T&E Plus

Outsourcing meeting and event services

Over the last couple of years, more and more organizations are choosing to outsource, rather than add internal headcount, their meeting and event needs. The outsourcing of meeting services may be a new concept for an organization yet analogous to the corporate travel department (“CTD”) evolution.  Whereas travel agents of the 1970s and 1980s worked inside an organization, many of these agents were transitioned to a travel management company (“TMC”) when travel began shifting to an outsourced model after airline deregulation.   Sure, many organizations still use internal CTDs and some are very successful. Similarly, many organizations use internal meeting and event planning teams that provide superior services.  Yet, the trend is shifting toward an outsourced model for:

• Oversight of the meeting and event program
• Site selections, sourcing and contract management
• Logistics planning
• Onsite management and execution
• Small meeting management and execution
• Dispute management and reconciliation
• Meeting management technology

Consider the outsourcing benefits to the organization, the meeting requestor and to the meeting planner:

Outsourcing Driver		Objective	Method
Benefits to the ORGANIZATION
Improve Strategy	Improve management by focusing on core business activities		·   Reduce time spent on managing resources and performance. ·   Improve corporate appearance to shareholders ·   Move internal audit of meeting services function to an experienced meeting management or planning company
	Increase speed-to-market		·   Become more responsive to market shifts.  As an example, blend in new acquisitions or transition out business units without reorganizations, restructuring and reductions in meeting services workforce
	Share risks		·   Use meeting management company that has a strong focus on staying up-to-date on new laws and regulations (e.g. Personal Identifiable Information (PII) laws, other data security regulations, The Sunshine Act, HCP, HIPAA, etc.) ·   Take advantage of business continuity and backup plans supplied by meeting management company ·   Manage and control spend for SOX requirements ·   Ensure contracts include proper terms and conditions and are signed by authorized delegates ·   Ensure that meetings and events have the proper insurance riders required ·   Uphold document retention laws for all contracts and other documents
	Mitigate ethical concerns		·   Remove temptations to collect personal incentive points, tickets, credits, gifts or other awards that may be offered by suppliers. ·   Circumvent participation in familiarization trips (FAMS) and other services that appear unethical but are common in the industry
Increase Agility	Scale resources for variability		·   Staff can be added, or reduced, or moved to other clients quickly.
	Provide for up-to-date services with skilled resources		·   Skilled staff can be used to provide services on similar meetings, within similar industries so that skills can be increased and leveraged
Manage Costs	Gain visibility into cost of resources and services		·   Supply chain management principles can be used to monitor and manage costs for all resources and services with enforced key performance indicators and service level agreements ·   Ability to “pay for what you use”
Benefits to the CUSTOMER (e.g. internal meeting sponsor or budget holder)
Improve Service	Customer will get, and can demand, skilled resources, service consistency and specific meeting industry knowledge		·   Take advantage of skilled resource pool that may include "rebadged" sourcers and/or planners transitioned from organization when high-touch is necessary. From working on multiple accounts, tenured, highly experienced resources will have the most flexible industry intelligence
	Document and manage service issues		·   Ability to report service issues and feel "heard" so that improvements can be made.
	Seek help during crisis		·   Access to experienced crisis management experienced resources and a meeting management or planning company 24/7 for help and guidance.
	Focus on corporate social responsibility		·   Support corporate social responsibility (“CSR”) initiatives by using supplier that is a leader in meeting and hospitality CSR advancements
Increase productivity and efficiency	Access to additional, skilled resources and technology		·   Meeting management may be provided by global organizations that use consistent processes and technologies so that productivity is maximized ·   Access to the best of breed for resources and technology
Benefits to the sourcers and/or planners*
Career Development	Develop career and seek competitive salary; Increase career upward mobility		·   Expand client base and possibilities for upward mobility within meeting management company. ·   Participate in training and development focused on meeting and hospitality industry. ·   Access to industry thought leadership and best practices ·   Preserve or obtain competitive industry salaries
Improve Service	Focus on core competency		·   Focus on service delivery through meeting services company rather derailing attention on other types of projects within the organization
*If current staff are transitioned through rebadging process to the selected Meeting Services Company through the hiring process

If your organization is considering a move to an outsourced model, I recommend the following steps before creating a request for proposal:

1.  Conduct a current state spend analysis of all small and large meeting spend (group air, hotel, ground transportation, technology, and other services such as AV, production, entertainment, etc.). NOTE:  This is extremely important (to gain insight for future discounts, baselining, and current behaviors) and often overlooked. (Most consultants in the industry do not perform this service, but I do, so please let me know if you need assistance…I have horror stories of companies that skipped this step)

2.  Conduct a current state resource analysis of the internal and external staff that performs the meeting services.

3.  Conduct a current state scope of services performed from all stakeholders’ perspectives.

With an analysis of the spend, resources and services in hand, many organizations are realizing that an outsourced model makes more sense than using internal resources. 

