EP27: Matthew Johnson - The Psychology Behind Investor Relations
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In the world of investor relations, communication and building relationships are paramount. To succeed in this field, you need to understand what influences a person’s investment decision. Knowing your audience well helps you to communicate and deliver information in a way that resonates with them. This week’s guest shares important insights on how to do just that.
Understand the Psychology of Investors
Matthew Johnson, the Director of IR & CEO Office at Vodafone, joins us in this episode to talk about the soft skills and psychology knowledge that have served him well in his career. He takes us back to when he first started working in corporate strategy, eventually finding his calling in IR. We hear about the different roles and industries he’s operated in, as well as the skills and knowledge he’s accumulated throughout his career.
Matthew explains his approach to coaching and maintaining consistent communication within his team, plus how that relates on a broader scale to Vodafone’s subsidiaries.
One of Matthew’s interests is behavioural psychology. He explains how he uses this to inform his approach to communicating with investors – both in meetings and in documentation.
Matthew’s conversation is full of brilliant insights and advice on how IR has changed during his career, how it differs across borders, his thoughts on the role of AI in Investor Relations, and the KPIs that IR professionals should prioritise.
In this episode:
· How working in IR delivery differs between Australia and the UK
· How Matthew built an IR function from scratch
· How focusing on commercial outcomes can enhance the success of ESG initiatives
· The benefits of understanding behavioural psychology in investor engagement
· Matthew’s approach to coaching team members across a large IR team
· How data helps you track trends to improve investor communication
· How to develop your specialist expertise to support your career
Quotes:
“Economic theory suggests that people, and therefore financial markets, are rational, always. Which is utter nonsense. It just doesn't happen because there are people involved. We are not robots.”
“The more data I get, the more my opinion turns into a judgement that I can then use to make a confident recommendation on how a plan should be enacted.”
“I've done over 10,000 meetings and my single ambition in every single one is to make that other person laugh. It's not because I want to be a comedian, it's about understanding the thought process, the physiological responses, as well as the psychological responses of humour. Immediately, it's breaking down a barrier and putting that other person at ease.”
Resources:
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