INSURANCE INSIGHTS
Selling Alcohol At Events A Risk Management Decision
The decision to have liquor at an event requires some consideration. On the one hand, event organizers want to be profitable and the sale of liquor, including beer and wine, usually provides organizers with a 100% profit margin. Most events are run by not-for-profit organizations, and liquor sales provide a way to raise funds or offset costs for the event. It can also add to the festive atmosphere of the event, providing a place for patrons to come together and have a drink with friends. Liquor, beer and wine and the equipment from which it is dispensed are usually an easy sponsorship donation.
On the other hand, the decision to have alcohol requires some risk management. Organizers must check with their insurance carrier to see if they are covered to serve alcohol, and discuss it with their broker to determine what coverage is necessary. Secondly, it’s necessary to check with your state alcohol licensing bureau and town or municipality regarding licensing requirements, rules and procedures for obtaining a permit. The rules and requirements are difficult at best and need to be researched long before a decision is made to sell liquor. Not all cities impose rules equally for every organization. You need to research at least six months prior to your event questions like “who
can obtain a liquor license?” The answer can range from an individual to not-forprofits only or distributors only, depending on the type of event and where it’s being held. You also need to find out whether the alcohol to be served must be purchased or if it can be donated. Once all permits and licenses are obtained, organizers must follow state rules and have tight controls over the distribution of beverages. Serving alcohol leaves open the potential for misuse by individuals; many states have laws about serving persons who are intoxicated. This creates a potential liability for the servers if tight rules are not in place and managed responsibly. The decision to serve alcohol at an event, when done responsibly and with the proper risk management steps taken, can enhance your event and the bottom line.
For 70 years Haas & Wilkerson Insurance has been one of the largest providers of insurance representation to the entertainment industry. The agency is national in scope, with approximately 100 associates providing technical expertise and quality insurance representation at a competitive price. Beyond the standard price quotation, services include coverage analysis and recommendations at no additional cost. Our clients include fairs, festivals, carnivals, amusement parks, rodeos and special events throughout the United States. Haas & Wilkerson is an Association Partner Sponsor of the IFEA. 40
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by Penny Reeh, CFEE
BRIDGING
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The Generational Divide Among Volunteers Kids these days, they just don’t want to work! How can I lead when the old guard won’t let me? Do either of these sound familiar to you? It’s because they represent the classic generation gap that many festivals are encountering as they seek to create a volunteer experience that engages both the seasoned volunteer and new, and often younger, volunteer. Conflict between generations is certainly not a new phenomenon, but it is fair to argue that the lightning pace of technological change and the impact it has on generational perceptions has created a more distinctive, and potentially explosive, generational divide than ever before. The best way to bridge this divide is for festivals to create an organizational culture that welcomes each of today’s generational cohorts, uses their unique talents wisely, and encourages understanding and patience among all. Currently there are four separate generational cohorts that are likely represented in most festival volunteer pools – Matures, Baby Boomers, Generation Xers and Millennials. To understand,
and thereby recruit, motivate, retain and reward, one must take a look at why each generation behaves as it does and what they seek from the volunteer experience. The Matures Let’s start with the Matures, also referred to by demographers as the Silents or the Greatest Generation, who were born between the years of 1909 and 1945. They get adversity and the need to bond together for the common good. Their steely resolve was forged by
the Great Depression and World War II. They made tremendous sacrifices and literally saved the world. This is what makes them great volunteers – they are hard-wired for service and view volun-
This is what makes them great volunteers – they are hard-wired for service and view volunteering as an inherent duty. teering as an inherent duty. Their early encounter with scarcity also makes 2009
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Credit Card Processing Tools & Tips:
The Truth About
Smart Cards In the last few years a number of bold predictions have been made about how smart cards would revolutionize electronic payments in just a few short years. So far, the U.S. hasn’t seen this dramatic new payment landscape unfold. Still rumors are rampant about the consequences of a merchant not being “smart card compatible.” Merchants report hearing some outrageous things — from smart cards will never be a reality to the threat that processing services will be terminated next month for failure to upgrade to smart card compatible equipment. While neither of these extremes is accurate, a few basic facts can clear up many common misconceptions about these cards. Smart Cards Defined Smart cards have actually been around in some form since the 1970s, when the first patent application was filed. More than two billion smart cards were shipped worldwide in 2001. The defining feature of a smart card is a microchip embedded in the card, replacing or adding to the familiar magnetic strip. The capabilities of a specific smart card can vary, depending on the type and memory capacity of the chip as well as the information programmed into it. One of the biggest arguments for the widespread use of smart cards is the anticipated reduction in fraud from lost or stolen cards. The embedded chip sends encrypted identification information with the transaction that is matched to the cardholder’s personal identification number (PIN). This added security should make it virtually impossible for the card to be used for unauthorized transactions at the point of sale. Smart cards also have the potential to do far more than a traditional magnetic strip card. Often referred to as multiapplication cards, the microchip can store a
