My colleagues recently wrote about a resurgence of shareholder activism. Through their words, one of the key factors to consider when being targeted by an activist shareholder is the frequency of contact with financial journalists who cover your industry. In other words, it's crucial to make sure you have allies in the media to back you up when your company's reputation is threatened. And the time to do that is now!
Media relations, commonly known as press relations, is a communications discipline that aims to establish and maintain positive relations with journalists and media professionals. So far, so good. In theory that's all well, of course, but in practice it can get a bit tricky, especially when there's a crisis or a major issue at stake, or both.
Without a good network of key journalists covering your organisation, fighting an activist shareholder is likely to be harder on your image, reputation and those managing the situation behind the scenes.
Through our Capital Markets expertise, we regularly have the opportunity to pair a media relations programme with an investor relations campaign. Bringing these two functions together may seem obvious, but how many organisations actually manage them in this way?
When an organisation releases its financial forecasts or offers an overview to analysts covering its activities, isn't it an excellent opportunity to organise a few informal meetings with journalists interested in your story? After sharing with them the note addressed to investors and analysts, these meetings can be held over coffee, informally, without going into financial details or divulging inside information. It's important to point out that media relations include a risk management component. Even so, I prefer to think of it as opportunity management!
For an organisation to maintain close relations with the media, it has to invest resources, i.e. talent, and time well before an activist shareholder targets the company. Without this commitment and vision from the top of your organisation, you risk finding yourself at the back of the pack.
When I talk about close relations with the media, it's crucial to stress the importance of diversifying the voices and channels that maintain a modicum of curiosity about you. Indeed, if you put forward spokespeople who are good popularisers and who are properly trained in communicating with the media, you will reap the benefits later on. In short, keep the channels of communication open, even when there is no news.
However, there is one caveat: you need to know your organisation well, and even master its every detail, because time is a precious asset for both parties, journalists and PR professionals.
My colleagues have detailed the response plan to adopt when a shareholder activism campaign steps in to stir up trouble. When it comes to media relations, your best response plan remains your short list of key contacts that can be activated on the spot. Not to influence, but to dialogue, guide, collaborate and facilitate the work of journalists. Don't be an obstacle, but rather adopt the stance of a trusted collaborator.
An inadequate defence against an activism campaign could seriously affect your market capitalisation. So it's best to be well prepared.
After all, we are strategists. When we say that public relations and media relations are key functions within organisations—this is precisely when it becomes clear!
Need help with your media relations? Contact NATIONAL's team of experts to help you build impactful relationships.
