Are printed annual reports going the way of the dinosaurs? Do recent IPOs view and use annuals differently than Fortune 500 giants? An independent survey of corporate communications executives, conducted by Roper Starch Worldwide, provided some surprising answers.

Today the belief that the corporate annual report is primarily a financial document is more fallacy than fact. It is much more than that, according to the just-released Roper Starch Worldwide survey, "Annual Reports in the New Economy."

Most communications executives (93% Fortune 500 and 79% recent IPOs) questioned by Roper Starch state that printed annual reports serve so many purposes they will always be around. They go on to substantiate their opinion by revealing that their annual report press run (on average) in 1999 actually rose over the previous year; percentage-wise, recent IPOs increased their run by more than 40%. This is in spite of the fact that 82% of the Fortune 500 and 76% of the recent IPOs surveyed say they post their printed annual report on their corporate website..

One reason companies do not feel this is redundant is because annual reports serve so many purposes. Today they are used as marketing pieces, recruiting brochures, brand-builders, corporate image books and strategic positioning tools. Less than 25% of those surveyed believe that annual reports are just for individual investors.

These myriad uses confirm why surveyed executives rank the printed annual report as the single most important document their company produces. The fact that annual reports are regulated by the Securities and Exchange Commission (SEC), approved by the corporate CEO, and issued yearly imbue them with a credibility, authority and timeliness that other corporate collateral seldom command. Then too, unlike dry 10K documents which the SEC severely restricts in form and content, annual reports are allowed to include a CEO's letter and editorial theme with lots of appealing images. Most companies seize this opportunity by using the "narrative" half of the book to elaborate on the year's performance, introduce new products and services, explain corporate culture and lay out strategy all in a friendly, approachable tone of voice.

As might be expected, recent IPOs (60%) are more likely to involve the head of marketing in the planning process than Fortune 500 companies (27%). But the overall level of senior management involvement in all companies confirms that annual reports are not seen as just another communications piece, but are ranked in a category all their own.

Given the importance placed on annual reports, it is noteworthy that surveyed companies say that they rely heavily on outside design consultants not only to create the look of the book but to guide them through the entire process from developing creative concept and directing photography to selecting the paper and printer. A third of the recent IPOs questioned say that they basically ask the outside design firm to handle the whole annual report..

That's not so surprising, considering the emphasis companies place on visual quality. The majority of surveyed executives believe that annual reports produced from cheap materials i.e., amateurish layouts and artwork, inferior paper and printing imply that business is not good.

Conversely, they regard thoughtfully conceived design and imagery as an effective means of distinguishing a company's strengths, values and brand. Asked to identify the theme topic for the past year's annual, most mentioned the same broad categories progress, products and strategy. What helps to differentiate each message is the way the story is visually told. As a result, more companies are forming collaborative relationships with designers and treating them as integral partners in content development and presentation. Design is no longer viewed as an appendage to corporate communications. It is recognized as essential to reach audiences brought up on broadcast entertainment and Internet speeds.