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CIPS Guide to Event Services

Abstract 2Introduction 2CIPS Position 3Definitions and Supplier Categories 4Current Challenges 13Good Working Practice Guidelines 14Remuneration 17Measurement and Evaluation 19Checklist 23Summary 27Further Information 28Acknowledgements 29

Tel +44(0)1780 756777 Fax +44(0)1780 751610 Email [email protected] JUL 07

AbstractThis Guide is aimed at the Procurement professionalthat is involved in the buying and management ofEvent Services. It is a fairly new area of involvementfor procurement and one where procurement can addan enormous benefit across the differing categories thatevent services covers.

The Guide covers the definitions of the multitude ofsuppliers and spends areas involved, tips on how towork best in this area, what the remuneration optionsare and how important measurement and evaluation isat every stage of the buying process.

IntroductionIn the past procurement’s role has been limited to thebuying of tangible goods with little involvement andinfluence in the buying of business services. As it has ahigh potential for value generation for buyingorganisations, services are now also seen as animportant area for procurement to get involved.

A study of Fortune 1000 companies suggested thatmost companies spend between 30-70% of their spendon services with an opportunity to save 10-29% byundertaking strategic sourcing, versus an average of 5-17% for other commodities. Whilst cost management isimportant, the services categories also benefit from areview of service levels, improvement in quality levels,better requirements planning, reduction inadministration and measurement.

In business services the event, travel and incentivesarea is a key category for procurement to manage.In the UK, the meetings and events industry has seenhigh growth over recent years and is estimated to beworth £1.2billion in the UK alone. Of this £1.2 billion,around £800m is spend from corporate meetingplanners and £400m covers the spend with agencies.

CIPS Guide to Event ServicesIntroduction

2 Tel +44(0)1780 756777 Fax +44(0)1780 751610 Email [email protected] JUL 07

CIPS guides are designed to provide awareness and alevel of understanding to the reader on selected topics,in this case on buying event management services.They are written for use by those with an interest inbusiness issues in general, and purchasing and supplymanagement (P&SM) issues in particular. This willinclude full and part time P&SM professionals as wellas individuals interacting with P&SM activities.

Most Knowledge Works documents will contain CIPSposition statements, that is, CIPS' view(s) on thedocument’s subject matter. The CIPS views are arrivedat via an extensive consultation with P&SMpractitioners and people with expertise relevant to thesubject, including working knowledge groups and theCIPS Policy Advisory Network (PAN).

• CIPS believes that P&SM professionals shoulddevelop an event buying strategy by assessing yourorganisations needs.

• An event buying policy should be formalised andcommunicated throughout the organisation withbuy-in from senior management.

• Internal roles should be clearly defined at the outsetof each event between procurement, internalmeeting/event planners, internal clients andsuppliers.

• A detailed specification of requirements should bedeveloped for each event and agreed by the eventteam.

• Develop a post-event evaluation form, carry outpost-event review team meetings and establish a'lessons learned' strategy.

• CIPS recommends that P&SM professionals shouldmeet potential suppliers, ideally at their offices, toobtain an impression of their corporate culture.Examples of their previous track record of similarevents should be considered in the selectionprocess.

In the past, internal meeting or event planners haveselected an event agency and suppliers to deliver ameeting or an event. But in recent years there hasbeen a growing involvement from procurementprofessionals when events are being procured. This hascreated a shift in the traditional relationship and allthree parties have to learn new skills and develop newways of working in partnership with each other.

CIPS feels that the role of procurement in themanagement of event services is here to stay, and theirinvolvement has brought about an increased level ofprofessionalism and accountability. But at the sametime, it is important that they understand the categorythat they are buying, and that by all three partiesworking together, the business benefits to all willincrease. Event management should be purchased thesame way as commodities – with objectivity,accountability and an established procurement process.

CIPS Guide to Event ServicesCIPS Position

JUL 07 Tel +44(0)1780 756777 Fax +44(0)1780 751610 Email [email protected] 3

An ‘Event’Can be defined as an offsite (outside of the companyoffices) or onsite (on the company’s premises)gathering for two or more people, either for internal orexternal purposes. This could be in the UK or overseas.

For the purposes of this guide, the term ‘EventsServices’ encompasses both the range of elements thatcontribute towards the creation of an event (such as itsvenue, hotel accommodation, staging, lighting, cateringand entertainment), and the agencies that may becontracted to bring those services together (such as anevent management agency, an AV production company,a PR consultancy)

Event Services may also procure travel management,exhibitions and sponsorship, although these areadditional specialist categories and may require otherspecialist agencies to manage them.

Why do Organisations need events?

Events can be large in size:• Annual General Meetings (AGMs)• Incentive programmes and away days• Product launches• Trade shows

Events can also be small in size:• Board meetings• Analyst meetings• Department meetings• Recruitment events (interview / assessment centres)• Training events

The target audience for events will range from:• Employees• Shareholders – corporate and individual• Press• Consumers• Sponsors

• Suppliers• Graduates• Other stakeholders

The purpose of organising events is to gain an impactand experience on the audience, which in turn canhopefully lead to an increase in business performanceby motivating the attendees. The event should alsoreflect the image and values of the organisation. Thecosts involved in staging an event are significant andtherefore it is important that some form of researchand measurement is in place to ensure that a Return onInvestment (ROI) is attained.

Who buys Event Services?There are two principal buying sectors for events:corporate organisations (companies) and institutionalorganisations (associations, societies, governmentdepartments, charities and other not-for-profitorganisations). It’s important to acknowledge theexistence of each of the two buying communities,because they will have different individuals responsiblefor the purchasing of events and event services.

