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Strategic Meetings Management Peter Moen Vice President, Carlson Meetings and Events.

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Presentation on theme: "Strategic Meetings Management Peter Moen Vice President, Carlson Meetings and Events."— Presentation transcript:

1 Strategic Meetings Management Peter Moen Vice President, Carlson Meetings and Events

2 Strategic Meetings Management I. Industry Changes II. What is Driving Change? III. What is Strategic Meetings Management? IV. Where are the Savings? V. What are my Options and Critical Success Factors?

3 Meeting & Events: A Fertile Ground Estimation of Meetings and Events spend is about 150 Billion US$ (35- 45 % of Business Travel spend) Historically meetings and events have been managed individually and outside of the corporate travel program Rarely do companies have group and meeting data to leverage with corporate travel data Meetings and Events often times is very nearly as much as corporate travel, varies by industry segment

4 Group Policies Source: AT KEARNEY Percentage of companies reported to have… "No formal policy "No formal policy but informal guidelines exist " "Meeting/Events policy as part of the T&E policy" Embryonic Meeting Events Policy 15 %36 %29 %20 %100 % Nascent Stage Best Practice

5 Procurement Involvement 60% 18% 15% Source: Prmedia Business Today To what extent has procurement become involved in your decision-making process

6 Procurement Involvement To what extent has procurement become involved in your decision-making process 41% 27% 32% Source: Prmedia Business Future

7 What is driving this Change?

8 Drivers of Change 9/11 – More control from Procurement Success of Corporate Travel Programs Sarbannes-Oxley Growth of the Internet

9 What is Strategic Meetings Management?

10 Individual Business Travel  Highly leveraged through established supplier programs  Big push to book through the Internet  Typically consolidated with one agency Large, Complex Events  Involves attendee mgmt, production, on-site assistance  Typically managed Ad Hoc  Separate procurement process Small Meetings  Arranged by Administrative Assts  Booked as corporate travel transaction  Little or no procurement process for airline or hotel selection and contracting Managed by Sales and Marketing Managed by Procurement Three Major Travel Spend Categories

11 A different process is followed for every meeting and event Existing Process Meeting/Event Arranger Procurement Process Suppliers Air Fulfillment

12 Consistent Procurement, Delivery and Air Process Meeting/Event Arranger Procurement Process Suppliers Air Fulfillment Strategic Meetings Management

13 Where are the Savings?

14 Corporate vs. Group CorporateGroup Air Hotel Much higher hotel (65% vs. 35%) spend in group travel  Due Food and Beverage, Meeting Room, Audio/Visual  High Yield business for hotels, can be used to leverage transient rates

15 Procurement Process Meeting Requirements Site Selection Bid Process Concession Negotiation Contract Negotiation Meeting Operation Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Size, Type, Timing, Flexibility, Destination options Air Analysis, Destination Scans, Final Specs Availability, F & B, Room Rate, Function Space Room Rate, Meeting Room, Commission, F&B Cancellation Penalties, Attrition, F&B Guarantees F & B Guarantees, Room Attrition/No Shows, Audio/Visual, Activities, Billing Review, Ground Transportation, Following ALL Steps can generate 15% to 25% Savings

16 “Unmanaged” Procurement Process Meeting Requirements Site Selection Bid Process Concession Negotiation Contract Negotiation Meeting Operation Without Steps 1-3, very little leverage, savings opportunity reduced Without knowledgeable, experienced on-site support, very little savings obtained during meeting operation Provides leverage with Suppliers, often these processes not followed without a policy and process Performing only Steps 3-4 reduces savings to <3% Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

17 Meeting Requirements Site Selection Bid Process Concession Negotiation Contract Negotiation Meeting Operation 62% of savings generated following all steps of Procurement process 38% of savings obtained during Meeting Operation Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Procurement vs. Operation

18 Savings Breakdown Majority of Savings are in Hotel Negotiations 15-25% Total Savings Opportunity

19 Spend by Meeting Type Low Complexity, (74%) yields the lowest amount of spend (26%) High Complexity, (8%) yields the greatest amount of spend (45%) # of MeetingsSpend

20 Savings by Meeting Type

21 What are my options?

22 Configuration Options Preferred Supplier –Allow planners to choose between 3-4 suppliers Outsource to One Supplier –Similar to corporate travel, leverage technology, processes and dedicated teams Manage internally, central services –Hire and manage process through internal workforce

23 Critical Success Factors Executive sponsorship is absolutely critical to success Change management plan - communications to stakeholders Issuance of the policy from senior management Policy Compliance: –Regular performance reporting on key metrics - divisional and senior management –Examples of how data collection will add to marketing and strategic sourcing intelligence

24 Estimating Spend What is our Meeting and Event Spend? What is the savings potential? What technology do we need? What is the cost of delivery? What is the Return on Investment?

25 Estimating Spend Meeting spend is a function of total T & E expense Step 1 - Estimate total T & E

26 Estimating Spend Meeting spend is a function of total T & E expense Step 2 - Estimate % of Meeting Spend

27 Estimating Spend Administrative Survey can also be used –Helps validate the “top-down” calculation –Helps identify stakeholders –Needs executive sponsor to ensure high response rate Questions will help identify # and type of meetings –How many meetings do you plan a year? –What size are the meetings?

28 Estimating Savings Savings is based upon spend categories Step 3 - Estimate Meeting Spend Breakdown Spend Breakdown % based upon consolidated database of spend

29 Estimating Savings Step 4 - Estimate Savings based upon spend breakdown Savings %’s by category are based upon historical results

30 Meetings Technology Meeting Request Qualification Procuremen t Sourcing and Contracting Invitation and Registration Airline Ticketing On-Site Execution Post Event Data Consolidate d Program Management Technology


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