The mission statement

Absent in annual reports, just ten years ago, this short text has become a must; on a sample of 100 reports analysed in 2008, we found 91 reports containing a mission statement.

The importance of the mission statement is to quickly sketch an unknown company. It must allow to understand its activity but also its specific assets compared to other companies in the sector. Some companies also mention prior year information, but we find it preferable to limit the mission statement to its main “business card” role.

Its place is obviously at the beginning of the report, ideally on the flip cover or on the first page where it may precede the summary. As this text is usually very short (between 50 and 100 words), it is important to use a large enough font size that will enhance and add a welcoming graphic touch especially if it accompanies the summary.

Although the English phrase, "mission statement" is not used in any English report, it is in the German and Belgian reports, just like the term "Key figures" only can be found in English versions of reports written in French or German.

Some reports written in French also use the translation "profil ", "profil d’entreprise" or simply "mission". In many respects, the mission statement has no title and is not included in the summary. It is its position in the report and its content, which retrospectively characterises it as such.
We find this to be a mistake, because the target audience for annual reports is continuously increasing, and it is always useful for a company to present itself in case it would be dealing with a newcomer!

The table of contents

The Internet has revolutionized communication, but has also profoundly influenced our approach to print.

An activity report or brochure is no longer read linear starting from the beginning to the end. The specialist reader seeking specific information must be able to find it in a minimum of time. A clear and precise structure and a good summary should enable the reader to navigate the document in a minimum of time.

To do this, we give four recommendations:

• Organize the content in a clear and precise way
• Use keywords in the titles and the TOC
• Provide a sufficiently developed TOC
• Place the TOC in a strategic location

1. The report structure

More and more companies realize the importance of complying with standards to enable the reader to find his way easily within the report. By examining the content of 50 British reports, we discovered an almost identical structure organized around 3 main parts: the activity report, the governance and the annual accounts. Each part is structured in a very similar way so one can generally find the same information in one place.

In recent years, the issues relating to governance and social responsibility have clearly gained visibility and importance.

By comparing a range of different European reports the same general topics can be found, but the organization into 3 parts instead of 2 is characteristic for English companies.

2. Use keywords

The use of keywords is another positive influence of the Internet where access speed is always considered a priority.

Keywords often derive from English, being the universal financial language, and the ability of the English language to express an idea in just one word. When they don't succeed, the English use abbreviations and talk about CSR (corporate social responsibility), KPI (key performance indicator) or TSR (total shareholder return); Keywords form a universal language that allows everyone to find their way in the abundance of information.

3. Submit a sufficiently developed summary

The use of keywords is very efficient, provided they can be found in TOC. The first heading level is not always sufficient, it depends obviously on how information is organized and named. Some TOCs refer to a certain content without necessarily repeating the titles of the chapters (can be written in a more narrative or marketing style).

Out of 100 reports reviewed, 72 limit the general TOC to half an A4, 16 provide a table of contents developed on an A4 page and 12 are reduced to the bare minimum: a dozen of lines.

For annual accounts, it is preferable to use a well-developed sub-index and not to mention that parts in the general TOC at the beginning of the document.

4. Position the TOC in a strategic way

In the vast majority of cases (89%), the TOC is placed on the inside of the cover or the first page of the report. This is the most logical place to look for it. An alternative is to place it on the back flap of the front or back cover. This allows to browse the report while retaining the ability to peruse at any time. But who really uses it in this configuration?

In summary :

An effective summary doesn't just forcibly take over the titles of various chapters, unless they have been designed for this purpose. Like the menu of a website, the summary should enable the reader to find material of interest, and to this end it must be designed and prepared.

The cover of your annual report

The cover of an annual report is significant in two aspects:

• Firstly, it must allow immediate recognition of the company, in accordance with the housestyle manual;
• Secondly it gives a first global impression that inevitably creates a reaction from the various target audiences.

We will not dwell on the first item on the application requirements of the housestyle manual. This is important but seems now well known by the majority of communication managers.

The second point seems more interesting because it makes use of content items that are inevitably subject to the interpretation of the public.

What are these?

Except the logos and the basic indications (annual report, year, etc...), they are three.

1. The concrete or abstract illustration;
2. A title or slogan;
3. A general look and feel.

We will consider them one by one:

The illustration

It is often difficult to find the image that will summarize the idea or concept developed throughout the report, but those that do will definitely have a greater impact. The cover photo can either introduce the concept or the visual leitmotif developed in the report or symbolize an idea or a value close to the company. It can also represent its activity in a manner that is visually impressive and attractive. And finally, and this brings us to the next point, it may illustrate the slogan or the title that has been chosen for this year’s report.

The use

The cover of the annual report is an excellent medium to spread a message with maximum effectiveness.

In the selection of annual reports of 2008 that we analyzed, 60% of them use a slogan or a title on the cover.

Slogans are used in two main types: in some cases it is a general baseline that characterizes the company, but most of the slogans are related to general or specific news topics concerning the company. For example, certain messages used on the cover of the reports of 2008 refer to the economic crisis.

The look and feel

Essentially here is the formal aspect related to the production of the report.

The format, the paper quality, the finishing is also among the factors that influence the first impression, especially if they deviate from the standards generally used. The goal is not necessarily to stand out at all costs, even if some people choose this way to catch the attention of the reader.

If we remain within the standards it is clear that the covers with dark glossy coating connote a more technological aspect and that clear tones, uncoated papers and no use of varnish belong to the domain of service companies.

The cover is the product packaging, it uses objective elements: a message, an image, that create emotional reactions related to the subjective interpretation of its components. But also general notions such as luxury, originality, environment, power and security are taken into consideration.

We live in a world of images where everything is analyzed and interpreted. The volatility of financial markets is sometimes the result of rumors that do not necessarily reflect the health of businesses. That is why the image of the company has today acquired a considerable strategic importance.

It is therefore important to always ask the same questions: what image do we want to spread to who and what message do we want to convey.