Meeting Sites Resource

 
Outsourcing, once thought of as just another industry buzzword, has become an important
strategic tool for corporations and associations globally. Outsourcing allows an organization to focus on what it does well by seeking outside assistance on tasks requiring specialized expertise. As companies and organizations re-engineer, downsize, right size, the need for specialized, qualified and team-oriented suppliers has never been higher.

Meeting planners, now doing “more with less,” continue to ask: “How does it work?” “Will it
save or cost me money?” “How does the service add value to my meetings?” “Will outsourcing affect my job security?” “How do I find the right suppliers?” For answers, keep reading.

What exactly is outsourcing and where do you begin?

Outsourcing is the assignment of a well-defined project to a third party for a specified length of time and mutually agreed-upon price and service level. The best way to begin is with an evaluation of your department or areas of responsibility. What components of meeting and event planning must you keep “in-house,” and what services and support can you outsource? It’s important to define the work or project, establish criteria and standards and agree upon costs and a timeline to complete the project. Also, take time to educate suppliers on your overall organization and “culture,” project background and history, and your specific goals and objectives. Get everything in writing, monitor progress and
evaluate results.

Finding the right suppliers is the key to successful outsourcing. There has been a huge increase in third-party suppliers (in all industry categories), and it is critical to select only those with qualifications, skills, resources and commitment to help you produce highly productive meetings. You must know up front what specific services they offer, what benefits and value they add to you and your meeting, how long they have been in business, what their qualifications are, who their major clients are (get and contact multiple references) and how they charge for their services.

Is outsourcing cost effective?

It saves valuable time and takes advantage of specialized expertise, but it’s important to know the specific costs for services rendered. All third parties are different in their capabilities, and their methods of compensation vary. Suppliers with large buying volume can actually save you money.

There are five ways suppliers are compensated:

    * Hourly rate or flat fee for fulfillment of a well-defined project
    * Commission built in the rate
    * Commission overrides/Placement Fee – not built into the rate (considered the cost of doing business)
    * Cost plus – all net rates submitted with agreed-upon percentage 15-20 percent add-on)
    * Inclusive package – all components, including compensation, in one rate

Address the issue of compensation in the proposal and evaluation process. Weight all factors including time, costs, benefits and how the service increases the productivity of your meeting.

How does outsourcing affect he meeting planner role?

It is unrealistic to think all facets of the planning process can be outsourced. The need to outsource will change on a project basis. Meeting planners will add value to their organizations as they manage internal resources, external services and support to assure they achieve organizational goals and return on investment.

The meeting professional plays a vital role establishing goals and objectives, performance
standards, clarity of direction and leadership. The post event evaluation should be done by both the planner and supplier in terms of quality, costs and improved partnering on future projects. When both sides are committed to a productive partnership and always strive to improve, the relationship will prosper. This is the essence of outsourcing.

Is it right for you?

It’s not a quick fix, and planners should proceed with caution. Conduct your own needs
assessment. Evaluate and select your suppliers with care. Train and educate them, review results together and, most importantly, make them a strategic partner. You’ll be satisfied with the results.

Tim Brown is a partner with Meeting Sites Resource based in Irvine, California. The company specializes in meeting site research and hotel/contract negotiations, domestically and internationally. The company also offers full-service planning and Staff On-Site (SOS) for professional on-site meeting management/logistics support. Tim can be contacted at (949)250- 7483) extension 312 or by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . www.meetingsites.net