wide range of information in one convenient card. This feature holds a lot of future potential for the event planning industry as the technology develops. Identification information, enhanced gift cards, loyalty programs, instant purchase rewards, special Internet security features and the ability to download coupons onto the card from the web are just a few possibilities currently being explored. Today most multiapplication bankcard programs are still in the early stages. The most successful existing programs are for specific applications. University campus programs are using the cards to hold student identification, tuition and grades, as well as money for campus purchases, phone calls and public transportation. Food stamps and other government benefits are now being distributed on smart cards. U.S. Rollout Despite early predictions, smart card adoption in the U.S. has been fairly slow. The single biggest roadblock to a fullscale rollout of the new chip technology is the conversion cost. This is a problem on both sides of the equation. It will cost more per card for banks to issue chipbased cards going forward, not to mention the staggering estimated cost for replacing the hundreds of millions of magnetic strip cards currently out in the marketplace. Plus there is the estimated minimum $5 billion dollar cost to upgrade the 11 million stand-alone POS terminals and revamp the existing processing systems1. Most merchants own or lease their equipment and are not eager to invest in an upgrade without a solid business need. For the technology to work on a large scale, it is critical to have a broad network of smart card compatible POS terminals in place and a sufficient number of smart cards in customers’ hands,
creating somewhat of a chicken and egg situation. However, the card associations are committed to introducing the technology. While the rollout has been slower than initially anticipated, smart card technology appears to be here to stay and will eventually be an important part of daily payment processing services. MasterCard and Visa International have already set conversion deadlines for European and Asian countries in the next few years where the cards are more widely in use, but no set deadlines are in place yet for North America’s conversion. Conclusion Smart card technology is expected to see a steady increase over the next few years. For now, it is not necessary to respond to any alarmist claims about an immediate requirement to become smart card compatible, especially if there is pressure for you to sign a long-term equipment lease or invest in equipment for this reason alone. There are valid reasons to upgrade equipment but fear of what will happen if you are not smart card compatible next month is not one of them. It does make sense for most business owners to consider smart card compatibility for new terminal purchases or timely upgrades to older equipment. 1. The Nilson Report, Issue 780, January 2003 Article provided by Solveras Payment Systems, an IFEA member benefit provider. The IFEA Credit Card Processing Program offers members negotiated group discounts and a free customized analysis that calculates program savings compared to your current service. For more information please call 1-800-613-0148. 2003
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By LeAnn Thieman
10
How to Overcome the
BIGGEST MISTAKES in Decision Making
Sam, a corporate lawyer with a stressful job, recently admitted, “I really wanted to be a lawyer growing up, but I didn’t realize how much time I would be spending away from my family and friends.” Because he spent so many years in school and so much time honing his legal skills at a topnotch firm, Sam felt “stuck” with his job. Then he realized he could make a change. Sam remembered why he went into law in the first place – to help families in need – and took the necessary steps to switch his corporate law career to one in family law. By using the steps below, Sam was able to make a positive change in his life, by carefully thinking through his decision. Making decisions about our careers, our families and our lives is not always easy. Following these 10 tips will help you avoid the common mistakes people make, while also making better personal and professional decisions:
1. Not taking enough time. Sometimes we make decisions in the spur of the moment, under times of stress when the adrenaline is pumping. These are not the best circumstances to make any decision, big or small. You’ve likely been in situations like that. You’re in a meeting and someone calls for help on a project, and you raise your hand and you are it. You are involved, and you said “yes” again before really thinking it through. Other times, decisions are made too quickly by misspoken words. Too often, in the heat of the moment, angry or hurtful words are said in haste, without forethought, and lives are changed forever. By simply taking more time to think about the pros and cons of your decision and weigh out the consequences, you can help stop yourself from making a mistake. 2. Lacking peace. Bad decisions are made in stressful, chaotic situations. Good decisions are made in a place of peace, when you can take the time, space and solitude to make healthy choices. Even small, ordinary ones should
be made this way. Try taking deep breaths in a quiet environment to evaluate the facts before you decide. When a decision is big, maybe even life changing, get out of Dodge, so to speak. Find a quiet place for an overnight stay, unaffected by the stress and turmoil. It is there, in a neutral place of peace, a good decision can be made. 3. Wallowing in chaos. Another mistake people make is wallowing in the chaos of everyday life, or listening to too many other people. If it’s a choice that affects you, it’s critical to listen to your own inner voice, which cannot be heard in the chaos. You can call this voice intuition, conscience, a divine spirit, higher consciousness – whatever fits your belief system. That small voice is your built-in guide. It must be listened to, respected and followed. To find that voice, get out of the chaos. Find quiet. Be still and listen. Then follow that inner voice. 4. Not considering priorities. Occasionally we make decisions that are not consistent with our priorities. We give lip service to one thing, claiming it is a priority in our lives, yet we make decisions that detract us from the very thing we say is the most important to us. However, if we make a list or just think about the priorities that are important, we can make better choices for ourselves and loved ones. 5. Failing to heed what’s best for you. Too often we decide things without thought to our needs and wants. The same qualities that call us to be responsible team members are the same qualities that allow us to shortchange ourselves. Think of what is best for you. That may not fall in line with what is best for your friend, or your husband, or your boss but you must listen to what is right for you. 6. Neglecting your values. Sometimes we make decisions that are not in alignment with our values. The
