Going beyond the numbers: The value of intangibles

Metrics are a given part of every annual report. But today’s investors and donors also want to know more about the non-financial side of your company or non-profit organization. And the ideal place to tell them is in your stakeholder letter.

Known as intangibles, these topics can include:

·         Growth drivers

·         Long-range strategies

·         Innovation

·         Culture

·         Customer or beneficiary stories

·         Positioning and competitive advantages

·         Market and economic factors

·         R&D activity

·         New Initiatives and programs

·         How your business/operating model works

·         The Future

So, why should you discuss these topics in your letter? First, to give readers a clearer picture of your organization. Second, and most critical, to give investors or donors information that will help them decide where to put their money.

Of course, much of this info is already available online (if readers are willing to search for it). But as the CEO, why not just tell them yourself? Stakeholders put a lot of value in hearing things directly from top leadership. What’s more, your openness can enhance your credibility and your organization’s brand. This by itself should be reason enough.