Advancing Your SMMP - Globally


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Session: Advancing Your SMMP - Globally
Presented by: Kevin Iwamoto , Vice President, Industry Strategy, ACTIVE Network Business Solutions and Susan Dupart , Senior Director, Global Travel, Meetings, Corporate Card & Mobility, McAfee Corporate Event Planners
Date and time: Tuesday, June 25, 2013, 3pm

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  • Even with continued economic uncertainty globallyTravel prices continue to rise as companies continue to travel and meet with customers to grow and expand businessEmerging markets look stronger than North America & Europe over 11% growth China, close to 11% for India, 7% Brazil Meanwhile, in developed countries, expect slower volume growth:UK: around 5%,U.S. near 4&, Germany – just under 3%Here – you can see the regional variations for air, hotel and car rental prices forecasted by Carlson Wagonlit BusinessTravel ForecastBottom line – meetings are going to be more expensive … maintaining meetings budgets is going to continue to be challenging. **note H1= first half of year H2 = 2ND half
  • For meetings spend, North America will be strong spot in the world for growth, says CWT: 4% rise in average meeting size/6.5% hike in per-day attendee cost. Meanwhile, Europe, the Middle East and Africa may see declines in average meeting size of up to 3% Look for 6% drop in per-day attendee cost.
  • Today I’m here to talk about today’s event trends – and how they present both challenges and opportunities for your events programs.We had a similar summit to this one on the east coast – and one of the best comments that I heard the team report back was from Judy Bauer, of Marsh who was recently named an industry changemaker who said in a panel – “let me tell you, there is no better way to get a strategic meetings management program endorsed by your senior leaders than for there to be a recession!”Of course – we know from working with our customers – while the will may have been there – it was difficult for some to get the funding to launch a program – so once again, challenges and opportunities go hand in hand.I think a lot of folks would argue that the past few years of corporate scrutiny on events has also led to a greater understanding of their role and the value events provide.Working with our deep customer base, we know that event and meetings managers continue to the following challenges:
  • I know that some of you may have seen this before,theEvent Trends report ACTIVE released based on an analysis of RFP data from 2008-012 for five key cities: New York, Orlando, Chicago, Las Vegas, and Los Angeles. We looked at some of the eRFP trends that we see in our global meetings marketplace.Indeed the challenges brought on by the 2008 recession Stemming from the recession a few years ago – we saw events and corporate spending get cut so drastically –30 to 40% easily.If the Enron Fiscal era shepherded in the Sarbannes Oxley legislation and emphasis on corporate procurement – this past recession shepherded in the emphasis on constraint and event ROI and corporate social responsibilityAlong with significant improvement in virtual technologies that have brought down the necessity for tons of people to travel to an eventMeetings are smaller – by paring the number of people attending events, often to under 50;Smaller is the new big – because companies want to control event costs … avoid perceptions of lavish spending
  • ACTIVE Network research also finds:- Companies are meeting shorter -- by reducing event length to same or one-day meetings;More than one-third (35%) of events in 2012 were one-day or less – versus 23% in 2009
  • For the past couple of years, companies have literally been planning on the fly – by sourcing for meeting services with less lead time in order to accommodate fluctuating event budgets. almost one-third (31%) of eRFPs measured by ACTIVE had average lead times of 0-60 daysHowever, Meeting Professionals International's 2013Business Barometer for April 2013, shows bookings for corporate meetings in the United States are rising and lead times are extending. Association meetings numbers are up slightly in the U.S., Competition for space is pushing many corps to book more in advance – The only exception to this is in Europe.
  • The interesting thing to note – is that these numbers completely fil-flop when you compare US to Europe – Europe is still not out of the recession, meetings are staying flat and shorter lead times still prevail while activity is up in all other regionsThe intersecting thing to note is the gap… between how much higher attendance is growing as w percentage vs. how much budgets are increasing… what does this mean for you?
  • The latest study conducted by American Express asked both meeting planners and leaders about the differences between company policies and actual behavior. • Develop standard addenda and review processes for ancillary contracts;Develop a contract signing authorization matrix outlining the appropriate levels of staff who are allowed to sign contracts;• Adopt online tools enabling meeting requestors to create estimated budgets, track actual spending and expenses;Mandate the use of corporate purchasing cards for all meeting expenses to help meeting planners maximize budgets; andEstablish and frequently update a Standard Operating Procedure or plan to offer guidance in emergency situations.