world would be a better place if we all followed the Rotary Four-Way Test in our business and professional lives: Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendships? Will it be beneficial to all concerned? After considering these elements, then make your choice. 7. Ignoring what’s right. Too often we make decisions that are not right today, but we think they will be in the long run. Perhaps we twist the numbers just a bit, or inflate the resume a little, or step on someone on our way up, believing it will be worth it in the long run. That never works, not in the end. It takes a lot of courage to make the deepdown-in-your-gut-you-know-it’s-right decision today. Listen to that inner voice and trust that the rest will be taken care of. 8. Avoiding the truth. Critical to good decision making is telling the truth. Many times we will say things to please others, or avoid saying something that will hurt. It’s important to ensure every word that comes out of your mouth is true, whether the statement is big or small. If the project takes two weeks, don’t say one week. If it costs $200, don’t say $190. Honesty is indeed the best policy. Will Rogers was right when he said, “Tell the truth. It’s a lot easier to remember.” 9. Forgetting how to say “No.” To make good decisions, there are times we need to just say, “no.” This is hard for many of us to do, since we think we need to be all things to all people. The truth is, we don’t have to give a reason for why we can’t help. All we have to do is say, “I’m sorry I can’t, I have another commitment.” That commitment can be taking care of ourselves, our families, our priorities. When it’s hard, remember that it is only when you step back that others can step forward. Every time you say, “yes,” it deprives another person of an opportunity. When you decline, it gives them a chance to serve, to learn, to grow. Continued on page 65
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elations R r o s n o p S ns on esso L d e n r By Bruce L. E a e L Re cently, after I’d rley Hard given a presen new profes tation sional on sponsorshi p to a group of incredible wis s, one of the group came up dom. “You m us explained that t have been bo to me marveling at my ra rn to do this!” simply gained ther than possessing som she said. I e genetic pred a lot of experi isposition, I ha ence in the fie “But you can’ d t at ld lenged. “No,” tribute your success entirel during the past 25+ years. I explained, “I y to longevity ,” ’ve gained mos screwing-up.” she chalt of my know ledge from “Screwing up ” has gotten a seems to be hu ba man nature to d name in the profession al world. It the closest su bordinate. I ta minimize our mistakes or ke the opposi transfer them it is incredibly te approach. to healthy and lib I’ve it for my rem arkable incom erating to embrace my scre discovered that pe w and ascertain -ups, take cred tence and then what analyze what went wrong As the 1922 N I can learn from it. ob el physics laur man who has eate Neils Bo m hr said, “An ex field.” That ce ade all the mistakes which pert is a rtainly defines can be made, in a narrow m e! It also says a lot about mos them each ye ar at the IFEA t top event professionals. You can meet Convention. for those affli I lo cted with “Pos t Traumatic Ev ve this giant support group has been negl ent Syndrome, igently underdi ” events indust ry (perhaps w agnosed in the festivals, fa which I believe e should com irs and specia During the so missi l cial greatest bloope hours of the convention, on a government study). the war storie rs are the basi s of people’s that you’re no s t nearly as stup of thunderous laughter an d self affirmat moment. id as your coun ion terparts. At le ast, not at that So after a quar ter century in lesson I have the sponsorshi learned? With p field what ou would say, “L ove your spon t intending to sound blas is the key ph sor with all yo and all your st ur heart and al emous, I reng l your soul What that mea th!” successful and ns is that if you are seriou s about keepin th port-o-let vend riving, you can’t treat your g your event or or craft exhi sp tion from you bitor. They re onsors as you would your qu or a key mem ber (staff or vo ire special time and attenhave invested in your event lunteer) on yo and expect th ur team. They you’ve made, e fulfillment in terms of th of the promis eir rights and With that in m es benefit ind here are a the years. few of the top s, as well as results! le ss on s I’v e learned over S H OW G R ATIT refused to get U DE, NOT ATTITU DE A volunteer capt more ice for a ain sponsor’s hosp already used their allocatio itality tent be recently n. ca than another bucket of ice. That refusal may cost the ev use they had Don’t let staff ent much mor regarding a sp or onsor’s specia e l requests that volunteers “cop an attitud You and othe e” rs need regula may be outsid rly to let them e being partners know you appr the guidelines. with the even t. eciate their SPRING 2002
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We’ve all had those thoughts, but perhaps we’ve never actually said them using our out-loud voice (or maybe some of us have). We can get so caught up in details that we forget that the bottom line is we’re simply throwing a big party! Yes, the profit analysis of our merchandise sales is vital, and the volunteer group that cancelled their giant inflatable participation at the last minute is tough, but don’t lose sight of the big picture. In today’s challenging economy and time of world unrest, our business is more important than ever. It’s your job – and perhaps your calling – to bring the art of celebration to the people of the world.
