Excellence in investor relations
Challenges to excellence in investor relations, as reported by organizations surveyed |
| Ranked by frequency of mention |
| Rank* | Challenge |
| 1 | Poorly defined strategy for managing investor relations |
| 2 | Failure to prioritize investor relations |
| * Based on 213 responses from our global multi-sector survey. Rank order may not reflect statistically significant differences in all cases. Unclassified/refused responses not shown. |
Factors enabling excellence in investor relations, as reported by organizations surveyed |
| Ranked by frequency of mention |
| Rank* | Enabling factor |
| 1 | Organizational priority to enhance relations with investors |
| 2 | Desire to improve organization's rating |
| 3 | Desire to improve image and reputation |
| * Based on 213 responses from our global multi-sector survey. Rank order may not reflect statistically significant differences in all cases. Unclassified/refused responses not shown. |
Percentage reporting that measures to improve investor relations have been taken, by sector
Executives suggest that making improved investor relations an organizational priority is the number one factor for success.
Summary: Investor relations wasn't a top-rated strategic initiative in any sector surveyed. But executives in all sectors appear well-positioned to take advantage of this strategic initiative.
Excellence in investor relations occupies the seventh rung on the opportunity ladder, with respondents on average seeing the impact as rising toward 2013.
Opportunity outlook and impact
Sector perspective
Although excellence in investor relations is not a top-rated strategic initiative in any sector surveyed, it is given particular priority (sixth place) by executives in the banking and power and utilities sectors.
Looking to 2013, the picture by sectors and regions is mixed.
- Oil and gas, life sciences and power and utilities respondents, on average, expect the impact of this opportunity on corporate performance to climb.
- Retail expects it to decline.
Geographic view
Executives in two countries — Sweden and China — identify improving investor relations as their second most important opportunity at present. This may be related to the current strength of both national economies, which have increasingly become a focus of regional investment. It may alternately be a sign that respondents in these geographies are having difficulty attracting the capital they require.
Excellence in investor relations
Obstacles to success
Executives in our survey identified two key barriers to improving investor relations:
- A lack of strategy for managing relations with the financial community
- A failure by senior management to prioritize this opportunity
Overall, however, we found that executives in all sectors were well-positioned to take advantage of this strategic initiative.
Responding to the opportunity
Our survey identified three key factors that help organizations to create excellence in investor relations:
- A focus by senior management on enhancing relations
- A desire to improve an organization's rating
- A concern for the organization's image among its current and potential stakeholders
Geographic approaches
- In the UK, US, Netherlands and South Africa, around 9 out of 10 respondents reported one or more of these factors.
- In Russia, France, Italy and the Middle East barely 7 in 10 organizations reported one or more of these factors.
Percentage reporting that measures
to improve investor relations have been
taken, by sector
Sector strategies
- Banks tended to be most proactive in exploiting this opportunity, with 80% reporting that their organizations had implemented measures to this effect.
- 74% of retail organizations were exploiting this opportunity.
- Relatively few companies reported being in the position of recognizing such measures were necessary but not yet having implemented them.
Organizations' responses to excellence in investor relations
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