How to maximise your potential with an IR mentor

One of the most exciting things about IR is the diversity of the role – as an IRO you can get involved across the business looking at strategy, communications, financial reporting, ESG, governance, fundraising, M&A, etc etc. Depending on your background when you joined the IR department of your company, you may have had experience of several of these, but it is perhaps unlikely you will have worked across them all before. In addition, whilst aspects are recurring (e.g. the annual reporting cycle), IR has a knack of throwing the unexpected at you – crisis communications, hostile bids, activist investors, leadership change, regulatory developments…

Creating an effective and successful IR programme can be challenging without the right support. As an IRO, and particularly if you are Director of IR or Head of IR, you will be expected to act as a trusted advisor to the Executive team and the Board. And very often, the IR team is small – in a typical mid/ small cap company, it is probably a team of 1 i.e. you. Of course, you have advisors – the corporate broker, NOMAD (for AIM companies) and potentially also PR and IR agencies, but a mentor brings a different kind of support.

Many companies have an internal mentoring programme, which is great. In general, a professional mentor brings the following benefits:

1. Experience and Expertise: A mentor brings valuable experience and expertise to the table. They have already navigated the challenges you may encounter and can offer insights, guidance, and practical advice based on their own successes and failures.
2. Knowledge Transfer: A mentor can share their knowledge, skills, and industry-specific information, helping you gain a deeper understanding of your field. This transfer of knowledge can accelerate your learning curve and equip you with the tools necessary to make informed decisions.
3. Networking Opportunities: Mentors often have extensive professional networks built over their careers. Through your mentor, you can gain access to valuable connections, introductions, and opportunities that may otherwise be difficult to access, expanding your network and opening doors for collaborations or future prospects.
4. Career Guidance: A mentor can assist in setting and achieving your career goals. They can help you identify your strengths and weaknesses, guide you in selecting the right career path, and provide advice on career advancement strategies. They may even offer guidance on specific skills or knowledge areas to develop to enhance your professional growth.
5. Emotional Support and Encouragement: Starting or advancing in a business can be challenging and stressful. A mentor provides emotional support, encouragement, and motivation during difficult times. They can offer a fresh perspective, act as a sounding board, and boost your confidence, enabling you to overcome obstacles and stay focused on your goals.
6. Accountability: A mentor can hold you accountable for your actions and goals. They can provide guidance on setting realistic targets, monitor your progress, and provide constructive feedback. This accountability helps ensure you stay on track and make consistent progress towards your objectives.
7. Expanded Perspectives: A mentor can help broaden your perspectives by challenging your assumptions, encouraging you to think outside the box, and offering alternative viewpoints. This can stimulate creativity, foster innovative thinking, and enhance problem-solving abilities.
8. Personal and Professional Development: A mentor can provide guidance on personal and professional development opportunities, such as workshops, seminars, or further education. They can help you identify areas for improvement, suggest resources for skill enhancement, and support your growth as a well-rounded professional.
9. Risk Mitigation: Having a mentor means having access to someone who has likely encountered similar challenges and risks. They can help you navigate potential pitfalls, share strategies to mitigate risks, and offer advice on decision-making processes. This can save you time, money, and unnecessary stress in your business endeavors.
10. Long-Term Relationship: A mentorship is often built on a long-term relationship, allowing you to benefit from ongoing support and guidance. As you progress in your career, your mentor can continue to provide valuable insights, serve as a trusted advisor, and celebrate your achievements.

But not everyone wants an internal mentor, for a number of reasons:

1. Limited Perspective: Internal mentors may have a limited perspective due to their familiarity with the organisation’s culture, practices, and biases. They might be influenced by the same organisational limitations and may not be able to offer fresh insights or alternative approaches that an external mentor could provide.
2. Conflicts of Interest: Internal mentors may have their own vested interests within the organisation, such as personal agendas or ambitions. This can lead to biased advice or guidance that may not be in the mentee’s best interest. It could potentially hinder the mentee’s ability to explore opportunities outside of their current role or department.
3. Power Dynamics: In an internal mentorship relationship, power dynamics can come into play. If the mentor holds a position of authority or has a direct influence on the mentee’s performance evaluation or promotion decisions, it can create a barrier to open and honest communication. The mentee may feel hesitant to express their true thoughts or concerns, fearing potential repercussions.
4. Limited Exposure to External Networks: An internal mentor may have limited exposure to external networks and industry trends. This can restrict the mentee’s access to diverse perspectives, innovative ideas, and potential opportunities that can come from connecting with professionals outside the organisation.
5. Narrow Skill Set: Internal mentors may possess a specific skill set that aligns with their role or department within the organisation. While they can provide valuable insights in their area of expertise, they may lack broader knowledge or experience in different aspects of the business or industry. This can limit the mentee’s exposure to a wider range of skills and perspectives.
6. Lack of Objectivity: Internal mentors may struggle to remain objective due to their familiarity with the organisation’s dynamics and politics. They may have preconceived notions or biases that can impact their advice or guidance. Objectivity is crucial for mentors to provide unbiased support and facilitate the mentee’s growth.
7. Limited Fresh Perspectives: An external mentor, coming from a different organisation or industry, can offer fresh perspectives and bring in innovative ideas. In contrast, internal mentors may be influenced by the organisation’s established practices and may not challenge the status quo or encourage out-of-the-box thinking.

This is where an experienced, external, IR mentor can really help.

An IR mentor is extremely valuable in terms of their detailed knowledge and practical experience of the IR function, within different organisational structures. They bring fresh insights and different perspectives. This can help a mentee develop their own skills and knowledge.

An experienced IR mentor will have probably also dealt with, or at least seen, a broad gambit of situations and scenarios and worked through them from an IR perspective, so they are ideally placed to act as a sounding board for options, prior to discussions with company appointed advisors or the Executive team.

An experienced IR mentor will have built a strong network of connections within the capital markets community from a range of different areas including the buy-side, sell-side, advisors, and service providers. By working with an experienced IR mentor, a range of networking opportunities can become available to mentees. This may help you take the next step in your IR career, which, although I may be a touch biased here, is the best career choice!

If you are curious to see how an IR mentor could benefit you, please do reach out for a confidential chat. Here is a quote from a Head of IR at a FTSE 100 company that I worked with for a number of years. “Lorraine provided professional, timely and insightful support throughout my transition to a leadership role in IR. I continue to lean on Lorraine to ensure I deliver best practice IR solutions whilst keeping my personal and professional development on track.”