What Makes for Effective Investor Relations Sites? Part 19: Help Your Most Frequent Visitors
June 23, 2010
There is a business rule of thumb known as the 80/20 rule which holds that 80% of effects come from 20% of the causes. For example, in retail, it is quite common to see that 80% of a store’s sales come from 20% of the items offered in the store. (Technically the rule is known as the Pareto Principle, after the Italian economist Vilfredo Pareto.) I have not seen any studies as to whether this principle holds for web site visitors, but given how widespread the application of the rule is, I see no reason why it should not. In which case, it makes eminent sense to make life easy for your website heavy users.
If a person is coming to your investor website multiple times, why not to let them set up what information they wish to receive in a single spot. You can do this by allowing visitors to set up their own personalized page with the links to the information they want to update.
This is something that Centrica, the UK energy company does. Set out below is a screenshot of a page they make available to web site visitors which allows customization of content.
A quick perusal of the site (shown below) shows that the company lets visitors choose from a large range of subjects – over 20 – to achieve the mix of information desired.
As a finishing touch, once the data has been set up to feed to the personalized page, the site allows the reader to customize the look and feel of the page. For example, boxes can be dragged and dropped to suit the viewer’s preference. Certain feeds, such as the Presentations and Financial results boxes allow the reader to edit the number of events they wish displayed. The effect is to achieve what marketers call mass customization – a mass-market product such as a web page, which can be tailored to the unique needs of each user.
Overall, it’s quite slick. It should allow the 20% of a company’s website visitors that account for 80% of the screen views to get the information they want quickly and easily, avoiding the frustration involved in chasing around on a web site looking for data. And you never want to frustrate your best customers.
In this series:
Previous post: What’s Your Strategy?
Next post: Annual Reports
Corporate Ethics and the Corporate Website
January 20, 2010
In my post on Ethics, I mentioned that I would provide more posts on Corporate Ethics.
One company that understands the importance of Corporate Ethics is an energy-based holding company — Pacific Gas and Electric.
First they follow one of our guidelines for reporting ethics on corporate websites: ethics is prominently displayed in their About Us section (see image, below)
In PC&E’s online Code Of Conduct, the company displays their Core Values, and the first is –
We act with integrity and communicate honestly and openly:
- Act ethically and with integrity
- Deal with people and issues openly, directly and respectfully
- Take actions that are consistent with words
- Do the right thing even if unpopular or risky
Placing Ethics at the top of Core Values is a subtle but telling indicator that PG&E is serious about Ethics. There is also a note from the CEO to employees that reinforces ethical behavior.
Yet another item that distinguishes PG&E from other companies is this checklist offered to employees –
Compliance and Ethics Decision-Making Checklist
When faced with a business decision for which there’s no set policy or clear course of action, use the Core Values … and your own good judgment to determine the best approach. In addition, ask yourself the following questions:
- Will I feel comfortable with my decision?
- Could I explain it to my parents or children?
- How would it look in a newspaper?
- Have I made a decision that is fair and just?
- Have I verified the significant facts?
- If I’m not sure, have I asked?
- Have I determined if it’s legal and within policy?
Brilliant: this straight forward, easily understood checklist captures the essence of ethical decision-making.
In addition to Core Values and the Checklist, the company offers a comprehensive menu of references to guide ethical practices –
- Core Values
- How to Report Questionable Activities
- Overview of Standards and Key Compliance Areas
- Employee Conduct Standards
- Conflict of Interest Standards
- Key Compliance Areas
- Compliance & Ethics Decision-Making Checklist
- Waivers of Code of Conduct
- References & Resources
Finally, the company recognizes that the Board of Directors face more complex decisions so it offers a Code of Business Conduct and Ethics for Directors.
Kudos to PG&G for going well beyond a Code of Ethics and guiding its decision making via a well thought out Ethics Compliance Program – and for demonstrating this via the website.
