Navigating the New IR Landscape: Move Your Career Up and to the Right

Investor Relations plays a crucial, frontline role in shaping a public company’s image and reputation. In today’s fast-paced business environment, professionals who want to pursue a career in IR need to be equipped with the right tools and strategies to effectively communicate with investors and build long-lasting relationships. As IR is a highly visible role within the organization, initiative, communication and attitude will be highly valued. By focusing on the right skills and demonstrating your commitment, you can establish yourself in the value chain and find your path up the org chart, positioning yourself for future growth and success. The world is your oyster when you shine in IR.

The IRO is a jack of all trades – able to discuss an analyst model, the rationale behind a recent acquisition, the consequences of a union strike, why the new CEO was the right choice and why the last one left. To do it well requires tact, diplomacy and a sensitivity to tone.

The IRO must be nimble, and able to work effectively while shaping your message alongside incessantly shifting market dynamics, Street expectations and technological advancements. To stay ahead of the curve and thrive in this dynamic environment, IROs need to adapt their skill sets and approach. IR focus talked to some of North America’s largest companies and most senior IROs to find out what skill sets they are hunting for as they build out their teams and incorporate the tools of operational excellence.

When I asked IROs and other C-suite executives about what skill sets make a great IR team, their responses were as diverse as they were telling, with one technology company CFO summing it up anecdotally:

“Successful IROs are like master mechanics. Your lifeline is a multitiered toolbox, a big one with lots of drawers. In one section are the nuts and bolts of IR, the instruction manual or handbook. Another section of the tool chest, a more prominent tier, showcases your tools of choice, where individual qualities and personalities start to diverge – the build phase. How efficiently and effectively you combine all these tools forms your foundation for managing relationships. Now, utility and creativity together start coming to life. In the final analysis, it’s the combination of all these things, how you present the entire toolbox, the workshop environment, not only the deliverable. The most valuable IR is done between earnings reports through conversations for possibilities, before and well long after the conference call is over for another quarter.”

Here are some other thoughts:

“Demonstrate your ability to collaborate with the C-suite.” – financial services IRO

“The best teams blend execution experience with fresh eyes and active ears...I want to hire the most active listeners for the future.” Chief Communications Officer, global retailer

“I love ambition but avoid people who think they can boil the ocean, favouring those who take pride in doing small things in great ways.” – IRO, large cap tech

“Passion…for the company and for our industry.” – IRO, midcap CPG

Budgets are growing, but headcount is not. Forward-thinking companies are trying to figure out a new approach to the fact that two-thirds of public company shares are projected to be in the hands of retail investors by 2030. This means, for larger companies, more involvement and collaboration with digital marketing teams or external agencies to help distil complex messaging to soundbites for a Twitter feed.

Most companies are reflecting on internal candidates to lead IR before considering external candidates. Many of the most successful and senior IROs are groomed from within – plucking diverse backgrounds from finance, communications, operations or legal. When companies go outside to hire, they often target a known candidate, either from the sell side or an external consultant.

“We aren’t looking to any IR team to provide valuation insight. Good IR is focused on the fundamentals, picking up the CEO or CFO tone and offering insightful responses learned through osmosis.” – Sell-side tech analyst for a Big 5 bank.

A mix of tech-savviness, emotional intelligence and a strong ability to communicate and contextualize cultural insight with a commanding presence isn’t part of the typical MBA or CFA curricula. However, these abilities are discussed and studied on a practical level in both the CPIR and ICD designation programs.

“Know the How but Master the Why.” – PM of Global Opportunities Fund on how IROs should position themselves to be perceived as part of a management team, instead of the roadshow coordinator.

In short, IROs need to influence internally, shape the data and package it in such a way as to differentiate the investment thesis. Investors will always be the least loyal and most fickle of your stakeholders. So how do you keep their attention and constructive engagement?

Embrace the Data-Driven Narrative:

Numbers have stories, too: Don't just present data, weave it into compelling narratives that resonate with investors. Use data visualization tools to make complex information easily digestible.
Metrics that matter: Understand what metrics investors truly care about (those should also be the ones tied to C-suite wallets), and tailor your soapbox accordingly. Of course, put your best foot forward, but offer industry trends and benchmark your performance against peer averages.
ESG integration: Environmental, social and governance (ESG) factors are increasingly important to investors; real ones, not the ‘Everything Sounds Great’ ESG. Integrate the metrics that demonstrate commitment and sustainable performance factors that drive superior returns over the long term.

Sharpen Your Communication Skills:

Authenticity is key: Be transparent, be honest and always build trust. Avoid jargon and speak in a clear, concise and engaging manner.
Omnichannel communication: Utilize multiple channels to reach your audience, including traditional media, social media, investor conferences and webinars.
Master storytelling: Craft compelling stories that showcase your company's value proposition, growth potential and competitive edge. Learn to deliver it contagiously.

Become a Strategic Partner:

Beyond disclosure: Move beyond simply fulfilling disclosure requirements. Proactively engage with investors and understand their concerns and expectations.
Strategic insights: Offer insights and guidance to company leadership based on your understanding of the market and investor sentiment.
Collaboration is key: Work closely with other departments, such as finance, marketing and operations, to ensure a consistent and aligned message.

Embrace Technology:

Leverage automation: Utilize investor relations management (IRM) platforms and other tools to automate tasks, streamline workflows and gain deeper insights.
Stay ahead of the curve: Explore emerging technologies like artificial intelligence and big data to gain a competitive edge in communication and analysis.

Lifelong Learning – be a company and a domain expert:

Continuous learning: Stay updated on industry trends, regulatory changes and investor preferences by attending conferences, webinars and professional development courses.
Network actively: Build relationships with other IROs, analysts and investors to gain valuable insights and expand your network.
Seek mentorship: Find experienced IROs or mentors who can guide your career development and share their wisdom.

IR used to be defined as an individual contributor, or functional specialist role. Today, it is perceived as a leadership role – one in which to be successful, the self-perception and mindset of an IRO must bring out the best in others. Aspiring leaders also prioritize building and maintaining an active, diverse and close network of relationships throughout their careers – this will pay off when you need it most!

“Experience in execution = excellence in execution. There is no substitute for the 4E concept.” – Founder of a $30B large cap with 100,000 employees.

This speaks to the hybrid trend of leveraging an experienced external consultant to work alongside an internal team. In years past, the consultant was typically the one who handled the less strategic or administrative side of IR – issuing the release, updating the website, and so on. Today, the tables have turned, with many seasoned IROs fractionalizing their time and their Rolodex for growing companies that are benefiting from the Street equity that these veterans have built over the years. Often, successful consultants are ones with a resume whose experience includes an in-house IRO role.

“I can almost always get you a first meeting with the broker you wished was covering you or the pension fund you may still be too small for. And I can bring their unvarnished candid view back to management.” – Top IR consultant

By embracing the attributes that best build a successful career in IR, you can navigate the dynamic landscape of the profession, build strong investor relationships and contribute significantly to your company's success. Remember, the journey is continuous, so keep learning, adapting and evolving to stay ahead of the curve and earn your seat at the table.

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