The coronavirus pandemic has created a paradigm shift in the way organizations must communicate with their core audiences.
At PondelWilkinson, we understand the complexity of navigating this “new normal.” Saying too much, or not enough, can adversely impact corporate and brand reputation, and how key constituents react.
For more than 50 years, PondelWilkinson has been helping clients effectively engage with stakeholders. Our team has extensive experience across many industry sectors and in three key professional disciplines: investor relations, strategic public relations and crisis communications.
Whether you are just starting to reevaluate your communications strategy, or need a comprehensive communications audit, our COVID-19 Q&A may be a good place to start:
How much and how often should I be communicating organizational news?
Generally, more is better, but only if you have something meaningful to say. Since executives may no longer be able to see constituents in person, it is important to stay top-of-mind, assuring stakeholders that management is available, and that the business continues to function. While there is no change with respect to issuing major news when it happens, it is important not to overdo it with trivial fodder. Use judgment as to what constitutes real news, and in general, think about enhancing disclosure wherever possible.
What type of content should I be distributing?
The content you distribute now should be no different than prior to the pandemic, with one exception: it is critical that you add messages about COVID-19 related matters and how they are impacting your business. If you were not generally communicative pre-coronavirus, now may be the time to start, since silence during this challenging time for so many people breeds anxiety. Constituents want to know how your company is doing given the current business environment.
Do I need to be more aware of bias and race relations?
While social reform is not directly connected to the pandemic per se, it would be remiss not to briefly addresses the issue, especially given the impact that recent worldwide demonstrations have made on organizational communications. The simple answer, yes. It is essential that organizations be extremely sensitive to this subject, but authenticity is paramount. Try not to overcommunicate or overreach when communicating, or the message maybe construed as disingenuous.
How will Zoom (and other video platforms) impact future communications internally and externally?
Video communication adoption will continue to grow for the foreseeable future. From staff meetings, to corporate happy hours, to customer and investor presentations, video has become the de facto communications platform. Today’s executives need to be well-trained on all types of virtual media to avoid loss of productivity or development opportunities.
Should I and other key executives be trained on presenting via video?
Yes. While content is still king, poor delivery can make or break a good presentation. Body positioning, lighting and background, among many other factors, can influence people’s perceptions. You don’t need a professional home studio, although some training and learning proper techniques can go a long way.
What new management disciplines must be put in place for working remotely?
Organizations must get acclimated to operating remotely, and most already have. Some do it better than others. Video services such as Zoom and GoToMeeting have provided new ways for executives to “do business” in real time. There also are various cloud-based collaboration solutions like Slack and Microsoft Teams that allow employees to chat with each other, file share and edit documents, manage tasks, and much more. But keep in mind that disclosure rules apply no matter what the delivery medium, so Reg-FD training and refreshers for publicly traded companies could be a necessary precaution.
How will communicating with journalists change?
Aside from fewer, if any, in-person briefings, nothing has really changed when communicating with media. A phone call or e-mail will do the trick. But for broadcast and online outlets looking to include video, Zoom and Skype are now the desired platforms for conducting interviews.
How will communicating with investors and analysts change?
Quarterly conference calls will become even more important. Management teams should be looking to interject more life into their presentations, versus merely reciting numbers. Yes, the calls will likely still be scripted, but if applicable, consideration should be made to moving calls to a video format to make them more engaging.
What should I know before participating in a virtual non-deal roadshow?
Keep in mind three simple points when it comes to non-deal roadshows (NDRs): 1) Be prepared. The format is entirely different. While the content may not change, the experience can be uncomfortable for both your management team and the investors with whom you are speaking, especially when it’s a first introduction. 2) Stay focused and pay attention. There will be distractions, such as email and phone alerts, dogs barking, and even children crying. While your management team can do things like silence their phones and email alerts, always expect the unexpected. You should also watch for visual cues, from raised hands (non-virtual) to facial reactions. Be quick to respond as appropriate. 3) Be enthusiastic. Investors are experiencing Zoom fatigue. While NDRs may be easier and less costly to schedule for companies, investors report they are exhausted at the end of the day and have more meeting requests than they can handle. Your team must show enthusiasm for the business, provide visual and engaging content, and be appreciative of the time investors are taking out of their day to meet with you.
My company has been invited to a virtual investor conference. There are many participation options. Should we do a webcast with slides? Should we choose the video option?
Virtual investor conferences are likely here to stay for some time. Decisions about whether to accept an invitation to speak should be made as they were before. If a conference wasn’t a good fit in person, it’s probably not a good fit virtually. Many companies dictate their decision about what type of presentation to give based on budget and disclosure rules. If video is an option, it’s likely the best way to keep attendees engaged.
Is it worth conducting a virtual investor day, or should I wait until we can hold in-person meetings again?
Investor days are still important, but as with annual shareholders’ meetings, they need to be virtual for the foreseeable future. An online investor day will save money, possibly attract more attendees, and eliminate the free-lunch bunch. But to be effective, they need to be lively and engaging. Think outside the box to make your investor day more memorable. Some creative ideas may include sending attendees a gift card to a meal delivery service for lunch, opening virtual breakout rooms, or using virtual reality to enhance a presentation. It is important to keep communications and relationships fresh, so it is better to move forward and not wait until “normalcy” returns again. Investors will appreciate the effort.
If my company posted a statement about COVID-19 on our website, or put out a press release early in the pandemic, am I required to update the information as things change?
The SEC has issued guidance for companies regarding operations, liquidity and capital resource disclosures related to COVID-19. Follow them here. Use your best judgment and common sense when updating previous communications.
Since many public companies temporarily stopped providing financial guidance, what should be communicated to investors and analysts to provide a sense of the future?
Guidance practices are changing fast. Balance sheets are more important than ever. Investors need to be reassured- with trackable metrics and milestones- that your company has the means to survive and thrive. They also want to hear from management teams more often, and that capital is being deployed prudently and strategically. Lastly, once regarded principally feel-good commentary, investors today also are focused on environmental, social and governance measures.
What are the core elements of a pandemic-related communications plan?
Aside from any core “blocking and tackling” elements, we see several criteria that are paramount to a COVID-19 communications plan. Transparency is the top priority. Social media and the growth of shareholder activism will keep organizations accountable. Timeliness also is important. Keep your communications and collateral current and respond quickly and efficiently as appropriate. Don’t rush to make statements that could later need a retraction or clarification. Finally, flexibility is key. Everything from health guidelines to capital markets is changing rapidly, so preparing for the unexpected is critical.
What will the “new normal” look like post pandemic?
While no one has a crystal ball, the “new normal” will likely be a hybrid of remote commuting and the traditional office, opening avenues for new communications vehicles across multiple stakeholders. As various industry sectors continue to adapt, evolve, and even thrive, organizations need to stay relevant and assure that “out-of-sight, out-of-mind” syndrome does not set in, while paying greater attention to messaging and the frequency of their communications.
We would love to hear from you.
If you have a question, no matter how big or small, or want a second opinion on a relevant COVID-19 communications topic, email us at pondelwilkinson@pondel.com. We read and respond to every email we receive.
PondelWilkinson currently is offering introductory consultations, without charge, for organizations interested in discussing their COVID-19 communications strategies. Contact Roger Pondel, our CEO, at 310-279-5965, or e-mail him at rpondel@pondel.com for more information, or to schedule a time to speak.
We look forward to meeting you, albeit virtually (at least for the time being).