RETURN ON INVESTMENT
A. What is Return on Investment for meetings?
1. A tool to enhance the value of meetings and planners in a way that can be communicated to meeting sponsors and attendees. ROI can be stated as the sum of:
a. Opportunity costs — what an organization must “give up,” as it were, in order to have the meeting (for example, a salesperson attending the meeting rather than selling his product).
b. Financial results — the meeting’s bottom line.
c. Other results — the extent to which the meeting achieves its objectives (e.g., goodwill for the organization, increased sales, etc.), and the value derived thereby.
2. A tool to address the changes and challenges facing the business world and meeting planners. Measuring ROI helps solidify an awareness of the value of meetings for addressing restructuring, right-sizing and organizational issues; mergers and acquisitions; globalization; technological solutions; and resource utilization.
3. A tool to help planners prove the value of their professional expertise, or to help them justify consolidation and/or centralization of the planning function.
B. What are the components of the ROI model?
1. Identify and assess needs of stakeholders.
2. Determine measurable objectives.
3. Measure success against objectives.
4. Design and deliver meeting content.
5. Communicate ROI results.
C. Who are meeting stakeholders? Anyone who benefits or is affected by the meeting, including attendees; the sponsoring organization; the management team/committee; speakers; suppliers; and meeting planners.
D. What is a measurable objective?
1. A statement that indicates a measurable outcome.
2. Objective statements should be written, and each should be:specific; measurable; attainable; relevant to the organization’s overall mission and the reasons for having the meeting; and “time-based” (for example, “at the end of this session, all attendees should be able to....” or “Within six months after the meeting, sales volume should have increased by....”).
E. How is success in attaining objectives measured?
1. Aspects or results of meetings that can be measured:
a. Content — what attendees got out of the meeting in the way of education, information, etc.
b. Performance — e.g., sales volume, customer-service levels (such as call-center response times), measurable behavior changes resulting from the education delivered.
c. Growth — e.g., attendance, membership, etc.
d. Finances — e.g., registration income, increased bottom line (of either the meeting or the organization), etc.
2. Methods of measurement: evaluations or surveys; testing; focus groups; audience-response systems; lead-generation systems; performance against benchmarks or accepted “best practices”; financial statements/budgets.
F. In what ways can an acceptable ROI be ensured?
1. Create a business plan for the meeting that: keeps the planning team focused on objectives, is a planning and management guide; and serves as a mission statement.
2. Incorporate proven adult-learning techniques into the program.
3. Make certain that meeting logistics are thoroughly planned and managed — before the meeting, on-site, and post-meeting.
G. How can a meeting planner communicate ROI?
1. Following the meeting, develop an executive summary document for all stakeholder audiences that outlines:
a. Stakeholders and assessed needs.
b. Objectives established to meet those needs.
c. Measurement tools used and the results.
2. Collect documentation of ROI for meetings the planner has produced, to be used in:
a. Planner performance/salary reviews.
b. Requesting additional resources for the planning department.
c. Proposing new or enhanced responsibilities for the planning department.
—Thanks to Jim Daggett, president, JRDaggett & Associates. Reach him via email at JRDaggett@aol.com.
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