Monitoring Performance and Continuous Improvement Chapter Fourteen Monitoring Performance and Continuous Improvement

Chapter learning objectives 14.1 Understand the techniques for monitoring performance in an event management context 14.2 Understand the techniques for controlling performance in an event management context 14.3 Explain the key factors leading to development of a sustainable competitive advantage in the event industry 14.4 Appreciate the importance of developing effective working relationships with key stakeholders 14.5 Explain key strategies aimed at measuring stakeholder satisfaction

Chapter learning objectives 14.6 Appreciate the importance of a market orientation for event enterprises 14.7 Understand the strategies aimed at development of a market orientation 14.8 Understand the concept of a learning organisation and explain the strategies and techniques for developing a learning orientation 14.9 Explain the key change management concepts and techniques, and the strategies associated with continuous improvement.

Units of Competence and Elements SITXEVT301 Access information on event operations 1. Access and interpret relevant industry information 2. Source information on event industry practice, products and services 3. Source and use compliance information in daily activities 4. Access and use information on events technology 5. Update personal and organisational knowledge of the event industry SITXHRM503 Monitor staff performance 1. Monitor staff performance and provide feedback 2. Recognise and resolve performance problems 3. Implement performance management systems

Units of Competence and Elements SITXMGT501 Establish and conduct business relationships Build business relationships Conduct negotiations Make formal business agreements Foster and maintain business relationships BSBMGT516C Facilitate continuous improvement Lead continuous improvement systems and processes Monitor and adjust performance strategies Manage opportunities for further improvement

Introduction Organisers need to continuously improve in order to remain competitive. Current levels of performance first need to be monitored. Event organisations will only achieve a sustainable competitive advantage if they can satisfy the needs of key stakeholders.

Monitoring event performance Ensuring that appropriate procedures are followed: Completing documentation associated with all stages of the event Gaining required permissions and approvals Following cash handling procedures and establishing controls Carrying our safety audits and procedures Developing a transport plan Developing logistics management plans Developing security plans and procedures. Running an event requires attention to detail. Procedures must be in place to do this. Documentation – covering legal requirements, reporting systems, control systems. Lack of documentation means poor administration, poor workflows and often leads to communication issues. Permissions/approvals – licensing, approvals (e.g.: Council), emergency services. Failure to secure these will lead to event failure. Cash handling – need to guard against theft or loss by implementing a procedure and conducting risk analysis. This includes areas where takings are held and transportation of moneys between locations. Safety audits – in regards to crowd control for large numbers of people. Behaviour management to minimise risks. Identification, assessment and control of other risks such as uneven surfaces, underage drinking, etc. that also pose significant risk or hazard to the success of an event. Transport plan – liaising with authorities, crowd control, ingress and egress strategies, availability of policy and security personnel to assist. Logistics management plans – bump in/bump out procedures that are timely, sequential and safe, including guest safety and compliance with legal/approval processes. Security plans and procedures – especially in relation to emergency situations, such as evacuation pans, chain of command, etc.

Monitoring event performance Ensuring that current performance objectives are achieved Number of customers at the event need to predict numbers interpret trends and factors Revenue and profitability guest numbers guide revenue also consider sponsorships and donations control of expenses via budget Satisfaction of key stakeholders can be considered most crucial element. Numbers – Event managers can get ‘gut feel’ for expected numbers based on experience. Should be a link between numbers and marketing/advertising strategies. Early on, you can be looking for responses to pre-marketing, website hits, accommodation bookings in local hotels, etc. to indicate how marketing is working. Revenue/profitability – Need to monitor sponsors relationships to reduce risk of losing sponsors and facing budget gaps. Budgets are a key control mechanism and need to be monitored constantly. Can be adjusted to accommodate changes.  Activity – Choose a major outdoor festival. Name five issues that might affect profitability at this festival. How would you gauge the signs ahead of time and how would you reduce the impact on the event?

Monitoring event performance Providing a basis for developing strategies for future improvements Learn from experiences, success and failure Understand why previous events were/were not successful Monitor previous performances and track trends Use these to plan for future events e.g.: customer feedback is a rich source of information on meeting the needs of target markets Complaints can be used as an opportunity for improving processes.

Controlling event performance Control dilemma Need to be flexible and encourage innovation BUT also need to keep a reign on costs and processes Events fail due to lack of control over areas such as: planning regulatory requirements gaining public support HR issues over volunteers and employees cash flow and expenses leadership skills of event managers.

Controlling event performance Types of control Feed-forward control also called preventive or steering control before the event systems in place to ensure inputs are up to standards Concurrent control during the event controlling activities while they are happening potting in place the contingencies that have been planned quick response usually required to reduce dissatisfaction Feed-forward – Training employees prior to an event prevents poor performance at the event, using planning tools like Gantt charts and checklists reduce the risk of bad management of resources. Allows event managers to prevent or reduce problems in the planning stage. Concurrent controls – needed when something goes wrong at the event. Should have these controls in place so they can be quickly and easily applied if necessary. An example would be having spare equipment in case equipment faults occur, with technicians on stand by to assist with installation.

