STRATEGIC INVESTOR RELATIONS AND PUBLIC DISCLOSURE.ppt

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1、STRATEGIC INVESTOR RELATIONS AND PUBLIC DISCLOSUREAddressing the Shareholders Crisis of Confidence through Strategic CommunicationsCase Study,Concepts,and Debatable IdeasKenny OngCNI Holdings Berhad,www.myCNI.com.my,www.OOBEY.com,Intro:CNI,20 years oldCore Business:MLMOthers:Contract Manufacturing,F

2、&B Retail,Export/Trading,eCommerce,Shared ServicesMalaysia,Singapore,Brunei,Indonesia,India,China,Hong Kong,Philippines,Italy,Taiwan,Oman,United States,VietnamStaff force:500Distributors:200,000Products:Consumer Goods and Services,www.myCNI.com.my,www.OOBEY.com,Contents,IR and its problemsImportance

3、 of IR to Value CreationCorporate Reputation,www.myCNI.com.my,www.OOBEY.com,IR and its problems,Overview of Corporate Communications and Investor Relations problems,www.myCNI.com.my,www.OOBEY.com,Value destruction in 48 hours,13th April 2009Two Dominos employeesYouTubeApology from Dominos after 48 h

4、ours1 million hitsTwitter:questions on silenceLinkedIn:suggestions by users in forum,BusinessWeek,May 4,2009,www.myCNI.com.my,www.OOBEY.com,How to please Investors(the Dilbert version),1998 United Feature Syndicate,Inc.,How to please Investors(the Dilbert version),Buy back sharesAnnounce massive cut

5、backsSpin off New Divisions,Ironically and Unfortunately,the above prescription is true in real life,www.myCNI.com.my,www.OOBEY.com,Why is UMW favored by Analysts?,high dividend yield,low price earnings multiple,buoyant growth outlook;,Importance of Investor Relations,Why focus on Investor Relations

6、 in the first place?,www.myCNI.com.my,www.OOBEY.com,Is Investor Relations important?,Funds BrandIntelligenceCustomer-shareholders,www.myCNI.com.my,www.OOBEY.com,IRs Key Roles,Funds BrandIntelligenceCustomer-shareholders,Communication to bring in the Funds,www.myCNI.com.my,www.OOBEY.com,IRs Key Roles

7、,Funds BrandIntelligenceCustomer-shareholders,Communication to bring in the Sales,www.myCNI.com.my,www.OOBEY.com,Funds:Types of Investors(1/2),Institutional,Fund Managers,Corporations,Sovereign Funds,VCs,NGOs,Non-Profit Org,Financial(Loans),JV Partners,M&A,Social VCs,Holding Co.,HQ(MNC),Gov.VCs,Supp

8、ly Chain,Gov.Partnership,PFI,Competitors,Franchisees,www.myCNI.com.my,www.OOBEY.com,Funds:Types of Investors(2/2),Retail,Investor-Shareholders,Employee-Shareholders,Management-Shareholders,Customer-Shareholders,Distributor-Shareholders*,Distributor-Entrepreneurs*,www.myCNI.com.my,www.OOBEY.com,Why d

9、o they Invest?,Return/ProfitRisk Management/HedgingTax-benefitsCSR/ImageDiversify revenueCounter-cyclical balanceSupport MissionExclusive rights,Contractual obligationNational AgendaControl Supply ChainR&D portfolioControl ManagementAlternative Cash FlowM&A,www.myCNI.com.my,www.OOBEY.com,Funds:What

10、do Investors look for?,www.myCNI.com.my,www.OOBEY.com,Funds:Business Model,USP,Market Discipline,Profit Model,GoogleTata Nano,www.myCNI.com.my,www.OOBEY.com,Business Model:USP,Unique Selling Proposition(USP)=Targeted Customer=Core Buying Purpose/Customer Value Proposition/Job To Be Done(JBTD),www.my

