The Executive's Guide to Corporate Events and Business Entertaining

How to Choose and Use Corporate Functions to Increase Brand Awareness, Develop New Business, Nurture Customer Loyalty and Drive Growth

Judy Allen

• Publisher: Wiley
• Year: 2009
• Print ISBN: 9780470838488
• eBook ISBN: 9780470739013
• Edition: 1
• Topic: Business
• Subtopic: Hospitality, Travel & Tourism Industry
• Index: Business

An industry expert shows readers how to get the best return on investment from corporate events

Corporate events and business entertaining are a major part of a company's communication, marketing and public relations strategy. They are used by businesses of all sizes to solicit new business, create a corporate or brand image, and retain and build loyalty with existing suppliers and customers. They can also be used effectively to elicit peak performance from employees and produce camaraderie and teamwork among co-workers. The corporate event bar has been raised dramatically and the competition to craft something original that will help a business create public awareness as well as industry and media buzz is fierce.

Staged effectively, business functions can contribute to a company's success, standing, profitability and business development. But corporate events and business entertaining can also seriously damage a company's image and put the company and its management in potentially high-risk situations if not handled carefully, professionally, and appropriately. Corporate boards and chief executives are now seeing how company scandals played out in the headlines can estrange customers, sink stock prices, and end careers in a matter of minutes. And many of the transgressions that have been made public have been linked to corporate events and business entertaining.

The Executive's Guide to Corporate Events and Business Entertaining provides executives with all the information they need before they plan, host, sponsor, or attend corporate events. It gives rising and established executives the tools they need to move ahead with confidence in planning their next company function.

CHAPTER ONE

THE EVOLUTION OF BUSINESS FUNCTIONS AND THE WAYS THEY CAN BE USED TO SUCCESSFULLY DRIVE BUSINESS GROWTH

CORPORATE EVENTS AND BUSINESS entertaining are used by corporate North America to foster business development and growth and are a major part of a company’s communication, sales, marketing and public relations strategy. Staged effectively, they can contribute to a company’s success, standing, profitability and expansion and are equally successful with large and small companies that operate locally, nationally and internationally.

Corporate events can be used by businesses of all sizes to solicit new business, create a corporate or brand image, and retain and build loyalty with existing suppliers and customers. They can also be used effectively to elicit peak performance from employees and produce camaraderie and teamwork among coworkers. The corporate event bar has been raised dramatically and the competition to craft something original that will help a business create public awareness as well as industry and media buzz is fierce.

But corporate events and business entertaining not designed with care—without an eye on business ethics and etiquette—can seriously damage a company’s image and put the company and its management in potentially high-risk situations if not handled carefully, professionally and appropriately. Corporate boards and chief executives are now seeing how company scandals played out in the headlines can estrange customers, sink stock prices and end careers in a matter of minutes. And many of the transgressions that have been made public have been linked to corporate events and business entertaining.

One company’s team-building exercise turned into a case of sexual harassment and sexual battery that ended in a $1.7 million settlement. Their losing sales teams had been asked to eat baby food, wear diapers and be spanked with their competitor’s signs.

In another case, a company CEO was removed from his post and sent home to take a position as an in-house auditor when his company was hit with a $190 million sexual harassment suit. The company CEO was accused of improper behavior with one of his staff members both in the office and on business trips when he invited her into his hotel room and made improper advances.

Off-color jokes, permitted at another company’s conference, made national headlines and left readers—who were both existing and potential customers—with an impression of the corporation having poor business judgment. As did a teaser mailing for a golf event that closed down an office tower in the middle of a business day, when one of the cans of bear spray, which was tied into the promotional campaign, was released and set off a security alert. Traffic ground to a halt in the middle of the financial district, work was disrupted, and people were inconvenienced for more than two hours while the area was sealed off and surrounded by dozens of fire trucks and police cars. Many of the employees headed for home as a safety precaution.

Another company’s promotion ended up with an arson squad blowing up a newspaper box, thinking it held a possible bomb. The box was rigged with a device set to play music, tied into the product launch, when the door was opened, but some of the devices were not securely fastened into place. They dropped on top of the stacks of newspapers and displayed wires sticking out from the recording device, causing great alarm.

As a company grows, so will its business function requirements. The range and style of business functions it puts on and takes part in, and the type of business entertaining that is essential to it as a company will change and grow as the company itself will. Business functions and business entertaining become a part of a company’s signature style and convey as much about it as a company—to its workforce, clients, suppliers, potential customers and prospective top-level employees—as does its carefully chosen letterhead and promotional material and how they conduct, present and position themselves in business. But many companies focus more time and effort on these details than they do on planning a corporate event.

Corporate events, done right, become an integral part of a company’s image and corporate culture. It is important that a company not allow itself to become stagnant and repetitive if it wants to retain both the competitive edge that using business functions has brought it and its reputation of being a cutting-edge leader in its industry. Business functions become more sophisticated and complex as a company develops and expands their reach in order to meet their changing needs and those of their evolving clientele. There may be “usual” business activities you don’t see as “events,” such as board meetings, but if you treat them as special functions, with business objectives and follow-up, they can go to the next level and produce outstanding results.

