ISM Travel & Events 2017 June 12-14, 2017 Miami, FL
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1 ISM Travel & Events 2017 June 12-14, 2017 Miami, FL Strategic Meetings Management (SMM) Should Be Standard In Corporate Procurement Kevin Iwamoto, GLP, GTP GoldSpring Consulting
2 A Global Industry Standard Strategic Meetings Management (SMM) is a disciplined approach to managing enterprise wide meeting and event activities, processes, suppliers and data in order to achieve measurable business objectives aligned with the organizations strategic goals / vision, and deliver value in the form of quantitative savings, risk mitigation, and service quality. Joint MPI & GBTA definition 2009
3 State of SMM GBTA Whitepaper 52% corporations have a SMM program in place or are developing one Most of these respondents felt their company s SMMP s have benefited their organizations, enabling them to: Increase their control over cost savings (76%) Streamline meetings and event processes (76%) Better allocate resources and savings (67%) 41% believe a program will be implemented by their company within the next three years 3
4 Pre-SMMP Disparate Processes MANUAL PROCESSES DISPARATE SYSTEMS Meeting / Event Planner Attendee / Traveler Procurement Marketing SILOED INFORMATION Hotel Sales & Marketing WASTING WASTING TIME TIME LOSING LOSING MONEY MONEY MISSING MISSING REVENUE REVENUE
5 Post SMMP Implementation SOFTWARE SOLUTIONS Attendee / Traveler Procurement CONSOLIDATED DATA Marketing Hotel Sales & Marketing AUTOMATED PROCESSES Meeting / Event Planner Attendee / Traveler Meeting / Event Planner Marketing GAINING TIME 5 GAINING SAVING TIME MONEY INCREASED SAVING MONEY REVENUE INCREASED REVENUE
6 Really, What is SMM? A centralized way to manage the entire meeting and event spend for your organization Visibility into all meeting and event spend Allows for cost savings and risk mitigation Ensuring quality and consistency Ability to leverage spend* 6
7 What is the Value of SMM? For procurement professionals the value is compelling: Visibility and control enterprise spend transparency Risk mitigation & Duty of Care Cost savings & Cost Avoidance Consistency in messaging Improved meeting and event outcomes The ability to audit enterprise meeting and event spend 7
8 A Global Industry Standard Strategic Meetings Management (SMM) is a disciplined approach to managing enterprise wide meeting and event activities, processes, suppliers and data in order to achieve measurable business objectives aligned with the organizations strategic goals / vision, and deliver value in the form of quantitative savings, risk mitigation, and service quality. Joint MPI & GBTA definition 2009
9 Policy and Stakeholder Management Why? Corporate Direction Compliance Control Efficiencies Policy + Meeting Definition + Meeting Process and Tools + Approval Process / Levels + Sourcing and Contracts + Financial Guidelines + Preferred Suppliers + Key Contact Information + General Instructions Stakeholder Management + Make or break for SMMP success and adoption 9
10 Registration/Approval of Meeting/Event Supplier advantages: + Highly qualified meeting proposals Corporate gains: + Company-wide visibility via central calendar + Approval workflow audit trail (i.e. SOX) 25 Registration annual savings ranging from: 1.6% - 3.9% Approval annual savings ranging from: 1.2% - 2.8% 10
11 Sourcing and Procurement Supplier advantages: + Global reach to new customers + Automated lead response + Compliance to preferred supplier programs Corporate gains: + Driving preferred supplier usage + Improved leverage from total spend accuracy for negotiating rates Approval annual savings ranging from: 8.6% % 11
12 Planning/Execution Supplier advantages: + Fast/accurate rooming information + Automated room lists Corporate gains: 25 + Quality of event + Improved marketing of event and sessions Approval annual savings ranging from: 1.1% - 3.2% 12
13 Payment/Expense Reconciliation Supplier advantages: + Fast payment + Reduction in billing and invoicing costs Corporate gains: 25 + Integration to financial systems + Separate real time meetings and T & E spend analysis Approval annual savings ranging from: 0.3% - 1.1% 13
14 Data Analysis/Reporting Supplier advantages: + Evaluate market share + Compete and optimize lead management Corporate gains: 25 + Central reporting database and dashboards + Real time enterprise-wide accuracy Approval annual savings ranging from: 0.5% - 1.3% 14
15 S Technology Connects the Process Automation + Delivers efficiencies + Drives common standards Sourcing 25 + Global, consolidated marketplace + Automates processes + Centralizes data Visibility + Improves visibility to meeting activity + Reduces/eliminates paperwork Compliance + Supports/enables pre approval + Reporting capabilities from the meeting level to the enterprise level 15
16 SMM Savings Potential Strategic Sourcing Demand Management Process Improvements Compliance Management 8-20% 5-15% 2-10% 2-8% 16
17 Risk Mitigation Eliminating the Gaps 17
18 Where to start? Estimate the meeting spend Get senior leadership support Identify key stakeholders Develop policy; define meeting Develop a simple process Communicate the new program Analyze the data Share success 18
19 Leadership and Stakeholder Alignment Always secure an executive champion. If you can t, don t start the SMM initiative. Always educate, communicate and enlist executive support for your SMMP at every level especially globally. Understand the WIIFM for all of your stakeholders and report program results accordingly. Build a business case that addresses existing points of pain and how your SMMP will eliminate and/or reduce the pain.
20 Compliance to Policy/Adoption of Program Develop guidelines or policy with stakeholder input. Benchmark against other companies policies and programs. Deploy change management strategies continuously (e.g., communication, training, stakeholder alignment checks, people, processes, technology changes, changes in roles, etc.). Listen to the gatekeepers perspectives; always make them feel part of the process.
21 Data Transparency You must develop a technology strategy first, before you do anything especially the sourcing of suppliers. Formulate a realistic short, mid and long term strategy Avoid contracting with and depending on too many solution providers. Disparate data formats and information add cost and complexity to your program. Leverage your transient spend with your meetings and events spend to get the best negotiation results from your preferred suppliers.
22 Risk Mitigation Conduct risk assessment of current state in all seven risk categories (strategy, reputation, IT, market, operations, legal/regulatory and financial). Identify risk exposure and improve risk scores. Be flexible; recognize that some organizations have different levels of risk aversion. Pay close attention to data privacy gaps esp. with mobile apps Ask technology suppliers about their revenue models they could be monetizing your data.
23 Cost Savings: ROI, ROE & ROO Collaborate and gain buy-in from finance to support your program metrics. Understand what big data points are germane to your monthly/quarterly/annual reporting. Understand what metrics are most meaningful to your stakeholders (e.g., marketing and ROE).
24 Strategic Meetings Management (SMM) Should Be Standard In Corporate Procurement In Summary, Your Company Should Implement a SMMP: Visibility and control enterprise spend transparency Risk mitigation & Duty of Care Cost savings & Cost Avoidance Consistency in messaging Improved meeting and event outcomes The ability to audit enterprise meeting and event spend
25 My Publications Both Available via Amazon 25
26 Follow me Industry Insights blog (Meetings & Conventions magazine): LinkedIn: linkedin.com/in/kevin-iwamoto-glp-gtp-18a1348 Amazon Author Page: 26
27
28 Copyright GoldSpring Consulting LLC, All Copyright rights reserved. GoldSpring Consulting LLC, All rights reserved.
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