A turning point in the communication strategy

Tuesday, September 01, 2009

The information presented under the sections “about the company” and corporate “strategy” on corporate websites are often permanent and unchanged over time. Why should these sections contain the same information, regardless of what happens in the market? Should it not instead reflect the company’s view on major or sudden changes in the market?

The last months we have seen a sharp recovery in share prices, and some market analysts argue that we have reached the bottom. The confidence among the companies however differs a lot. Some companies are still struggeling and others have already begun to show stronger figures. A better economic climate will not reach every country and sector simultaneously, hence the communication challenges will probably differ between the companies.

How deep the crisis has affected a company and how fast it will recover are some of the key questions that stakeholders are looking for on the website. We constantly read about crises in the media, but shareholders both demand and are interested in the companies’ point of view. Perhaps the crises will bring some advantage that you need to inform your stakeholders of.

Between reporting dates

Some argue that the annual report has a shorter expiry date during troubled times. Stakeholders are therefore visiting companies’ websites, to find the latest information. But for the most part, the visitor has to settle for general information in the “about the company" section such as; “[the company] was founded in 1940... “..environmental friendly…”  “..Our strategy is to continue on our success” etc. It is our view that this section on the website is heavily under-used and remain unchanged for long periods of time.

Between reporting dates, many companies tend to keep quiet and manage the stakeholder dialogue through the media. This can lead to uncertainty and an even greater demand for strategic information.

Misleading message

There is no need for constant updates of basic corporate information; visitors still need the information, especially those who are not familiar with the company. But in order to keep the interest high from a more active audience, companies need to work harder in this field.

Old information can also be misleading for the visitor. One example is out-dated films with misleading messages. Some companies have introductory films where the CEO presents the company and the future growth strategy. In general we feel that films are excellent communication tools for the website and we would like to see much more of it. But when these films are two years old and the CEO is talking about the best year in history with record sales and the viewer at the same time is reading in the newspaper that the company is facing the worst crisis ever the message can easily back fire. As always, the most important topic for any corporate website manager is to prioritise updated information.

A Strategy for the future

The active visitor is probably familiar with a company’s general strategy and business plan, and seeks instead information about the company’s strategy for the future.

The “strategy” on corporate website is often similar across the board; “We will be thinking about the environment, our employees and through acquisitions become a larger company". Why not add some information about the growth drivers and market outlook - connected to the future strategy - that truly discusses the crises in the market. The letter from the CEO is a good example, since it often contains a future outlook.

Best practice example by Imtech

The screen dump below from the Dutch company Imtech shows an example of a  company that discusses their future strategy, together with remarks about the crises and the market condition. The Imtech example also shows a great deal of transparency by offering a SWOT analysis related to both the "outlook" and "objectives".

Related articles;

Online communication in times of recession
Social media training in times of recession