We are living through an age of fundamental change in corporate reporting and the Companies Act provides an opportunity to cast off the rigid conventions of the printed report. Many companies have been grappling with how best to use this new freedom and make the most of their online financial reports.

One thing is clear – the days of ‘one size fits all’ for corporate reporting are over. People who thought of the online report as a bit of a holy grail are realising there is no simple solution. Each company is approaching online reporting differently and following the herd is no longer delivering the best results.

Here are ten carefully selected examples of companies that have used their online reports to solve unique business-specific issues.

1. DMGT demonstrates digital innovation

The issue: DMGT diversified away from UK newspapers to become a more international media business. Their reporting challenge was to communicate their digital innovation and how they have moved from a traditional newspaper business to a diversified media company.

The approach: The site includes an interactive Flash banner explaining their diverse business portfolio and long-term commitment to ‘Creating Media Brands That People Love’. The site includes a dynamic timeline and interactive dividend chart showing how the business has progressed over ten years.

The result: DMGT are using specific interactivity to demonstrate innovation and strong performance. Only appropriate site tools are used to deliver their clear strategic message.The investor response is positive with the report experiencing a 63% increase in new visits compared to last year.

http://www.dmgtreports.com/2008

2. Aviva recognises retail investors want something different

The issue: Integration was the main issue Aviva had to deal with this year. Financial information had to be collected from 27 different countries worldwide, whilst the business re-branded under the ‘one Aviva, twice the value’ proposition.

The approach: Aviva kept it simple. The report has an intuitive navigation and easy to read interface design. There is a specific section addressing retail investor concerns, called ‘Recognising the needs of our customers’ and a private shareholder section for future e-communication. Users can also download their own report pack and review the Financial Statements in Excel format.

The result: Aviva has cleverly thought through the requirements of their retail and institutional shareholders. The structure, content and functionality of the site has integrated well with the new Aviva brand. See Stuart Bartram’s article overleaf for more details.

http://www.aviva.com/files/reports/2008ar/index.asp

3. Vodafone creates clarity from complexity

The issue: With the printed report running at  160 pages, Vodafone’s Director of Corporate Affairs, explained that the challenge for the online version was ‘not to let the weight of all that information obscure the message… people need to find the information if they want to drill down further’.

The approach: Vodafone has worked hard to tell a complex story simply to their institutional investors. The homepage is presented within a portal interface, providing quick access to deeper content. The excellent ‘Business Overview’ depicts in simple design terms how the Vodafone business is structured and how the international operations connect.

The result: Vodafone provided page-turning PDFs in the past, however institutional investors required a more bespoke approach. The latest online report adds clarity and context for these investors and provides simple options to explore deeper content.

http://www.vodafone.com/static/annual_report/index.html

4. Users are key for the British Library

The issue: The British Library’s remit is broad and their user groups diverse. They needed to identify new ways to show how the expertise and knowledge gained by users transformed into tangible solutions.

The approach: The online report features video clips of the Library’s users talking about how the Library inspires and supports them. The Chief Executive’s video statement offers a behind-the-scenes insight into how the Library works. Report readers can also ‘Add a comment’ or use an interactive poll to respond to the report content.

The result: The British Library has won the Best Annual Report (Public and Voluntary sector) at the Accountancy Age Awards for the last three years. Many listed companies are now incorporating these interactive techniques to engage report users.

http://www.bl.uk/about/annual/2007to2008

5. Shell puts report financials into context

The issue: 2008 was a year of turbulent global markets and extreme fluctuations of oil prices. Against this uncertain backdrop Shell needed to explain their overall performance within a long-term strategic context for investor audiences.

The approach: The new site has a simplified navigational structure. A useful download manager includes detailed Excel spreadsheets allowing investors to review the raw financial data. This year the site tools include a ‘Compare to 2007’ button, allowing analysts to review year-on-year performance data.

The result: Shell clearly worked hard to make the report information as readable as possible. Shell sets the report into an appropriate context by providing useful supporting material, such as a guide to the Financial Statements, a ‘Chart Generator’ and Excel downloads for the Financial Statements.

http://www.annualreview.shell.com/2008

6. Legal & General showcase strategy through their senior team

The issue: Legal & General’s challenge was to address their investor concerns over financial transparency issues. They had to demonstrate a clear strategic approach and showcase the strength of their leadership team.

The approach: The report homepage shows a revolving carousel introducing the Executive management team in video format. Clicking on the images directs users to video introductions that explain how the business has been performing. The theme of leadership and a cautious approach to risk management is followed throughout the report.

The result: The appropriate use of video creates a sense of transparency, responsibility and personal accountability in Legal & General’s strategic management. It also clearly shows a unified management team putting strategy into action.

http://legalandgeneralgroup.com/ara_2007

7. Integrating CR into BG Group’s corporate reporting hub

The issue: BG Group needed to consolidate their approach to financial and non-financial reporting to help investors truly assess their overall business performance. They also wanted to provide other shareholder information to provide a broader context to business performance.