With optics on supply chain management, a comprehensive request for proposal followed by an aggressive contract negotiation, key performance indicators, implementation guarantees, service level agreements and quarterly business reviews are required as part of supplier relationship management. 

If you need assistance with anything mentioned above, please contact me.

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.

Optimizing the TMC-Corporate Relationship

Recently, I was interviewed by Travel Market Report on the relationship between the travel management company and its clients.

Below and in the attached link, I share my views on the key factors in optimizing this relationship.

Involve Your TMC in Policy

My advice to corporations on when to bring their travel management companies into the picture when creating corporate travel policy is “It's never too soon!”

An organization will benefit by involving a travel management company early in the process to help the organization identify opportunities to save costs, gain efficiencies and improve service. Because the travel management company (TMC) produces reports on the organization's travel behaviors, the TMC is in the best position to offer protocol and procedural support in the early stages of an organization's policy development.

Please continue reading this article at:  http://www.travelmarketreport.com/content/publiccontent.aspx?pageid=870&LP=1&articleID=3361 

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.

Congestive Travel Management Failure

With a shiny, silver, sharp scalpel, the doctor cuts open the chest to gain access to the heart valves.  Complaining of shortness in breath and pains in his chest, the patient has suffered from congestive heart failure and must endure a valve replacement.  The bustling operating room activities unnerve the newcomers and learners while the experienced staff proceed skillfully.  Throughout the procedure, the interns learn, the nurses assist, the anesthesiologists medicate and the surgeons strategize and execute. 

With every cut, the doctor wonders, "Am I doing this procedure correctly?"  The doctor, a general practitioner rather than a cardiologist or heart surgeon, read about heart surgery in a medical journal and thought he'd try it. Plus, the doctor has a heart, so he must know something about it, right?  No one would accept the life or death, or malpractice risks associated with an unqualified doctor performing such a surgery.  Yet, inexperienced generalists cut apart initiatives and programs every day in the business world. In travel and meetings, the risks may cause legal, financial and operational liabilities.

Today, the travel industry suffers from Congestive Travel Management Failure ("CTMF") which is the inability of an organization's travel and meeting program to adequately supply travelers with the best service and organizations with cost and risk reduction.  The symptoms are shortness of funds and the lack of an organization-wide travel and meeting strategy.  Even worse, organizations have indiscriminately cut travel and meeting directors from the workforce only to use general supply chain staff to diagnose and determine a prognosis. Without the experts, an organization may face critical situations, unprepared. 

A plane crashes; does our organization have anyone onboard?  A meeting attendee talks about an imminent suicide; do we have a standard operating procedure to handle difficult situations?  A gusting hurricane may uproot our travelers and meeting attendees; do we know what to do and how much it will cost us?  A meeting management supplier is suspected of overcharging and fraud; do we know what to look for?  A travel management company is not supplying us with the lowest fares; how do we uncover the lost savings? A hotel is suing us for a meeting attendee injury that occurred onsite at their property; did we include the proper language in our hotel contract?    Granted, medicine and hospitality are two very different industries.  Medical staff experience daily life or death crises and require significantly more education than hospitality professionals.  Still, both industries are complex and require institutional knowledge gained by years of experience.

The travel and meeting operating room needs procurement specialists alongside travel and meeting experts. The first group shares its knowledge on procurement principles, general contract terms, strategic sourcing, reciprocity policies, and price elasticity; the second group manages the category using its knowledge of basis points, cost per mile, yield management, logistics and industry specific contract terms. 

Do not underestimate the value of travel and meeting experienced professionals.  When an organization does not employ a hospitality expert, they often reach out to third-party consultants.  In the past several months, I have guided numerous Consultants without Category Experience ("CwoCE") towards learning this complex industry. They think, because they travel, they must know the category, right?   Confronted with the complex travel and meeting industry, these interns are shaping programs at hundreds of organizations. The interns may reside in procurement, internal audit, marketing or even a consulting firm but may not have the depth of category experience necessary to shape and manage a multimillion dollar T&E budget.

So, ask yourself…do you want the expert surgeon or the general practitioner to diagnose, strategize and execute your T&E programs?

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.

