Too Much Work & Too Few Resources
How about Outsourcing Your Meeting?
by Karen D. Tucker
Featured in New England Corporate Events Magazine
Column:  From the Experts
April/May 2001 Edition

About ten years ago, I was working for a technology company that was experiencing the first pangs of downsizing. My department staff was diminishing and not being replenished. Was it the end of the road for me?

I thought it was until I realized that our industry was at a precipice and I had a great opportunity to redefine my role. From that point on, projects were managed differently. I sent RFPs (Requests for Proposals) to independent meeting professionals. From those proposals, I created preferred vendor lists. My role in the company changed from a meeting planning professional to strategic manager with a staff of diverse and talented outsourced employees.

How to Manage Outsources

Outsourcing is now a very popular option for many overworked in-house event planning departments. But, there are a myriad of decisions and questions you need to resolve before searching for an independent meeting professional. 

• What is the objective of your meeting?
• Is there past history on this meeting? i.e. location, number of attendees, room pickup, food and beverage expenditure, attendee profile?
• Who will be attending your meeting and where are they coming from?
• Is there an approved budget? How much?
• What is the complete list of responsibilities/tasks?
• Which of these tasks should be handled internally?

As a guideline, any responsibility that is tied to your company's core values and strategy is best handled internally. Remember that an independent meeting professional does not want to steal your job. I am sure you all have had this concern from time to time. I know I did!

The role of an independent Meeting Professional is to make you look good. They can only be successful if they work with an internal manager who keeps them on track. This means monitoring, communicating and providing feedback.

The most successful model you can follow is to view your outsourced Meeting Professionals as external employees. This is an investment of time that will payoff greatly for you:

• Your projects will take less time.
• Your internal culture and resulting needs are better understood.
• Your planning process will become more streamlined.
• Your team will be in place and ready for future projects. 

WHO OR WHAT SHOULD YOU LOOK FOR?

When you answer the questions above, you'll know what kind of company or person will be able to help you best, There are large firms with large, full-time staffs that handle several thousand meetings per year. This is your best option for finding diverse in-house services and strengths.

There are also small—one to 20 person—offices that expand to meet their customers' demands and business cycles. If you're looking for hands-on management and lower fees, this may be the best way to go.

YOUR COST

How will you be charged for these services? Choose the option that best suits your needs. The most common basic charge is a flat project fee that includes out-of-office meetings, planning work, and onsite management. Be aware this fee is based on the amount of time and staff that will be required to complete your project. Overruns or changes to your scope of services will result in additional fees.

If your project is small, it may be more reasonable to choose a fee for service basis in which time is tracked and billed by the hour or the day. Independents generally charge a full day fee when they are traveling or out of their office for the day.

Another option for remuneration is paying on commission. There are pros and cons to this option. Hotel room rates can be commissionable or net. If your independent meeting planner is receiving a commission from your sleeping rooms, then this should be disclosed in their contract along with any other commissions earned. This is the most ethical solution. If they are charging an upfront project fee, then any commission should be returned to the client.

In all cases, it is important to determine that your independent is acting objectively on your behalf and not pushing you to properties or rates that will provide higher commissions.

Finally, do not forget to ask for references. Call them! Listen between the lines — mediocre comments usually predict mediocre meetings. Look for explanations in their comments. Also, do not forget to put all of your financial terms and agreed upon responsibilities into the written contract that is agreed upon before work begins.