T&E Plus

Unmanaged Meetings Offer Travel Sellers Opportunities: How to Profit

Companies spend billions on corporate meetings in the U.S. every year, yet only a small percentage have this sizable but fragmented spend under management. At the Strategic Travel Symposium, held in mid-March in New York City, the “Building a More Strategic Meetings Management Program” seminar discussed quick wins, risks and long-term ways to maximize the management of meetings.

The panel, moderated by Kevin Iwamoto, vice president of enterprise strategy, StarCite, consisted of Cindy Shumate, executive director, travel & meetings, Estee Lauder Companies, Inc.; Tamara Gordon, director, travel, meetings, fleet at Boston Scientific; and Debi Scholar, founder of The Scholar Consulting Group. During the seminar, they revealed an interesting statistic gathered from StarCite: 80% of meetings are planned in advance but account for only 50% of a company’s meeting budget. It’s those last-minute meetings, perhaps planned spur-of-the-moment, that eat away at half of a company’s program expenditures.

It’s the smaller meetings, those 50 people or less, that are open to the greatest exposure to loss, and those account for 2/3 of all company meetings, noted the presenters. These meetings are usually planned outside of the normal channels, i.e. not through the meeting planning department and instead by personnel in other departments. The reasoning for the loss is five-fold:

1.   Smaller meetings are generally sourced by non-professional planners (perhaps a secretary, administrative assistant or marketing coordinator at the firm).

2.   They are usually overlooked by upper management.

3.   There is no reporting, feedback or tracking of these smaller meetings and their attendee costs, so there’s no accountability structure in place.

4.   Because they are not sourced professionally, cost leveraging opportunities are missed (for example, the booking of multiple programs with one vendor, which often result in cost-savings, is not present).

5.   The shorter lead times leave less chance for cost comparisons, and ensuing negotiations. Under the gun, planners are forced to just accept what hotels offer to them.

Managing the Unmanaged

What can travel sellers do to help companies with this problem and start handling those unmanaged meetings?

----READ the rest of Dawn Barclay's article in the Travel Market Report here:   http://www.travelmarketreport.com/meetings?articleID=2986&LP=1 

Thank you for visiting the T&E Plus Blog on expense management, travel management, business meetings, events, incentives, strategic meetings management, entertainment, virtual meetings, tickets, hotels, airlines, ground transportation, T&E policy, plus more...

Debi has the following designations:

· Wharton Aresty Executive Education/National Business Travel Association (NBTA) Global Leadership Professional (GLP)

· Meeting Professionals International Certificate in Meetings Management (CMM)

· Convention Industry Council Certified Meeting Professional (CMP)

· NBTA Corporate Travel Expert (CTE)

· Six Sigma Green Belt

· Chauncey Certified Technical Trainer (CTT)

Follow me on Twitter ...http://www.twitter.com/debischolar  and on LinkedIN at http://www.linkedin.com/in/dscholar

The information contained in this Web site is provided for informational purposes only, and should not be construed as legal advice on any matter. This information does not represent the opinions of any other party other than the author.  The links to other publicly available Web sites are provided as a convenience; we make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information provided.

20 Reasons to Consider Virtual Meetings

By the sheer number of pharmaceutical meeting planners that attended our virtual meetings session this week in Philadelphia, it is clear that virtual meetings and events are taking front and center stage in the meetings world. What is a virtual meeting?  A virtual meeting or event provides for live or archived communications among small to large, local to global attendees by the use of technology.  Although the travel and meetings industry began using virtual communications technologies in the last five years, virtual communications usage gained market share in the training and development industry approximately 15 years ago with e-learning collaborative applications.

Similar to e-learning which does not replace instructor-led, virtual meetings often supplement live, face-to-face meetings.  For example, a large, global sales meeting may require three days of onsite meetings.  To encourage motivation and jumpstart learning, a virtual meeting may be held four weeks and then two weeks before the face-to-face meeting using team building content and pre-learning requirements.  Onsite at the face-to-face meeting, a satellite broadcast may be used for speakers and/or attendees who could not travel to the face-to-face meeting.  After the face-to-face meeting ends, additional virtual meetings may be held to reemphasize key points and increase attendee retention of the meeting content which leads to higher return on investment.

As part of a comprehensive virtual meeting and event initiative, I recommend communicating the benefits that may not have been considered.  Such as, virtual communications may:

1.    remove the distance for global workforces, clients and markets;

2.    allow immediate immersion into visual, listening and participative environments with people who are not nearby;

3.    reduce the carbon emissions and environmental impact of travel;

4.    provide immediate access to subject matter experts, multiple presenters from numerous locations and more spontaneous and immediate decisions in lieu of planned meetings;

5.    provide for replay/archive capabilities;

6.    allow access for people who are unable to be there in person or have fear of being in large crowds;

7.    offers scalability so that large meetings can still "fit" without having to reserve more rooms;

8.    provides for more people to attend trainings and workshops that could not attend based on travel costs;

9.    improve work/life balance and the ability to provide staff with the option of avoiding business travel when possible;

10.   provide a safe environment for those people who may not want to provide feedback in a meeting room with their leader present, or a room filled with people they may not know;

11.   provide an anonymous environment to obtain survey results by using the polling features;

12.   reduce non-productive traveling and flight time;

13.   provide for tracking of attendance during live and archived sessions;

14.   provide multi-language options using technology;

15.   reduce travel expenses;

16.   reduce telecom costs with a unified communications strategy;

17.   provide for continuity planning during disasters such as flu and other arising risks or epidemics;

18.   decrease frustration imposed by heightened security that makes travel a burden;

19.   reduce the risk of confidentiality breaches due to lost computers, while traveling, that may include private information; and

20.   provide a healthier atmosphere for those who suffer with allergies to smells that may occur in large, crowded environments.

