CHAPTER 5 The Media

Of all the constituencies that will ultimately pass judgment on a company,

none can be more powerful or pervasive than the media. The media has

the right and privilege to explore any newsworthy issue concerning public

corporations and private companies and scrutinize them for the edification

or pure entertainment of their audience. The media can influence investor

perception, their investment choices, and stock prices. It can also affect public

perception, which can then affect consumer behavior, and ultimately

have an impact on a company’s business. Obviously, the consequences of a

company’s media strategy can underscore or undermine their valuation

strategy. Business and media relations efforts must follow the strategic goals

of an IR program and be very aware of the company’s financial performance,

its investment merits, and the expectations that Wall Street places on

the company.

AN INTEGRATED PLAN

The element of surprise may be an effective tactic for war and birthday parties,

but it’s a company’s worst nightmare when the media is concerned. The

most important thing a company can do when dealing with the media is to

be prepared for anything. That means having a plan to deal with everything.

On the other side of the page, the media doesn’t take surprises well either.

A company that shares information in a timely and candid manner not

only provides the media with a courtesy, but also gives the company an opportunity

to create the tone and direction of the story. If that story is in line

with the long-term thesis of the company, then the investor relations and

communications departments are doing their jobs properly.

When most people think of the media, they think of public relations.

Public relations, communications, and media experts have the skills for

selling a story. They also know best how to deal with the media, whether

getting in front of a story, emphasizing key components to steer a story

that’s already out there, or building a platform of productive discourse in

times of crisis.

These functions should work closely together to communicate with

every constituency that influences the capital markets, especially the media.

If IR can run its pattern toward the analysts while PR runs its pattern

toward the media, the combination creates a substantial and parallel

two-tiered offense that can pay off in terms of valuation, the CEO’s ultimate

goal.

Just as IR professionals should know how the capital markets will react

to key decisions, PR professionals should anticipate the media’s interpretation.

This knowledge is essential, because once a story leaves the company

doors, it’s up to others to get it right. Because the company can no longer

control how the story is told, the company should do everything in its power

to make sure that those controlling the story actually understand the story.

THE AUDIENCE

Analysts are taught to dig deep to discover the company story, a quest similar

to that of a reporter. Good reporters aren’t trying to annoy companies;

they’re trying to do their jobs, which means uncovering information and the

story line.

Understanding the audience is an important step in getting the media to

hear and tell the story that the company wants understood. PR can help IR

with its intimate knowledge of the various television, newspaper, radio, or

magazine outlets and their personnel. By identifying their needs and responsibilities,

and uncovering the issues of interest to them, PR and IR can position

a story to stand out.

Some companies forego the conversation with the media altogether,

fearful that they’ll be misquoted or have statements taken out of context.

But avoiding the media, or worse, promoting contention with reporters or

producers, can be damaging. The media exists, and it’s not going away.

They will oftentimes do a story with or without management’s help. The

media is a necessary, and many times beneficial, conduit for communication,

and companies should utilize it to their advantage. As in any industry,

there are going to be mavericks out to make a name for themselves, sometimes

by any means necessary. With a pulse on the media players and a

proactive plan in place, IR and PR can hope to manage these individuals

and keep the story on track.

POSITIONED TO BE PROACTIVE

Most companies would like the media to be all over their good news and

nowhere near the bad news. Of course, it doesn’t work like that. If a story is

going to be told, the company wants to be first in with the information,

which means a proactive approach to sharing news, good and bad.

It also means a complete approach, especially with the bad news. A

company that has bad news to share should do it right away and all the way.

Dribbling it out in bits and pieces can make for not only a long, drawn-out

decline in stock price, but also a major credibility issue for management that

can have far-reaching effects. In reality, if there is bad news, management

must understand that the media and the market will become aware of it

sooner rather than later anyway, so management might as well take it all in

one punch and not let negative momentum build. So what would a byproduct

of the slow and painful negative information dissemination be? The loss

of management credibility and the decline in multiple would materially diminish

the ability to sell new equity in the market. This, in turn, could

weaken the company, particularly if a capital raise would have led to a

merger or debt reduction.

Bad things happen to good companies all the time, and IR and PR professionals

must be prepared and practiced to deal with the unimaginable.

Proactive, clear, composed and candid management can take the worst of all

worlds and turn the company, and the perception of its investors, toward

something better.

EXPOSURE AND EQUITY

Only a fine line separates company awareness and personal exposure. An integrated

approach to IR and PR can work toward making every media portrayal

of the company consistent and reliable. An integrated approach

should help management choose the message and the speakers that are on

target for preserving or improving the company’s reputation and value.