Update your Emergency and Crisis Management Plans

If we fail to plan, we plan to fail.  No quote is truer in a crisis management situation.  The organization that does not have the time, money or skills to dedicate to crisis management may lose clients, products, services and even worse, staff.  To underestimate crisis management importance is like telling your teenager it is OK to text while driving because an accident probably won't happen.

An excellent model to use for emergency and crisis management plans includes both proactive and reactive activities at multiple levels within an organization.  In addition to the planning model described in the table below, role plays should be carried out regularly so that everyone can practice their respond and recover roles.

	Proactive		Reactive
	Mitigate	Prepare	Respond	Recover
Enterprise	How do we decrease risk exposure?	If we recognize there is risk involved, how do we prepare in case it happens?	What immediate actions must we take in all affected areas? What must be evaluated in non-affected areas?	How do we move forward to recover from this?  Debrief?
Department	How can the department prepare by informing leaders of the risk (upward communication)? And by informing individuals and sponsors?	Within our department, what are the multiple scenarios that could occur and how do we prepare for them?	Do we have the resources and who are they in case we must respond?	How do we move forward in this department to recover from this? How do we affect change with other departments? Debrief?
Individual	What can I do to make sure that my projects, meetings, etc. incur less risk? What must I learn, and share with my leaders, to mitigate risk?	Within my scope, what could happen and how do I prepare?  What other departments or resources should I inform?	Am I prepared to respond? Do I know what the enterprise expects of me? Do I know what the department expects of me?	How did I do? What must I learn so that I am more prepared for future emergencies?  How can I help so that the recovery is quicker and less painful? Debrief?

For additional help during time of response and recover, consider contracting with a third party supplier that provides expertise.  For example, read an article in the New York Times about the services that International SOS provided during the Haiti earthquake: 

 

For Travelers in Danger, Someone to Swoop In

 

For help with your crisis management planning, contact me.

 

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.

 

 

T&E Fraud and the Impact on Your Business

Fraud costs organizations millions of dollars, causes employee embarrassment, damages corporate image, and intensifies legal and regulatory liabilities. Because many employees have the ability to charge Travel and Entertainment ("T&E") expenses, and the opportunity exists, T&E fraud is an unknown epidemic in many organizations. Let's look through a magnifying glass into T&E fraud triggered by employees and understand who may be the perpetrators, why the fraud occurs, what type of fraudulent actions are common, how much it costs, and how to control it.

 

Employees who feel disenchanted with their job, or may need extra money, are not the only offenders of T&E fraud. In the Occupational Fraud and Abuse Classification System,* conflicts of interests and bribery are categorized as corruption.  In fact, some unethical behaviors that may be deemed a conflict of interest, such as personally redeeming meeting planner points that result from organization spend, and belong to the organization, may appear rational unless the company policy states that the points should be used to benefit the organization, not the individual.  If the action appears sensible, the difference between fraud and unethical behavior often lies within the company policies and guidelines.  Too often, fraud may result purposely by employees who know their wrongdoings, or innocently by employees who do not know about or understand company policy. Countless types of T&E fraud and unethical behavior occurs everyday in organizations.

 

The following examples do not represent an all-inclusive list of T&E fraudulent activities.  Fraud or unethical behavior results from employees who:

1.    create fictitious hotel bills or other bills and expense it

2.    copy, and reclaim, receipts in a future expense report

3.    expense false "below the line" expenses when receipts are not required

4.    overstate charges by expensing more than the actual costs

5.    take friends and family for meals, to entertainment venues, or on trips and expense the charges erroneously

6.    pay for products or services that are wholly or partially used for personal use

7.    collect hotel or vendor commissions that are due to the company

8.    collect and personally use meeting planner points (which are different than individual hotel rewards points) for placing meetings and events at properties

9.    use their corporate cards for personal use in order to collect rewards points that cost the organization more money for the contract with the financial services company

10.  use meeting and event suppliers that may provide something personal in return such as free trips, room nights, spa service, car service, floral service, entertainment, extra rewards points, or other amenities

11.  book company-expensed airline tickets, cancel the trip, and use the unused credit for personal travel

 

 

According to a recent survey asset misappropriation represents 88% of all fraud and corruption and bribery represents 16% of fraud.  Many organizations use internal audits as their primary investigative method; yet, many internal audit teams do not know how to find, monitor or value the fraud listed in numbers 7 through 11 above.   

 

Without a managed travel, meetings and entertainment program in place that aids in pre-empting these fraudulent practices, companies are vulnerable.  Seven percent of an organization's annual revenues are lost to fraud according to the Association of Certified Fraud Examiners 2008 Report to the Nation on Occupational Fraud & Abuse.  How much is your organization losing because of T&E fraud? And, how can you reduce it?

