Corporates & Associations Trends in the meetings industry
Jurriaen Sleijster Executive Vice President - MCI
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Agenda 1. About me & about MCI 2. About Associations 3. About Corporates 4. The future of meetings 5. Conclusion
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A
bout me
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A Dutchman in Switzerland… • Studies – PR & Comm, MBA & Executive Courses • 24 years in the Meetings Industry: – PCO @ ESC – MD of an M&E agency in the UK – MCI • What else? – Married; lived & worked in 5 countries – Love sports, SF books, Music – Mad about Management…
Jurriaen Sleijster Executive Vice President - MCI 5
A
bout MCI
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Building Community Event Management, Communication & Association Management Outsourcing Event Management We manage a portfolio or a series of events for clients on a long-term basis Creative Production Beyond supplying audio visual solutions we help our clients to achieve their live communication objectives through conference architecture and creative production design. We help our clients to improve their communication and strengthen their brand impact and corporate message at live events Association Management Growing client communities and revenues, by increasing their market outreach, educational services and brand awareness in their target markets. 7
What We Do
Strategic Meeting Management / Consolidation
Strategic Consulting/Review
Venue Sourcing
Association Management (AMC)
Meeting Planning
Marketing & Communication
Creative Events & AV Production
Educational and Learning Programmes
Content & Registration Technologies
Professional Congress Organization
Incentive Travel
Exhibition Management
Destination Management (DMC)
Registration Technologies
Performance Improvement Programmes
Public Affairs
MISSION
MCI helps companies, governments and associations bring people together to create meaningful connections and win.
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Our Story Adding value with Production and Staging in Asia 50% of our customers work with us GLOBALLY Expanding our presence in Asia, Latin America & Australia The only truly global leader in the industry Building Community Adding value with Association Management (AMC) Vision to be the consolidator in our fields of work Leader in Switzerland Corporate Meetings and Events Association Conferences (PCO) 9
MCI - A Global Partner
2012 in numbers: • +3’200 projects • +1’300 talents • 47 offices • 23 countries • €307’438’000 turnover
“We work across cultures, sharing knowledge and helping organizations expand into new markets, strengthening their communities across the globe.” Roger Tondeur, President
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MCI - Clients & Service Types (2011) Corporate Division Service Types (2011) Strategic Planning & Execution
49%
Strategic Meetings Management Programmes
Assocs, Gov’ts and NGOs 54%
23%
Incentives
Client Types Corporate 46%
18%
Production
7%
Consulting
3% 0%
10%
20%
30%
40%
50%
60%
Institutional Division Service Types (2011) Professional Congress Organization (Full Service)
56%
Association Management (Full Service)
15%
Hotel Accomodation, Registration, Exhibition &‌
13%
Production
9%
Consulting
6%
Abstract Handling
1% 0%
10%
20%
30%
40%
50%
60%
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Corporate Division Industry Segmentation (2011) Information Communication Technology 12%
Healthcare 55%
Banking, Insurance & Consulting 11% Luxury 1%
Government Travel & Leisure and NGO Sports Federation FMCG 3% 3% 1% PR & Advertising 3% 1%
Energy 3% Engineering & Manufacturing 3%
Automobile, Aerospace & Logistics 4%
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Institutional Division Industry Segmentation (2011) Healthcare 66%
Governme nt and NGO 5% Banking & Insurance & Legal Services 8%
Sports Federation 1%
Automobile, Aerospace & Information Communication Logistics 1% Technology 2%
Energy 2%
Engineering & Manufacturing 5% Environmental & Scientific Professional Organization Services 3% 4%
Public Sector & Utility 1% Consumer Goods 2%
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Building Community, Energizing Performance
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Building Community, Energizing Performance
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Revenues 2008 – 2011 in CHF Turnover Structure 400
Revenue Structure 120
384.30
338.77
350
107,16
352.21 100
309.87
94,08
80 CHF Millions
269,01
244,69
224,01
250
245,05
85,86
60
150 40
2009
115,29
2008
107,16
50
94,08
100
85,86
CHF Millions
300
200
115,29
20 5,12
3,39
0
3,07
4,10
0 Gross Margin
2010
2011
Budget Under Management
2008
2009
Gross Margin
2010
2011
Profit After Tax
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Creating a More Sustainable Global Marketplace Dedicated advisors on sustainability for associations, corporations, destinations and venues worldwide
Organizer of over
events about sustainability
Unique expertise in Sustainable Event Management, certification and tool development.
Delivered over 120 training presentations to +15000 people.
MCI is recognized as a company that started the “green era� in the meetings industry. Today, we are thought leaders for Corporate Social Responsibility in our fields of work.
Guy Bigwood Group Sustainability Director 17
Investing In Talent Development
662
332
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enrolments to MCI Institute workshop organized at group and regional level 20% increase on 2009
learning hours delivered in over 25 different topics 35% increase on 2009
attendees to MCI Institute’s Academies held in Europe and Asia
5018
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combined total of learning hours received 24% increase on 2009
training days combined total of face-to-face and on-line workshop
staff attained MPI’s Global Certificate in Meetings and Business Events – Level 3
MCI is committed to the development of our people, and to providing the highest value service and professionalism to our clients.
Avinash Chandarana Group Director of Learning & Development 18
T
rends‌
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A
bout associations
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About associations
Understand the client: trends in associations - A conference is business - An association is more than its annual conference - Gradual change from volunteers to professional management - More central control and governance - Less funding: success of conference even more important - Competition between associations increases - "Relationships only" not longer sufficient - Outsourcing as an option: Associations use PCOs and AMCs
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About associations
How to approach associations: - They are all different (even if they have common traits) - Do your homework (history, size, rotation pattern, Board, sponsors) - Proposal: • logistics • local partnerships • "added value" beyond the conference: can the association make a positive impact? - Combine efforts with a "local host" if appropriate - Relevant experience: show your track record - Don't spam - Remember: associations talk to each other… reputation! 22
About associations
The impact of the intermediate player: DMC / Local PCO
Core PCO
AMC
Dependent on the decision of the Assoc.
