William Maxwell gets advice from the experts on how to sidestep the pitfalls when buying and arranging meetings and events
WHEN IT COMES TO planning business events, the stakes are higher than ever. Heightened budgetary pressures and legal snares are set against a backdrop of instant global scrutiny via social media networks and an onus to be more socially and environmentally conscious. Here we look at four key areas where best practice can help plan successful and trouble-free events.
Bribery act
A year has barely passed since the UK’s Bribery Act came into force and, for meetings, incentives, conferences and events (MICE) planners, reactions to the guidelines have ranged from extreme – the cancellation of all hospitality – to indifference.
Jane Culcheth Beard, events manager at HP (Hewlett Packard), says the act has brought about a sea change at the technology giant, with staff briefed about the potential dangers, and a company code of acceptable conduct drawn up.
While many argue that the act was designed predominantly to target dodgy oil deals, others insist it does still have serious implications for planners who lack foresight. And ignorance of the law is no excuse.
BCD Meetings and Incentives vice-president Matthew Wall says that, while most MICE planners are used to working in environments where corruption is unacceptable, there are some parts of the world where business practices such as bribes, bungs or “facilitation payments” are more a way of life. “UK law is crystal clear: planners must not employ corrupt business practices, even in places where such practices are common,” says Wall. “We need to hold ourselves to a very high standard, and insist on our suppliers and partners doing the same. Planners should scrutinise budgets and contracts to ensure that there is transparency.”
Two of the commonest ways MICE professionals can unwittingly fall foul of the act are via issues of timing and presence. According to Dale Parmenter, managing director of event specialist DRP Group, providing hospitality or gifts to clients while you are either pitching for work or tendering to be on a preferred supplier list can be construed as trying to influence the client.
“Providing hospitality for your clients at events which you won’t be present at also contravenes the act as you are not developing a business relationship,” he adds. “Meanwhile, direct marketing, which involves gifts or competitions, is acceptable as long as it goes to all clients and not just a particular company.”
Other ways a MICE planner can face prosecution is through mishandling hospitality for staff and clients. Nikki Alexander, business development and relationship manager at Cievents, says not being present at the hospitality event you are hosting, and not staying within your published guidelines, can be asking for trouble. “Planners should keep accurate records to ensure that they are fully transparent,” she says.
Social media
The use of social media for professional reasons has increased significantly. Simon Geraghty from Dot Dash, a Dublin-based social media consultancy, says: “Meetings today are not a linear, one-way street of information being presented at you. The ultimate idea is to give your event a long shelf life.”
He advises planners to consider their message. “What do I have to say? Second, how often should I say it? And last, when should I say it in proximity to the event,” he says.
With greater awareness, comes greater responsibility, says DRP’s Dale Parmenter. “The two most important things are never ignore, and never delete or block a negative tweet. Social media is all about generating conversations so if someone comments negatively about your event, engage with them and try to ask why they felt that way. Provide a constructive response outlining your position and apologise if you feel you were in the wrong,” he advises.
BCD’s Matthew Wall adds that companies have learnt to their chagrin that running away from negative feedback pays no dividends. He says social media sites need to be monitored by customer service or PR staff empowered to take action and address complaints and concerns. “A steady stream of ‘we’ll look into this’ is no match for ‘I’ve looked into this, and this is what I’ve done’,” he adds.
Perhaps the main pitfall that social media presents for events organisers is the leaking of sensitive information. Parmenter says that wherever possible participants in your events should sign non-disclosure agreements (NDAs) that include a social media clause. “Make sure you monitor social media for chatter about your event and, if you do see protected content appear online, request that the user removes it, reminding them of the NDA before approaching the social media channel direct to have it removed,” he says.
CRS
As the 'go green' message moves to the mainstream, companies must adhere to a basic level of compliance, and events are under particular scrutiny, with legal guidelines changing every year. “Staying on top of these guidelines is the best way to avoid pitfalls in this area,” says Nicola Handley, head of events, UK retail and business banking corporate affairs, at Barclays Bank. She says the corporate social responsibility (CSR) theme is still important for events, despite some claims that it “fell out of fashion”.
