A “best practice” is a benchmark of service; a standard that demonstrates results superior to those achieved by other means. From manufacturing to investor relations, best practices are fundamental elements that balance the unique qualities of an organization and the practices of similar organizations.
Depending on who you ask (unless the standards were developed by a regulatory or trade agency), the best practices necessary for your company or industry may vary. In general, best practices meet if not surpass ethical standards. As a public company, here are just a few practices you should be engaged in:
- Be forthright – This means reporting the news about your company whether it’s good or bad. If shareholders feel like you’re hiding the bad news – even worse, if someone else reports this news first – you lose their trust and most likely their investment. It’s important to note that with the right strategy, you can get positive reaction out of bad news.
- Stay visible and transparent – Even if you’ve just reported the worst quarter in company history, it’s vital that you maintain communication with your shareholders and reassure them you’re on top of the issue moving forward.
- Prepare – What you say and how you say it is vital. If you’re holding an earnings call, writing a news release or sending out a corporate tweet, prepare and review the message and draft answers to potential follow-up questions that may arise.
These three practices are by no means comprehensive to a strong investor relations strategy. The team behind DTN has spent years auditing and implementing best practice measures for clients. If you’re not sure where you stand, need help determining which best practices are relevant to your company, or want to revamp the practices you do have, DTN’s professionals will work one-on-one with your company to get you running at full throttle.