“Everyone here is to be commended…
you all produce memories for a living...” Those were some of the first words I heard at my first IFEA convention opening keynote, and it was at that convention that I definitely knew I had truly found my life purpose. Thank goodness Don Whiteley of Argonne Parades convinced me to go to that convention. All I knew at the time was that my future was in parade production; it was a perfect marriage of my logistics talents, creativity, and love of parades. Over the years my passion for parades evolved into a love of events. It was not until recently, however, that I began to understand why I instinctively chose the festivals and event business, and he realization of the huge impact our events have on society. What did I get myself into?
This is how it all starts – once you’ve chosen this career field you begin discovering all the challenging things about event production – long hours, an attempt to plan for every scenario known to man, lost sleep, gray hair, the joys of people enjoying their right to free speech during your event, and pay scales that will not make you Jack Millionaire. This is when you discover there is a lot more to event production than meets the eye. And don’t you just love the question, “Is this your full time job?” NO, silly, people and tents just appear and sponsors love to throw money at me! How did I get where I am today and what does that mean?
Yes, at 10 years old, I said, “When I grow up, I will plan the optimal way to maximize soft drink profits by analyzing commemorative cups, cup sizes and syrup prices.” While I didn’t actually dream of doing that, I did love going to events– didn’t we all? Well, when you look back at your first dreams and dream careers, you also have to look back at all the things that led you to what you are doing today for a living. This is your amazing happenstance – see how it has worked for you, and see how it will continue to shape your career.
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Don’t ignore life’s little taps on the shoulder – these are the things to take
notice of that lead us to amazing places. A friend of mine had a dream that I produced parades for a living. His dream entwined with an epiphany I had while watching a symphony perform ultimately led me to my dream job of event production. I realized while watching the symphony that it takes every single person’s individual excellence to make the symphony what it is. I made the decision to play my own instrument in life and make my own music, therefore helping the world symphony sound that much better. When you take the time to realize how you arrived where you are today and what you actually have, it can be a pretty amazing affirmation of your career choice, and it can continue to shape your event career. One way to find your dream job is to write a personal experience inventory. This is much like a resume, but along with the regular content of a resume this new, ’experience inventory,’ should also document your emotions along the way. Document them all: what makes you happy, what brings you fulfillment, what haven’t you enjoyed, and what jobs are simply necessary for skill development. You will develop your own face with the many faces of festivals and events, and that too will evolve. To get to where you’re going, you have to know where you’ve been, where you are currently, and where you want to go.
Don’t forget – YOU make it happen!
Okay, so you’re an event producer, and that’s what you’re doing RIGHT NOW. And yeah, sure, you secured the sponsorships, you ordered the tents and tables, but that’s not all you do. Your impact as an event producer is enormous. that’s a given, but that’s what takes all the time to make it happen. You basically plan for every single possible scenario under the sun for every single person that will be at your event for the entire duration of your event. Oh, you also plan for all the staff stuff too. That’s all.
• Logistics –
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By Ted Baroody
Come back to reality for awhile and take a quick swim in the “average person gene pool”. Yes, we are all special individuals with unique qualities and talents with a great purpose here on earth. But, it is no secret that some of us were built for certain things that others were not. Just look at the talented musicians, artists, entertainers and athletes that we work with in our own industry. There are many artists that were not meant to be athletes and many athletes that were not meant to be artists. These same individuals appear to be on the exact life-track their skills were designed to be. When you take it a step further and look at some of the best of the best, this point becomes perfectly clear. In the Wall Street Journal Article, “The Lactic Acid Test” from July 22, 2005, Sam Walker describes some of the scientific differences and genetic advantages that make up some of the best of the best, “super-human” athletes. I have selected three athletes from the article to highlight, Andy Roddick, Mia Hamm and Lance Armstrong.