11、CNI.com.my,www.OOBEY.com,Business Model:Profit Model,www.myCNI.com.my,www.OOBEY.com,Business Model:Profit Model,Gillette shaverAmazon,FacebookTata NanoNewspapers,DVDGoogle,www.myCNI.com.my,www.OOBEY.com,Funds:Business Model,They are the most innovativeConstantly renewing and creativeAlways on the le

12、ading edge,A great deal!Excellent/attractive priceMinimal acquisition cost and hassleLowest overall cost of ownershipA no-hassles firmConvenience and speedReliable product and service,Exactly what I needCustomized productsPersonalized communicationsTheyre very responsivePreferential service and flex

13、ibilityRecommends what I needIm very loyal to themHelps us to be a success,Product Leadership,OperationalExcellence,CustomerIntimacy,www.myCNI.com.my,www.OOBEY.com,Air Asia,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best prod

14、uct),Customer Intimacy(best total solution),Funds:Business Model:Market Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Funds:Business

15、 Model:Market Disciplines,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Funds:Business Model:Market Disciplines,Operational ExcellenceCompetitive priceError free,reliableFast(

16、on demand)SimpleResponsiveConsistent information for allTransactionalOnce and Done,Customer IntimacyManagement by FactEasy to do business withHave it your way(customization)Market segments of oneProactive,flexibleRelationship and consultative sellingCross selling,Product LeadershipNew,state of the a

17、rt products or servicesRisk takersMeet volatile customer needsFast concept-to-counterNever satisfied-obsolete own and competitors productsLearning organization,Funds:Business Model:Disciplines,Priorities,and KPIs,www.myCNI.com.my,www.OOBEY.com,The McPlaybook*,Make it easy to eat50%drive-thruMeals he

18、ld in one hand,Make it easy to prepareHigh TurnoverTasks simple to learn&repeat,Make it quick“Fast Food”Tests new products for Cooking Times,Make what customers wantProwls market for new productsMonitored field tests,*Adapted from:Businessweek,Februrary 5th 2007,www.myCNI.com.my,www.OOBEY.com,Operat

19、ional Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Funds:Business Model,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leaders

20、hip(best product),Customer Intimacy(best total solution),Funds:Business Model,HP well-balanced portfolio,mass customization,Acer super lean cost structure,aggressive pricing,Apple powerful products,premium pricing,limited range,Still Doing well in 2009,Funds:Business Model:Business Model,USP,Market

21、Discipline,Profit Model,www.myCNI.com.my,www.OOBEY.com,Business Situation vs.Focus,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,Change mgmtReduce FatContinuityEveryone Happy,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Talent MgmtInnovation/R&DEarly winsSlow Down H

22、R Costs,Top Talent focusSales,Sales,SalesIncrease attrition,www.myCNI.com.my,www.OOBEY.com,Side Notes on Cost Reduction Strategy,Cost Reduction,5%-30%,30%-80%,Business Situation vs.Sales,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,Change mgmtReduce FatContinuityEveryone Ha

23、ppy,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Talent MgmtInnovation/R&DEarly winsSlow Down HR Costs,Top Talent focusSales,Sales,SalesIncrease attrition,www.myCNI.com.my,www.OOBEY.com,Optimize customers current assets Offset customers costs Focus market share CEO and Sr.Mgmt in the field

24、Sell up the buyer chain Motivate troops Add extra services Control troop emotionsSpecialized vs.general teams,i.e.sell support services,sell equipment,existing customers etc.(e.g.Xerox),Business Situations vs.Focus,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,Change mgmtRed

25、uce FatContinuityEveryone Happy,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Talent MgmtStack R&DEarly winsSlow Down HR Costs,Top Talent focusStack SalesIncrease attrition,Many times,you need a different CEO/Leader/Management Team for each business situation,www.myCNI.com.my,www.OOBEY.com,B

