells the story about a customer who bought our supply chain management software for
a single division of a national company. When the CFO heard the power of our solution, he immediately expanded the purchase to the whole enterprise. That story," she advises,
with "the latest news, is the type of anecdote the press wants." She adds, "We used it as the lead of a presentation at an investment banking conference. And it will play well
when we review the product with industry analysts."
Your competitors' consultants will put the same strategy to work.
The latest wrinkle - or detour -- in the corporate communications loop strategy is the SEC's recently released Reg FD (Regulation Financial Disclosure). This limits a public
company's ability to hold one-on-one meetings with small groups or individual security analysts. In response, companies are seeking to comply by scheduling Webcast and audiocast
financial presentations, as well as making sure all information is sent out via press releases and Web site postings. The answer is not a retreat to fewer communications.
Because of the restrictions on "investment" information, Reg FD may cause companies to spend more time with the press and with industry analysts, communicating information that is
less concentrated on financial data.
There's one additional reason for developing relationships with the press, Wall Street and industry analysts. Most companies will experience a run of bad luck - marked by a
"crisis" or bad business or financial data. In these situations, it's not necessarily the bad news, but how the company responds that makes a difference. If the CEO has developed
a good working relationship with all of the influencers, the company tends to fare better in the court of public opinion.
Andy Gilman, a lawyer and award-winning journalist, is President of CommCore Consulting Group, a media/presentation training firm located in Washington, DC. He can be
reached at 202/659-4177 [email protected]