The Media 31

Of all the constituencies that will ultimately pass judgment on a company,

none can be more powerful or pervasive than the media. The media has

the right and privilege to explore any newsworthy issue concerning public

corporations and private companies and scrutinize them for the edification

or pure entertainment of their audience. The media can influence investor

perception, their investment choices, and stock prices. It can also affect public

perception, which can then affect consumer behavior, and ultimately

have an impact on a company’s business. Obviously, the consequences of a

company’s media strategy can underscore or undermine their valuation

strategy. Business and media relations efforts must follow the strategic goals

of an IR program and be very aware of the company’s financial performance,

its investment merits, and the expectations that Wall Street places on

the company.

AN INTEGRATED PLAN

The element of surprise may be an effective tactic for war and birthday parties,

but it’s a company’s worst nightmare when the media is concerned. The

most important thing a company can do when dealing with the media is to

be prepared for anything. That means having a plan to deal with everything.

On the other side of the page, the media doesn’t take surprises well either.

A company that shares information in a timely and candid manner not

only provides the media with a courtesy, but also gives the company an opportunity

to create the tone and direction of the story. If that story is in line

with the long-term thesis of the company, then the investor relations and

communications departments are doing their jobs properly.

When most people think of the media, they think of public relations.

Public relations, communications, and media experts have the skills for

selling a story. They also know best how to deal with the media, whether

getting in front of a story, emphasizing key components to steer a story

that’s already out there, or building a platform of productive discourse in

times of crisis.

These functions should work closely together to communicate with

every constituency that influences the capital markets, especially the media.

If IR can run its pattern toward the analysts while PR runs its pattern

toward the media, the combination creates a substantial and parallel

two-tiered offense that can pay off in terms of valuation, the CEO’s ultimate

goal.

Just as IR professionals should know how the capital markets will react

to key decisions, PR professionals should anticipate the media’s interpretation.

This knowledge is essential, because once a story leaves the company

doors, it’s up to others to get it right. Because the company can no longer

control how the story is told, the company should do everything in its power

to make sure that those controlling the story actually understand the story.

THE AUDIENCE

Analysts are taught to dig deep to discover the company story, a quest similar

to that of a reporter. Good reporters aren’t trying to annoy companies;

they’re trying to do their jobs, which means uncovering information and the

story line.

Understanding the audience is an important step in getting the media to

hear and tell the story that the company wants understood. PR can help IR

with its intimate knowledge of the various television, newspaper, radio, or

magazine outlets and their personnel. By identifying their needs and responsibilities,

and uncovering the issues of interest to them, PR and IR can position

a story to stand out.

Some companies forego the conversation with the media altogether,

fearful that they’ll be misquoted or have statements taken out of context.

But avoiding the media, or worse, promoting contention with reporters or

producers, can be damaging. The media exists, and it’s not going away.

They will oftentimes do a story with or without management’s help. The

media is a necessary, and many times beneficial, conduit for communication,

and companies should utilize it to their advantage. As in any industry,

there are going to be mavericks out to make a name for themselves, sometimes

by any means necessary. With a pulse on the media players and a

proactive plan in place, IR and PR can hope to manage these individuals

and keep the story on track.

POSITIONED TO BE PROACTIVE

Most companies would like the media to be all over their good news and

nowhere near the bad news. Of course, it doesn’t work like that. If a story is

going to be told, the company wants to be first in with the information,

which means a proactive approach to sharing news, good and bad.

It also means a complete approach, especially with the bad news. A

company that has bad news to share should do it right away and all the way.

Dribbling it out in bits and pieces can make for not only a long, drawn-out

decline in stock price, but also a major credibility issue for management that

can have far-reaching effects. In reality, if there is bad news, management

must understand that the media and the market will become aware of it

sooner rather than later anyway, so management might as well take it all in

one punch and not let negative momentum build. So what would a byproduct

of the slow and painful negative information dissemination be? The loss

of management credibility and the decline in multiple would materially diminish

the ability to sell new equity in the market. This, in turn, could

weaken the company, particularly if a capital raise would have led to a

merger or debt reduction.

Bad things happen to good companies all the time, and IR and PR professionals

must be prepared and practiced to deal with the unimaginable.

Proactive, clear, composed and candid management can take the worst of all

worlds and turn the company, and the perception of its investors, toward

something better.

EXPOSURE AND EQUITY

Only a fine line separates company awareness and personal exposure. An integrated

approach to IR and PR can work toward making every media portrayal

of the company consistent and reliable. An integrated approach

should help management choose the message and the speakers that are on

target for preserving or improving the company’s reputation and value.

The Media 31