2005
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By Mary An
n Dilling, CF
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EE
Generating media buzz for your event may seem like a daunting task, but by utilizing the ‘what’s hot and what’s not’ of our current society you can save yourself mountains of time and effort. We have learned you can generate a lot of media buzz with minimal effort by using current trends that are widely recognized in society. For example, if I say there will be a Dancing with the Stars competition, there will be instant recognition and interest due to the popularity of the current reality television show. We have used tactics such as this in the past to generate a buzz for our events in addition to other reality television, partnering with the best, utilizing current celebrities and breaking world records. Take a look at what we have done, and hop on the bandwagon of using hot trends to create a buzz.
Walleye Weekend Wedding
Reality Television Reality television was the first trend we decided to utilize, after shows such as “The Bachelor” and “American Idol” started dominating the ratings. We jumped on board by creating events like “Celebrity Idol,” “Dancin’ with the Starz,” “Byron the Bachelor,” “Wanna Go Fishing” and “The Walleye Weekend Wedding.” Walleye Weekend Wedding The Walleye Weekend Wedding helped us generate a huge media buzz by involving local media and the community in the voting process. Does the phrase “America has voted” ring a bell? Well, the public had voted, on everything from what the couple would be wearing down to the cake and honeymoon. To kick off the event, a news release was sent out in search of the perfect couple who would like the perfect free wedding. The applicants came swimming in with their clever stories on how they ‘hooked and reeled’ their future mates. I think you get the idea. Once the couple was chosen, we worked with newspapers for print and internet voting opportunities for the community. We also utilized radio stations through internet voting, which benefited them by increasing the hits to their Website. Three of everything, including the bridal gown, bridesmaid dresses, tuxedos, cake, etc. were chosen by the couple and the rest was up to the voters. We then made our couple into local celebrities by showcasing them at grand openings, parades and other events we produced. When a local establishment lost their reception reservation, a plea was sent out, ‘Find a reception for the Walleye Weekend Bride & Groom.’ The community felt a connection with the couple and the support came through state wide. A 2008
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by Stephanie Donoho
L
et’s see if this sounds familiar: you come up with a great idea for an event; sell the concept to supporters and the community; coerce friends and family to help; work the week leading up to the big day fueled only by caffeine and sugar; hear a snippet of your PSA on the radio and cringe when they don’t mention your sponsor; catch the laughter of a child enjoying a moment you created; rush to take care of an emergency; gather stacks of publicity to read later; struggle to pay the bills; remember to thank everyone; and eventually fall into an exhausted heap.
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Then, the optimist that you are, you pick yourself up and do it all over again. And the second year is even better. You repeat the process and the third year breaks all records. But somewhere along the way, usually between the third and the sixth year, the winds begin to change. The economy stumbles, your volunteer coordinator moves to another city, your title sponsor changes its business strategy, and your event suffers. Like all good products, events can grow stale without an infusion of new ideas that keep things fresh and keep audiences clamoring for more. So, what’s a dedicated event organizer to do? First, take an inventory of all that you do for your event. Include EVERYTHING no matter how small – from picking up the trash to running through the sound check, from distributing the tickets to surveying your volunteers and sponsors. By conducting a thorough examination of your operations you create a great planning tool. Be sure to record the information in a way that can be easily shared with key members of your team and then ask for their input. By making time for a collective brain dump you document your history, and create the start of a detailed succession plan, insuring that when changes do occur you are ready. Next, identify the key partners who support each segment of your event. Those can include sponsors, committee chairs, volunteers, and community groups. Or, take it a step further and create separate categories listing your key partners in each. Once you complete this step, you’ll begin to see the holes, and where there is white space, there is opportunity. Highlight the areas where you need to expand your partnerships or secure additional resources. Third add notes and ideas related to each of those inventory details. Those may include, but are not limited to: identifying problems that need to be fixed, viewing a specific segment from your customer’s perspective, learning more about the new businesses that have opened in your community in the last year and looking for ways to include them, or dreaming of creative ways to capitalize on the success of a specific activity. Pull out your magnifying glass (for hard-hitting scrutiny of what works and what does not), your magic wand (for all of those things you would love to do if only you had a fairy godmother and mountains of money), and your telephone book (for the details and contacts) and let your imagination run wild. Remember that no one experiences your event the same way you do, and each member of your team views it through a slightly different lens. By engaging a diverse group in the process, you build camaraderie, provide an avenue to air and address concerns,