  • Establish and frequently update a Standard Operating Procedure or plan to offer guidance in emergency situations.Its becoming critical to have standardized meetings tools in place that are capturing your attendee data – and that stakeholders/responders in your organization know where to find this data
  • At most companies everything is very siloed and decentralized. For a while there has been the argument that the larger events can’t come together -- but the current environment is really pulling things together. There’s a need to consolidate technologies reduce costs integrate dataOnly technology Active Network’s you can utilize one platform to manage every aspect of your conference or major event – from speaker and content submissions, to exhibitors to social media.
  • The issue of data is also driving a convergence for SMM and events.Big data – this term was originally coined to comprise the voluminous data sets that have become unwieldy to deal with--- but is now evolving to characterize all of our frustration with trying to manage and be strategic with the data we have. Because of this information analysis – there are a lot of 3rd party groups entering the fray offering to provide data analysis …What info is strategic?What dashboards are really important to present to your executive stakeholdersWorking with our clients on best practices This is where consolidated technology can really come to play One data format And w/ today’s proliferation of event technologies – if you’re using multiple point solutions or various solutions across your events- you’re having to integrate various data sets in various formats to consolidate and share across systems – assuming you’re really able to consolidate it at all.Working with our extensive client –base our successful customers have developed the dashboards that work within organizations.For marketers, the key questions are tied to data quality. With reporting, we’re able to track information on the entire attendee journey, providing you with information on how attendees are interacting with your event.
  • As the recession hit – our industry rallied to build its case, demonstrate its value – existence – and there has been a proliferation of studies in the past year that point to the value of meetings and events. (perhaps we should share them with the officials over at the IRS as they head into their congressional hearings!!)USA Today reported this recent industry study - A new Oxford Economics report commissioned by the U.S. Travel Association, The Role of Business Travel in the U.S. Economic Recovery, The report looks at corporate business travel and performance across 14 business sectors over an 18-year period.It has found that companies that spent the most on business travel through the last recession are seeing higher revenues and profits than those that spent less.
  • From this point onward, Susan will take you through the various SMMP components and illustrate how she customized them to match the goals and objectives for McAfee’s SMMP.
  • Define – What is a meeting?Register all meetingsCapture dataSize/type, requirementsBudgetObjectives/ROIGain: Company-wide visibility
  • Best practices:Strategic sourcingCancelled space mgmtSteps in this phase:Supplier identificationNegotiationContracting/Risk MgmtCan be any model -Sourcing team, 3rd party, dedicated planner
  • Can be sourcing team, 3rd party, dedicated plannerEnsure procedures are in place at every step:BudgetComplianceEnsure goals are met:Quality of eventE-marketingAttendance
  • Methods: PO# or meeting cardDevelop budget codes to track all expenditures enterprise-wideReconcile expenses
  • Meeting metrics:Attendee surveysROIBudgetEnterprise Data:Supplier usageHistorical trendsSpend by division/dept…
  • Add new inserts from Susan after this slide
  • Advancing Your SMMP - Globally

    1. 1. SMMP IndustryUpdates &McAfee Case StudyKevin Iwamoto, GLP & GTPVP Industry StrategyACTIVE Network, Business SolutionsSusan Dupart, Senior Director,GlobalTravel, Meetings, Corporate Card & MobilityMcAfee
    2. 2. THE Meetings industry: A BIGINDIRECT SPEND CATEGORY• 48% of corporate T&E and meeting pros say theirfirms’ procurement departments are involved inmeeting management.• Corporate Meetings & Event industry wasapproximately $360 billion in 2010• Meetings represent 9% of the averageorganization’s total budget• 36% of companies have strategic meetingsmanagementprograms in the US.1-Business Travel News, the "2012 Strategic Meetings Management Study," 2 - CWT Travel Management Institute 2010, 3- Strategic Meetings Management: A Handbook of Emerging Strategies for the Next Generation of Meetings and EventsManagement, Aberdeen Group 2012, 4 - 1-Business Travel News, the "2012 Strategic Meetings Management Study
    3. 3. Challenge: RisingTravel Prices WorldwideSource: CarlsonWagonlit BusinessTravelForecast
    4. 4. NorthAmerica4% rise in avg.meeting size6.5% hike inper-day attendee cost.Challenge: Uneven Global Meetings Forecast3% decline in avg.meeting size6% drop in per-dayattendee cost.EMEASource: Carlson Wagonlit Business Travel Forecast
    5. 5. Strategic Meetings Managementpolicy processcontrol peopleStrategic Meetings Management (SMM) is a disciplined approach to managingenterprise wide meeting and event activities, processes, suppliers and data.
