Yes, the Q4 Board meetings are done, you have just done staff reviews and put up festive lights. For some, the corporate gifting process is in high gear and we believe we should send a thoughtful and/or branded gift for the holidays…..is that the best way to close the year for our stakeholders??

How about a Shareholder Letter to your shareholders recapping the year? You think they will not read it? You think the years results have nothing good to share? You are exhausted and here Akira Consult Limited is suggesting yet another task.

Hear us out; one of the best #stakeholdermanagement practices is providing value through shareholder #communication . Sure, there’s the annual and special general meetings, the quarterly or half yearly shareholder briefings with virtual/online hosting, and the updating the news and pages of your website. You can do more. Shareholders require information in order to make decisions about their investments in the organisation and if managed well, it reduces shareholder dissatisfaction and #activism ,expressed through negative voting and even absenteeism from meetings which leads to lack of quorum.

We at Akira have seen Shareholdrer Letters work in both local and oversees companies. They keep the #relationships warm, provide updates, dispel rumours and avoid surprises from negative performance. Locally, we believe Kenyans received their ‘citizens end year letter’ through the #monetarypolicy committee briefing of 5th December 2024. While the Chairman did not come bearing gifts, its definitely shed light on our current circumstances as a nation and puts the reality check into our 2024 business and personal plans.

Internationally, the Chairman of BlackRock Larry Fink does a great job sharing his thoughts on the year that was and provides insights on the year to come. A very enjoyable and insightful read. As well Warren Buffet, chairman of Berkshire Hathaway has a comprehensive shareholder letter series each year that invites their shareholders to stay the course with them. #recommendedreading

Convinced to write?. So what can this end year letter include:
1. Start off by reminding the #shareholders the vision, recap a little history and how you are here
2. Recap the year- include the business environment recap as you experienced it and share in summary the unaudited financial results, any wins and any targets missed and reasons why. It would also be good to share staff highlights. Use pictorials to make your message come alive
3. Crystal ball- make broad statements of how you expect to do in the coming year.
4. Appreciate the shareholders for sticking with you for the past year and invite them for the 2024 rollercoaster ride.
5. Tell stories- make it personal, share any light and personal stories that can relate.
Do it, write your end year letter. Make it meaningful, lets continue investing in our shareholder and indeed stakeholder relationships!