Executives striving to make a name for themselves within their company and industry want a seat on their company’s strategic planning committee and are actively vying with one another to be an integral part of their company’s decision-making team. It is important for them, personally and professionally, to be viewed as an essential voice within a company’s strategic growth plan, and one way to do this is by demonstrating an understanding of how business functions can be used to corporate advantage. They know that meetings and events, successfully implemented, can be a driving force toward ensuring business success, and if they can bring valuable knowledge and insight into the which, when, where and why of corporate events, they will secure themselves a place at the decision-making table.

Possessing the skills required to select the right business function to meet targeted company objectives will set executives apart from their peers and enable them to get the resources (budget, staffing, etc.) and empowerment they need to plan the most effective meetings and events for their division and for their company. Knowing how to justify the bottom line puts them in a position for senior management support. In order to move ahead with confidence in planning their next company function, it is important that they learn what questions to get answers to before contracting and avoid putting themselves and their company at financial and legal risk.

Executives are now being held personally accountable to high-level management for every dollar they spend. Part of that accountability includes proving the relevancy of the dollars being spent on educating, enlightening and entertaining staff, suppliers, customers and the general public through corporate events and business entertaining. Company boards and chief executives are requiring that personnel involved in business function management provide them with evidence that corporate objectives are being more than met by the investment in events and that these expenditures are earning the expected return on investment. If committee and department heads fail to observe company mandates, their divisions can suffer budget cuts and the elimination of jobs, while they themselves may face the prospect of being fired as an example to other company executives and up-and-coming employees.

At one leading automotive company, it was a well-known fact that the corporate executive placed in charge of the company’s yearly product launch faced the very real possibility of not being with the company to head up the next one (just like his or her predecessors). In seven years, the company’s president had fired seven rising executives who “did not know what they did not know” when they were asked to take on this critical company event. Thrust into a position they were ill prepared to handle, they were unable to achieve the results that head office required.

What they had failed to realize was that flawless event execution does not mean company objectives are being met. They put their focus and energies into a day of orchestrated perfection instead of ensuring that each event element they selected would bring about the desired objective, which was not necessarily financial.

For example, a perfectly produced car launch in XYZ location—which can run in the millions of dollars—means nothing if the dealers whose business the company is soliciting choose not to attend. Many car dealerships carry more than one line of cars and are wooed by each competing company to attend their car launch. The dealers, many independently wealthy, can afford to be choosy with how they spend their time and their money, and if a specific car launch—as it is positioned—does not entice them, they will not step foot on the plane.

Knowing how to qualify and select the right event and entertaining elements that will draw the dealers and get them clamoring to be part of an exclusive event is essential to a successful product launch. But hand in hand with getting the dealers to attend goes the challenge of giving the dealers a reason to pre-order the new line, and all of that was being overlooked in the product launch planning stages. The main focus year after year was on the dollars and cents of budget management, and not on the dollars being spent making both cents (profit) and good business sense after the event had taken place. The executives found out the hard way that coming in on budget without meeting company objectives means that you have run your event at a loss and all the money, time and labor spent planning and producing the event has been wasted.

The Evolution of Business Functions

In the past, business functions were used mainly as a medium for communicating internal corporate developments, such as a company’s future plans, prospects, policies and procedures. Businesses used corporate events to foster goodwill between employees and management, encourage company loyalty, raise morale, demonstrate leadership, provide training and show employee and customer appreciation. These traditional business function needs were generally handled in-house. Events were held in the office or at a local hotel and were produced with the help of an audiovisual company and basic equipment.

Traditional business functions include:

• board meetings

• business meetings

• client appreciation events

• conferences

• conventions

• corporate shows

• employee appreciation events

• trade shows

As technology evolved, corporate events developed a more sophisticated style. Companies began holding meetings and events further afield and in a variety of venues. Logistically these functions became much more complex. Corporations seeking new ways to stand out from their competition, take the lead in market share, entice top performers to work with them and retain key personnel started turning to business functions, both corporate and social, to help them achieve their objectives.

Today, business functions are dynamic sales, marketing and public relations tools used by businesses of all sizes. Business entertaining budgets have moved from hundreds to thousands, to hundreds of thousands of dollars, and, in growing numbers, to multi-million-dollar allocations for a single business function.

Advanced business functions include:

• custom training seminars involving emotional and physical challenges

• executive retreats

• gala fundraising events

• incentive travel and premium programs

• award presentation shows

• naming rights

• product launches

• product placement

• special events

The Value in Clearly Defining Your Event

For several reasons, it is important to be able to properly distinguish the type of business function that you are considering holding. First, it will help you establish company objectives and assess whether or not they can be met holding the type and style of business function that is being proposed. Second, it delivers a clear message to your attendees and suppliers, such as hotels, professional event planners, audiovisual companies and so forth, which will in turn help them work in partnership with you to best meet your objectives.