and help to alleviate burn out. And if everyone is engaged in the process then they all take ownership, allowing you as the event organizer to release some of the stress. Five Creative Ideas to Enhance the Things You Already Do Sound Check – Check one . . . check two . . . turn this “must do” into a check for you! – Make the sound check with your headline entertainment into a pre-event for one of your major sponsors and build that exclusive benefit into a request for additional support. Everyone wants to see “behind the scenes” and have “an exclusive engagement” and this initiative gives your sponsor the opportunity to spread his enthusiasm for your event with his staff and customers, who then become your new resources for additional partnerships. And if you can get the entertainer to sign autographs and take photos, even better. For example a ballet company recently marketed its dress rehearsal of The Nutcracker as a private holiday party for the corporation located directly across the street. This corporation had never been a sponsor before. Their benefits package was tailored so that the corporation’s employees and their families could experience this holiday classic before it opened to the general public. It was the first time that the corporation had opened up their holiday event to their entire staff as well as their families. And best of all, the funds didn’t come out of the corporation’s traditional community sponsorship or marketing budgets, but out of the company’s year-end celebration funds. So even during challenging times when budgets are being shifted, there may be more than one pool of funds to draw from within a single corporation. Trash Collection – Being green is the new gold. – Events create trash, and what you do with it matters. Institute recycling, redemption and composting competitions between school and community groups at your event. The Boy Scout troop who collects the most cans wins! Partner with recycling and redemption centers, local farms and garden centers as well as your state and county agricultural extension agents. All of them can provide expert advice and materials to set up your collection stations for optimum use. Many may be untapped sponsors as well, as they may have outreach funds for just this type of community partnership. Bring in your media sponsors for year-round exposure featuring a series of stories on the number of tons recycled and redeemed immediately following the event, the amount of compost created six months later and the products that were grown using that compost by community groups three months later. Once your “Turning Trash into Cash” plan is up and running, you can even create multiple new revenue streams. Some include: the redemption value of cans and bottles, selling compost labeled under your
event to gardening enthusiasts, and selling produce, flowers and other value-added products (like jellies and jams) at your event which were nurtured by the previous year’s trash. Or turn the bounty of your green harvest into a new community partnership with your local food bank or Meals on Wheels distribution center. Child Care – Bring in the experts and provide outstanding value-added service for your customers. – Evening entertainment is a wonderful way to cap off your event’s excitement. But a constant concern for people with children is child care. Partner with your local day care centers and sell premium tickets that include the evening event, parking, and child care all for one price! Most child care centers are closed at night, and in these tough economic times everyone is looking for innovative ways to increase their revenues. And, if the tickets can be marketed and distributed at the child care centers, you may tap into a whole new audience. Or if your performance venue allows, set up a satellite day care center on site. Then Mom and Dad can escape for a little reconnection time without worry. And school service clubs and senior volunteers can provide the extra hands and eyes you need to take care of the children on-site. Pamper Your Volunteers – Remember that everyone loves a little R&R. You’ve bought t-shirts, meals and hosted an annual thank you event, but still your volunteer numbers dwindle. Why not create an exclusive area for volunteers with much more than the basics. Partner with massage schools, spas and nail salons for an on-site lift. The salons and spas receive marketing, visibility and access to potential customers and your volunteers receive the royal treatment. Who wouldn’t be ready to head back into the fray after a 15minute chair massage, or a foot soak, or a cooling eye mask in the heat of the day? And salons, spas and massage schools can be great partners for ticket distribution and event promotions, tapping in to new audiences. And if you conduct your volunteer surveys while your volunteers are relaxing and being pampered, just imagine your return rates! For key volunteers who may not be able to take advantage of the day-of activities, provide follow up gift certificates for a day of decadence. New Kids on the Block – Reach out and touch someone. – Every day your local Chamber of Commerce, government business registration division, and phone book company receive leads on new businesses in your area. Partner with these agencies and be the first in your community to extend the welcome wagon to these newcomers! Let them know about your event, discover what they have to offer, and work together to find a marketing or sponsorship strategy that is win-win. They’re excited, they’re hungry and they’ll Continued on page 68
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Operations manuals, marketing plans, budgets and job descriptions. These are some of the blueprints for planning and implementing successful special events. While every event planning organization understands the need for a well-prepared budget, many neglect to formalize what they consider to be the obvious -- the description of individual responsibilities of both staff and volunteers. The more complicated the organizational chart and the committee structure, the more necessary are detailed job descriptions for officers, chairmen, key volunteers and, of course, the staff.