In corporate organisations the internal client is likely tobe a senior executive from either the sales/marketingdepartment, or the internal communicationsdepartment. HR heads are also increasingly becominginvolved in the organisation of training andmotivational events.

In institutional organisations, the buyer may be acommittee, or a communications head working intandem with a department or administrative body

Event Management versus Travel andAccommodation bookingsMany people assume that the purchasing of eventmanagement services and the booking of travel andaccommodation are the same. There are differences(noted below) and it is vital that procurement share thevisibility of both of these areas of spend.

CIPS Guide to Event ServicesDefinitions and Supplier Categories


TRAVEL



Transient / Individual bookings Group / Event Management

Not an issue if they travel separately Terms of contract – if a certain number of delegates are all goingto one event, that constitutes a group booking. There may be arisk factor and cost implications. For example, the CEO can’ttravel with the MD.

Faster response times Slower response time

Booking process – online Personal face-to-face

Managed byTravel Manager Managed by Events Manager

Purchase order will be exact Variances with the purchase orders. Need to reconcile all costsinvolved

Payment by credit card Payment by invoice

ACCOMMODATION

There are key issues appropriate to each stakeholder asthere may be to each corporate i.e. a drinks companymay insist that they have their beverages for sale in thebar.

Internal Meeting PlannersAs mentioned earlier, one of the key relationships thatprocurement has to develop in this area is with theinternal meeting planners.

A large number of organisations, especially those forwhom event services spend represents a significantpercentage of their total company revenue, employ fulltime Meeting Planners. These are professionalindividuals whose sole role is to manage either theentire organisations event budget or, more usually, aspecific part of it, often in relation to key strategic andshareholder events – board meetings, events withexternal exposure, VIP attendees, of supremeimportance to the company.



Transient / Individual bookings Group / Event Management

Cancel up to 6pm It is very hard to cancel and they may agree to a percentagereduction of the numbers booked

Zero contract There is a contract involved, therefore less flexibility

Individual makes the booking Booked on behalf of the individuals

Commodity Non-commoditised

Corporate rates No corporate rates

Poor service more contained Poor service has a bigger negative impact on the group

Less opportunity to negotiate More opportunity to negotiate

Traveller more involved, biggerexperience

Organiser may not attend so less involved in the event experience

Few interested parties – maybe justone

More interested parties – stakeholders, budget holder, meetingplanner, marketing

Lead time – the night before Longer lead time

The dedicated internal event team can range from oneperson to teams of 20 plus. Some event teams willoutsource the entire event requirements focusing theiractivities on the sourcing of appropriate external eventservices suppliers. They act as a conduit to maximisethe value, minimise the cost and improve the eventsuccess at every level. They will also play an importantrole implementing policy and contracts.

Event PlannersIn some organisations, there may be individualsbooking meetings that form an event planningcommunity. Whilst internal meeting planners organiseevents full time, there are many individuals who play avital part in managing a large percentage of meetingsbudget on small meetings requiring just meeting roomspace. Often these are PA’s and secretaries, and it isimportant for purchasing to develop a relationship withthe event planning community, to gain anunderstanding of their requirements.

Supplier ManagementProcurement professionals can either appoint a solesupplier per category or put a number (roster) ofsuppliers in place. They may then wish to eitherappoint a lead supplier to manage the range of thirdtier suppliers e.g. an event management agencymanaging the design and build and AV suppliers(bundling), or they may opt to deal direct with all of thesuppliers themselves (unbundling of the services).

The advantages and disadvantages of both models areas follows:BundlingAdvantages• It reduces the amount of supplier management as

procurement will be managing one supplier insteadof many.

• Management information is in one place• Event briefs are provided once and consequently are

open to less misinterpretation• One account management relationship

Disadvantages• Less specialization• Loss of control over third tiered suppliers• Potentially less competitive prices/rates

UnbundlingAdvantages• Specialist service provision – better service delivery,

rate, price, knowledge, expertise.• Greater cost transparency

Disadvantages• Multiple contracts to manage• Considerable time required to source multiple

suppliers• Management Information is split by provider• Potentially poor communication between the

specialist agents resulting in a less than perfect job.• Who does what and by when?• Who manages the agency relationships and acts as

the central pivot in the relationship between thevarious agencies and the client.

Further information on the different supply chainmodels are given later in this section.



Categories within Event Management

Beyond the blanket term ‘event management’, agencies in the events sector will offer a range of expertise. Very fewagencies are equipped to provide all of the services listed below – most will provide two or three and some willsub-contract the remainder as required. This is not necessarily disadvantageous, since the principal agency will havebuilt up successful working relationships with such partners, and will have ultimate responsibility for the satisfactoryperformance of the sub-contractors.



Category Service Scope

EventManagementAgencies*

Proposal of the creativeconcept and format

Handling of delegates

This will cover the development of the creative theme forthe event, to embrace the brand andmessagemanagement.Delegate Management:Undertaking the administrationpre-event to include onsite administration, budgetmanagement, social programmes and post event reporting.Logistics:Managing the logistics of the delegates fromregistration, badging, joining instructions, delegate packs,on-site assistance, ground transfers and meet and greetservices.

VenueFindingServices

Sourcing, negotiating andcontracting with venuesuppliers

This could be for: • day meetings • - conferences,possibly residential • major eventsVenues may include hotels, conference centres, sportingvenues, boats, museums, leisure attraction, universitiesthrough to a field.

CorporateHospitality

The management of thehospitality for the event.

Tickets and boxes for social and sporting events.