Germany’s RWE a Website to Visit and See a Giant
September 29, 2009
At times I come across a corporate website that is truly extraordinary. RWE Group, a company that is among Europe’s five largest utilities, is the latest finding. The Home page –
offers an interactive History and easy access to information about the Company. When you mouseover on “RWE at a glance”, the menu images and icons to the left change in sync.
The company displays a high-level view of their Strategy, but more importantly targets are shown–
A unique aspect of this web site is that when you click on Facts and Figures Special on the main menu, a new browser page opens –
Note the rich menu of content and the option to download all information via a PDF. However, I would like to see more recent updates. Still, this is very impressive. Kudos to RWE for a model of transparency and stakeholder communication that other companies need to note. Once you go here expect to spend some time. There is much to view.
Finally there is one of my favorites on this site and it indicates that they have a sense of humor, something that is very lacking in the business world.
Click on Learn More and enjoy the short movie. You will enjoy it even more if some children are with you. Well done indeed.
There is much more to browse –
Executive Board see comprehensive backgrounds on the C-Suite.
RWE- an Attractive Investment this is the case for attracting investors.
Wait there’s more… but you will have to visit the website.
CLP Group: explaining financial statements
August 19, 2009
After reviewing many corporate websites, I’m starting to think that USA based companies may be suffering from some groupthink. Maybe its the national regulations and laws, but I think it is simply US corporations “fear” of risks associated with innovation and creativity. Less so with non-USA companies; some of my past posts have highlighted a few. Now I would like to review CLP Group, one of the largest electricity investor-operators in the Asia Pacific region.
First, the About Us page has a welcome message from the CEO–
and there is a link to Resources Centre that contains a rich menu of references–
- Publications (Just about any document you may want.)
- Videos
- Technical Papers (Very interesting.)
- Useful Links
- Photos and Images
Next, on the comprehensive Corporate Governance section there is this icon–
Click on it and it opens to a 15 page PDF (better if it was online) that is one of the most comprehensive and clear Corporate Governance reports I have seen.
CLP uses an innovative graphic to help readers navigate the Report–
Simply follow the colored lines to the related section of the Report. For example, follow the Nomination Committee that leads you to –
Note also to the link to more information. Very user friendly.
Finally, I found an item that should be on any publicly traded corporate website. –
To keep ourselves at the forefront of financial disclosures and guide our shareholders and others towards a better understanding of CLP’s accounts, we are developing an “accounting mini-series” – How to Approach Our Financial Statements? to explain different accounting concepts and practices which apply to CLP’s financial statements. And we intend to continue in our efforts to provide our shareholders and other stakeholders with the information necessary for them to form their own judgement and provide feedback to us.
This is a PDF; once again I would rather see this online with an option to download. Despite this, CLP has shown its intent to keep investors informed.
Good job CLP for a website that applies unique approaches to enhance stakeholder communications.
Italy’s Edison — A Model Website
July 9, 2009
I have reviewed many corporate websites. Many are acceptable, some quite good, but few are model or benchmark sites that really stand out. Edison, an energy company based in Italy is truly a stand out.
First, look at the Home page.
There is much information but because of a good design, it is not overwhelming. Noteworthy items starting from the upper left –
- A noteworthy corporate award is prominently displayed
- Share price
- Links organized by stakeholder class
- Bravo, an interactive Annual Report is available
Many other information sources are also nicely displayed.
Next, another aspect of an effective corporate website is that Edison describes its Strategy and performance measures. (Click on the image for a clearer view)
You don’t have to give away the “Corporate Jewels”, but companies need to communicate where they are headed. Edison does this well.
Next, navigate to the the Management Structure section and see an organization chart. Do a mouseover on the titles–
A picture of the senior manager appears along with links to more information. Good communications via the corporate website must include telling visitors about the leadership team. Venture capitalists look at who runs the company before reading the business plan. This is also true for stakeholders of an existing company.
Edison’s website includes much more. For example, The Market section includes –
Once again, more information for stakeholders to learn more about the company.
Final comments, visit the Governance page and note the use of word clouds and page reader options. Bravo Edison for a website that is comprehensive, well organized and provides a model for other companies.
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