Caribou recently completed its second private placement, which Hartfiel says was successful primarily because the company’s story and vision “hang together and ring true.” Bartholomay, also an investment banker in a previous life, echoes the importance of the story: “Most new companies are just a story.” The plot line of a good story, according to Bartholomay, should revolve around strategic and financial information.

Building corporate value: five steps to success

How does one get from A to Z? From solid financial performance or a deft strategic plan to an appropriate company valuation and growing interest base? It’s not a direct route. For the most part, the company’s story must be told through others: primarily, media outlets and securities analysts. First, one must capture their attention.

To tell the new story of a realigned SuperValu, Kris Sundberg, the company’s vice president of investor relations and corporate communications, creatively recruited third-party communicators. “We held a vendor conference, walking food manufacturers through our new program that resulted from the realignment,” she says. “Later, we’ll refer securities analysts to these vendors, who will explain the initiative from their point of view.” Sundberg also invited reporters and analysts to the company’s recent annual meeting to hear the story firsthand.

Smaller companies also have learned that the media can impart third-party credibility. Dave Beal, senior business editor and columnist for the St. Paul Pioneer Press, says that, instead of advertising, a one-woman competitive intelligence company used a column he had written about it in reprint form at trade shows.

Media coverage works, but how do you get it? An editor at a mid-size metropolitan daily newspaper receives literally hundreds of press releases daily. Managers of growth-stock portfolios typically track about 200 companies and, at any one time, own 30 to 200. Equally bombarded by information are retail securities analysts, who cover a dozen to two dozen stocks and monitor at least a dozen more.

While white noise and confusion abound, a company can rise above it all—even to become part of an analyst’s or a portfolio manager’s in group—through smart corporate communications. Follow these five proven steps to reach the top of the information mountain and to move to the forefront of your target audiences’ attention.

Step One: Plan development

Every successful program or project is plan-based.

Your plan should revolve around three or four objectives. Many investor relations or corporate communications programs aim to increase shareholder value to appropriate levels, gain cost-effective access to capital and increase the company’s shareholder base.

For high-tech print systems manufacturer Check Technology Corporation, vice president of sales and marketing Ian Jaggard set three objectives: “Raising the company’s profile, demonstrating its credibility and ensuring that stakeholders know what we do and why we’re good at it.” Among Apogee’s primary goals is setting apart the company and its culture from all others. Such projects as private placements or initial or secondary public offerings also should be objectives-driven.

After deciding upon key objectives, determine which broad-based approaches to employ to achieve your goals. Jaggard’s are to inform and educate. Other companies might play on their strengths: the vitality of core technologies or products; invulnerability to competition or to economic downturns; a leading market share; and so on.

Then test strategies against plan objectives. Eliminate those strategies that are extraneous to achievement and success—no matter how clever they might be. Then apply the appropriate communications tools to develop the necessary tactics. Jaggard relies upon a quarterly newsletter to keep company stakeholders abreast of the company and its markets. To communicate SuperValu’s realignment, Sundberg says, “you can cover thousands of words in a five-minute video.” She, Goldfus and other marketers of company information agree that home-office, plant and subsidiary visits are the best way to acquaint the investment and media communities with a company.

Face-to-face meetings are preferred communication tools for Goldfus. “Once our target audiences have seen our factories and people, they understand where we’re different,” he says. Goldfus also advocates breakfast and one-on-one meetings with investors. Media background visits can also be set up as part of management’s travel itinerary.