26、randing,Positioning,Execution,Communication,www.myCNI.com.my,www.OOBEY.com,How do Investors get their INFO?(1/2),Institutional,Gov./Politics,Customers,Suppliers,Economics,AGM,Market Research,Internet*,Annual Report,Media,Analysts,Fund Managers,Due Diligence,NGOs,Newsletter,Spokespersons,www.myCNI.co

27、m.my,www.OOBEY.com,How do Investors get their INFO?(1/2),Institutional,Gov./Politics,Customers,Suppliers,Economics,AGM,Market Research,Internet,Annual Report,Media,Analysts,Fund Managers,Due Diligence,NGOs,Newsletter,Spokespersons,www.myCNI.com.my,www.OOBEY.com,How do Investors get their INFO?(2/2),

28、Retail,Gov./Politics,Customers,Public Events,Economics,AGM,Ads,Internet*,Annual Report,Media,Analysts,Fund Managers,Relatives,Friends,Pasar Malam,Employees,Employee Bloggers,Mgmt Actions,Newsletter,www.myCNI.com.my,www.OOBEY.com,How do Investors get their INFO?(2/2),Retail,Gov./Politics,Customers,Pu

29、blic Events,Economics,AGM,Ads,Internet,Annual Report,Media,Analysts,Fund Managers,Relatives,Friends,Pasar Malam,Employees,Employee Bloggers,Mgmt Actions,Newsletter,www.myCNI.com.my,www.OOBEY.com,How not to talk to Retail Investors,“The holder of a CAB certificate may continue to serve regularly any

30、point named herein through the airport last regularly used by the holder to serve such point prior to the effective date of the certificate.Upon compliance with such procedures relating thereto as may be prescribed by the Board,the holder may,in addition to the services hereinabove expressly prescri

31、bed,regularly serve a point named herein through any airport convenient thereto.”,Civil Aeronautics Board,1977,www.myCNI.com.my,www.OOBEY.com,How not to talk to Retail Investors,“It has been determined not to be in the public interest that United Airlines continue to provide air transportation servi

32、ces between San Diego and San Antonio”,“I forbid United Airlines to fly between San Diego and San Antonio”,www.myCNI.com.my,www.OOBEY.com,What topics interest Investors?,www.myCNI.com.my,www.OOBEY.com,What topics interest Investors?,www.myCNI.com.my,www.OOBEY.com,What Events impact Investors?,www.my

33、CNI.com.my,www.OOBEY.com,What Events impact Investors?,www.myCNI.com.my,www.OOBEY.com,Importance:Intelligence,Two types:,www.myCNI.com.my,www.OOBEY.com,Investor Intelligence:What?,ExamplesRecord feedback and questionsCompetitors IR communicationsTop 10 Analysts views on CompanyTop 10 Analysts views

34、on Industry,www.myCNI.com.my,www.OOBEY.com,Attachment 1-How Sony Can Keep the Momentum,Investor Intelligence:Why?,Broad view of marketLess optimistic/review own assumptionsUpgrade IR function to be strategicFeed Management discussionsBetter and more relevant IR communicationsSupport(buy-in),www.myCN

35、I.com.my,www.OOBEY.com,Revenue Growth,Base Retention,Share Gain,Positioning,Adjacent Market,New Business,Operational Excellence,Product Leadership,Customer Intimacy,Competencies,Information Systems,Motivation,empowerment,alignment,Financial,Learning&Growth,Internal Process,Customers,Investment Strat

36、egy,Productivity,Market Value,Investor Intelligence:Why?,www.myCNI.com.my,www.OOBEY.com,Dangers of Intelligence,Also known as Beware of Benchmarking:Big vs.Small companySelective success storiesCorrelation vs.CausalSurvey problemsActionable vs.For-fun,www.myCNI.com.my,www.OOBEY.com,IR and Customer-S