The approach: BG Group have developed a corporate reporting hub, using a single microsite with consistent navigational principles, that incorporates the Annual Report, Corporate Responsibility Report, Summary Financial Statements and AGM information.

The result: The online reporting centre is a unique example of how a combined approach can be used to communicate key reporting material to stakeholders. It provides a single point of reference and is a fully integrated approach to reporting for investors.

http://www.bg-group.com/OnlineReports

8. Teliasonera embraces multilingual multimedia

The issue: Teliasonera is a mobile and fixed network services provider to the Nordic and Baltic countries. As a dual listed company on the NASDAQ OMX and Helsinki stock exchange it needed to find innovative ways to communicate its report content in multiple languages to international investors.

The approach: The online report is published in English, Swedish and Finnish. The report provides an audio commentary making it accessible to an international audience. An interactive map provides country specific data, in particular their expansion into the emerging markets of Russia, Turkey and Spain.

The result: Incorporating regional differences into one online report structure makes the report a unique experience for online audiences. Expect more international companies to use multilingual multimedia like this in 2009.

http://www.teliasonera.com/annualreport/2008

9. Centrica makes it clear at first glance

The issue: The challenge for Centrica was to encourage private shareholders to view this year’s Annual Report online. The focus was to clearly explain the Chief Executive’s strategy to be the leading integrated energy company to both specialist and non-specialist investors.

The approach: Centrica focused on keeping their report simple to read and easy to navigate. It includes a clear and simple overview of Centrica’s integration strategy using an intuitive Flash animation. The ‘At a Glance’ section provides a snapshot that explains the integrated nature of their business.

The result: The online report skilfully balances the needs of both retail and institutional audiences. It succeeds in this by helping investors to ‘self-serve’ the information they need through clear information architecture, supportive FAQs and helpful additional shareholder information. It is also reassuringly easy to navigate.

http://www.centrica.com/files/reports/2008ar

10. Barclays bravely opens up to external scrutiny

The issue: Barclays has come under intense pressure for greater disclosure from regulators and investors alike. The challenge for the bank was to be more open and transparent to rebuild shareholder confidence, in particular to the bank’s approach to risk management.

The approach: The latest online report includes remarkably frank videos from the Chairman and CEO. Users are welcomed to the site and immediately asked for their opinions. The site includes an excellent ‘Your view’ section where users are asked to post questions directly to the Chairman. It provides FAQs, a site survey and an invitation to join a shareholder workshop to help Barclays improve their future online reporting.

The result: Barclays have taken the leadership step of opening up to external scrutiny. This brave approach is likely to set a precedent for future online reports and reflects their overall external tone to these unprecedented times.

http://www.barclaysannualreport.com/ar2008

So what can we learn from these observations?

1. You can’t achieve everything, so focus on what matters to your business and its stakeholders – each company has a different investor profile and a unique business issue that needs solving. Companies clearly need a tailored approach and should evolve a reporting programme over time.

2. Don’t forget to tell your story – find compelling ways to explain your report narrative online. Flash animations, interactive maps and multimedia help to bring that story to life. Keep your messages consistent and relevant. Consider contextual information for your retail audiences, where appropriate.

3. Deliver what investors want quickly – investors are impatient so make it easy for them to find the information they need. Focus on usability and provide additional format options, such as Excel downloads of Financial Statements, to help analysts compare performance within your sector. If budget is limited then use simple PDFs, but avoid the dynamic page-turning PDFs at all costs (they’re not compliant with accessibility guidelines).

4. Integrate – look at simple ways to integrate your suite of reports into a Corporate Reporting Centre with a distinct URL (ie. www.barclaysannualreport.com). Be consistent with the information you share and provide quick links to contextual investor information.

5. Measure success – spend time to understand how investors use your report. Track where they have come from (Registrars email, from your own site, Google search, etc.) and research for how long they stay on your site.

Finally a few words of caution

Don’t be seduced by distracting ‘bells and whistles’ – avoid unnecessary functionality that detracts from the user experience. Technology should be used to help the user gain a better understanding of the company.

Watch out for website restrictions – many companies suffer from restrictive corporate website templates that make their report content difficult to navigate. Consider developing a report microsite independent from the corporate website.

Be clear who reads your report online – work on building a long-term engagement with your shareholders through your e-communications. Offer surveys, ask for feedback and run usability workshops to understand what investors really want to see from future online reports.

Avoid a tick box approach – ticking the so-called best practice boxes for online reports without due consideration to your unique business issues will only lead to investor disappointment.

Reassuringly the approach to online reporting is now starting to reflect the various audience needs and the different problems that companies want to solve. We expect to see a marked improvement in the quality of online reporting in 2009. Best practice will eventually emerge but it will be based on online innovations that are appropriately used to enhance stakeholders’ overall experience and understanding of a company’s strategy.

By Richard Coope, former Head of Digital, salterbaxter