In the modern global economy, the ability to adapt to new thinking and acquire career advantages via learning is key. Existing skills have to be frequently replaced with new ones and regularly revisited to keep sharp. Given the changing nature of IR as a profession and career, this is even more applicable.
Bryan Armstrong, senior managing director at FTI Consulting, has been a keen observer of the change in IR career development. ‘The investor relations landscape has evolved dramatically over the past two decades, moving from an overlooked, under-resourced and largely administrative function to a key strategic role and partner to the C-suite,’ he says. During this period, IROs have been granted the opportunity to participate in – and, in some cases, even lead – communications for their business across a wider set of issues and events, from transactions and crises to emerging trends like ESG or activism.
‘At the same time, the manner in which information is disseminated and consumed has dramatically changed, with more channels and tools available as well as a wider and growing set of influencers,’ says Armstrong. ‘These factors, among others, demand a continuous commitment to learning and development among IROs to ensure they have the skill-sets and expertise to stay ahead of the curve in this dynamic environment.’
This is a point reinforced by Gary LaBranche, NIRI president and chief executive. ‘Investor relations professionals have a high degree of responsibility and can make a significant impact within their companies,’ he notes. ‘The IR role demands competence across key disciplines including finance, capital markets, strategy and communications.’
So how do IR professionals stay ahead? NIRI and other IR associations across the globe are well positioned to offer constant learning solutions to the IR professional picture by maintaining and pioneering the highest standard of education and learning for IROs.
NIRI: Lessons from America
In North America, NIRI offers the Investor Relations Charter (IRC) certification. Launched in 2016 to serve the investor relations profession, the IRC aims to establish that through adequate professional experience, and by passing a rigorous exam, the holder has demonstrated the necessary knowledge and skills for competence in investor relations.
‘It is distinct from a certificate program in that it requires a commitment to ongoing professional development,’ explains LaBranche. ‘It is not awarded for attending a course or specified classes. This program is important because it helps to fulfill NIRI’s mission of advancing the practice of investor relations and the professional competency and stature of investor relations professionals.’
Moreover, the IRC is the only psychometrically valid, defensible certification based on comprehensive research into the competency and experience required to succeed in investor relations. NIRI is also in the process of introducing several new enhancements to the IRC program during 2018. To further broaden awareness of the credential, digital badging – an indicator of accomplishment, expertise or professional skill that can be displayed, accessed and veri ed online – will be launched.
‘The IRC badge will include the competencies demonstrated to earn the IRC credential. It will allow IRC holders to easily share their accomplishment with their social and professional networks,’ says LaBranche.
In addition, the IRC is now included in the Credential Registry, a new, centralized online credential-finding tool that provides access to information that allows educators, employers, students and professionals to easily find relevant credentialing program information. This search engine will also enable individuals and organizations to search and compare credentials, in much the same way as travel apps can be used to compare flights, rental cars and hotels.
Championing the credential
NIRI is further working to deepen awareness of the credential with C-suites, HR departments and executive recruiters and in capital markets, with an enhanced IRC welcome kit including a congratulatory letter to employers, and a personal press release.
‘To continue improving the test-taking experience, the waiting period between the final exam application deadline and the start of the testing window is being reduced,’ says LaBranche. ‘In addition, the number of global testing centers will increase around the world, giving IR professionals more opportunities to sit for the IRC exam. Instant exam scoring will also be rolled out, enabling IRC candidates to receive provisional examination results before leaving the test center.’
The whole approach goes beyond mere written examinations, however. ‘The IRC is not just a test, but also a commitment to career-long learning, because continuing professional development is crucial to success in the IR field,’ notes LaBranche. ‘The IRC is built on a competency framework of the speci c skills IR professionals need throughout their careers. This research-based framework guides NIRI’s career-long professional development program offerings, too.’
It is also influenced by what has happened in other occupations. ‘Many professions created certifications to help employers identify job candidates who have demonstrated specialized knowledge, experience and capability,’ says LaBranche. ‘The IRC designation does that for the IR community and will, as it grows, become the standard employers use in hiring IR professionals. The IRC signals to senior management that this is someone you can trust with your company’s brand.’
UK perspective: The importance of development
In the UK, given the Investor Relations Society’s (IR Society) recent introduction of a Code of Conduct for its members, there is a push to address the need for senior practitioners to be fully tested by examining their expertise in investor relations.
Recent IR Society high-level initiatives include the new Diploma in IR (DipIR) and the Deliver (Developing Future Leaders Through IR) program. The diploma builds on the success of the society’s long-running comprehensive Certificate in IR (CIR) and the IR Society’s more advanced IR offering, with more options to be made available in 2018 via reciprocal associations.
In the diploma course, candidates are examined on three modules: principles of investor relations, IR in practice, and presentation. Candidates sit two three-hour exams that assess their skills, knowledge and experience across all the compulsory topics and at least three of the optional topics shown in the syllabus. The exams also assess familiarity with the UK’s legislative and regulatory environment, its corporate governance standards, and detailed knowledge of best practice IR and how it adds value.
Candidates are further expected to demonstrate their ability to communicate clearly in writing, identifying and justifying their key messages, their management and leadership potential, and their understanding of their company and industry.
Deliver is a six-month activity-based modular program in three parts, with other supporting activities and meetings throughout the program. It offers exposure to captains of industry and other thought leaders. In addition, working with IRO peers means creating your own personal network to compare notes with both during and after the program.
