A “best practice” is a service, technique or procedure that by industry standards is generally accepted as superior because it produces the desired results better than anything else. Whether you’re speaking in terms of manufacturing or investor relations, adhering to best practices is what weighs the unique qualities of an organization against its competitors.
Unless the standards were developed by a regulatory or trade agency, the best practices relative to your industry or service may greatly vary; however, there are a few basic practices every company should apply to their operations:
- Be forthright – This means reporting your corporate news whether it’s good or bad. If shareholders feel like you’re hiding the bad news – even worse, if someone else reports this news first – you lose their trust and most likely their investment. It’s important to note that with the right strategy, you can get positive reaction out of bad news.
- Stay visible and transparent – Even if you’ve just reported the worst quarter in company history and want to hide under a rock, it’s vital that you maintain communication with your shareholders and reassure them you’re on top of the issue and doing what you can to reverse the damage.
- Prepare – If you’re holding an earnings call, writing a news release or sending out a corporate tweet, prepare and review the message and draft answers to potential follow-up questions that may arise. Your responses should be calculated, honest and reassuring.
These three best practices are by no means comprehensive to a strong investor relations strategy. If you’re not sure where you stand, need help determining which best practices are relevant to your company, or want a professional audit of the practices you do have, BioMedWire’s (BMW) team of professionals will work one-on-one with your management team to get you on track and rolling full steam ahead.