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CASE STUDIES
Issue: Reality versus perception of full disclosure
In the public market milieu, credibility is as much about perception as it is reality. Does one company offer more disclosure than another, or does it merely look like more disclosure? In fact, as we’ve all learned in the aftermath of Enron, there is no way of knowing whether disclosure is comprehensive unless management chooses to do so.
An annual report client was caught in a perception issue simply because its financial situation was clean and simple – no debt, no complex transactions, no derivatives or off-balance-sheet financing. Instead of gaining points for its clean structure, there was suspicion that reporting was not comprehensive. The issue then was one of perception of disclosure, rather than the actual quality of disclosure.
Solution: Innovating through financial reporting
The solution to the client’s perception issue was solved with tangible results through the annual report. The structure of the management’s discussion and analysis was changed to present financial information in a way that appeared more complex, therefore creating the perception that more information was being provided than in prior years. In fact, the disclosure presented was identical in thoroughness as in prior years. It was the first annual report presented with the management’s discussion and analysis running along side the financial statements. This structure has since been copied many times, in many sectors.
The result was a first place finish in The Financial Post’s Design Effectiveness Awards and recognition from lead analysts covering the sector referring to the client’s annual report as the best example of solid financial reporting.
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Issue: A large not-for-profit searches for an identity
Our client was struggling to develop a strategy for repositioning itself in a competitive market. They had recently acquired a new logo, but had no brand strategy and a weak image in key markets. The organization knew it wanted to build a highly recognized brand that would stimulate employee pride and support fund raising and attendance growth. They also wanted to create an identity that would focus staff energy for a common purpose and vision.
Solution: Developing a winning strategy in the brand marketplace
Our first step was to conduct a best practices survey with other organizations to establish industry benchmarks in areas such as pricing, budgets, promotion and publicity. We also conducted employee focus groups to measure understanding, collect ideas and build brand ownership. Following this research, we were able to make recommendations for the organization that included: revising ticket prices; rethinking publication design and look; expanding marketing partnerships and sponsorships; doing more advanced promotion; and building on the organization’s mission statement to create a tag line and boilerplate statement. All recommendations were adopted, and the organization is moving forward with renewed energy and enthusiasm.
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Issue: A small company striving for greater credibility
Purcell Energy is a junior oil and gas company that has a unique position because of a major ownership position in world-class natural gas play. Attracting professional investor attention and recognition for the value represented by the project was a challenge simply because of the size of Purcell versus the scope of the project. By stepping up the calibre of the financial reporting, particularly in the print annual report, Purcell began to be perceived as a substantial company. Further progress was made by creating an innovative, on-line annual report that was truly interactive.
Solution: Raising the bar for interactive annual reports
Recognizing that a PDF annual report posted on a website is not a very pleasant read for an investor, a new interactive approach was conceived. Purcell’s annual report theme was to convey the company as one that has taken existing, available technology and made better use of it to a competitive advantage. To match that theme, readily available website programming technology was used in a new approach for interactive annual reports.
The idea behind the new approach was to strip the annual report down to its core: comparative financial statements which are described in the accompanying notes, in a management’s discussion and analysis and by the president in the letter to shareholders. In print annual reports, the statements, which are the base of all information, are placed at the back of the book and often given little attention by the designers and writers who work on the book. But by putting that focus back where it belongs, and by making better use of the available technology, we invented an annual report that has the financial statements as the backbone and all other corresponding information linked to the relevant lines of the statements. The result is the first ever truly interactive annual report. Viewers get the very same information as in the print vehicle, yet it is provided in a way that makes the best use of on-line capability. The result was recognition for Purcell as being truly innovative, just as they were to make their world-class, natural gas discovery.
www.purcellenergy2000.com
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Issue: Maximizing communications and marketing resources
Our client was dealing with high staff turnover in its communications and marketing department. They were also struggling to do more with less: budgets had been cut, management demands and expectations were high, and the department was chronically understaffed. They came to us with the objective of developing a more effective communications and marketing department. They knew they had staff positions to fill, and before they rushed into the recruiting process, they wanted to take the necessary steps to ensure a thoughtful and successful recruitment process that in turn resulted in a department that is more effectively organized and better positioned to support the organization’s internal and external growth objectives.
Solution: Finding innovative ways to do more with less
Before the organization could move forward, we felt it was important to establish industry benchmarks by interviewing and researching similar organizations across Canada and the United States. We also believed it was necessary to conduct research within the organization to identify perceived departmental strengths and weaknesses. Based on the research, we were able to develop recommendations to address the gaps, and map a tangible plan for moving the organization’s communication and marketing department forward. Areas that we looked at included: strategic development; processes and systems; staff leadership; staffing; and organizational integration. The recommendations were adopted, and continue to provide a framework for helping the department maximize resources and meet disparate needs.
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