Are event managers ready to put their heads on the block?

Consider the event management industry 20 years ago... an event was conducted because it was required to launch an organisation or product, establish awareness of something new or merely for the sake of holding a function because everyone else was doing it.

How many organisations have every intention of holding an event with the core objective of networking with potential business prospects and using it as a sales tool only to find that once the hype and excitement of the event is over the securing of new business opportunity is lost?

Why are organisations not placing more responsibility on the shoulders of event management consultants to assist them in securing business objectives and why are event management companies implementing events without taking due responsibility simply because it generates good revenue and looks good on their credentials documents?

The onus of responsible event management practice lies on the shoulders of both the organisation in question and the event management consultant. Two questions spring to mind in this regard:
1. Does the event management industry know how to value return on event investment?
2. Does the organisation using the event management consultant know why they are implementing an event and what their expected return is?

My initial answers to these questions are no. Events are still done as a matter of course - objectives are not well thought through and demand for proven results is not strong enough. How can this change? Accept responsibility. From an organisation using an event manager, the responsibility is to demand an obvious return on investment and from an event management perspective it is to develop actions that provide measurable results.

Looking at the first question - measuring value and quantifying a return on investment, the event manager is essentially required to put their head on the block. Unfortunately this type of management practice is rare and if it does exist how is it done?

My recommendation to an event manager is to commence the taking of an event brief by questioning the client on their objectives and expectations. Why are they holding the event, what do they expect in return, how much are they willing to spend on each guest and how do they expect this to equate into a return, what percentage of the guestlist do they expect to convert into new business and what is the anticipated timeframe in expecting the return - immediate, long-term? Don't be fooled into believing that the guestlist is merely names and contact details, the final list if completely correct and kept up-to-date, will form the basis of a very effective business and sales tool.

Once the objectives have been set it is easier for the event manager to demonstrate how the expected return can be achieved - benchmarking it against the initial objectives set. By establishing the objectives upfront, the event manager is assisting the client in priortising and rationalizing the event. Already the event manager is practicing responsible implementation.

By way of example, a new product launch sees 100 guests at a spend of R2000 per guest. The event manager is aware that for every 10 attending guests the client requires that that one sale of the new product is made in order to demonstrate a return on the event investment. The event manager is thus aware that the tactics must include opportunities for sales conversion. The event manager is no longer simply looking at running the event but also looking at converting the investment into a profitable return.

From an organisation's perspective the client should determine what they would like to achieve out of the event - new business leads, purchase of a product, signature of a quote etc? The client should also determine what they would like to spend on the event and how much of that they would like to see in a return. Furthermore, the client should determine where responsibilities lie in meeting the objectives - the sales team, management, the event tactics, the event theme?

By way of example, the client has determined that an event is required in order to demonstrate the company's new product offering. In order to turn the event into a profitable opportunity for the organisation, 10% of the attending guests must be converted into new business. The results of the event are dependent on both the efforts of the sales team and the tactics produced by the event manager. A possible event tactic is to produce an individual quotation of the new product offering personalised for each attending guest. The quotation is handed to the guest on departure of the event. It is the responsibility of the sales team to follow up on the quotation telephonically over the course of the next week post-event and convert the opportunity into business.

Unfortunately, unaccountable event management practice rests with both parties and until they are able to work more closely together and take responsibility for their actions, events will continue to be implemented for the sake of it.

Without action from both sides the event management industry will continue to have a reputation for spending remaining marketing budget. The plea is to both sides - ask for results and show the results. Be responsible and put your head on the block or we will choke our industry.