Design andBuild

The creation, developmentand building of the physicalevent structure.

This covers stage sets, panels, exhibition stands anddisplays.

Motivation,Reward &Recognition

The idea creation andmanagement of an incentivebased scheme

This will cover incentive travel programmes, reward andloyalty schemes and vouchers.

Video andAudioConferencing

To facilitate the use oftechnology in conferencing

This could cover digital, on-line and remote whichincludes video conferencing and other elements such asaudio conferencing, webcasts and podcasts.

*Event Management AgenciesDepending on the nature and complexity of an eventthere may be tens or even hundreds of differentcontributing suppliers – the list could potentiallyinclude transport providers, caterers, entertainers,florists, set designers, lighting specialists, celebrityspeakers, and so on.

This is one of the reasons why purchasers, andsometimes even internal meeting planners, opt tocontract with event management agencies, which willundertake the job of co-ordinating all of these separatestrands.

Indeed, some of the larger international events willeven require two or more events agencies to beinvolved. It is not unknown for a major event toinvolve a logistics agency to handle the delegatetransport and management; a production agency to beresponsible for the ‘show’ element, and acommunications agency to ensure that the message iseffectively conveyed to the audience.

Purchasers can opt to use one of three models inworking with this complexity of supply chain.

1. Hub and Spoke2. Supplier Panel3. Single source supplier

The decision on which of these models is appropriatefor your organisation will depend on the extent of yourinternal event management resources; the complexityof the event and the strength of your existing suppliernetwork. It may take weeks to source and contract avast array of suppliers and, in many cases, it is moreeconomically-efficient to appoint an intermediary tosub-contract on your behalf.



Hub and spoke

*Destination Management Company

Supplier panel

Airline Venue finder

Event management

Entertainment

E

Speakers

S

Creative

DesignWebSet builders

Production

Lighting

DMC*

Travel logistics

Procurement

Supplier panel

Entertainers

S

SpeakersPR

AV Production

A

Designers

Venue

V

Transport

T

Hotels

Spouse Programme

C

Procurement

ContentCommunicationLogistics

Single source supplier

A

AV Production Web Design

Theming and decor

Set design and build

Delegate handling

Speaker liaison

D

Venue

Transport

H

DMC Restaurants

Delegate communications

Procurement

Multi-service agency


In the American Express Study 2005 conducted on theirbehalf by A.T. Kearney, eight key challenges wereidentified as the barriers to effectively managing themeetings and events spend.

1. Lack of senior management focus2. Absence of formal guidelines and policies3. Decentralised execution without central

co-ordination4. Lack of management information / spend data5. Lack of ‘demand management’6. Fragmentation of purchasing7. Difficult in measuring effectiveness8. Resistance to change

1. Lack of senior management focusMany companies do not know how much they spendon events and meetings and it does not appear to oftenhave the support and focus from senior managementthat it should have. Procurement should try and ensurethat senior management is aware of this category ofspend and should support the role of procurement inmanaging it.

2. Absence of formal guidelines and policiesIn the study, they found that only 20% of the companiesthat they surveyed had an events and meeting policy. Itis usually a sub section in the Travel and SubsidencePolicy. It is important that there is a stand alone policythat spells out what the definition of events andmeetings is and the procedure for booking them.

3. Decentralised execution without central co-ordination

Without a central control and coordination of theplanning and execution of the events, there is a highlevel of fragmentation within this area. The look, feeland the quality of each event may vary and there maybe no control or overseeing of all the various contractsthat are being signed by the many people involved.

4. Lack of management information / spend dataCompanies cannot accurately report the spend thatthey have in this area, as often the spend is categorisedacross a number of different cost categories and it isvery hard to get one data source for the data. Asdifferent payment methods may also be used e.g.company credit cards, individual credit cards, bill backsand purchase orders, there is no single sourcedpayment mechanism. Many companies do try andcentralise their payment through a ‘lodged’ credit cardwith an approved supplier.

5. Lack of ‘demand management’Demand management is about reducing consumptionor improving the return on investment. A.T. Kearneyfound in the study, that in many cases, there was littleor no proven business benefit for the event to be held.

6. Fragmentation of purchasingPurchasing power is often not leveraged in thiscategory due to the fragmented spend possibly acrossfragmented business units. Again not having a formalpolicy in place will not help in trying to control thespend. The non-standard, highly variable, complexity ofbuying events adds additional complexity to this area.

7. Difficulty in measuring effectivenessMeasuring event effectiveness in a meaningful andinsightful way can be difficult. Many organisationsdistribute survey forms at the end of an event but thesecan be about the superficial elements such as the foodand the temperature in the room. You need to gain aninsight into the value of the meeting content (seesection 7).

8. Resistance to changeWho controls the meeting budgets can be an emotionalissue. It is best to sit down with all the partiesinvolved – procurement, meeting planners and internalclients to discuss how the best way to operate wouldbe.

CIPS Guide to Event ServicesCurrent challenges


In order to procure event services effectively, it is bestto be aware of where your starting point is – and tounderstand what both good and bad practice lookslike.

Where to start?Use the following points to assess your company’scurrent event buying strategy, and develop a planbased on the following points.

• Assess your current strategy against ‘good practice’• Define ‘good practice’ target for your organisation• Establish what the benefit expectations are?• Prioritise the areas to be reviewed• Gain the buy-in from senior management, meeting

planners and the internal event team.

What does good practice look like?1. There should be a company policy that lays down

the formal rules that guide the behaviour of peopletasked with purchasing event services.