 

While some organization leaders may be cavalier about the loss of revenue because they do not believe the lost value is excessive, there are more reasons to cauterize fraud.  Organizations may breach competition laws or stimulate SEC scrutiny with even small-value incidents.  One example using the four-step process on how to Prevent, Identify, Mitigate and Educate (PIME) is shown below:

 

 

HOW TO:	Prevent	Identify	Mitigate	Educate
Identify the value of the meeting planner points that are redeemed for personal use	Centrally collect all meeting planner points to use for company business travel, donate to the charity of choice, or disallow all meeting planner points	Review meeting and events contracts with properties and audit the points received for redemption activity	a) Strengthen the strategic meeting management program so that designated staff procure meetings and events b) Centralize all meeting and event processes and procurement through technology to gain visibility into total volume	a) revise policy b) communicate and market that meeting planners points must be used for business use

 

 

Fraud increases during economic downturns. As such, it is more important now than ever before to focus efforts on how to reduce fraud in your organization. If you want help with T&E fraud, please contact me.

 

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

 

* Association of Certified Fraud Examiners 2008 Report to the Nation on Occupational Fraud & Abuse

 

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.

15 Questions to Begin a Business Case

In the last few weeks, new Certificate in Meeting Management ("CMM") candidates have sought my coaching while they created their business plans to obtain their designation.  In addition to helping clients with business cases and business plans, I taught a one-day class titled, "Building a Business Case for a Strategic Meetings Management Program" at the National Business Travel Association Conference a couple of years ago and recently taught a "Building a Business Plan" class on EduFire.  I may be one of those "crazy" people who enjoys writing business cases and business plans.  

During my initial meeting with learners, I find that some are not sure how to begin. Business plans are different than business cases; yet, some of the same questions can generate the information required to complete either document.

Business plans are holistic and usually present a position about the whole organization, business unit or product line whereas a business case usually presents a position about a single idea such as investing into a technology solution.

Please see the attached one-page document that will help you get started in generating ideas. This is only the first tool in my toolbox that I use with learners.  If you have questions or want help, contact me.

 

Download Business Case Questions

 

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.

 

Corporate Social Responsibility in Travel and Meetings

How do you measure your travel and meetings Corporate Social Responsibility ("CSR") program?   What are your CSR priorities?

CSR is a business approach to create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments according to the Dow Jones Sustainability Index.

The three CSR dimensions, Economic, Environment and Social, include numerous criteria to manage and measure as shown below:

CSR Dimension	Criteria
Economic	· Codes of Conduct/Compliance/Corruption & Bribery · Corporate Governance · Risk & Crisis Management and other industry-specific criteria
Environment	Environmental Reporting which may include: · Greenhouse Gas Emissions ("GHG") · Energy Consumption · Water use · Waste · and other industry-specific criteria
Social	· Corporate Citizenship/Philanthropy · Labor Practice Indicators · Human Capital Development · Social Reporting · Talent Attraction and Retention · and other industry-specific criteria

Using a maturity model approach and scorecard, I help companies create a travel and meetings baseline so that organizations can measure the current status and begin improvements.  In addition to the above criteria, a strategic plan with tactical objectives provides the foundational roadmap for organizations.  

Today, three speakers will be sharing leading practices on CSR in meetings and events as part of the StarCite-sponsored webinar in Virtual Meeting World at 2:00 pm EST.  I will be sharing the maturity model and leading practices on how to best manage this important initiative in your organization.  If you are interested in participating, navigate to www.virtualmeetingworld.com. 

 

If you want more information or help with your CSR program, contact me.

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

Travel Free for All!

In speaking with a colleague today, I learned that one of his clients does not have a T&E preferred supplier program in place for airlines, hotels or ground transportation.  In fact, this company spends millions on travel and allows their travelers to buy tickets from any place of their choosing.  They have no travel policies.   Their employees look up the typical trip cost estimates in their travel database and use it as a guideline when booking trips.  With the estimated trip costs in hand, they are free to book their travel any way that they choose.  When they return, if their trip was less than the estimated cost, they may bank the additional "credit" for their next trip.

What do you think? Is this a new trend for generations that don't want to follow our policies?  What are the implications?  How many companies are moving toward "less controls?"  Of course, I have many opinions but am curious to hear YOUR perspective.

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

How much did your organization spend on meetings, events, incentives and group travel last year?

