Although IR is not the decision-maker on strategy, M&A, messaging or responding to street feedback, it does provide the C-suite with the required information, candid feedback from the shareholders’ point of view and suggestions on overall strategy.
While the IR function’s primary role may be to communicate with investors outside the organization, transforming this from a one-way conversation to a dialogue is where its true strategic value could lie.
Investor feedback is valuable information for the board and can give an insight into the way a company is perceived in the market. By feeding through details about investor concerns, IR teams can help boards get a better sense of how their strategy is landing – enabling course-correction to ensure long-term success as well as keeping investors happy in the short-term. With uncertainty still a key challenge facing organizations worldwide in this transformative age, that could prove of significant value.
Our survey of Investor Relations professionals identifies ways they can deliver far more business value than simply keeping investors happy.