2. The four elements of governance need to be inplace:

a. Ownership of the policyb. Communicate to the client and supplier basec. Follow up and enforcement of the policyd. Tracking of compliance to the policy

3. Defined roles and responsibilities betweenProcurement, internal meeting planners, and theinternal clients (event community).

4. There is a justifiable and available budget to bespent for business purposes.

5. There is a detailed specification of the requirementsneeded for the event

6. Identify which event services suppliers you needand for what.

7. Decide whether to go out to tender or to use yourpreferred supplier list, and aim to consolidate yourvolume on meetings/events with any travel andentertainment spend to assist in any future pricenegotiations.

8. Negotiation with the chosen suppliers. Contracts tobe signed and put in place. If you have put apreferred supplier list in place, it is advisable toestablish contracts for 3 years as a show ofcommitment to the preferred supplier arrangement.

9. Organise and plan the event. Set clear, specific andexecutable objectives at the initiation stage of themeeting/event. Utilise planning tools to manage thelogistics and the detail of the event.

10.Attendee booking and management: decide whetheryou can use a web based tool for registration andrelated bookings. Ensure that attendee data iscaptured as near real-time as possible, and providedto the suppliers with regularity.

11.Payment of the suppliers and budget reconciliation:pay for all cost categories centrally, except attendeeincidentals which they should settle themselves withtheir corporate charge card. Reconcile the costs assoon as possible, working with your suppliers.

12.Post event evaluation: develop and put in place astandardised post-event evaluation form. Thisshould be used by the internal meeting planners,the suppliers and the clients. (please seemeasurement and evaluation p.19)

CIPS Guide to Event ServicesGood Practice Guidelines


Selecting an agency• When beginning the search for potential agencies

the primary sources of information are:• events industry trade associations (Eventia,

HBAA, MPI etc)• events industry trade journals (Conference &

Incentive Travel, Event, Meetings & IncentiveTravel, RSVP etc)

• Recommendations from fellow procurementprofessionals

• Your own open-door policy of meeting withagencies that may have contacted you

• On a speculative basis (of which more later).

• Invite a cross-section of agencies to submit theircredentials through the RFI process and draw up ashortlist of agencies to interview.

• Meet them, in order to obtain a clearer impressionof their corporate culture. Ideally, visit them at theiroffices.

• Your objective should be to produce a roster ofpreferred agencies, between them possessing thecore areas of expertise from the table on p.5. It willbe a question of cultural match as to whether youopt for multi-service agencies or smaller companiesexcelling in specific disciplines.

• Examine their track record in producing similartypes of events to those that you would becontracting.

• Check their financial stability.

• Seek independent endorsement from tradeassociations and existing clients.

• Appoint a roster of no more than four agencies for aclearly contracted period.

• Maintain an open-door policy, setting aside time tomeet with ‘new’ agencies during the course of the

contracted period, so that when the contract is duefor renewal, you will have a clear idea of additionalcompanies to include in the review.

The pitch process• Having already appointed your preferred suppliers,

it is frequently more cost-effective to negotiatebetween them for the provision of an event, ratherthan pursuing a formal pitch process.

• However, if you feel that it is still necessary toinitiate a pitch process project, the followingguidelines will ensure the most efficient use of yourown and the agencies’ time:

• Provide concise but informative briefs which willinclude the following information:• strategic overview, brand values and objectives• numbers, dates and delegate profile• relevant history• must-haves and/or no-go areas• confidentiality clauses• budget**• deadline and response format required

**Refusal to divulge the budget could waste time,since the agency has to explore the broadest rangeof options, some of which could be outside yourbudget amount. There is a view that givingagencies a maximum budget will only encouragethem to spend up to that limit. If you so feel this,then to eliminate this concern, you can state thatproposals that come in under budget will befavourably considered.

• Allow reasonable response deadlines.• Be available and willing to answer any questions

that the agency may have following receipt of thebrief, and respect that agency’s intellectual copyrightin wishing to pursue an individual course of action.

• At all times cultivate a harmonious relationshipbetween your department, the agency and yourinternal client.



What does bad practice look like?This feedback was gathered from CIPS Focus Group,which consisted of representatives from clientorganisations – procurement and meetings planners,suppliers and trade bodies.

Pre pitch1. Overstating of budget figure when requesting

proposals from suppliers. Be honest and realisticon your maximum budget figure.

2. Unco-ordinated approach within the same clientcompany e.g. procurement say that they aretendering for the entire company requirement andthen a separate approach from another departmentis received.

3. Giving a poor quality brief to the suppliers. Perhapsput a checklist together (see later in this paper)

4. Abuse of scale – ‘Do you know who we are?’5. The use of e-auctioning work in this category? You

are buying a service the majority of the time, and ise-auctioning the best tool to use?

Pitching6. Pitching for pitching sake7. Not adhering to the pitching timetable8. Inviting too many agencies to pitch9. Give the same event brief to many different agencies

asking them to go out to the marketplace and getrates for you. In the expectation that the exercisewill ‘test’ their negotiation abilities. Parity of rateswill ensure that every agency is given the samerates. Also, increasingly, many of the leadingagencies are becoming reluctant to pitch against amultitude of suppliers, on the assumption that thebrief is not a serious one.

10.Allowing sufficient time for the suppliers torespond.

11.Leaving too long a timeframe without feedback tothe suppliers.

Post pitch12.Not giving feedback to the suppliers13.Too many different options held at the same time14.Poor communication between all parties15.Poaching intellectual content especially during a

tender or pitch process16.Inconsistency in contractual terms17.Lack of ownership post contract

Buying Event Services is a developing area forprocurement to be involved in. A procurementprogram will ensure that good practice is put in placewhen getting involved in this area, and by being awareof some of the points that the industry sees as goodand bad practice will no doubt help you succeed inthis category.



