Feature
How to create a company
More companies are bringing order and best value to their training, meetings and events by creating meetings programmes. But what do they achieve, where do you start, and how can your agent help? Jayne Vaughan, account director at venue sourcing specialist Grass Roots HBI, tells all
Q
What are the most common objectives of organisations wishing to create a company-wide meetings programme?
A
When a client organisation approaches us, their principal objective is to save money. It is up to us to identify what their other aims are before we can engage with the venues.
We need to know the scope of the service - is it UK or EMEA-wide, or global? Is it for the whole company or one department? What terms and conditions is the organisation seeking over and above Grass Roots HBI's generic terms? What should meeting rates include in terms of added value? What will the savings matrix be and how will savings be calculated? In all cases we have our own templates to use as a starting point, but the important thing is that we tailor-make each solution to the client's specific needs.
Last, and crucially, we need to know if the programme will be mandated, and if volumes of business can be guaranteed, what those volumes will be.
Q
Other than saving money, what other drivers do corporates usually have?
A
The most common are risk management, looking at cancellation terms and achieving standardised contract terms with venues; booker adoption, making in-house resources more efficient; securing service-level guarantees; and brand or image compliance. The latter is starting to come into our market and we are encouraged to attend client brand awareness courses to ensure we understand the image they wish to portray.
Q
How many of your clients already have such a programme in place?
A
Few have formalised programmes in place when they first come to us, because that is the value a specialist brings to them. However, the scale of what we are asked to create varies enormously. One client might only be looking for a training programme and will be dealing with two or three venues. Another might want a full meetings and events programme to meet all of its business needs, so it may be dealing with 120-130 venues, or more. We may also need to take the client's total transient usage into account to enhance venue negotiations.
Q
Where should the corporate start, and how can a specialist help?
A
The first stage is always collating and analysing data - fitting together the jigsaw of every department's requirements, finding out how much activity is taking place and where. It is at this stage that we help the client to define the programme's objectives, secure stakeholder buy-in, decide how to implement the programme and measure its benefits.
We then create a central "umbrella" agreement with each of the venue groups, which will form the basis of the preferred programme. Although we have templates for this, too, we negotiate each agreement with the venues individually. It is a very involved and intense stage of the process, but it saves a lot of time in the long run.
Q
What problems are encountered by the corporate or agent and how are these overcome?
A
From the corporate's perspective, these would typically be inconsistency of venue rates with regards to VAT; no standardised group-wide pricing structures or terms and conditions; internal compliance with the programme, especially among PAs with personal venue preferences; and guaranteeing volumes of business.
I am not sure every client realises how time-consuming the process is, and the investment we make at each of the foundation stages when creating a meetings programme. Then again, that's what we're here for.
Q
How can a specialist support the client with implementation?
A
Our MENTOR Live extranet system automatically displays the client's preferred meetings programme. We provide exception reporting on preferred venues' usage, which allows us to assess whether venues should be added tothe programme. We also undertake roadshows with both bookers and preferred venues, and hold review meetings to assess feedback from meetings planners.
Q
How do corporates measure return on investment (ROI) on their programmes and what results have been achieved?
A
Company meetings programmes are still evolving, so ROI measurement models are in their infancy. The most reliable measurement is achieved savings over a 12-month period.
Q
What sort of compliance with policy are clients achieving? Do you expect to improve on this?
A
When there are fewer stakeholders and the bookings process is mandated through a purchase order system, we would expect high levels of compliance. Where companies have no preferred booking policies in place, we generally see 60-70 per cent compliance in year one, rising to 85-95 per cent once the programme becomes more established. However, there are many variables involved, such as the number of bookers, how many offices there are and how centralised the process or culture has previously been.
Extract from Grass Roots HBI Meetings Industry Report 2009. Free downloads are available from www.grassrootshbi.uk.com/meetingsreport.html
