On Sunday night, Reed Hastings, the co-founder and CEO of Netflix, posted this apology letter on the company’s corporate blog. Since the company announced it was separating its streaming video and DVD services and raising prices, customers were both enraged and confused. Netflix’s poor customer communication following the announcement only fueled the fire. Since then,the company’s performance has suffered, and Netflix’s stock price and subscribers have dropped off steadily (as noted in this CNNMoney article).

While the future of Netflix remains uncertain, Hastings’ letter provides some insights on corporate communications in the digital era.

For one, Hastings’ letter illuminates the need for genuine, transparent and straightforward communications. Corporate communications professionals can over think important communiques such as this or muddle the message with corporate-speak. Instead of talking about “solidifying our future,” “accelerating organic growth” or “shoring up our competitive position” (or any number of other overused corporate buzzwords), reconsider the approach.

When Hastings said, “I messed up. I owe everyone an explanation,” it resonated with customers, investors and other key stakeholders more than standard corporate verbiage.  Of course, the message usually isn’t as simple as “I’m sorry.” In fact, outlining what the company is doing to remedy the situation is just as important as acknowledging missteps. For Hastings, it was as simple as, “Here’s what we’re doing and why.”

Secondly, the fact that Hastings delivered this communication through Netflix’s corporate blog is also telling. The vehicle enabled the company to be as conversational as possible and provided a platform for customers, employees, investors and others to comment and provide feedback. To date, there are more than 24,000 comments and more than 32,000 people have “liked” the blog post on their Facebook page. While many customers remain angry and frustrated (understandably so), others applauded Hastings’ letter and supported the new direction of the company. Regardless, their voices are being heard.

Striking the right balance between making CEO communiques conversational and human – yet direct and actionable –  can be a difficult assignment. While Netflix has a long way to go to win back customer  trust and repair its corporate reputation, this letter is a promising step in the right direction.

Each quarter investor relations, finance and corporate communications teams devise a company’s quarterly earnings press release. In an era of heightened corporate accountability and transparency, earnings press releases are examined by a range of key stakeholders, including institutional investors, analysts, media, regulators, NGOs, competitors and other audiences.

As earnings season ramps up this fall, here are ten best practices for strengthening your next earnings press release.

1. First and most importantly, use the earnings release as an opportunity to reinforce corporate key messages. Interweave key points about the company’s strategy, competitive differentiators and investment merits throughout the press release.

2. Remember that there’s always more to the story than just the finances. Were there major customer wins, product launches, geographic expansions or strategic partnerships formed during the quarter? Did the company recently file its IPO? Highlight those in the context of how they are driving financial results and supporting the company’s overall strategy.

Financial stakeholders closely evaluate all components of a quarterly earnings release.

3. Make the CEO/chairman’s quote quotable. This sounds easy enough, right? Unfortunately, many press releases miss the mark on this. Carefully consider the tone and word choice, and remember that the quote may be cherry-picked by reporters and utilized in media coverage (especially if the company doesn’t hold a shareholder conference call or conduct media interviews on earnings day).

4. Be transparent about shortcomings and outline how the company is taking actions to correct any issues. Work closely with finance and operations to fine-tune these important and delicate messages.

5. To the extent it’s possible, go easy on the “legalese.” Lawyers will most certainly need to be involved in finalizing the press release, but opt for clear, concise language versus something that reads like a contract.

6. Use bullet points to highlight key themes and financial metrics from the quarter at the beginning of the release. With stakeholders’ limited attention spans, this approach will prominently position your key points in a succinct manner right from the start.

7. Within the parameters of disclosure rules, articulate the company’s vision and plans for the future. Stakeholders want to know where the company is headed and reinforcing this through multiple channels (including earnings releases) builds confidence.

8. Make it a team effort. Work closely with legal, finance and investor relations teams to ensure the press release meets all stakeholder needs while also leveraging each department’s respective areas of expertise.

9. Leave yourself enough time. Start the press release development process early. With so many departments involved in drafting and finalizing the press release, the review process can become unwieldy. You’ll thank yourself later for having additional time.

10. Start fresh every quarter. Always reflect on the process and content of the press release and examine what can be improved next quarter. In many ways, every quarter is a fresh start.

Last month marked two high profile corporate events:  the Arcos Dorados IPO and the Zip Car IPO. Understandably, these complex transaction are managed by a team of bankers, lawyers and company executives steeped in SEC filings and seemingly endless road show meetings in the weeks leading up to the big bell ringing on listing day.

For corporate communicators, an IPO is far more than just the thirty-second rush of the bell ringing. IPO communications presents a key corporate positioning opportunity that has lasting impact on a company’s reputation.

Reputation Partners recently led communications and event planning efforts for Arcos Dorados’ IPO on the New York Stock Exchange. As McDonald’s largest and only franchisee in Latin America, the IPO presented a key opportunity to launch the company onto the global stage and introduce it to a wealth of new stakeholders, including investors, analysts, business/financial media and others.

When executing corporate communications and event planning efforts surrounding a high-profile transaction such as an IPO, corporate communicators should consider the following:

• Collaborate with Legal: We’ve talked in the past about the need for PR and legal teams to work together to ensure that a corporation’s strategic communications and legal needs are met. In the case of an IPO, this is crucial. Get in front of internal and external counsel as soon as possible to talk through the communications strategy and get their buy-in.
• Think BIG When it Comes to Corporate Branding: During the GM IPO, the company made a splash with its simple, yet dynamic display of automobiles outside of the NYSE on listing day. Arcos Dorados enticed NYSE traders with breakfast pastries found only in McDonald’s in Latin America and displayed a dramatic banner on the historic building’s facade. Going public is a once in a lifetime corporate branding and reputation building opportunity. Think big. Make it memorable. Make it your own.
• Media Training is Essential: Even for the most seasoned and media-savvy CEO, media training prior to listing day is key. Ensuring the spokesperson is on message, comfortable in front of the camera and refreshed on media interview techniques will make listing day media relations efforts run smooth – and make certain that a media interview doesn’t go awry.
• Don’t Forget About Employee Communications: While it’s easy to get wrapped up in reaching external stakeholders, communicating with employees about this significant and exciting moment is just as important. Make certain the CEO gets face time with employees on listing day – be it through a live webcast or a prerecorded message. Consider assembling employees together to watch the bell ringing and celebrate together. When listing day comes to a close, employees should feel positive and encouraged about the company’s future.

A corporate communications professional will wear a variety of different hats in the days and weeks leading up to the IPO. Following some of these key guidelines will make certain the event is both successful and memorable.