As stated earlier, it is estimated that we spend over£400m on agency and supplier fees alone. Whilst youneed to manage the external and third tier productioncosts as well, you need to make sure that you have acontract in place with your suppliers with an agreedfee structure.

There are five types of remuneration models thatoperate within the Event Services industry:

1. Commission2. Management / Time based fee3. Mark up based fee4. Transaction fee5. Payment by results

1. CommissionThis payment system is in relation to venue finding.The agency will provide venue finding services withouta charge to the client and will collect a commissionfrom the selected venue. The standard industrycommission is 8%+ VAT.

2. Management/ Time based FeeEvent services are provided for a pre-agreed fee. Theagencies fees will be time based and will varyaccording to the role, level and the number of hoursworked of the person in the agency providing theservice.

Some agencies may want to charge a management fee,plus a mark-up e.g. where they are handling largevolumes of bought in goods and services, and there isagreed value in the administration and bundling ofthese items.

The agency charges fees based on the amount of timerequired to deliver specified work e.g. fee = number ofhours or days multiplied by the agreed hourly or dailyrate.

1. Hourly or daily rates may be used, depending onthe project type

2. A typical project may call for a number of differenttypes of staff e.g. Account Director, AccountManager, Account Executive, Creative Director,Senior Designer, Junior Designer, Copywriter,Production Manager, Administrative Assistant

3. Actual hourly/daily rate can be expressed by:

(Cost of employment + share of agency overhead + profit)

number of billable hours/days per annum

As a reasonable starting point, the rate will be onaverage split one third cost of employment, one thirdoverhead and one third profit.

When discussing a management fee arrangement withyour agency, it is worth bearing in mind that theamount of time to manage an event is not completelyvariable. Whether there are 10 or 100 people attendingan event, some aspects of event management will takesimilar amounts of time. In other words, certain aspectsshould be considered a fixed cost. It is important totalk to agencies about what they would consider arethe fixed and variable elements.

Good agencies will operate a transparent system toallocate the time spent to the job numbers to enablereconciliation on completion of a project. This shouldbe done as a matter of course at the completion ofevery project.

CIPS Guide to Event ServicesRemuneration


3. Mark-up based feesThe Agency charges X% of bought-in goods andservices as its fee.

1. In the events sector, even a small project can requirea very large number of suppliers and sub-contractors. There is added-value to client in havingsingle point of management and payment of thesesuppliers

2. Actual percentage levels can vary greatly by client,agency and project type

3. It is important to consider how well agencies will bemotivated to negotiate well with suppliers if theyare earning revenue based on the size of thatpurchase.

4. As stated above, some agencies will want to chargea combination of time-based fees plus mark-up.

4.Transaction FeeThis model is used on certain types of venue findinge.g. high volume and low value. The purchaser agreesa fixed fee per transaction that the agency conducts ontheir behalf.

5. Payment by ResultsThe inclusion of a results-based element within agencyfees is becoming a more frequent topic for discussion.The agency can benefit from an increased payment ifhigher than expected target savings are met.Alternatively, a financial penalty will be imposed if thetarget savings fall short of expectation. Thereforehaving some form of agreed measurement of the eventis critical before agreeing to a Payment-by-Results fee.This is also known as Gain Share or Risk andReward.

Other financial issues for consideration1. Agencies can be committing to the acquisition of

goods and services from suppliers well in advanceof the event itself. They will therefore ask you toagree a payment schedule which reflects the timingand volume of payments which will need to bemade.

2. Reconciliation of projects after the event can takelonger than other areas of marketing servicesbecause of the large number of bought in goodsand services.

3. It is common practice for agencies to recommend acontingency allowance for certain types of projectse.g. where unforeseeable on-site conditions maydictate additional expenditure.

CIPS Guide to Event ServicesRemuneration


It is important that both the impact of the event andthe way that the agencies are delivering is measured.As the Magic and Logic book(www.magicandlogic.co.uk) stated:

‘The best agencies take the initiative in proposingevaluation rather than wait for it to be ‘done tothem’ and invest in people, systems and methodsthat will enable them to prove effectiveness. Theytake the view that their investment in provingeffectiveness (e.g. through research or econometrics)bolsters the agency’s perceived value to the client.'

The costs involved in staging events are significant -both in terms of the time invested by those attendingas well as the direct costs. As with any large investmentit is therefore important for budget holders to measurethe success of their events and demonstrate the returnthey have generated.

Measurement however is not just about whether anattendee enjoyed the food or the presentations. Incommon with other elements of the marketing mix,growing importance is being placed on the creation ofadded-value; in other words, the impact that an eventactually has on the business. As well as measuring thisadded-value, research is a vital ingredient in deliveringit.

Given that 'you can't manage what you can't measure’;research is also the vital ingredient for those keyprocurement objectives of realising cost avoidance andmaximising value.

Areas of ResearchThere are three areas of research to consider:

1. Research for Business Impact - In developing acreative solution for an event, two things are critical:

a. understanding the audience andb. the event’s desired business impact

To gain this understanding, agencies may ask if theycan talk to the stakeholders (e.g. the end client) andundertake some research with the audience. So toreceive the best possible solutions, this should befacilitated in a tendering process wherever possible. Toensure fairness and clarity, always ensure that allparties are included in these meetings and discussions.

2. Evaluation by the Event Organiser/ End Client -Having delivered an event, it is normal for agencies toask their client to rate their performance. This issomething that the majority of agencies undertake.