    6. 6. 2525SMMP – Registration/Approval of MeetingSupplier advantages: Highly qualifiedmeeting proposalsCorporate gains: Company-widevisibility via centralcalendar Annual savings rangingfrom 1.6% - 3.9% Approval workflowaudit trail (i.e. SOX) Annual savings rangingfrom 1.2% - 2.8%
    7. 7. Supplier advantages: Automated lead response Leads reach right person Integration with CRM system Preferred supplier programsCorporate gains: Driving preferred supplierusage Improved leverage from totalspend accuracy fornegotiating rates Annual savings ranging from8.6% - 13.8%25SMMP – Sourcing / Procurement
    8. 8. Supplier advantages: Automated room listsCorporate gains: Quality of event Improved marketing ofevent and sessions Automation of manymanual tasks Annual savings rangingfrom 1.1% - 3.2%25SMMP – Planning / Execution
    9. 9. 25SMMP – Payment / Expense ReconciliationSupplier advantages: Fast payment Reduction in billingand invoicing costsCorporate gains: Integration to financialsystems Separate real timemeetings and T&Espend analysis Annual savings rangingfrom 0.3% - 1.1%
    10. 10. Components of Meeting CardProgram One card issued per meeting Declining balance card or monthly card limits can be set based onestimates of the highest expected amount of monthly charges Can be used to pay all suppliers, including hotels, groundtransportation, signage, restaurants, on-site fees, etc. Can be opened early to pay for deposits and closed after all eventinvoices have been paid Transactions can be reviewed and approved on-line within three days Transactions can be reallocated to other cost centers within the samecountry AP pays the card balance directly and internally bills designated costcenter.
    11. 11. Payment Method ComparisonGlobal Meeting Card Program Global Purchase OrderCan be opened and ready to acceptcharges within 7-10 daysStandard payment terms for payingsuppliers is 45 daysOne meeting card can pay manydifferent vendorsTraditional PO process requiresseparate PO be opened for eachvendorNo minimum transaction amount Minimum PO transaction amountReduces number of payments APprocesses—one payment to cardcompany per month for alltransactionsAP processes separate payments foreach vendorSuppliers who accept corporate cardwill already be set up in paymentsystemSupplier must register and submit taxdocuments in order to be added tocompany’s payment systemReduced internal processes Multiple approvals required
    12. 12. Payment Method Comparisons - cont.Global Meeting Card Program Global Corporate Purchasing CardCan be used for traditional meetingvendors such as entertainments,florists, etc.Many traditional meeting vendors areblocked on individual CPC cardsLimits are determined by eachmeeting’s unique budgetIndividual CPC cards may not have ahigh enough limit for traditionalmeeting expenses
    13. 13. 25SMMP – Global Data Analysis / ReportingSupplier advantages: Evaluate market share Compete and optimizelead managementCorporate gains: Central reportingdatabase anddashboards Real time enterprise-wide accuracy Annual savings rangingfrom 0.5% - 1.3%
    14. 14. Technology connects all the puzzle pieces: AutomationDelivers efficienciesDrives common standards SourcingMature, consolidated marketplaceAutomates processesCentralizes data VisibilityImproves visibility to meeting activityReduces/eliminates paperwork ComplianceSupports/enables pre approvalReporting capabilities from the meetinglevel to the enterprise level25SMMP – GlobalTechnology
    15. 15. Central Resource – BetterVisibility• Start with “Sourcing Only” option – full service would beavailable• Employee owns meeting content and management ofprogram• Visibility to cancelled programs and cancellation penalties• Centralization provides ability to re-use cancelled space• Cancellation of 2 programs within two weeks = $46K• Global Advisory Council• PM Leadership Offsite• Global Master Calendar• Provides pipeline visibility into future meetings and events to ensure no overlap• Proactive vs. reactive for strategic decisions (cost reductions)• Provides visibility to global events (APAC & EMEA Kickoff)
    16. 16. How did McAfee Succeed?Creation of Global Governance Team• Executive Finance VP’s from all Geo’s• Meet quarterly to propose new initiatives• Global Travel Dashboard• Pulls travel data from AX, expense reports, SAP, Hyperion, providingbetter travel data• SMMP• Identified cost savings, better global visibility• Definition of “Meeting”• Creation of Global Meeting Policy with approval guidelineswhile ensuring cultural/Geo specific’s• Creation of meeting contract template to ensure McAfeerequired T&C’s are included prior to final negotiations• Develop easier payment vehicle, reducing Sourcing and APprocessing time• Phased rollout plan
    17. 17. Why Is McAfee Going Global?• Increased spend on Meeting Card provides increased Geospecific rebates based on new global card contract• Corporate move to provide structure to programs to make them“global” while supporting cultural differences• Centralized data provides better compliance to RiskManagement, Legal, Regulatory and Financial compliance• Global calendar for visibility of meetings/events• Eliminates conflict of dates for important global meetings• Provides visibility should need arise to cancel meetings for costcontainment
    18. 18. Questions?