Figures
from a number of sources in recent years – including the annual Business Travel Show buyer survey – reveal that more and more travel buyers and
managers are taking on the additional responsibility for meetings management.
This transition, however, is not without its challenges and, personally, I have
been faced with two such challenges:
- Developing the meetings and events process in a way that reduces risk and saves the company a lot of money, but without planners losing ownership
- Selling the concept of SMMP technology to the rest of the company
Within
the international organisation that I work for, the problems include/d:
- Diverse and unidentified meetings and events spend within the organisation (a complex international “non-mandatory” environment)
- Many different localised practices – planners, suppliers, process/methodology
There
was very little visibility of the tens of millions of dollars spend in the
past, and certainly no centralised visibility whereby procurement could analyse
data in an effort to drive efficiencies through leverage, and to better support
duty of care.
Originally,
each country, business unit, department and even planner had the ability to
source, plan and manage any sort of meeting in any way they saw fit. Of course,
there were many very professional results but also some with less polished
outcomes! Importantly, there were no centralised resources, identified
preferred suppliers, methodology, links to travel and the duty of care that it
provides or standardised contract content.
These
were the objectives I identified associated with moving to a category-management
based approach:
- Centralise meeting requests and sourcing
- Increase visibility of standardised terms and preferred suppliers/agencies
- Leverage spend for increased savings
- Reduce corporate risk – contractual, financial, duty of care
- Implement policy or best practice booklet
The move to a category-management based
approach provided a named procurement contact responsible for identifying
stakeholders and bringing together as much detail as was available – this is
ongoing and additional data is uncovered frequently. This gives planners the
opportunity to engage with a specific procurement category manager, which, in
turn, allows for category knowledge to be gradually increased.
From a practical perspective, the
incentive for planners to engage was offering to take responsibility for
reviewing, negotiating contract terms (and costs if required) and arranging
sign off of contracts. In addition, this approach also brings procurement into
direct contact with many of the agencies, which in turn, potentially provides
introductions to other planners and events. A lot of work but a great way of
getting to know your stakeholders!
Although ongoing, a knowledge database can
be built, filling in some of the previously hidden data. This allows an initial
strategy to be identified, as a basis for discussion and further joint
development with key stakeholders. This leads on to a more collaborative
approach, and greater support at senior and functional levels, with procurement
leading the effort to identify the most suitable solution, building a business
case for senior stakeholder support, tendering the chosen service in
conjunction with the stakeholder group and defining implementation.
One of the main challenges is overcoming
the resistance of planners often not wishing to work with procurement. There
are a number of reasons for this, which can include the belief that it would
make the planning and contracting process more complex – this is untrue as
procurement can take a lot of the pain points away. Planners may think that
procurement would reduce the decision-making ability. Again, this is not true,
as procurement doesn’t want to manage meetings but make the decision-making
process easier and reduce risks along the way.
Decisions concerning venue sourcing, menu
selection and the quality of meeting space, for example, would always remain
with planners. Helping them to achieve this in the most cost effective way is
part of the goal of course. Convincing planners of this and selling the
benefits of working with procurement/the category manager are best done over
time whilst building relationships and adding value.
This blog post was written by Jef
Robinson, global category manager (meetings and travel), Citrix Systems. Jef is
an advisory board member of the Business Travel Show, which takes place on 25-26
February, 2015, at Olympia Grand in London.
Yeah Dear!! I have heard a lot about Business travel show but I did not get any chance to attend these shows. I am very excited to see. Can you please tell me where you have held your next show and please share meeting rooms details also?
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