3. Evaluation by the Audience - It is the audienceattending, however, who provide the most usefulinformation about an event’s success; and any pro-active agency should incorporate some form ofaudience research to confirm the value it has generatedfor the stakeholders.

To measure an event's success properly, both pre andpost event research with the audience should becarried out. A questionnaire completed at an eventprovides useful feedback, but only as a 'snap-shot'; it isonly with pre and post event research that change canbe measured. To maximise the value it brings, anagency should then also use the pre-event research inthe construction of the event

`

CIPS Guide to Event ServicesMeasurement and Evaluation


Where to Start?The first, and perhaps most important, step is toencourage all event organisers within an organisationto clearly define their objectives. For example, what dothey want their attendees to do or how do they wantthem to be (different) after the event?

How complicated it gets then depends on theindividual and the maturity of the organisation. To givean appreciation of the different levels of objectives,here is an outline of the Jack Phillips model from theROI Institute©. Reproduced with permission from theROI Institute.


The Levels of Objectives and Measurement**Copyright ROI Institute

5 levels of measurement* Examples Chain of Impact* How oftenasked (%)

5 Return on Investment Business impacts are converted into monetaryvalues and measured against costs

A return on investmentis generated

5-10%

4 Impact • What impact have these actions had on thebusiness of the event’s stakeholders?

A business impact isachieved

10-20%

3 Application • Sometime after the event: What actions haveyou actually taken as a result of the event?

Participants use newskills in their jobs

20-30%

2 Learning • What is your level of knowledge of…?• Knowledge quiz

Participants learn newskills

40-60%

1 Reaction,Satisfaction,

PlannedAction

• Did you enjoy the meeting?• How did you rate the sessions?• How did you rate the organisation, hotel, f&b etc?• Following what you have heard, what do you planto do?

Participants reactfavourably to themeeting

100%


The suggestions here attempt to be generic, so can beused to track the overall relationship and performanceover time. The research undertaken for each event canbe varied, for example depending on the audience,budget etc. To provide a clear picture however, ensurethe sample of events tracked is representative of theentire meeting spend.

Evaluation by the Event Organiser / End Client –Undertaken either periodically or around eachevent.Tactical Measures – Traditional tactical measures suchas standard of delivery (agency & venues), stayingwithin budget, negotiated savings, hitting deadlines,brand alignment, meeting expectations etc. shouldcontinue to be asked and tracked.Relationship Measures – Questions could then also beasked about the relationship – such as degrees of trust,personal chemistry, the overlapping of values betweenthe agency and yourselves etc.

Evaluation by the Audience – Undertaken for eachevent.Specific Event Objectives – Monitor the objectives setfor each event and the pre and post-event researchcarried out to monitor their change. Tracking theseovertime will provide an excellent insight into whyevents are being undertaken and how successful theyare being; invaluable information in realising costavoidance and maximising value.

Generic Measures – Asked at all events, these measurescan provide some initial basis for comparison.

• How worthwhile do you feel this event will be / hasbeen? (Very Beneficial, Beneficial, of Limited Benefit,of No Benefit). Asked of the audience both pre andpost-event, answers to this question should alwaysstay the same or show improvement if an agency isbeing effective.

• The event will make a difference in myrole…(Strongly Agree, Agree, Neither Agree norDisagree, Disagree, Strongly Disagree). The eventmight have been really enjoyable, but how muchdifference would it make afterwards in their day today role? This is an important question to track overtime.

• How do you rate your relationship with thecompany? (Very Good, Good, Average, Poor, VeryPoor). Whether for staff, customers, indirect channeletc. monitoring how an audience views itsrelationship with the company – and whether theyare an advocate or a terrorist – provides a veryimportant insight. Asked pre and post-event it alsoprovides an excellent measure of success for theevent itself.

Research Undertaken – Monitor the types of researchused (research for business impact, pre, post, somemonths after, with the event organiser, end-client,audience etc.).



Measurement Differentiates AgenciesIn selecting agencies, their approach to measurement isan important way to differentiate between them: whilstmany agencies talk about the added-value and impactthey can bring to your events, only those that offer aproper evaluation service can prove it.

Just by including ‘evaluation’ in your RFP, you will bepresented with a range of solutions which can supportthe decision-making process, even if you choose not totake them up.

On-Going Measurement of the Selected AgencyTo monitor and improve the performance of yourselected agency, alongside the more traditionalmeasures, look to monitor the research in your EventServices contract and Service Level Agreement. Pleasesee some basic suggestions for this on the previouspage.

Relevance and Response RatesThere are many different ways to undertake research;for example, questionnaires (electronic, on-line or hardcopy), interviews, focus groups etc. The most importantthing to remember when considering these approaches- and perhaps different agency's proposals - is what ismost relevant to those answering the questions.

To provide credibility to its findings, the researchshould also achieve as high a response rate as possible(e.g. 50% plus gives a majority). For large audienceswhere this is not practical however, it is vital thesample size is representative of the group as a whole.

Quantitative v QualitativeQuantitative research uses closed questions with fixedanswers to produce quantifiable ratings (e.g. Q: Howdid you rate the conference? A: Very Good, Good,Reasonable, Poor, Very Poor) – and provides themeasures of change and success.

Qualitative research then uses open questions whichrequire respondents to give their comments (e.g. whatcould be improved at the next event?) - and is criticalto interpreting the quantitative data. Expect and requesta balance of both in any research undertaken.