Controlling event performance Feedback control occurs after the event makes use of feedback based on KPIs makes use of accurate information, not projected figures can assist with future planning but generally too late to benefit the current event.

Achieving a sustainable competitive advantage Remaining competitive is reliant on use of better work methods, more skilled workforce and strong alliances with contractors. Factors that are crucial to achieving a sustainable competitive advantage are: Close and effective working relationships with key stakeholders Spirit of entrepreneurism Learning-orientated culture Structures that allow for entrepreneurism and learning orientation. Events are becoming larger and more complex. There are many more events, and each are competing for audiences, media attention and funding from sponsors. Keeping stakeholders satisfied is the key to being competitive.

Aiming for stakeholder satisfaction Event stakeholders include: client organisation customers sponsors media employees/volunteers contractors/suppliers participants emergency services/regulatory bodies host community.

Aiming for stakeholder satisfaction Measuring stakeholder satisfaction Need to consider differing needs of stakeholders Measuring satisfaction of stakeholders is essential Conducting surveys very useful method of gauging satisfaction keep number, size and complexity of questions to minimums Receiving suggestions and complaints unsolicited comments are often full of useful information complaints can be used proactively – they highlight issues for improvement that can increase customer satisfaction Surveys – Balance the need for extensive information against a survey that people want to complete – keep it basic. Can be done orally (where volunteers ask people questions ands record the answers) or by asking people to complete a written format, or something online. Use of Likert scale – responses against a statement, where respondents choose from a scale like 1.Strongly Agree, 2.Disagree, 3.Neutral, 4.Agree, 5.Strongly Agree.

Aiming for stakeholder satisfaction Measuring stakeholder satisfaction (continued) Monitoring and analysing stakeholders need to seek information about all stakeholders look at activities they undertake Observing stakeholder behaviour watching stakeholders at the event helpful to observe the behaviour of volunteers and staff Communicating with stakeholders should be frequent and informal listen to stakeholders carefully get greater understanding of what is and is not possible. Monitoring stakeholders – Look at what events they attend, attractions they are interested in, services they utilise and what they spend their money on. This will help you target their needs better for your event. Observing stakeholders – Watching staff and volunteers can show gaps in customer service and knowledge, which in turn can improve training procedures. Communicating with stakeholders – Building relationships and communicating with stakeholders often can lead to less time being spent in negotiating as trust is strengthened and respect gained.

Developing a market orientation Identifying and meeting the needs of customers. Involves: spirit of entrepreneurship collection and analysis of quality customer information awareness of the competition utilisation of information to provide superior value. Entrepreneurship is vital to events businesses – always a new event that needs something innovative. This needs to be rewarded and encouraged. Control may need to be relaxed to allow creativity. Involves a spirit of entrepreneurship, ongoing collection of information about customer needs, awareness of the competition and use of the information collected to provide value. Entrepreneurs have skills such as creative thinking, risk tolerance, persistence, vision, emotional discipline and are open to change. These qualities are very important in events workers as it allows them to be competitive, fresh and engaging.

Developing a learning orientation Learning about customer needs faster than competitors. Types of organisational learning Single-loop learning Addressing problems without questioning why they are occurring Double-loop learning Question assumptions about problems and therefore the way they have been dealt with previously. Need to know what customers want from an event, ways of developing events that meet customer needs and promoting events to target markets effectively. Must learn to do this in a way that is more innovative than competitors.

Developing a learning orientation Learning organisations: use combination of single- and double-loop learning develop new approaches by using double-loop learning improving systems through single-loop learning systematic problem solving ongoing exploration ongoing experimentation learning from successes and failures learning from others the dissemination of information.

Organisational change and continuous improvement Need to have continuous improvement of systems and processes for planning and running events. Can be small improvements or large breakthroughs. Improve efficiency, effectiveness in meeting objectives, flexibility and capacity and the impact of the event. Continuous improvement strategies usually result in employees creating opportunities, making suggestions, looking at their own performance and sharing knowledge and ideas.

Organisational change and continuous improvement Change management Must be adaptable to change in order to be successful Successful change management activities are: motivating change creating a vision developing stakeholder support managing the transition sustaining momentum. Motivating change – Employees need to be aware of the need for change and what can be gained. People generally resist change, but events managers need to involve employees so they feel more confident about change and are ready to embrace it. Creating a vision – Ensure that employees have a clear vision of what is needed so they know what can be achieved. Developing stakeholder support – clear communication with stakeholders to identify their needs and reduce their anxiety about change, reassurance and involving stakeholders in the process to increase understanding and comfort. Managing the transition – Developing systems to show people what will be happening and how it creates better ways of doing things. Sustaining momentum – Encourage people to continue in a way that maintains change and improvement, document processes and their results, reward and recognise contribution from staff and volunteers towards the improvements to increase motivation.

Chapter summary Monitoring performance is the most effective way to ensure that procedures are followed and objectives are met. A delicate balance between control and creativity must be achieved. Stakeholder satisfaction is a key reason why performance monitoring is so important. Continuous improvement is necessary in the dynamic, competitive events industry.