What virtual meeting or event technology should you use?  Conference calls, podcasts, telepresence, webinars – all are technology mediums to solve a communications need.  Although the attached matrix is not all-inclusive of all technologies, it will provide you with a foundation. Download Virtual Technologies Selection Matrix

 

If you need assistance in creating your virtual meeting and event strategy, or seek help in choosing the right technology, please contact me.

Debi Scholar, GLP, CMM, CMP, CTE, CTT

Thank you for visiting the T&E Plus Blog on supply chain management, expense management, travel management, business meetings, events, incentives, strategic meetings management, entertainment, virtual meetings, tickets, hotels, airlines, ground transportation, T&E policy, plus more...

Debi has the following designations:

· Wharton Aresty Executive Education/National Business Travel Association (NBTA) Global Leadership Professional (GLP)

· Meeting Professionals International Certificate in Meetings Management (CMM)

· Convention Industry Council Certified Meeting Professional (CMP)

· NBTA Corporate Travel Expert (CTE)

· Six Sigma Green Belt

· Chauncey Certified Technical Trainer (CTT)

Follow me on Twitter ...http://www.twitter.com/debischolar  and on LinkedIN at http://www.linkedin.com/in/dscholar

The information contained in this Web site is provided for informational purposes only, and should not be construed as legal advice on any matter. This information does not represent the opinions of any other party other than the author.  The links to other publicly available Web sites are provided as a convenience; we make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information provided.

Tranquility at Hartsfield-Jackson Atlanta International

Thousands of damp, hurried travelers undressed through security and rushed through Terminal B in the world’s busiest airport, Hartsfield-Jackson Atlanta International, only to find that all flights were delayed at the end of this work week. With patience short and rudeness high, we were herded from gate to gate as the blue and white screen shouted “Cancelled” or “Delayed” due to the heavy rains throughout the East.  The scattered Delta Sky Clubs were filled to capacity and declined even the privileged guests while all of the airport restaurants were standing room only.  Hurdling over travelers without chairs, I bumped into young troops wearing Army fatigues who cheered when their flight was delayed as if onlookers should decipher a hidden message.   As common as this scene is to frequent travelers, it usually ruins a Friday night.

 

While trying to decide between beer or ice cream, I stumbled upon my own private cloud in Concourse B, next to Gate B15 while waiting for my flight. Like a tranquil haven, a small business called Minute Suites welcomed me into their silent sanctuary.  Minute Suites offer private, 7 ft. by 8 ft. rooms that can be used to nap, relax, or work. In less than a minute, the friendly staff sold me a one-hour timeslot. Once inside my private suite, with self-controlled temperature adjustments, I cozied into a comfortable daybed for an energizing nap with a real pillow and comforter (both freshly cleaned).  With the door closed, the chaos of Terminal B ceased.  My short powernap was enhanced by their NAP26 audio that uses binaurual beats to train the brain to relax and to awaken without the risk of grogginess.  After about 30 minutes, I gradually awoke to a gentle hush and envisioned a secluded beach and gentle waves.  I finally sat up, turned up the dimmed lights and checked my flight status using Minute Suite’s high speed Internet access and computer. Even the message stating that my flight had been delayed another two hours didn’t bother me now. With a renewed energy after a nap and some total silence, I gave the remote control a spin through the hundreds of satellite TV stations to find some news. While airline clubs offer comfortable seating, business services and snacks, they don’t provide private beds, pillows, TVs and silence that are sometimes desperately needed. 

 

Designed by physicians and healthcare professionals, Minute Suites offer a secure, dark and quite environment to encourage napping and the use of binaural beat audio technology as a sleep aid for travelers.  The Atlanta facility, opened in November 2009, is the first of its kind in the United States. Similar private spaces are available in international airports.  At $30 for the first hour, it was worth every dollar after experiencing a busy week, a long day and numerous flight delays. For those who want a private, small meeting facility, Minute Suites provides additional chairs that can be added to the suite.

 

When my hour at Minute Suites ended, I reentered the swarm of smelly, frustrated travelers with a renewed vigor as if I had changed into army fatigues and was off to conquer my path back to Newark.

 

Thank you for visiting the T&E Plus Blog on expense management, travel management, business meetings, events, incentives, strategic meetings management, entertainment, virtual meetings, tickets, hotels, airlines, ground transportation, T&E policy, plus more...