‘Audience-Responsive’ not ‘Client-Driven’Focusing on the needs of the audiences is a key driverfor leading events agencies; looking to create ‘audience-responsive’ as opposed to ‘client-driven’ events. There isa view that events which do not understand or respondto the needs of the participants are fatally flawed fromthe start.

Industry Standards and Independent MarketResearch AgenciesThere is currently no benchmark on measurement inthe event services industry; although establishingindustry standards is something being worked on atpresent. As yet there are currently no market researchagencies that specialise in event services and canprovide an impartial and independent evaluation. Thefocus is still with the agencies themselves and untilcorporate clients (i.e. yourselves) are willing to pay forit, this will probably continue.

Research Costs Money – but Delivers more than itCostsResearch takes time and costs money. Paying forresearch is an accepted part of other marketingservices, such as advertising, and so it should be inEvent Services. A basic service however does not haveto cost a fortune and given the cost savings, costavoidance and added value it generates, a wellconstructed research programme should pay for itselfmany times over. It is not just about minimising cost,rather maximising the value of every £ spent.



It is useful to have a checklist to use as an aide-memoire, both for producing a comprehensive, clear and accuratebrief for an agency and for running an event. Please find an example of one below.

An Event Services Checklist

Objectives

Internal Procedures

Program Overview

CIPS Guide to Event ServicesChecklist

Title of the Event

Type of Event: Conference, Congress, Symposium, Advisory Board, Investigator Meeting,VirtualConference, Educational,Training, Internal Meeting, Incentive, Product Launch, Corporate Hospitality, Party.Objectives for the event: Communication, discussion, educate, networking, motivate, reward.Key Messages: What key messages would you like those attending the event to walk away with?Other Activities: How does it fit within the campaign? Other activities? How will it be measured?

Agency Service Required: Venue Search & Negotiation, Creative work, Design & Build, AV Production,Delegate Handling, Event-relatedTravel, Motivation, Corporate Hospitality, Virtual ConferencingProcurement Mandates: Initial Estimated Budget. Objectives and Deliverables of the event. Do you need touse Agencies? Can you use the preferred supplier list? If not, do you need to issue a RFI or RFQ?Timescales involved.Production of Brief: Internal client to draft the brief, brief issued to agencies, review meetings diarised, dateof deliveries agreed, and sign off of deliverables.Procurement Process: Contracts signed, Budget in place, Purchase Order process, Sign off of budgets,Invoicing process, Reconciliation, Measurement and ROI.

SpecificsDates: Ideal dates, secondary dates, are datesfixed?, over a weekend or mid-week? any publicholidays?Destination: Preferred destinations, destinationtype (city centre, country retreat, golf, beach etc.),destinations to avoid, no go areas, destinationsused previously, max. flying time., flight access

AttendeesNo. of Attendees: Delegates, partners, speakers,observers, administrators, transcribers, eventsteam, external agencies.Attendee Profile: Male/female ratio, age range,sophistication, expectations, special requirements



Day 1 2 3 4 5 6 7

Breakfast(Coffee prior to meeting / upon arrival, bacon sandwiches)

Morning Meeting(Timings, numbers, style, syndicate rooms)

Morning Activities(Icebreakers, teambuilding, sporting, sightseeing, at leisure)

MorningTea / Coffee(In foyer area or separate room)

Lunch(Stand up, sit down, in restaurant, in private)

Afternoon Meeting(Timings, numbers, style, syndicate rooms)

Afternoon Activities(Energizers, teambuilding, sporting, sightseeing, at leisure)

AfternoonTea(In foyer area or separate room)

Cocktails(Open bar or on consumption, inc. champagne, canapés)

Dinner(Formal, informal, buffet, private room, restaurant, on/off site –transfer time from hotel)

Entertainment/activity(Speaker at dinner, quiz, string quartet, band, disco)

Accommodation(Number of bedrooms, single / twin, upgrades forVIPs)


Event details


FlightsOrigin: number of people, from where, specific departure /arrival times?General: Direct or indirect, individual or group (more than 10),class of travel (business class over a certain journey time?),max. flying time, preferred airlines, charter, restrictions onnumbers per flight, access to VIP airport loungeNote: Anyone staying additional nights due to flight access?

AccommodationType of Hotel: 3-star, 4-star, 5-star, city centre, airport, countryhouse, split between hotels? Specific hotels requested, chains toavoidType of Rate: Room only, B&B, DB&B (dinner, bed& breakfast),day delegate, 24 hour delegate,Room Type: Single, double for single occupancy, twin, double,suites for VIPs, complimentary upgrades, run of house orwithview?General:Group entrance, check in procedure, porterage, mealtimes, opening/closing times of bar & other outlets, bedroomspre/post event

Meeting RequirementsAgenda:Outline programme, conference theme, ice-breakers/energizers, interactive sessions, breakouts, Q&As,awards, time at leisurePre& Post Event: Set-up, rehearsal, breakdownMainMeeting Room:Numbers of people, seating style (theatre,classroom, boardroom, cabaret), dimensions, ceiling height,daylight and black out curtains, location of power sockets,Other Rooms: Syndicate rooms, foyer/reception area, separateroom for lunch/dinner, event office, store rooms, capacity andstyle for all of these roomsMeeting RoomHire:Daily hire charges? Included in delegaterate?

Production RequirementsMeeting Room: For main room & syndicates, simple screen &projector or more complex? Front/rear projection. Set, stagingand lectern, sound system and CD player, microphones(number - lectern, radio or hand held), lighting, videos orDVDs to play?Other Requirements: PowerPoint support, assistance withrehearsals, transcription, translation facilitator, key-notespeaker, video recording, photographer, electronic voting,branding, signage, theming.Virtual Conferencing: Video cameras, on-site productionsuite, fast web-link, web-portal, email link prior to event.