by Marilyn Clint, CFEE
2005
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2008
By Kim Skildum-Reid
As I wrote this, a US $700 billion Wall Street rescue package was introduced, defeated, reworked, and finally approved, with no guarantee it will work. Hundreds of billions have been wiped off global markets. Companies are failing – BIG companies. Businesses of all sizes are being crippled by the cost of finance. Foreclosures are skyrocketing. Retirement accounts are plummeting. A lot of people are panicking. No one really knows what is going to happen, how fast, and if there is anything that can be done that will change the eventual outcome. In short, it’s ugly out there. Really ugly. Most corporations are not in imminent danger of the whole company collapsing, but many are talking about big cutbacks. In the past, sponsorship has continued to grow in times when marketing and advertising spends have dropped, but I wouldn’t bet on that being the case. In fact, I don’t think there is a single scenario that I would bet on at the moment. Uncertainty rules, and it’s very hard to make strategic decisions when the entire global economy is sitting on a knife’s edge. So, what’s a sponsor to do? Do sponsorship seekers need to be changing their strategies? Honestly, I don’t know what is going to happen anymore than anyone else. What I do know is that we should all be prepared for leaner times and form strategies and fall-back positions if that happens. Scary economy basics for sponsors If you’re like most sponsors, you have a portfolio with at least some of the following characteristics: Your biggest expenditures are tied up in multi-year deals
• Most of your sponsorships revolve around a standardised benefits package (logos, tickets, hospitality, and endorsement) • A significant portion of your sponsorships are underperforming • A proportion of your sponsorships could only be classed as dead wood • You have a significant leverage budget, typically 50150% of your spend on sponsorship fees (but I’ve seen a lot more and a lot less) • You have a community/charity portfolio that is largely un-leveraged If any of this looks familiar, I have some good news: There is no need to panic. You can get better results from 2008
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PLAYING POLITICS
HOW CAN PAY OFF By D. C. “Chip” Baker, CFEE
A true definition of Politics in relation to special events is:
“The activities or tactics which a festival or event must engage in to remain viable in a turbulent governmental and social environment”. Nothing could be more apt to describe the conditions in which we find ourselves in the day in and day out operations of our respective events. When most of us hear the word “politics” we usually equate it with “dirty politics” or “politics as usual”, but we are all familiar with the “nuts and bolts” that go behind politics. Understanding the basic tenets of politics and how it works can be an invaluable asset to your event. The political system surrounding your event is crucial for your event’s survival. Sometimes, it’s hard to define the political players, particularly those who are just below the surface, the behind-the-scenes players. However, once you define all of the local players of your political system, you can generally make the system work to your advantage. We all agree that politics are important to event survival. Politics have a direct impact on your event in many areas as they can increase your revenue, attendance, sponsorship, property, opportunities and respect, to name but a few. Thus, politics will help you not only survive, but to thrive in today’s environment.
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Step One: Trace Your Event’s Political History For example, the “Riverbend Festival” (www.riverbendfestival.com) in Chattanooga, Tennessee, began with local politics in 1980. A small group of community leaders met for a barbecue dinner and a lack of downtown events was discussed. Those discussions recognized the community’s need to invigorate a lackluster downtown and bring the community together. That intimate dinner party led a group toward securing a grant to create the “Five Nights in Chattanooga” event in 1981. This event was the predecessor of Riverbend, which has since had a strong 27 year history, with attendance growth from 1,000 in 1981 to 650,000 today. The “Riverbend Festival” started with a significant political base. Your event did, too, I suspect. Step Two: Clearly Define Your Mission Statement Our original mission statement in 1981 was: “To bring the community together through the common language of music and to revitalize our downtown.” Our present mission statement is: “To produce a festival which brings the community together focusing on the revitalization of downtown and to provide expertise to others.” The addition of “providing expertise to others” further defined us as an event management organization for multiple opportunities. Our mission statement expanded as a direct result of relationships, respect and most importantly (whether we like it or not) - POLITICS. Our event management growth began when numerous community leaders and event organizers began calling on us to consult with them about other events. They clearly recognized the many years of Riverbend’s successes and looked to us for our event expertise. We realized that we had more to offer than just one event – Riverbend. We have the expertise that others need. The fact is, in our industry (IFEA), we are all experts at what we do. Our job (as yours) was to position ourselves politically so that when the opportunity arose, we were ready. This required our 38
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positioning to be not only external with the various publics, but also internal with our Board of Directors, as well as our staff. As a result of our new mission statement and focus, we are now the management organization organizing all of the events for the newly renovated “21st Century Waterfront in the City of Chattanooga,” as well as the “PGA Nationwide Chattanooga Classic Golf Tournament,” “Go! Fest,” and “Between the Bridges Wakeboard & Music Festival.” “Friends of the Festival,” a 501(c) 3 company, has also managed many other events, such as the “Ocoee River Days,” the “National Harley Davidson Rally” and “Airshow Chattanooga.” Step Three: “Good PR” The single most important factor in business today is good “PR” = Political Relationships.