 

Debi has the following designations:

· Wharton Aresty Executive Education/National Business Travel Association (NBTA) Global Leadership Professional (GLP)

· Meeting Professionals International Certificate in Meetings Management (CMM)

· Convention Industry Council Certified Meeting Professional (CMP)

· NBTA Corporate Travel Expert (CTE)

· Six Sigma Green Belt

· Chauncey Certified Technical Trainer (CTT)

 

Follow me on Twitter ...http://www.twitter.com/debischolar  and on LinkedIN at http://www.linkedin.com/in/dscholar

The information contained in this Web site is provided for informational purposes only, and should not be construed as legal advice on any matter. This information does not represent the opinions of any other party other than the author.  The links to other publicly available Web sites are provided as a convenience; we make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information provided.

The Un-CFO

As if there were springs in his Edward Green black leather split toe shoes, the Armani Black Suit hurriedly positioned himself in the northern most head seat, the one with the invisible CEO/CFO initials inscribed on the back like a director's chair, in the Executive Boardroom on the 34^th floor in lower Manhattan.  His Blackberry, permanently attached to his right hand, provided instant updates and irritating interruptions. 

He declared, “Our T&E expenses are under control; our meetings have been cut so I don’t believe there is a need for consulting services.” 

The Wall Street Journal recently reported that the conglomerate’s credit rating was downgraded by S&P, invoices were in arrears, and leaders were indifferent to questionable ethical behaviors.  One executive allegedly accepted a family vacation from a major hotel chain in exchange for sourcing a large company meeting at their venue.  Further, complimentary golf, spa and other free amenities were allegedly requested by organizers and leaders. In hotel hearsay, the company recently held numerous lavish events at 5-star properties with budget thresholds ignored.  The company’s board of directors demanded an immediate investigative cost reduction initiative for all direct and indirect spend categories to uncover expense anomalies and unethical behaviors. 

“We monitor our T&E spend carefully,” the CFO announced, “there is no reason for us to presume that travel or meeting spend is excessive. Besides, we cut almost all travel and meetings in 2009.” 

Travel and Entertainment expenses (“T&E”) are the second or third largest indirect expense in most organizations, yet many leaders overlook this compilation of costs because it is partitioned in numerous general ledger codes and over forty standard industrial and merchant category codes.  Like a skilled hog searching for truffles, it takes tenured professionals to detect the assorted charges through accounts payable, credit cards and expense management systems.  Often, covert organizers conceal and divide the costs across multiple budget holders to avoid exposure. The leaders have a legal and moral financial responsibility to their shareholders to reduce these and other indirect costs through process improvement and supply chain management. Yet, many fail to manage T&E expenses because leaders are:

1. unaware of the T&E spend impact;
2. uneducated as to how to control T&E;
3. unauthorized as T&E may be out of their control; or
4. uninterested due to a sense of entitlement of travel, rewards and amenities.

”We have a moratorium on new IT initiatives and do not believe that an expense management or meeting management technology is necessary in this environment” the CFO admits.  

According to A.T. Kearney, non-automated expense claims cost $42.98, which is 50 percent more than the $21.86 for a fully automated expense claim.  With 1,000 travelers in a month, the savings could accumulate up to $21K in processing costs.  Moreover, a meeting management technology would provide visibility into the actual quantity and costs of large and small meetings while improving the overall process. 

Squirming in the mahogany executive chair and fidgeting with his perfectly straight tie, he continued “I’m confident that there is minimal fraud in our organization, therefore, it isn’t necessary to search or track something that really doesn’t exist.”  

Expense reimbursement fraud is one of the nine subcategories of asset misappropriation fraud.  In a study of 959 occupational fraud cases conducted by the Association of Fraud Examiners in 2008, 13.2% were expense related with an average loss of $25K. 

Interjecting his opinion over sound leading practices, the CFO regressed, “Our organization does not require T&E consulting. Thank you for your time today.” 

As a dichotomy between fact and the CFO’s perception, the most recent annual report highlights a higher than projected Selling, General and Administrative (“SG&A”) expense, of which T&E expenses are a part, compared to a lower than forecasted revenue on their income statement. 

 

Debi Scholar, GLP, CMM, CMP, CTE, CTT

Thank you for visiting the T&E Plus Blog on expense management, travel management, business meetings, events, incentives, strategic meetings management, entertainment, virtual meetings, tickets, hotels, airlines, ground transportation, T&E policy, plus more...

Debi has the following designations:

· Wharton Aresty Executive Education/National Business Travel Association (NBTA) Global Leadership Professional (GLP)

· Meeting Professionals International Certificate in Meetings Management (CMM)

· Convention Industry Council Certified Meeting Professional (CMP)

· NBTA Corporate Travel Expert (CTE)

· Six Sigma Green Belt

· Chauncey Certified Technical Trainer (CTT)

Follow me on Twitter ...http://www.twitter.com/debischolar  and on LinkedIN at http://www.linkedin.com/in/dscholar

The information contained in this Web site is provided for informational purposes only, and should not be construed as legal advice on any matter. This information does not represent the opinions of any other party other than the author.  The links to other publicly available Web sites are provided as a convenience; we make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information provided.