In some recent posts I’ve mentioned the different roles – the different “guys” – who are involved in the creation, management, and execution of events. Each type of role has something to contribute to the success of a particular event. But when I look beyond an individual event at the broader trends within the business, that sense of common contribution changes.
For example, when one looks at who is looking ahead and trying to advance the industry with online commentary about the issues and potential within the trade show and conference industry, it’s the “idea” guys and independent consultants who seem to have taken on that responsibility. Do you really see interesting thinking from the financial managers – the money guys – of the event industry? Not much, if any, at all.
Why might that be? If you think of about the people who comprise that role in relatively simple – arguably simplistic – terms, the answer might seem obvious. The “money guys” are numbers-oriented. The success of a particular event in terms of profit and loss can be expressed with numbers, but thought leadership (like this blog aspires to) is a communications effort and that’s a medium driven by words. Words don’t necessarily convert into P&L numbers – or they don’t do so easily.
But let’s try. I see a big gap – what I might even call a chasm – between the idea guy and the money guy. And it’s not just a matter of numbers and words. It’s really a matter of perspective – how one looks at the industry and sees the current state and how that state can be a foundation for the future. If you cannot reconcile those different considerations with a common sense of purpose, you won’t bridge the gap between the present and future.
And I believe that is why the day to day operation of certain events often is compromised by a focus on profitability – short term profitability – that hinders how the industry can move forward and thrive. It is why new technology initiatives (e.g. social media, virtual events) can struggle – perhaps even fail – to get traction because the longer term potential benefits are ignored in a short term calculation of the cost impact on the event in the present. When it’s not clear what the positive financial impact of a new idea will be, then ‘trying something out’ becomes just a cost item in the budget.
From the perspective of a consultant who usually champions the creative approach, I believe that the adoption of new ideas always should be done with the idea that they can increase the potential longevity and profitability of the event. The impact may not be immediate nor a contributor to the net profit of an event within the next event cycle, but worth exploring.
One of those things is ‘event engagement’ or ‘raising the attendee experience.” A purely financial perspective can cynically interpret that as meaning adding more parties with an open bar. Seen that way, event engagement costs a fortune and has uncertain positive financial impact. But you can make it work both to innovate and make money, and here’s how:
- Ensure your event will connect the buyers and sellers (or paying buyers with each other if no sponsors/exhibitors).
- Ensure this engagement is fun and different, noteworthy and valuable to those who attend.
- Determine financial metrics for your goals such as % increase in rebooking, future buyer attendee commitment, etc.
- Be practical and smart – start small in terms of costs.
- Have someone on your event team responsible for the results- before, during, and after
- Measure how you did against your financial goals.
- Get feedback and refine- make enhancements with an eye toward next year’s event.
- Expand your engagement program.
The event business is a service industry. In product industries, businesses look at their spending in terms of whether they are OpEx (ongoing operating costs – aka spending) or CapEx (capital that has longer term impact in terms of the expected payback – aka investing). While the event business does not really involve investments in factories or equipment, it really doesn’t hurt to look at certain costs as making an investment in the future where the payback is over time.
Now I am not an accountant, but I’d say that any conference or trade show manager that does not have some spending on activities that might be considered “philosophically CapEx” in their intent is really not looking to the future. And because of that, they are unlikely to reach that future.