The course is broken down into three modules: a foundation course that covers core aspects of capital markets and the operating and regulatory environment; a skills course that focuses on key elements needed to manage the investment community, including corporate actions, activism and communication strategies; and a leadership course featuring city and industry figures.
Inspiring a generation
‘Coupled with the activity-based learning of the Deliver program, the IR Society aims to inspire the next generation of high-potential IR professionals as they assume more senior positions,’ says IR Society general manager John Gollifer.
There are now 1,300 graduates of the CIR program. ‘We are seeing the CIR being adopted in other markets such as Africa, Asia, Europe, the Middle East and – most recently – Latin America,’ observes Gollifer. ‘This suggests some convergence around fairly broad principles of market behavior in meeting the expectations of the investment community.’
Every year the IR Society aims to add something of practical use and relevance to its members. In the year of Mifid II, this clearly makes sense. ‘There appears to have been a regulatory imperative in the past few years – we’ve gone from the Market Abuse Directive to the Market Abuse Regulation, for example – and the role of IR is de nitely more demanding in its need for due process and accountability,’ notes Gollifer.
Canadian business: Multi-disciplinary IR
In Canada, recognizing the need for formal education in the eld of investor relations, CIRI and the highly regarded Ontario-based Ivey Business School have developed the 10-month Investor Relations Certi cation Program. This covers all relevant areas of the much- required modern day multi-disciplinary investor relations role, including a focus on capital markets, corporate governance, securities law, nance and corporate communications.
The rigorous but exible program is offered through online and in-person classes to accommodate IROs’ travel schedules. Once individuals successfully complete the program, they are required to take an exam to attain the Certi ed Professional in Investor Relations (CPIR) designation. In order to maintain this designation, individuals must maintain their membership in CIRI, agree to comply with CIRI’s code of ethics and complete a minimum of 14 continuing education units (CEUs) annually.
Essential support
On the rationale for an education approach, Yvette Lokker, president & CEO of CIRI, says: ‘Given the lack of secondary education programs in investor relations, the diverse backgrounds of those in the profession and the evolving environment IR professionals operate in, CIRI recognized the need for formal education. By covering all the relevant areas of this multi-disciplinary role, CIRI’s program establishes a standard of practice for investor relations that enhances the credibility of the individual achieving the CPIR as well as the credibility of the IR profession and our capital markets.’
Lokker notes that CIRI’s program differs from other IR certi cation programs in offering online and in-person classes. ‘It provides great exibility – which is important given the typical IRO’s travel schedule – and enhances the learning opportunity though interaction with peers and the Ivey faculty,’ she says. ‘Given the online and in-person format of our program, we have the exibility to address emerging issues and trends as they arise. We involve not only the Ivey faculty in delivering this program but also subject-matter experts in the areas of investor relations strategy, securities law, governance and capital markets.’
Lokker also stresses the constant need for IR learning and personal development in general. ‘The breadth and depth of knowledge IROs require in order to effectively do their job continues to grow,’ she points out. ‘Through educational programs such as CIRI’s certi cation program, IR professionals are better informed of factors that can impact their environment, which in turn enables them to provide strategic counsel to management teams and boards.’
Beyond the certification program, CIRI has introduced professional development programs to meet the needs of specific groups of IR professionals, such as senior IROs and IROs at small-cap companies. ‘We recognized that their educational needs and investor relations challenges are different and so have developed customized programs to meet these needs,’ Lokker explains.
Cliff: Comprehensive learning from the French academy
In France, Cliff’s training program was set up in 2013 in partnership with the prestigious Université Paris- Dauphine. Its objective is to provide comprehensive training in nancial communications for both IR professionals and all those who come into contact with IR. The program is conducted entirely in French by a mixture of academics – professors from the university – expert IR professionals and nancial, legal and communications professionals. There are two courses to choose from:
• IR Basics – an introduction to the profession. In 15 hours over two and a half days, the course provides an overview of the key aspects of the profession and, notably, the regulatory framework around its practice. It covers the main participants involved and the different terms used by the profession as well as an overview of the objectives and how to achieve them.
• IR Fundamentals – a professional certification. In 50 hours over eight days, the course provides the practical information needed to become rapidly operational in a financial communications role. It covers elements from day-to-day tasks to the main events around financial communication, including understanding the finances of a quoted company and how best to address different audiences (both inside and outside the company) and thus ensure the coherence and consistency of a company’s communications. Each candidate is assigned an academic tutor and a nominated IR professional for the duration of the course.
The courses are reviewed every year in order to take account of developments such as new rules and regulations, new best practices and participants’ feedback. Since 2013, more than 200 people have participated in Cliff’s training courses, 72 percent of them Cliff members. This breaks down into 135 participants (87 percent women and 81 percent Cliff members) for the IR Basics course and 69 participants (76 percent women and 54 percent Cliff members) for the IR Fundamentals course.
Fundamental beliefs
It is interesting that the IR Fundamentals course has provided training to a diversified group of participants that includes investors and members of the French regulatory authorities.
‘In order to be a good IR professional, you need to be up to date with all the changes that impact the profession,’ says Chris Hollis, chairman of Cliff. ‘Given the increasing number of changes taking place in rules and regulations, markets, nancial instruments and best practices – as well as the necessity to be able to react quickly on an increasing number of topics – professional training is becoming increasingly essential, especially for those new to the profession.’
This is a view shared almost universally among the IR associations around the world. As LaBranche observes: ‘NIRI believes all IR professionals can benefit from professional education and networking. Many IR professionals work in one-person or two-people IR teams, and they often need help from peers outside their company to keep on top of changes in the capital markets, regulations and IR tactics.’
