Qualitative KPIs Tere are several ways to qualitatively measure your investor base sentiment on Wall Street. One of the most effective is conducting a well-crafted annual perception study to monitor messaging resonance and the efficacy of your IR program. Never forget that even the most carefully crafted messages can be subject to misunderstandings. Outreach and in-depth conversations with your most important stakeholders through perception studies will confirm if your company’s strategy and key messages are resonating. Craft your study ques- tions to ask Wall Street about the effectiveness of the company’s communication, views of the manage- ment team and IR department, and the quality of the disclosure and transparency. Perception studies can also provide a frame-


work for benchmarking your program so you can evaluate progress; foster ongoing communication among IROs, the board, and the C-suite because the benchmarks function as talking points; and bridge communication gaps and possible misconceptions about the company. Many companies also highlight awards and rec- ognition as a third-party validation of the message’s resonance and transparency with Wall Street. For example, Institutional Investor magazine rankings can be significant in addition to positive reviews from a perception study. “IRO credibility is critical. And while that credibility is earned over time, third party recognition can help validate it,” Marsh says.


Best Practice #2: Establish a process to report KPIs


Providing feedback on Wall Street sentiment, shifts in the investor base, and progress on IR’s strategic initia- tives and KPIs are imperative. Key audiences include boards, management teams, and your employee base. Most departments create quarterly reports that


track progress on the IR goals and use customized data to show progress. Often, separate reports go to the management team and to the board. Many IROs also present results to the board and employee base as part of the process, often in conjunction with the


niri.org/ irupdate


Customized reports that pull select data to highlight progress or educate specific audiences are the most impactful.


release of updated shareholder filings/13F reports and during the quarterly review process. Customized reports that pull select data to high-


light progress or educate specific audiences are the most impactful. For example, many departments like to highlight Wall Street sentiment on specific issues and conduct mini perception feedback audits as earnings season approaches. As for timing, the period around earnings is ideal


for sharing your perspective across the organization. “You’ve already prepared a deck to share with the board, so you use a subset of that presentation to use with other audiences,” says Catherine Buan, Head of IR at Asana. “Update it on an ongoing basis with current market data and share it with stakeholders like the research and development, marketing, and sales teams. In addition to presenting to the board, I also speak with employees on a quarterly basis.” Determining KPIs and measuring your IR efforts


is key for any successful IR program — it should evolve from the process of setting program goals and identifying the tactics and processes to achieve milestones along the way that demonstrate progress. With the right qualitative and quantitative metrics,


you can eliminate much of the guesswork around the aspects of your strategy that are working and those that need revision. Moreover, having data to guide those decisions available for your management team, board and employee base establishes a long- term foundation for success. IR


Nicole Noutsios is Founder of NMN Advisors, Inc.; nicole@nmnadvisors.com. She serves on the NIRI San Francisco Board of Directors and the NIRI Ethics Council.


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