Internal knowledge and contacts are key to building your profile
So where do our experts feel their role as trusted adviser is most salient? For Shelly Patel of Rathbones Group, it’s a case of being a visible resource to the many, not just the few.
‘I don’t believe there is one single place where the trusted adviser role should sit – being seen as a respected function across the group is the goal,’ she observes. ‘IR is often seen as an information repository but, in order to get there, you will have had to form relationships – and not only externally but also internally.’
The importance of this multi-faceted approach is also iterated by Plus500’s Rob Gurner. ‘For the board, you are the primary window to the market,’ he points out. ‘So you are able to directly impart important information to it about market trends, sentiment and competitive dynamics.
‘This is becoming increasingly important as capital markets become more dominated by such things as algorithmic trading, for example, and share-price movements and market sentiment consequently become more difficult to analyze and understand.
It’s important to demonstrate your credibility to build a strong and collaborative relationship
‘For senior managers, who you work directly with on a day-to-day basis, you must have their confidence and trust to ensure you can deliver a high-quality and credible IR program. For your colleagues, it’s important to demonstrate your credibility to build a strong and collaborative relationship and help them understand share price and valuation dynamics.
‘This is vital given that many of them will most likely be shareholders in the company and therefore have a vested interest in its performance and positioning within the capital markets.’
Be proactive in making your team known to the business and integrating yourself
Tips and tacticsWith this in mind, what tactics and skills can IROs use to raise their game and boost their career to the next level?
‘Be proactive in making your team known to the business and integrating yourself,’ advises Patel. ‘I have spent as much time getting to know all of the different business units at Rathbones as I have meeting investors and speaking to analysts.
‘It is imperative that you regularly communicate with the leaders of business units – and beyond – about the external market’s hot button topics and take on board their views.
‘The more your senior stakeholders understand the importance and outcomes of accurate messaging, the more likely it is that they are engaged and respect the function. This approach has meant I have been able to form strong relationships with the chairman, senior leaders, subject matter experts and practitioners from across the business.
‘Knowing the business as best you can from an internal perspective allows you the best chance of distilling that information in an engaging and meaningful way to the external world.’
This company-wide mentality is echoed by Ipsen’s Craig Marks. ‘Some companies vary in their board-IR interactions, but every company needs IR to be a trusted adviser to management and colleagues,’ he says.
‘My advice is to build the IR brand internally as you get out there: know the company better, build strong relationships (which is great for information gathering), present widely to internal teams and make IR relevant and vital. Also, invite senior management team members outside of the CFO and CEO to conferences, bus tours and fireside chats.’
