Want to create a better investor relations Web site, but not sure where to start? Dominic Jones, editor of IR Web Report, a Toronto-based on-line resource for investor relations professionals, ranks global IR Web sites for their usefulness. Here's his top 10 list of common mistakes and how to fix or avoid them:
1. Overuse and misuse of PDFs: Portable document format, which captures a printed document as an electronic image, can, when used incorrectly, lead to extremely long download times, poor usability and general user frustration. When someone wants to read information quickly on the screen, HTML (hypertext markup language, the set of markup symbols or codes inserted in a file for display on a Web browser page) is preferable.
2. Burying the best material: Most sites are organized by the type of document being posted but often important information deep inside a print document gets buried on the site even when it's in HTML. Try extracting high-demand information and reworking it differently on-line. For example, a 10-page financial summary at the back of an annual report can be made into an interactive financial history section on an IR Web site while feature material at the front of the report might be better in a company overview section.
3. Insufficient context: Companies still aren't explaining their industries, products, strategies and targets. As a result, they're missing out on an opportunity to better connect with new and potential stakeholders. Hold regular briefing Webcasts; provide video interviews with executives and develop content for a section that explains industry fundamentals.
4. Credibility gaps and gaffes: The on-line experience can improve or damage a company's off-line credibility. Pay more attention to detail and be willing to be more accessible to investors.
5. Jargon, legalese and marketese: Use simple, clear language that is quicker and easier to understand than dense, technical language. Edit content so people can learn something even if they're only skimming through the page.
6. Following the crowd: Large-cap companies are moving away from cookie-cutter template sites to sites designed to match the look and feel of the rest of the corporate site. Most smaller firms, though, still follow a cookie-cutter design that fails to differentiate them from other companies.
7. Publishing reports as so-called dynamic or interactive documents: Hard-to-use sites turn people off. The best approach for all disclosure documents is to rework the information in HTML, the bricks and mortar of cyberspace. For those few prepared to print out part or all of the report from the Web, offer them up as PDFs, too, for a truer image of the original document.
8. Unusable audio and video: Webcasting is only useful to investors hoping to profit from information that might be divulged on the call. When the conference call ends, so does the potential to gain a short-term information advantage. Provide a transcript of every conference call and presentation Webcast as soon as possible after the live event, including Q&A sessions.
9. Ignoring international users: Canadian companies should provide alternative financial statements expressed in U.S. dollars, spelling out months and dates so that there's no confusion, providing printable documents that fit U.S. paper sizes and European sizes, using plain English, and keeping Web pages lean so that they download quickly
10. Flash for the sake of it: Flash software from Macromedia Inc., which allows designers and evelopers to integrate video, text, audio and graphics for an interactive Web experience, is most effective when used to enhance user comprehension of key information, such as a company's business, products, strategy and growth prospects. Be careful the technology does not make your site seem overly promotional, which can hurt on-line credibility.
© The Globe and Mail
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