Lawrence Dvorchik is back! I am looking forward to seeing his SISO Leadership Conference Session, but in the meantime here are his thoughts about when to cancel an event. Enjoy!
It’s the last resort and one of the most painful decisions that an organizer can make, deciding that an event will no longer be produced. What are the factors in making a cancellation decision? How you address the impact on an organization, its employees –– can often be as important for the future of the organization. There are many ways to dissect why an event is canceled. Is it a launch event? A long standing event which has been mired in mediocrity? What is the timing of a cancellation? What is the impact on the organization brand by canceling an event?
New Launches
In many instances, an event is canceled before it even gets off the ground. Often, in the research phase it’s determined that you don’t feel you can deliver the audience or there are too many competitive events are in the market, or there is a lack of interest from sponsors and exhibitors. This happens frequently in conference companies, or early stage launches, where pre-event investment is minimal, other than time. Sean Guerre has written about the steps to take in determining whether to launch a new show or not, and I urge you to check it out. He would say when you start to miss milestones, financial or otherwise, it’s time to pull the plug.
Existing Events
With longer standing events that are either regressing or stagnant, it often becomes a matter of prioritizing the resources needed to invest in the event, not only money but ROI. Are there other events being considered that could use the resources more, and deliver a potentially better ROI? If you are dealing with investors of the business (private equity, venture capital or others), that is often the bottom line. Which product is more likely to deliver a better ROI at a more rapid speed? The more time and sweat equity involved with an event, the more difficult this decision can be. However, it is the responsibility of leaders/owners/CEO’s to make those difficult decisions, based on their analysis of what makes the company more profitable or successful.
Timing
How do you know the right time to cancel an event? This is somewhat subjective, as each organization has a different level of risk/reward they are willing to take. However, when it becomes clear to the leader that they are just “throwing good after bad”, it’s time. In other words, at some point, the leadership has to determine that it no longer makes sense to spend valuable resources – whether it’s financial or human capital – on the event. In other words, it either isn’t possible to make it a viable, profitable business, or it will take allocating more resources over a longer period of time than it is worth. That they can get better overall ROI from a different project.
There is no clear cut manual for how and when to make the decision to cancel an event. But when you do have to make it, make sure you get out in front, and clearly communicate that it was a business decision with everyone’s best interest at heart. It is always better to spend the time and make sure everything is clear than to allow people to wonder, guessing at reasons, potentially starting rumors that can be damaging to them, you and the business. In general, it’s best to make the decision before extensive resources have been used, and to give the attendees, sponsors and other stakeholders time to make other plans. For all money received from them, make sure you pay them back.
Canceling events can be tough, the best way to avoid it is to stay close to your markets, listen to what’s going on, and how you can offer value with your event. If that doesn’t work, bite the bullet- you’ll live to fight another day.
Lawrence Dvorchik is the Managing Partner for Hallway Advisors, an event consultancy firm specializing in helping organizations execute events. An entrepreneur his whole life, Lawrence has run B2B and B2C events, indoors and outdoors, led international sales and cross functional teams before developing the 4-time Fastest 50 growing show, KioskCom, which was later acquired by JD Events. An avid fan of face-to-face experiences, Lawrence has worked closely with thousands of brand marketers, face-to-face event organizers and agencies to maximize their face-to-face experiences at events from conferences to trade shows, summits to roadshows and more. He can be reached at Lawrence@hallwayadvisors.com