What is an Annual Report and what does it do? – Part 1
We had a school student doing work experience at Navig8 who asked a simple question, ‘What is an Annual Report actually for?’. A simple enough question, you might think, but it turned out the answer was surprisingly complex and long.
So I gave a short answer: ‘it’s a document companies produce every year to report back to their stakeholders (what are stakeholders?) on the activities and finances over the last year’.
Job done. But it was a bit ‘light’. So I asked Google, and of course AI stepped in like the great big know-it-all all it is and gave me a ‘windy’ answer.
So I thought I’d turn the tables on AI and steal from it for a change and put it right, where it wasn't quite right.
Below is an edited and updated answer that’s a little shorter.
This is what it said:
‘An annual report designer focuses on the visual layout, branding, and storytelling aspects of a company's annual report, ensuring it's both informative and engaging. They work to present financial data, company performance, and strategic initiatives in a clear, visually appealing way, often collaborating with financial and creative teams.’
This is right, albeit a longer version, saying the same thing I said to the work experience person. But then it (AI) started to show off with what it thought was a more ‘detailed look’. In italics is the voice of AI. My comments are in Roman.
Key Responsibilities: I wouldn’t call them responsibilities.
Visualising Data:
Translating complex financial data into clear charts, graphs, and infographics.This doesn't address highlighting key data, drawing out the main messaging and addressing stakeholders' concerns and aspirations. In fact, AI’s answer does not include anything about the written content, except the storytelling aspect (see below) or any of the statutory reporting requirements that are arguably the reason companies are compelled to create an Annual Report in the first place.
Layout and Design:
Creating a visually appealing layout that follows branding guidelines and enhances readability.This goes without saying, and in terms of ‘enhancing readability’, I think it was referring to legibility. Readability relates to the copy text and how easily it can be read, as opposed to the design aspect, which enhances legibility. Yes, the report should follow brand guidelines.
Storytelling:
Using visuals and language to communicate the company's story and performance in a compelling way.Well, yes, storytelling is a ‘nice to have’ and we certainly encourage it. We often seek out the more personal stories to build a more engaging story. But the CFO will be way more focused on telling the shareholders about the financial position of the company and if they are going to get a nice fat dividend.
Collaboration:
Working closely with financial and marketing teams to understand the content and ensure the design aligns with the company's message.Yep. And the content must also align.
Staying Up-to-Date:
Keeping abreast of design trends and best practices for annual reports.Nope. Nothing to do with it. A relevant design that creatively communicates the client's and document’s messages is what is important.
What Makes a Good Annual Report Design?
Clear and Concise:
Ensuring the report is easy to understand and navigate.Yes, well done. Not very helpful, though.
Visually Engaging:
Using graphics, visuals, and a well-chosen colours scheme to capture attention.More rubbish.
Brand Consistent:
Adhering to the company's branding guidelines for a cohesive look and feel.AI has already mentioned this, it is just padding.
Effective Storytelling:
Using visuals and language to tell a compelling story about the company's performance and future direction.Yawn. This is what AI does. It is like a consultant that doesn't really know what it is doing. So it throws out as much as it can, often repeating itself, to make it look like it knows what it is talking about.
AI goes on and on saying the same things over and over again giving no depth or true understanding of the question.
In Part 2 I’ll answer the question properly.