Today I had the pleasure of listening to Jeff Morgan, president and CEO of the National Investor Relations Institute, via Skype in IR class (#irclass), discuss the objectives of NIRI, investor relations as a practice, and the constant regulation changes. The presentation was indeed one to take note of for aspiring IR professionals as well as established professionals, especially those engaged in social media. Although the presentation’s mention of social media was limited, I immediately bridged connections between what the four purposes of NIRI are and their social media opportunities. Without regurgitating Jeff Morgan’s presentation, the four main take-away points as to what NIRI’s purpose are as follows:
- Information
- Education
- Advocacy
- Community/Networking
Information - Involves online resources, weekly/monthly newsletters, monthly magazines
Basically, any material that is relevant to members of NIRI or the IR community is sent out to IR professionals. Social media, especially Twitter, has been serving the IR community some solid information that is current and relevant. On the Twitter platform, there has been a push for more real-time information, which has been gaining popularity in annual meetings, and hopefully will soon become a trend in all aspects of company information for all companies. The reason social media has such a presence in company information, and also for NIRI is because NIRI serves as a guide for IR professionals and social media is one of the fastest ways to get information to a specific audience. By posting information on social media, not only can an audience access it easily, but they can also “retweet” it, blog about it, repost it, and so on and so forth.
Education - Involves webinars, conferences, etc. that pertain to a better understanding of investor relations
Because there is no particular “IR” concentration, Jeff Morgan pointed out that most IR professionals come from finance/accounting backgrounds or, on the other end of the spectrum, public relations backgrounds. Regardless of what background an individual comes from, there is always the opportunity to learn more. NIRI provides IR professionals with opportunities to recieve additional information and education regarding accounting, communication, SEC filings and requirements, and capital markets. As someone who has attended a NIRI conference, I can attest that NIRI provides up to date education for the IR professional in a constantly evolving practice. The specific conference I attended was “IR and Twitter” which served as an informational session as to the benefits of Twitter and social media. Also, I have been noticing on Twitter as well as other social media platforms that informational webinars are becoming more and more popular for IR folks to receive up to date information on changing SEC regulations, as well as pointers and tips for IR departments. If IR departments are not being educated by viewing new and social media, they are getting educated about new and social media.
Advocacy - Involves raising IR profile within companies, encouraging peer IR societies globally, and becoming involved with regulators such as the SEC and FASB
IR professionals constantly strive to meet SEC requirements, and continue to build/maintain a branded image in the eyes of their investors. Although I feel as though I am starting to sound like a broken record, My opinion is that the opportunity for IR professionals to reach their specific audiences regarding these matters on social media is huge. Secondly, regulators such as the SEC enforce legislation that the people of the United States ultimately suggest. That being said, it makes sense for IR pros to become connected to “the people” via social media. Also, it makes perfect sense for IR departments to utilize all aspects of social and new media for disclosures in order to reach a broader audience (blogs, Twitter, conference calls, etc, etc.).
Community/Networking – Involves networking with other IR professionals, key IR influencers and opinion leaders
What’s the most effective way to network with the IR community? You probably already guessed it! Social media! Sites like Twitter encourage discourse and the latest trends in the business. Go ahead and search the hash tag #irchat in Twitter and see what all the IR folks are up to. Sites like LinkedIN provide opportunities for professionals to connect on a more professional level, more or less like a digital business card of all your peers in the industry.
John,
Great post. It is very impressive to see such a young person develop a strong interest in IR. You have captured the attention of some pretty senior people in the IR ecosystem which suggests to me that you have a bright future.
Keep up the good work.