Annual reports. Is it that time of the year for you, too? I love the dichotomy of reporting financial facts while communicating in the currency of trust.
We all know that the numbers people pour over the financial reports, considering how to present the numbers legally but in the best possible light. Once they are published, they speak for themselves.
It's the articles where you have an opportunity to interpret the numbers and add nuance to both the past, present and near future. If you don’t have an army of communication experts at your disposal, here are some tips for writing articles in your annual report.
Report the facts honestly and objectively.
Keep your writing concise, compelling, and clear.
Avoid superlatives.
No one expects a year where every goal was met or exceeded. Address those events frankly and reasonably.
Demonstrate that you are steering the company intentionally.
5-year planning periods work well. Introduce a new strategic period with models. Keep it simple.
Over the years, refer to the pillars of your strategy and report progress.
Especially when communicating about objectives, keep in mind you are walking the fine line between maintaining positive interest and overpromising. If in doubt, stay conservative.
Create a sense of continuity
Ensure your articles address forward-looking statements from the previous year. You can be sure that investors, key vendors, customers and employees alike will be looking for this.
Review all forward-looking statements this year. Consider the uncertainties of the coming year and ask yourself what you will write next year if these statements don’t turn out as expected. Does your wording box yourself into a corner? Or have you left enough wiggle room (often it’s just an adjective!) to be able to address unexpected outcomes with dignity?
Even though it’s your job to be sure it doesn’t happen, occasionally there could be a statement in last year’s report that you simply can’t address positively. If this happens, consider if it’s best to address it in the report or via Q&A. Regardless of your decision, prepare thoroughly.
P.S. Watch your verbs! 😖 Anything referring to the year that has completed should be in past tense. Trends or tendencies or anything ongoing is usually present perfect tense.
Example: "Revenue increased 23% over the same period in the previous year, demonstrating that our strategy is on the target and our efforts have been correctly focused."
This sentence has mind-blowing past tense, present tense and present perfect tense!
Trust, as they say, disappears as quickly as dew in the morning. And it's hard work to rebuild it. So this isn’t the place to cut corners. If your annual report is in English, and English isn’t your native tongue, it can be a good idea to reach out to someone like me for help.
Shout out to Ibrahim Boran at Unsplash for the image
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