Managing expectations shouldn't require you to change the company to meet investor expectations.

However, you may need to refine your messages.

If an investor is not pleased with the progress your company is making, perhaps their investment style doesn't match your investment characteristics.

You may need to refine your shareholder mix.

If dedicating 40 percent or more of your time to the financial community is not producing the desired results, more of the same will only increase your frustration rather than increase the valuation of your stock.

Perhaps you aren't allocating your time appropriately.

Turnaround situations are risky and a lot of work, but very rewarding. One of my most memorable corporate turnarounds was a company, which although benefiting from a great brand name, had become a high cost operator in a consolidating industry. The new executive management team developed and successfully executed the strategies to improve profitability through operational efficiencies, technology enhancements, better aligning its organizational structure and pursuing new business opportunities. Essentially they changed everything except the shareholder base.

The valuation of our shares didn't appropriately reflect the long-term view on profitability until we achieved a better match between the investment styles of our shareholders and the investment characteristics of the new operating model.

Lesson: Don't forget to transition your shareholders as you transition your company. Providing information about the changes occurring in your operating model and prospects for growth is not enough. You need to analyze your shareholder mix and may need to make changes by targeting institutions with the investment styles that better match your investment characteristics.

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