Implementing Integrated Guidance - Case studies in communicating value-relevant information

KKS Advisors & The Generation Foundation / November 2015
Sakis Kotsantonis, George Serafeim, Daniela Saltzman, Shalini Rao

The Generation Foundation and KKS Advisors have collaborated to further develop the concept of Integrated Guidance. Integrated Guidance is a corporate communications strategy that aims to support long-term investors by providing them with relevant and meaningful information.

In this report the authors expand on the idea of Integrated Guidance and focus on the practical steps that companies need to take in order to implement it.  Companies should cease earnings guidance by answering two critical questions: 1. Is quarterly earnings guidance really important to investors? 2.What happens to companies that cease guidance? Examples of companies that have used the recommendations outlined in the action framework for CEOs are used to illustrate emerging practices. New data on how companies are already employing certain tenets of Integrated Guidance in their communication practices are presented. In order to make this assessment, the authors analysed financial and sustainability reports and quarterly earnings call transcripts.

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