Five mistakes companies make concerning their Annual Report.

1. It’s a requirement!
Most companies today take the attitude that it isn’t that important and only a SEC requirement. There was a time when the Annual Report represented the heart and soul of a company. It was the main marketing tool used in every transaction. It defined the directions of the company, past, present as well as the future. Why has it been regulated to a necessary evil? Has the Internet taken its place? I don’t think so? People may have changed the way they communicate, but people still want to know about their investment, place of employment and who they do business with. I can understand if you want to cut down on the cost of printing or stop the high cost of mailing and shipping, but don’t cut down on the message. Not only do your shareholders, employees and vendors need it,but you also need it! Not everyone understands assets and liabilities or governances and transparence. Don’t assume people understand what your heart and soul is based on a SEC requirement.

2. Accountants making the big decisions.
When times get difficult many times sound marketing decisions are replaced with accountants. Number crunchers never make good marketing decisions. If you need to watch the dollars, set a budget and then create an effective message within that budget. Cutting cost is never an excuse to cut communications. It will take at least 5 years to reestablish your brand presence if you do not make the effort to control it. What savings you think you have today will cost you in the future.

3. Not putting a value on the Annual Report?
How much should an Annual Report cost? It should cost you exactly how much you value your own perception. How much do you spend on your house, car, clothing, etc. to make the desire perception you want others to see? Why treat your Annual Report any differently that you would treat yourself? It should be a reflection of you the President, the one who has been charged with the success or failure of your company. So remember the next time you sign your signature at the end of your letter, you are saying to everyone, “this is how I see my company and this is the way I want you to see me.”

4. Spending too much, unnecessarily.
Can you spend too much? You bet you can. So pick a firm that can work within a given budget. Many companies make the mistake of letting the “professional” make the budget decision. If this is your first Annual Report, you may need some help establishing some goals, but they should still be your goals. Only you know the value and budget that you have for the process. A good firm will not take advantage of the process by bidding low knowing there will be changes where additional money can be made. Each Annual Report firm approaches the process differently. Look for one that is willing to state their cost up front and are willing to stand behind it when the process is over. You may presently have a relationship with a firm, but is it one that is taking advantage of the process with additional cost, revisions and overtime? Find one that is willing to stand behind their proposal no matter how hard the process becomes. That way you will find out if their interest is truly yours. No matter how much you like the final product, it will never be deemed successful if it is over budget.

5. Hiding the Annual or not doing one.
Has instant news on the web replaced the need to tell your story? Your company has a perception. You can control it or you let others control it for you. Many companies think that a website is the answer to communicating. Done right, it is a good start. But most sites have become a hodge-podge of information that has no relevance when it comes to communicating a central company message. The annual report is generally found buried on a page in the financial section - the year’s most important message you have to communicate to your shareholders, employees and vendors. Why not put the Annual Report front and center on the home page? If you are not proud of your accomplishments, why should anyone else be? Communicate with the viewer, establish the playing field, let them know what they are to expect. And then fulfill their expectation. Don’t assume they get it!

Posted by John Weaver on 10/1/09