We’ve all heard, “It’s not WHAT you know – but WHO you know”, but in PR it’s both. To create good PR, you need to get plugged into the local political scene. Don’t ever give up. Patience and political relationships really paid off for our organization when Chattanooga underwent a $120 million “21st Century Waterfront” makeover. Part of the renovation included the downtown waterfront where “Riverbend” is held. During this process, we offered to help with the new site’s programming. However, the Mayor at that time was focused on building and not on programming. It was not until the current Mayor was elected, that we got our opportunity. It did not hurt that our Mayor truly appreciates Riverbend’s strong economic contribution toward our community. Needless to say, although we have had good relationships with our past Mayors, our persistence finally paid off with the current Mayor. Nothing happens over night, but with persistent relationshipbuilding and with a little luck, your hard work eventually pays off. Begin to create more political relationships by identifying your local political movers and shakers and compile a list of who they are. Then, forge these relationships by attending local political meetings and being “seen” at places such as local county commission or city council meetings. Always be early to these meetings and make sure to introduce yourself! Cultivate more relationships by seeking out officials from your Chamber of Commerce and Convention & Visitors Bureau. They can tell you when new businesses are opening and when the groundbreakings are, so you can just “show up” and again be seen. Schedule as many speaking engagements as possible to civic groups promoting your event and continually explaining the economic impact your event has on the community. Political relationships can also involve people surrounding you in the workplace. Look around and assess what you have to work with, such as your: • Staff – Are they politically connected or are they members of any professional or civic organization? • Board of Directors – Who are they politically? Business people, politicians, fundraisers – and are they plugged-in to the needs of your organization? Are they well thought of throughout your community?
• Contacts – Business and Personal – How can they figure in to the political scheme of things? • Service Organizations – Become involved with them and they could be of service to your organization. • Always remember 24/7 that everyone is “special” and look for their unique qualities that can help you down the road. Step Four: Get Started Begin the political process by creating your own personalized plan. It must be a plan that works specifically for you and your organization. Identify your best opportunities for political positioning. Evaluate your Strategic Plan… Do you have one? A good place to start is by analyzing other organization’s plans. As a member of IFEA you have a ready-made network. Don’t be shy – call other organizations and ask for their ideas. We call that “market research!” Examine your organization – Is it strong? Are you fiscally and operationally sound? Remember: No money, No Mission. It’s important to keep your doors open; so you must be financially sound. Identify your relationships, specifically which ones are strong and which are weak; and work on improving both. Think about burned bridges - Have you burned any bridges, and if so, can they be mended or repaired?
equity and strengthen political relationships. This inclusion brings them into our organizational “inner circle’ and they are honored to participate. Don’t Ask, Don’t Get Some cities and state governments subsidize their major special events, such as “City Stages” in Birmingham, Alabama. Find out through your political connections if this is a funding option that is open to your event. Some cities offer services, such as police for crowd control and assistance from the Department of Public Works for garbage pickup. Ask for both services and funding, but be satisfied if you only get one and always be appreciative, whatever you receive.
Kick off your Campaign Today Define your organization’s current political position and assess why your position is where it is. Make a list of your weaknesses, such as board member stagnation or staff apathy. Start by prioritizing your list of the steps necessary to head in the right direction. Perhaps forming a Board Development Committee would insure that your Board of Directors matches your organizational need. Get involved by meeting with the Chamber of Commerce and/or CVB President. Create new job descriptions, outlining who in the organization is responsible for what role in the community. See which staffers are willing to rise to the occasion, possibly by joining professional networking organizations. PP NOW! Start your Political Positioning thinking today: If a new Mayor was elected in your city, what is the first thing you would do? How can you best align yourself and your organization politically? Always remember that every new person you meet could be an invaluable political ally down the road. Most importantly, determine the first step you can take right now to become politically correct. Playing Politics is like playing any other game; if you know how the game works, play by the rules and persevere – sooner or later, you will win.
Make Contact Once you have defined “who’s who”, it’s time to activate your connections and get them involved with your event. Invite political figures to your event as special guests or VIP’s. Always ask them for their input regarding your event and include them in the decision-making process, where appropriate. An example is our Riverbend Artist Selection Group (ASG), which meets regularly beginning in August. The purpose of the ASG is to determine which artists will be scheduled to perform during our nine-day “Riverbend Festival.” We include our local radio stations (urban, classic rock, country, etc.) to take part in this. We not only get great ideas from the respective genre’s of music, we also get political “buy in” from the stations since the bands we play, by and large, are the bands they choose. Interested and active board members are invited to have a voice in this process, and this helps build
D. C. Chip Baker, CFEE is the Executive Director of Friends of the Festival Event Management, 180 Hamm Road, Chattanooga, Tennessee 37405 (423) 756-2211 www.riverbendfestival.com Friends of the Festival, Inc. is a non-profit events management organization producing Chattanooga’s Riverbend Festival, The Chattanooga Classic Nationwide Tour Golf tournament, the Between the Bridges Wakeboard Festival as well as management of Chattanooga’s downtown Waterfront for the City of Chattanooga.
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