If your CFO, or another leader, asked this question, can you provide the answer?  Do you know how many internal and external meeting planning professionals were involved in planning meetings and events? Do you know how many executive assistants, marketing or human resource associates planned meetings?   Do you know how many small and large meetings were held globally across all business units?  Can you answer any of these questions within a matter of an hour?

 

On September 17, five insurance companies will testify before the House Oversight and Government Reform Domestic Policy Subcommittee to explain their business model, expenses and insurance coverage.   Representative Henry Waxman sent a letter last month to 52 health insurance companies and asked the chief executives for detailed data on all "conferences, retreats or other events" held since 2007, in addition to compensation and revenue information for the years 2003 through 2008.

 

According to Mary Ann McNulty, content director at ProMedia.travel LLC,  the committee asked for "a table listing all conferences, retreats or other events held outside company facilities from Jan. 1, 2007, to the present that were paid for, reimbursed or subsidized in whole or in part by your company, as well as the purpose of such events and documents sufficient to show the location, number of participants and all expenses incurred, including transportation, lodging, food, entertainment or gifts."

 

Government rights and protocol aside, all organizations, companies, governments, and non-profits should be able to produce an accounting of spend for their owners, stockholders, constituents or donors.  Meetings and events are necessities to build relationships, improve skills, incentivize behaviors, and sell products and services.  Yet, few organizations oversee the spend, resources and risks of meetings and events. 

 

As I told Mary Ann last week, companies that have a comprehensive strategic meetings management program (SMMP)* in place may be able to meet the data requirements of the committee.  Meeting management technology is the enabler of the SMMP components and has the ability to capture all of the meeting data requirements.   In addition, a mandated policy is required across all business units for small and large meetings. 

 

My advice:  Do not wait for a government inquiry, an internal audit, or the CFO to come knocking at your door.  Instead, conduct a meeting and event spend analysis of all accounts payable, Procurement-card and travel and expense corporate cards NOW. 

 

1. Find the meeting, event and group travel spend;

2. Update the T&E and Meeting/Event Policy; and

3. Create and implement a strategy, process and technology to capture all meeting and event spend

 

A global meeting spend analysis can be completed within days. Be prepared to answer the questions above at any time, for any leader.  Contact me for help with your spend analysis, the meeting strategy, process or technology requirements.

 

http://www.management.travel/news.php?cid=meetings-health-insurance-probe.Sep-09.10

http://domesticpolicy.oversight.house.gov/story.asp?ID=2581

 

*SMMP Components include a meeting and event strategy, policy, registration/tracking of the meeting/event, approvals, procurement/sourcing, planning/execution, payment/expense reconciliation, data analysis/reporting and a meeting management technology as defined by the National Business Travel Association.

 

 

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

 

T&E Leading and Lagging controls

How do you measure your Travel and Entertainment Expense behaviors and outcomes?  Most leaders are taught to focus on the bottom line, and then cut, cut, cut expenses.  I recommend reviewing the leading and lagging controls that are in place to obtain cost reduction.

 

A leading control will proactively drive proper behavior so that the desired outcome can be measured in the lagging control. 

A leading control will be in place BEFORE the spend occurs while the lagging control will be in place AFTER the spend occurs and to monitor compliance.

 

Let's use two examples of Leading and Lagging controls:

 

Travel Example:

The Travel management company reports show that Lost Savings are occurring because travelers are not selecting the lowest cost.

 

Leading control:  Does the T&E policy state that travelers must choose the lowest fare?

Leading control:  Does the online booking tool provide dynamic messaging to the traveler to choose the lowest fare?

[spend is incurred by traveler]

Lagging control:  Does the travel management company report provide the required data so that non-compliance can be followed with a consequence?

Lagging control:  Do you have consequences in place for non-compliant traveler behavior?

 

 

Meeting Example:

A spend analysis report shows that meeting spend is incurred by numerous ad-hoc planners throughout the organization.

 

Leading control:  Does the meeting policy state that meetings must be sourced and planned using a preferred company or department?

Leading control:  Do your preferred hotel chains know to direct all meeting spend through your approved meeting management company or department?

[spend is incurred for the meeting]

Lagging control:  Do you obtain regular financial accounting records of all meeting spend incurred throughout your organization so that you can track maverick expenses?

Lagging control:  Do you have consequences in place for non-compliant meeting behavior?

 

Every T&E expense has at least one, if not more,  leading and lagging controls.  Managing the proactive leading controls and the reactive lagging controls will increase your cost reduction success.  Think of it this way:  "If we do [behavior], then we should see this [outcome]. 

 

I have created leading and lagging controls for all T&E expense categories and have helped my clients reduce their expenses by double digit percentages.   If you want assistance, please contact me.

 

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