Influences the decisions of the Association
Makes the decisions of the Association
One-time collaboration
Long-term collaboration
Overall collaboration
Short-term relationship as a vendor
Long-term relationship as a partner
Becomes the Association
Must follow given goals
Long-term project based alignment of goals
Defines the goals with the Association
No control / No business stability
Limited control / Limited business stability
Close to full control / Great business stability
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About associations
Sources of information about associations: - ICCA (www.iccaworld.com) • International Congress & Convention Association - IAPCO (www.iapco.org) • International Association of Professional Congress Organizers - AC Forum (www.acforum.net) • Associations Conference Forum - IPCAA (www.ipcaa.org) • International Pharmaceutical Congress Advisory Association
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A
bout Corporates
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About Corporates
Everybody uses events‌
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About Corporates
Understand the client: trends in Corporates - Everything must be measured: ROI - CSR: doing well by doing good - Global contracts: looking for global suppliers - Outsourcing as an option: Corporates use M&E Planners - The rise of procurement
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About Corporates: purchasing Evolution OLD SCHOOL
FEE
% Markup + Commissions
NEW SCHOOL
Analysis, Strategy, Concept, Creativity
Fee or Time-based
Coordination Time-based Or Transaction Fee Production
More business?
Service Level Agreements
Bonus Schemes
Transparency 28
MASTERFOOD
About Corporates: mutual understanding Procurement
Understand business context of event to source suppliers that can bring value Involve more budget owners, show your expertise, respect and recognize theirs Promote measurement of objectives Beware of technology: process must follow people (not the other way around)
Event Agencies
Provide more data driven ideas, concepts, and KPIs
Seek insight and demonstrate ability to propose business solutions
Have your own procurement department
Understand what your clients are seeking with their procurement initiative
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About Corporates: Pharma companies
Impact of legal restrictions and public perception‌
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About Corporates: Pharma companies
Impact of legal restrictions and public perception‌
â€œâ€ŚTo that end, we are discontinuing certain activities, even though these practices were, and continue to be, considered acceptable in the industry. We have put a global ban on providing any gifts to healthcare professionals, other than low monetary value cultural and educational items.
We remain committed to providing accurate information about our medicines to healthcare professionals in a variety of forums and we will continue to provide opportunities for them to learn about our products both from our own employees and from other healthcare professionals speaking on our behalf. However, we will no longer pay for doctors to attend international conferences but will instead focus our efforts on local educational opportunities.
Overall, the new Policy is designed to make sure that across all our activities with healthcare professionals, our focus will be on providing them with evidencebased, reliable information about our medicines and avoiding anything that could be perceived as an inappropriate inducement to prescribe those medicines.
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About Corporates: Pharma companies
The changing role of the Pharma Meeting Planner - « From internal service provider to strategic partner » • …driven by Pharma code & need for results - New tasks: • Process Alignment • Spend Monitoring • Volume Consolidation • Standardization & Compliance • Supplier- and Risk Management • Strategic Relationship with Brand Teams
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T
he future of meetings
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The future of meetings
The value of meetings: - "We must start talking about meetings as an engine of economic development & transformation" - "We need to move beyond tourism"
Clients are looking for strategic solutions - Aligning strategy and operations
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The future of meetings
Agency convergence: Growth of global DMCs, M&E agencies, (core) PCO's & AMC's
Mergers and acquisition; the big agencies are getting bigger
Advertising agencies buying or starting up event agencies
Clients looking for a one stop shop - Events, incentives, conferences - Concept and strategy, sponsorship - Web, Collaterals, Marketing intelligence, Media partnerships - Dealer activation campaign (B2B) - Customer activation campaign (B2C)
The new professional needs to be a consultant to their clients
Career opportunities lie in growth of the agencies
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The future of meetings
Conferences
Human Development
Meetings
Marketing & Communications
Events
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The future of meetings
From Expertise to Experience to Efficiency - The life cycle of a service company - Commoditization of services - The need for innovation
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The future of meetings
Designing meetings and conferences - Attending a conference is an "experience" - Design impacts the experience: • Room layout • Light, sound, smell, colors • Type of interaction (presentation, discussion, working groups, etc.)
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The future of meetings
Addressing deeper motivations of participants - CSR - Environment, managing the footprint - Legacy projects - "Emotional engagements"
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The future of meetings
Technology - More interactive tools at conferences • Dedicated devices • Mobile technology - Improved data storage and -sharing • Multi-year data of conferences • Improved search engines - "Conference Capture": • On-line availability of sessions, presentations • Attending on-line "after the event"
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The future of meetings
"Live" versus "virtual" - The rise of virtual meetings & exhibitions - Hybrid events - The changing role of live meetings
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The future of meetings
Social media - "Always connected": replacing meetings? - Generation gaps - Power applications versus "tools for fools"
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The future of meetings
Shortage of experienced staff - Fast growth of the industry - Formal education trying to keep up - From "logistician" to "knowledge manager" - From "conference planner" to "consultant"
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The future of meetings
Everything must be measured - ROI - Added Value - Procurement
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C
onclusion
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Conclusion
Go beyond the conference: add value to the clients - Understand the trends associations & corporates are going through
Recognise an evolving industry with some signs of maturity - Price pressure, Consolidation, Commoditization
See the opportunities of a fast-growing industry • In the context of a growing planet, with shifts to new economies
Enjoy! It’s a great industry to be in! • "When people come together, magic happens"
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Thank you! Jurriaen Sleijster MCI