Handley says that when event companies are pitching for business, “make sure you ask how they are different and what they can offer that others can’t, in terms of sustainability”.
Meanwhile, for corporates that are keen to put a solid plan in place for sustainability, DRP’s Dale Parmenter advises going down the route of independently accredited certification against environmental management standards, such as ISO 14001.
“This provides you with a solid and legislation-compliant strategy and system,” he says. “The PR benefits are obvious, but much more importantly than that, you are acting as a morally responsible business with a real commitment to the reduction of your impact on the environment.”
A new global sustainability standard for events, ISO 20121, used by the London Organising Committee of the Olympic and Paralympic Games (LOCOG) during its planning for the 2012 Olympics, launched in June this year. The standard, developed following the success of event sustainability management system British Standard BS 8901, comprises a framework for events that helps planners reduce costs, carbon emissions and waste.
EDF Energy’s marketing communications manager, Shayne Rees, says the Olympics has been a big factor for EDF and the events industry in general, increasing the profile of sustainability. He says that simple measures can make a big difference, advising MICE planners to re-use signage, source local staff, cut transportation and use emails instead of paper. “For EDF it has been a company-wide focus, with cycling schemes and a commitment to reducing waste,” he says.
Parmenter adds that using smart energy-meters on equipment can save MICE planners significant sums. “We utilise all these programmes while also donating any leftover food at events to the charity Fare Share,” he says.
Budgeting
For corporate planners, the prevalent budgeting trend is to cut – despite popular myth. “The claims of big budget events in the financial industry are exaggerated,” says Lloyds Banking Group head of group events, Karen Sawyer. “We’re constantly looking at new ways to cut costs.” She advises corporate event planners to look closely at the event agencies they are using and decide if the work could be done in-house instead.
BCD’s Matthew Wall, however, says that agency experience can be critical. He says planners need to ensure not only are they covering all the nuts and bolts of event expenditure but that they are on top of all the other factors that can affect the final budget. “Do your venue costs include VAT? Are you able to reclaim any VAT post-event for programmes held overseas? Can your agency reclaim any commission from the venue? It’s important to scrutinise contracts to ensure that there are no missing elements,” he says.
He adds that outdoor venues often do not include power and sanitation in the price, and paying extra for car parking or cloakrooms is commonplace.
PJ Mitchell, director of business development at ATP Event Experts, meanwhile, says the average two-week turnaround demanded by corporates often doesn’t give enough time for the “mould-breaking” idea or the proper budgetary planning required. “Please let us have the budget early, or at least a guideline, otherwise you can’t tell us we haven’t won a pitch because we are ‘over budget’,” he says.
DRP Group’s Dale Parmenter agrees that allowing enough time for a project when budgeting is vital. “Events are a fluid working project so time can sometimes be an issue. It could take longer for certain elements of the event to be completed – for example, pre-event registration taking longer than expected. We find that a contingency pot attached to the budget helps – it’s a small percentage that can be used for any last-minute changes or additions to help deliver without going over budget.”
For Cievents, the biggest budgetary pitfalls are the ancillary costs, such as service charges and variations in VAT throughout different parts of Europe. “There is sometimes a breakdown of venue costs provided, but it can be unclear which have VAT added and which don’t,” says Cievents’ Nikki Alexander. “It’s always a good idea to get a breakdown of costs and specify what it needs to include. A number of other hidden costs can occur on a venue-by-venue basis as there is no standardised format.”
Parmenter recommends using a venue-sourcing specialist, such as Thevenuepot. “They help to uncover these issues as they have great knowledge of what we need to deliver at an event. For example, power can sometimes be an additional charge in a venue, and this may not initially be made clear. By using Thevenuepot, we get a more detailed breakdown of costs for each venue with no nasty surprises.”