Investor Relations as the new focus in creating long term corporate value
*Assess the importance of Investor Relations functions
*Factors prohibiting growth or development in this area
*Differentiating Investor Relations with other communication initiatives in maximizing its value
Investor Relations As The New Focus In Creating Long Term Corporate Value - ABF Investor Relations Conference
1. INVESTOR RELATIONS AS THE NEW FOCUS IN CREATING LONG TERM CORPORATE VALUE Case Study, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
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3. Importance of Investor Relations Why focus on Investor Relations in the first place? www.myCNI.com.my www.OOBEY.com
14. Intelligence: How do Investors get their ‘INFO’? (1/2) Institutional Gov./Politics Customers Suppliers Economics AGM Market Research Internet* Annual Report Media Analysts Fund Managers Due Diligence NGOs Newsletter Spokespersons www.myCNI.com.my www.OOBEY.com
15. Intelligence: How do Investors get their ‘INFO’? (2/2) Retail Gov./ Politics Customers Public Events Economics AGM Ads Internet* Annual Report Media Analysts Fund Managers Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com
16. Intelligence: How to Communicate? Self Reliant Need Help Seek Change Seek Stability Searchers Collaborators Streamliners Delegators www.myCNI.com.my www.OOBEY.com
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19. Investor Intelligence: Why? Revenue Growth Base Retention Share Gain Positioning Adjacent Market New Business Operational Excellence Product Leadership Customer Intimacy Competencies Information Systems Motivation, empowerment, alignment Financial Learning & Growth Internal Process Customers Investment Strategy Productivity Market Value www.myCNI.com.my www.OOBEY.com
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24. Obstacles to Growth of Investor Relations If IR is so important, why is it not growing? www.myCNI.com.my www.OOBEY.com
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28. Good News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution www.myCNI.com.my www.OOBEY.com ?
29. Bad News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution www.myCNI.com.my www.OOBEY.com
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31. 2. Aligning IR to Business Priorities USP Market Discipline Profit Model Business Model www.myCNI.com.my www.OOBEY.com
32. 2. Aligning IR to Business Priorities Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
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34. 2. Aligning IR to Business Priorities Upturn Flat Downturn Fight Complacency Sharpen Edge Keep Momentum Conquer ‘ Change’ mgmt Reduce Fat Continuity Everyone Happy Innovation Acquire Profits Build momentum Sales Cash Flow Talent Mgmt Innovation/R&D Early wins Slow Down HR Costs Top Talent focus Sales, Sales, Sales Increase attrition www.myCNI.com.my www.OOBEY.com
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36. 5. Idealistic Theories Right Information at the Right Time Integrity + Care towards Individuals Managerial (Internal) vs. Technical (External) Manage conflicting ‘Trust’ agendas Manifestation of Correlation vs. Causal problem www.myCNI.com.my www.OOBEY.com Build Trust Managerial Competence Integrity Transparency
39. IR in Communications Communications Internal External Mgmt Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com Employees Associations Universities NGOs Investors Media Government Public Authorities
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43. Communications to bring in the Sales Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “ Retention and Loyalty are useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com
44. Communications to bring in the Sales “ Retention and Loyalty are useless if No Conversion is happening.” “ Comm (IR) is useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com
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48. Virtuous Cycle to Maximize IR and Communications Internal External Feed Feed www.myCNI.com.my www.OOBEY.com
52. Maximizing IR in Communications Communications Internal External Mgmt Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com Employees Associations Universities NGOs Investors Media Government Public Authorities
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55. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/