Lessons from Mother Nature on IR Strategy

Hermes, the god of travel, trade, and roads, had a knack for language, luck, and wiles. As a messenger and a translator for the gods, he moved between two worlds: that of the mortals and the divine. Lately, we’ve undergone a similar sort of shift shaping experience, but it wasn’t caused by the arrival of the second quarter or the record-breaking spring temperatures in New England after a month of monsoon like rain.

First, there was the 4.8 magnitude earthquake last Friday morning. Centered in New Jersey, approximately 45 miles west of New York City, this seismic event was felt as far as Connecticut, where Harbor Access’ North American headquarters is located. Since then, nearly 30 aftershocks have occurred, with the strongest late arriving late in the day on Friday rattling many all over again. For most of us, it was an unprecedented event here on the East Coast, and one that we’ll not likely forget any time soon.

It's hard to compete with an earthquake but Mother Nature whipped up a few good ones like the solar eclipse that transpired across the US on Tuesday. It was an incredible sight to behold, even here in Connecticut where the moon only covered the sun at 90-95% in a partial eclipse. Both events are worthy contenders for a spot in our memory banks.

Yet, another marvel is on the horizon as Mother Nature never ceases to surprise. Two broods of periodic cicadas are due to appear simultaneously in the coming weeks. This is the first time in 23 years that all seven periodical cicada species who only emerge every 15-17 years will be seen as adults in one year. In fact, the last time it happened was in 1903.

Luckily, our Connecticut Brood (Brood II) is badly timed to get in on the noisy party and won’t emerge until 2030. However, if you’re the type who enjoys being swarmed with trillions (yes, trillions) of cicadas, the epicenter of hatching will take place in Illinois and northwest Indiana.

Now, about that solar spectacle earlier this week – wow. It was like an energetic reset, carrying a rousing spiritual reawakening like the start of Q2. It’s been quite a month so far. The labor market remains sturdy, and the economy is still humming along with real GDP growth stable. Inflation is likely to remain above (but approaching) the Fed's target of 2% through 2024, reflecting persistently higher service price inflation, even as goods prices start to ease modestly.

A recession in the next 12 months appears less likely now than it did in the spring of last year. However, the things that helped increase demand in 2023, like people spending money and government spending, are expected to decrease over time. Also, continued tight monetary policy will likely hold back business and housing investments.

While higher interest rates, like eclipses, are often viewed as omens of impending doom, this week's total eclipse should be seen as a positive and serves as a valuable reminder of best practices in IR messaging strategy.

Management should focus on creating a build-up to major announcements to attract audiences (you know what they say about anticipation), and strategically plan messages for optimal visibility and impact (consider timing and consult a calendar).

Lest we forget, the power of a shadow: coordinate your activity or event (and the message) to coincide with other significant events so that your message won’t be ignored. And take safety seriously. Always prepare for backlash because when you anticipate possible negative reactions or controversies, you can prepare responses to help you navigate through them smoothly.

Lastly, a quick shout out about the UConn Huskies basketball team, who we wrote about last week. The men’s basketball team showcased extraordinary teamwork and leadership propelling them to success at this week's NCAA basketball championship. If you didn’t read last week’s piece, read it here.

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