Food&BeverageMeals: Formal, informal, stand up, sit down, buffet, privateroom, in restaurant, on-site, off-siteOff Site Venues:Walking distance / transfer (by coach orsomething else?), restaurant (private area, exclusive use),unique venue (check costs very carefully), marquee, themedevening, dine around.Drinks:Welcome drink on arrival, coffee breaks inmeetings,soft drinks/water inmeeting rooms, drinkswith lunch, eveningdrinks reception (from bar or trayed, with canapés), winewithdinner (on table or served), post-dinner drinks, drinks paid byopen bar or on consumption (budget behind the bar)

Ground ProgrammeApproach: Full event management or just a one off activity (e.g.one off site dinner)Activities: Sporting, spectator, sightseeing, theatre, teambuilding(outdoor/indoor, structured/fun), sea, land, air, beachEntertainment:Quiz/game, after dinner speaker, string quartet,pianist, band, disco, casino, tablemagician, characaturist,fortune teller, impersonator, dancersTransfers: To/from airport, on site, individual or group, chauffeur,car, minibus, coach, run shuttles, meet & greet service.Hospitality:Hospitality desk, guides (English speaking),advancing venues.


Event details

Measurement and Research


Financial / Contractual / InsuranceBudget: Produce overall budget (per person and total), whatis paid upfront, on site, by individuals (inc. hotel extras)?,sponsorship opportunities? Final reconciliationSuppliers: Signed contracts, carefully reviewed Ts & Cs,purchase orders, payment schedules, cancellation/attrition,deadlines for info. (e.g. names)Re-Charging: Event paid for by company or individual,process for collecting moniesInsurance: Event insurance. Individual travel insurance.

CommunicationRegistration:Web-based or manual entry – by email, fax orpost. Dedicated phone or email address for enquiries.Personal Info:Name, contact details, passport info,nationality (visa requirements), diets, medical, emergencycontacts, credit card detailsPreferred Communication Method for Delegates: Email,telephone, fax, via PAPre-Event Communication: Invitation, follow up letter,acknowledgement, pre-event work, pre-departureinformation, airline tickets (e-ticket/in wallets), teasercampaign, method of posting (courier, registered (signed bywho?), normal mail)On Site: Conference packs, welcome letters, badges,signage, gifts, brandingPost Event: Thank you letter, photographs, Q&A follow up

PlanningPre-Event: Project plan, key milestones, weekly/monthlyreviews, pre-event briefing, off-site rehearsalsOn Site:Number of people required on site (1 per 50), whodoes what, working schedule, advancing the event

Measures of success: What does success look like? Provide at least three clear, measurable factors.Research for Business Impact: Research some months prior to help construct the event.Immediate Pre-event: Research immediately prior to an event (e.g. during delegate registration)Immediate Post-event: Questionnaire completed at the event or immediately afterwards.Delayed Post-Event: Research some months later.What messages remembered.What actions undertaken.Measure Change: Compare pre and post event research to measure change and success.Different Levels: Reaction, Satisfaction, Planned Action, Learning, Application, Business Impact, ROITypes of Research: Quantitative to measure change. Qualitative to interpret results. Questionnaire (hardcopy, electronic, on-line), Interviews (over telephone), Focus Groups. Real-time on-site.With the eventorganiser, stakeholders (i.e. end clients), audience.Notes: Ensure cost of evaluation is accounted for in the budget. Aim for high response rates (50% =majority). Always communicate results back to audience.


This guide has provided Procurement professionals with an overview of the Event Services category and some ofthe issues that may arise during the procurement process.

The guide has been written to enable meeting planners, internal clients and procurement professionals to worktogether to understand the category that they are involved in, as well as giving some details on key tools andtechniques that could be put in place. Measurement and evaluation of the meeting/event; of the meeting plannerperformance and the supplier’s performance are key to the success in the management of this category. It willenable a procurement professional to manage event purchasing more strategically and less tactically.

CIPS Guide to Event ServicesSummary


a) Books and Publications

• Event Planning by Judy Allen (March 2000)• Event Planning Made Easy by Paulette Wolf, Jodi

Wolf, and Donielle Levine (May 2005)• Event Entertainment and Production by Mark

Sonder (July 2004)• The Business of Event Planning by Judy Allen

(September 2002)• The American Express Meetings and Events Best

Practice Study 2005• The Essential Legal Guide to Events by David

Becker (2006)

b) Useful websites

• Hotel Booking Agents Association -www.hbaa.org.uk

• Eventia – www.eventia.org.uk• Meeting Planners International - www.mpiuk.org• European Event ROI Institute - www.eventroi.com• Magic and Logic – www.magicandlogic.com

CIPS Guide to Event ServicesFurther Information


CIPS acknowledges the contribution of the CIPS Events Services Industry and Procurement Focus Group, made upof members from CIPS, the Hotel Booking Agents Association (HBAA), Eventia and Meeting ProfessionalsInternational (MPI) and Tina Fegent MCIPS, Consultant.

The authorTina Fegent MCIPS Consultant is a Purchasing Marketing professional with over 20 years experience. She has set up and runPurchasing Marketing teams for 02,GSK and Orange/FranceTelecom.She then became a gamekeeper turned poacher,andhas gained the unique experience of being the only Purchasing person to work as Commercial Director at 2 LondonAdvertisingAgencies - Grey and Lowe. Tina started the tinafegent Consultancy in 2006 to work with both clients and agencies

CIPS Guide to Event ServicesAcknowledgments

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