37、hareholders,Retail,Investor-Shareholders,Employee-Shareholders,Management-Shareholders,Customer-Shareholders,Distributor-Shareholders,Distributor-Entrepreneurs,www.myCNI.com.my,www.OOBEY.com,Affect Sales,Is Investor Relations important?,Funds BrandIntelligenceCustomer-shareholders,www.myCNI.com.my,w

38、ww.OOBEY.com,Corporate Reputation,Good News,Bad News.Who cares?,www.myCNI.com.my,www.OOBEY.com,Challenges of Public and Investor Relations,Stake-vs.Share-holder*Public OpinionsIndirect Stakeholders NGOs,Community Activists,Online NetworksIncreasing focus on ecological,social,ethical issuesDiverged e

39、xpectations for same issueWeb 2.0,What to do with Excessive Cash?Superficial changes vs.Fundamental ChangesInvestors depend on hearsay vs.factsShare Price MarketR&D/M.S./HR vs.Investor ExpectationsOpposing Expert viewsOperational Risk-Reputational Risks,www.myCNI.com.my,www.OOBEY.com,IR problems,“Go

40、od news for stockholders can be bad news for other stakeholders.”Gregory Miller,Assoc.Prof.,Harvard Business School.,www.myCNI.com.my,www.OOBEY.com,Audiences Good News?Bad News?,money saved by tough bargaining with a union announcing a dividend:to employeesannouncing a dividend:to environmentalistss

41、etting up Diversified business,Refer Attachment 2-Building Trust with One Group Can Destroy Trust with Another,www.myCNI.com.my,www.OOBEY.com,News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,Born Stupid,Didnt study hard enoug

42、h,Lousy Teachers,Sudden high extreme marking stds,E.g.Failed SPM,Good News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,?,Good News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.my

43、CNI.com.my,www.OOBEY.com,?,Foreign investorSegment growthR&D breakthrough,Bad News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,Bad News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,w

44、ww.myCNI.com.my,www.OOBEY.com,Oil spillProduct recallMarketing strategy,Bad debts(NPL)PandemicEconomy crisis,The 6 Sins of Greenwashing,Sin of the Hidden Trade-OffSin of No ProofSin of VaguenessSin of IrrelevanceSin of FibbingSin of Lesser of Two Evils,Study by:TerraChoice,December 2007,www.myCNI.co

45、m.my,www.OOBEY.com,Summary,www.myCNI.com.my,www.OOBEY.com,Summary,IR and its problemsImportance of IR to Value CreationCorporate Reputation,www.myCNI.com.my,www.OOBEY.com,Post-Downturn Possibilities vs.Investor Choices,Deflation,Inflation,Stagflation,www.myCNI.com.my,www.OOBEY.com,Businessweek,22nd

46、June 2009,“Pick Your Poison”,Source,Indicator,Investment,Investor and Analyst Picks,Low-cost solutions for small businessesHealthcare(especially Vaccines)Solutions that increase Customer LoyaltyGovernment Stimulus-linkedGreen tech,Large fixed headcountCommoditiesConfused Business ModelsHigh Leverage

47、,www.myCNI.com.my,www.OOBEY.com,10 Questions for CFOs post recovery,Recovery shape?Restructured enough?Supply Chain flexible?Acquisition targets?Restart alliances?Divest underperforming businesses?,Financial resources for upturn?Buying talent,marketing,R&D?New risks?How to sell recovery plan to inve

48、stors?,McKinsey&Company,May 2009,“Whats Next-10 Questions for CFOs”,“in the past 18 months,we have heard that profit is more important than revenue,quality is more important that profit,people are more important than profit,customers are more important than our people,big customers are more important than small customers,and that growth is the key to our success.No wonder our performance is inconsistent,CEO,Anonymous,www.myCNI.com.my,www.OOBEY.com,Dont forget,“The business of business is Business,not Investor Relations”,www.myCNI.com.my,www.OOBEY.com,Thank You.,soft copy of slides:http:/,