“Many reports do not give you the basic information of who, what, where and how in a simple digestible form. It is dangerous to assume that you can get away without this overview, even for existing shareholders”.
Keith Bamber, director of communications, says, “I have always thought it strange that many businesses who are financially underperforming seem to lose their communication skills. You can often tell the financial health of a company from the quality (or absence) of the basic information contained in their annual report.
Surely, when under pressure, the response should be to come out with all guns blazing? This is the time when added clarity and depth of communication is most needed. When clear presentation of the strategy and the unique qualities of the business can help to allay the fears of nervous shareholders”.
Sadly, in reality this rarely seems to be the case.
Back to basics
Whether or not a company is on the way up or down, the basics of good communication still apply. A quick review of the FTSE 100 however, shows some of these basics are sadly missing. One way to keep things on-track is to utilise a communications theme. Only 51 per cent of companies in the FTSE 100 do, and this seems like a wasted opportunity.
A theme can act as a focus to help pull the different strands of your story together and make it more compelling. It can help your audiences to understand the business and can support different departments and contributors internally, who are collecting and distributing information. requirements.
Get to the point
We often hear the ‘elevator’ test mentioned – and the need to be able to describe what the company does in less than 30 seconds. This clarity and immediacy does not always seem to be taken on board when planning both the content and pagination of the report and accounts (R&A).
Many reports do not give you the basic information of who, what, where and how in a simple digestible form. It is dangerous to assume that you can get away without this overview, even for existing shareholders. Too often the cover and opening spread – that should really be setting the scene – fail to be properly utilised.
If, as we are told, the average length of time an annual report is scanned is less than three minutes, the basic information must be communicated clearly and quickly.
Good reports fulfil several roles other than the statutory requirement, from acting as a corporate brochure to giving credibility when negotiating new supplier contracts.
There has been increasing pressure on the report over the last few years, as more information is demanded. Getting the balance right in terms of access and legibility without creating 400 page documents is obviously a key issue.
Communication not decoration
In terms of graphically supporting the content, good photography can help bring your story to life. Heavily staged ‘model-like’ smiley faces of your happy employees can often feel unrealistic and banal. Then there’s the challenge of the board of directors! It probably doesn’t send out the right message if they are all sporting year-round tans and look like they are the only ones who don’t actually do any work.
Charts and graphs can help explain figures and trends quickly and effectively, but heavily-styled graphics and overuse of your corporate identity can be distracting.
Navigating through the document is vital for all audiences if you want to keep their interest. Clear contents tables, good section breaks and colour coding can help the researcher or ‘in depth’ reader find what they are looking for. For the scanning reader, good headlines, pullouts and smaller paragraph breaks ensure that the fundamentals are easy to access.
The same principles obviously apply online. It is always advantageous to design the online version at the same time as the printed one. This allows for changes to be made to suit both mediums before the design is finalised, resulting in greater consistency.
Talking with one voice
In terms of the written content, how many R&As feel like they speak with one voice? It is more common that they fall into corporate and legal speak, as the reader progresses further into the document.
This is probably a symptom of too many authors, all with different agendas and priorities. It can often help to bring in a specialist writer from outside the organisation, who can be both interviewer, writer and editor. This will help to add consistency to the tone of voice and give a degree of objectivity to the presentation of content. This role can be performed by someone within the business, but demands that they have the remit to make editorial decisions.
There are some excellent examples of R&A out there, but unfortunately there are also some shockers. I can’t help thinking that if some of the basic communications principles had been followed then these howlers could have been avoided.
Supplemental: Top ten tips for a great report & accounts
- Use a theme to focus your communication.
- Don’t forget the basics (who, what where and how).
- Make sure that the cover and first spread work hard.
- Don’t be generic; make sure you are projecting your brand.
- Make sure pictures and language make a point.
- Make sure that the board photography is dynamic.
- Cater for the in-depth and the scan reader.
- Check the navigation and make sure it works.
- Try to talk in one tone of voice.
- Make sure you get the right relationship with your design agency.
Visit our Best Practice Guides