By Doug Baarman
Why are we sharing this information?
Your first question may be, why write an article about the biggest obstacles to outsourcing? We decided to address this topic directly because in the areas of planning and executing a successful meeting or event, we believe there are old perceptions and too much negative information available regarding outsourcing. Our belief is that if we address the most challenging questions upfront, we can assure people that this is an option that should at least be explored to see if it is right for their organization.
Some Plain Talk About Our Industry and Outsourcing
We are going to use a simple format of questions and answers to address what every organization’s meeting and event planning department should ask before researching and considering outsourcing options.
Why do organizations outsource?
We recently surveyed customers who outsource aspects of their meeting and event planning needs to determine why they reached this decision. We have put together their Top 10:
- Industry knowledge – bring in those who have years of experience and daily working knowledge of the meetings and events industry to enhance the success of your events.
- Capability – ability to introduce a product, service of process that your organization does not have but is in need of.
- Unique and creative ideas – a new set of eyes; it is good to continually get fresh perspectives from those outside of your organization.
- Convenience – additional support staff when needed without having to add overhead expenses.
- Educational content – bringing in an outside resource can help guide you in planning the educational content and adult learning techniques so critical to the learning process. With so much at stake and so much time and energy spent planning and attending meetings, it is important to ensure meetings provide value and meet the attendee’s objectives.
- Logistical support – having extra support on site allows us to concentrate on achieving the event goals while having peace of mind that the behind the scenes details are being taken care of.
- Consultant/trusted advisor – many organizations like to have unbiased party that can help them work through all the details of their event and provide solutions to take their meetings to the next level.
- Budget / Staff reductions – cut backs are sometimes unavoidable but the work load rarely decreases. Being able to stay on task when staff resources and time are being stretched to the limit is a huge relief.
- Save time – having someone put together the RFP, search hotels and negotiate contracts saves at least 25% of the time spent on planning the meeting and allows for the talents of the staff to be utilized to their greatest advantage.
- Save money – having a comprehensive analysis of what is available in the market allows us to make sure we are getting the best deals out there. In addition, we have added volume buying power and insight to negotiable terms and value adds we were not previously aware of.
Nothing is Free, what will it cost?
When you hear ‘free’, it always makes you suspicious and the red flag goes up. There are two methods for funding the services that are provided. Some are fee based and some are covered by the party that receives the business. Let me review the list of services below:
- Covered by the receiving party
- Site Selection/Contract Negotiation – sourcing is covered by the facility that receives the business. It is an industry standard for the receiving party to pay a finder’s fee for business generated for them. Organizations currently spends hundreds of thousands of dollars (in fact millions) to attract business through their sales, marketing and advertising channels. They use these same funds to encourage other channels to bring business to them (meeting management companies, travel agents, Expedia, etc.).
- Fee Based – some services are provided on a fee basis. These fees typically run less than it would be to add internal staff or resources to cover.
- Logistics/Conference Management
- Registration
- Housing
- Strategic Account Management
- Exhibit Sales
- Sponsorship Sales
- Mobile Meeting Apps
This is my job, are you trying to replace me?
Meeting management companies are not trying to replace any position in the organization. Their role is to understand the priorities of the organization and add value where needed. The role of the meeting management company is to compliment the efforts of your current staff and give you back valuable time required to focus on other priorities.
We must have full disclosure within our organization. Is this relationship transparent?
In our case, our model has been built on the pillars of a true partnership and full transparency is a critical part of this. We make sure everyone in the organization understands our role and how we will be measured and compensated. We work with you to draft an agreement that clearly articulates all of these details. In addition, we have full disclosure with our industry partners on what we have been engaged to do on behalf of your organization and how we will be compensated.
We can do it better! Why do we need you?
Certainly your organization is planning and executing successful events. Meeting management companies feel that they can bring you added industry knowledge, fresh ideas for your events, purchasing power, additional staff and resources which allow your staff the time they need to focus on the priorities of your organization.
How will I know if it is working?
In our case, we have a proven method to demonstrate our value to your organization. This ‘report card’ will be what you need to ensure you made the correct decision for your organization.
I am ready to at least consider this option, how do I learn more?
Over the past five years, as more organizations have made the decision to bring in outside assistance, there has been a lot of good information created and shared. Most is through attending events or participating in online discussions. However, you can also reach out to some of our industry organizations to learn more:
- ASAE: www.asaecenter.org
- PCMA: www.pcma.org
- MPI: www.mpiweb.org
- GBTA: www.gbta.org
If You Would Like More Information
We hope we answered your questions, but realize you may have more than could be answered in this article. If you would like, reach out to us and we will send you two complimentary documents with more information on why organizations outsource. Please email me at: doug.baarman@conferencedirect.com