The last thing I ever want to do is create work for my portfolio companies. That being said, I think that there's a certain amount of management communication that serves a purpose well beyond just letting the investors know what's going on in the company.
Ideally, investor communication serves the following purposes:
- Focuses the attention of the CEO on goals over a fixed about of time: "What are we going to accomplish between now and the next update?"
- It can create a sense of urgency by putting those goals to paper.
- Requires the team to reflect upon how well they acheived prior goals and whether anything can be learned to improve performance.
- Helps experienced investors identify fact patterns that the management team might not notice--because sometimes another pair of eyes can look at things just differently enough to spot a key opportunity or a potential future problem.
- Focuses the efforts of well meaning investors who want to help onto the most pressing issues and opportunities to contribute.
Now I'm going to talk about the top of our marketing funnel. Here's what's going on with new leads, and what's driving them. Here's what we're doing to get these up.
Here's how conversions are going. It is at/above/below plan and here's what we're doing about that.