Strategic Meetings Management Case study

Transcription

1 Strategic Meetings Management Case study MIKAEL EK BUSINESS DEVELOPMENT MANAGER - EMEA American Express Meetings & Events is a service provided by American Express Global Business Travel. American Express Global Business Travel ( GBT ) is a joint venture that is not wholly-owned by American Express Company or any of its subsidiaries ( American Express ). American Express Global Business Travel, American Express and the American Express logo are trademarks of American Express, and are used under limited license.

2 Introduction Anette Mc Carthy Mikael Ek Fortum Corporation 2

3 Fortum in brief Fortum's purpose is to create energy that improves life for present and future generations. Fortum's expertise is in CO 2 -free and efficient electricity and heat production. The company also offers energy-related products and expert services to private and industrial customers and energy producers. Fortum's main areas of operation are the Nordic and the Baltic countries, Russia and Poland. In 2014, the annual sales (excluding the divested electricity distribution business) totalled EUR 4.1 billion, and comparable operating profit was EUR 1.1 billion. The company employs approximately 8,000 people. Fortum's share is listed on Nasdaq Helsinki. 3

4 Fortum main market areas 4

5 Agenda SMM quick overview Case study Fortum Q&A 5

6 Overview of American Express Meetings & Events Depth of resources in 140+ countries 20+ years in SMM industry MICE Complete MICE coverage 1,400+ M&E staff globally 42,502 meetings per year Over 1 Billion Managed Compliance spend clients globally in our key markets Strong basis for strategic meetings management 6 28 feb -16 Anette Mc Carthy AXP Internal

7 Strategic Meetings Management Typical Current State Future State Amex M&E Client Client American Express Meetings & Events Venue Find Servicing Planning and Logistics Management Group Air Virtual Meeting Execution Attendee management Congress Management Emergency Group Mgmt Creative & Production Coordination 7 28 feb -16 Anette Mc Carthy AXP Internal

8 Components of a Strategic Meetings Management Program 8 28 feb -16 Anette Mc Carthy AXP Internal

9 Strategic Meetings Management (SMM) The Journey INDIVIDUALIZED Meeting owners engage support as needed CONSOLIDATED STRATEGIC OPTIMIZED Support offered to meeting owners Adoption varies Enterprise approach to meetings Meeting owner behaviour directed Continuous improvement in the meetings programme SERVICE Transparency Savings Effectiveness Holistic Approach Global Capabilities Expertise END TO END OPTIMIZED PROGRAMME No overarching strategy or policy Some strategy for overall meetings with basic policies Policy is defined across multiple areas and accepted Strategy aligned to business objectives & integrated into culture 5-10% savings 10-15% savings 15-20% savings 20-25% savings 9 28 feb -16 Anette Mc Carthy AXP Internal

10 The RISK of doing nothing Ad hoc contracting Contract Terms = Financial and Legal Risk Inconsistent PO and Payment Process Reputation & perception RISK Disjointed Data (or No Data) Unmanaged spend Lack of Security Oversight feb -16 Anette Mc Carthy AXP Internal

11 The BENEFITS of doing something Increased buying power Savings from managed spend Minimize security risks to attendees Clear Standard Policy and Process Standard contracts minimize financial and legal risk Actionable data to drive program improvements Consistent PO and Payment Process increase Compliance feb -16 Anette Mc Carthy AXP Internal

12 The Journey to Strategic Meetings Management M&E Gap Analysis and Needs Assessment 1 2 M&E Data collection 3 SMM Supplier selection 4 Leadership Mandate 5 Program & Change Management STRATEGIC MEETINGS PROGRAM STANDARD MEETING PROGRAM feb -16 Anette Mc Carthy AXP Internal

13 Meeting and Events project Implementation 2013 Sweden and Finland Anette Mc Carthy Corporate Procurement

14 How we did it in Fortum Preparations Gather spend and other data Support from top management needed Implementation step by step 14

15 Preparations Benchmarking with other corporations Support from your manager Investigate the supplier market 15

16 Gather spend and other data Amex did a Gap-analyses within Fortum and interviewed about 40 meetingplanners in Finland and Sweden, the spend was the same as our own X MEUR (excluding travel costs) Identify the suppliers = 250 suppliers 2011 (30 agreements) Tools 3 differents supplier tools were used 16

17 Support from top management needed Be prepared and sell your idea 17

18 The Meetings Landscape The economic environment has put tremendous pressure on companies to achieve cost savings Meetings, events, and incentives are under media, public, and government scrutiny Meetings are considered one of the last frontiers in unmanaged corporate spend Although travel and meetings have similar components air, car or ground transport and hotel meetings have another layer of complexity that corporate travel policy often cannot handle 1

19 Why Manage Meetings? Corporate meeting spend is large and getting increased visibility and is typically uncontrolled Managing your meetings represents a significant opportunity to. Reduce corporate risk Reduce financial exposure Drive savings of Fortum meetings spend

20 What is important for corporates? Control the total cost Security Statistics Quality Saving time Sustainability Meeting effeciency

21 How big is the meeting spend in corporates? 63% of decision makers don t know how big the spend is for meeting and events in the company Only 28% of the companies have clear cost instructions for meetings 47% are missing a meeting strategy Source: Resegeometri 2012

22 Project Charter Meeting and Events Purpose of the project: To create an effective and efficient process for organizing meetings and events - Reduce costs and improve service level by consolidating our volumes to preferred suppliers - Harmonize our meeting practices - Ensure security of our meetings and events Scope: Meeting and Events, all Divisions, Finland and Sweden step 1, then other countries Project deliverables: Meeting and Events instructions for Fortum Preferred suppliers One common reservation process Identify spend today, create savings Communication and implementation of new way of working Milestones: Kick-off Common instructions Common tool or template Instruction implementation onwards New Frame agreements, if needed Core team: Anette Mc Carthy (CPU, Team leader), 4 internal stakeholders, 2 in SWE and 2 in FIN Global Client Mgr AMEX) 2 persons Meeting and Events AMEX Sweden Mikaela Nieminen Meeting and Events, SMT Finland) Local client Manager, SMT Finland) 22

23 Reserve a meeting simple or not?

24 Internal example without meeting partner/supplier R&D day in Stockholm, one day event Plan the meeting 5 hours Invitations and publication 4 hours The event 9 hours Follow up, feedback, compilation 6 hours Total hours 24 x 700 SEK = SEK

25 Common reservation process and meeting and events policy Project team created a common reservation template for meeting and events Separate meeting and events policy approved by top management 25

26 Implementation, result and next steps Workshops with supplier in Finland and Sweden Meeting and events fair in both countries Communication plan Share success stories Follow up and reporting Result Savings delivered Less suppliers Common process Next steps Develop reporting together with Amex Implement in other countries 26