The name you give your function sets the tone and the company’s intention. For example, a business meeting paints a very different image or event “energy” than a client or employee appreciation function, even though both can conceivably be very similar in delivery. A business meeting and a client or employee appreciation event can be formal or fun and can take place in a hotel or in a unique venue or location inside or outside. But with a business meeting, the focus is generally on the content that will be imparted to attendees and what they will take away with them and retain, while a client appreciation event can feel more intense and an employee appreciation function conveys celebrating individual and company achievement in a more relaxed atmosphere.

The Types of Returns Business Functions Can Bring

Companies of all sizes and types attend and host business and social functions as a means to:

• increase their company profile

• maximize performance

• grow brand awareness and recognition

• develop new business

• nurture employee, supplier and customer loyalty

• advance employee learning

• stimulate sales through motivation

• drive business growth

Too often, companies put events on and throw parties without even considering such objectives. As such, they waste valuable opportunities, time and money. A strategically planned business function, whether it be put on by the company or attended, can bring a multitude of rewards. But it’s key to know which one to do or attend as a company representative; when and why it is better to be the host, sponsor or guest or play a different role; and how to take what you are doing and meet all objectives. It is important that company employees attending business meetings, industry events and so on as company representatives on company time and money be given a clear set of company objectives that need to be met from the outset. It is essential that employees acting as company representatives are not wasting their company’s investment of time, money and energy and are not adversely damaging the company’s reputation or theirs personally and professionally, which could reflect back on the company. No one wants to be perceived as the person who would “go to the opening of an envelope” and yet many people and companies seem that way. Doing so creates industry buzz that they must not have a home or social life or much to do at work, and that is not the business or personal message you want to convey. It is important to be selective and to be function savvy. Play—social and business functions that are more relaxed—can be work, but it is important to go into such functions with an investment strategy in mind, knowing exactly what return they will bring for all involved.

It is always important when staging or attending a business function that will meet company objectives to keep in mind the target audience and to remember that the audience can be far-reaching and that multiple objectives can be realized from one event.

Section 1

TRADITIONAL BUSINESS FUNCTIONS: WHAT THEY ARE AND THE RETURNS THEY CAN BRING

Board Meetings

Depending on the company, board meetings can take place daily, weekly, monthly, quarterly or annually. They can be held inside or outside of the company boardroom and are generally attended only by senior executives and the board of directors. Board meetings can run from a couple of hours to all-day affairs, and their focus is on business matters.

Sample Board Meeting Returns

To company heads, a board meeting is a time to come together to discuss company direction and make decisions. The only objective that they may have is to move through the agenda as quickly as possible and get back to business. Whether they hold the meeting at the office or at an outside location does not usually matter and can be thought to be inconsequential, as though the decision of where to hold their meeting will not factor into meeting company objectives, which is not always the case.

Holding a board meeting at the office serves many purposes. It is cost-effective. There is no additional cost incurred for room rental and material, and staff are on hand if they need to be referenced or they can sit in for a portion of the meeting. It is easy to request copies of any pertinent information. The only added expense is for catered breaks and lunches and any special audiovisual equipment that may need to be brought in.

If one of the company’s objectives is personal growth and development of their staff, a hidden benefit to holding the board meeting at the office where all the higher-ups are gathered in a show of company strength is motivating staff to aspire to someday be where they are. Seeing life at an executive level can create desire to be part of the inner circle and decision-making process. It will be noted who attended, how they interacted with each other and with office employees and even how they dressed. It is a display of office standards at their very best and a show of what it takes to be part of the executive team. It provides employees with direction if succeeding within the company is part of their goals.

It also creates new energy in the office. Desks and offices are usually tidied and ready for an office walk-through. Employee dress is usually elevated on days when it is known that key executives will be in the office. There will be speculation by office employees as to what will be on the day’s agenda an...

Table of contents

• Praise
• Title Page
• Copyright Page
• Dedication
• Acknowledgements
• PREFACE
• CHAPTER ONE - THE EVOLUTION OF BUSINESS FUNCTIONS AND THE WAYS THEY CAN BE ...
• CHAPTER TWO - HOW TO QUALIFY YOUR COMPANY OBJECTIVES FOR A PROPOSED BUSINESS FUNCTION
• CHAPTER THREE - SELECTING EVENTS TO SUCCESSFULLY MEET SPECIFIC COMPANY OBJECTIVES
• CHAPTER FOUR - TAKING STOCK AND PLANNING AHEAD
• CHAPTER FIVE - SPENDING YOUR COMPANY’S DOLLARS WHERE THEY MATTER MOST
• CHAPTER SIX - IDENTIFYING POTENTIAL LANDMINES
• CHAPTER SEVEN - PROTECTING YOURSELF AND YOUR COMPANY FROM RED-FLAG AREAS
• CHAPTER EIGHT - BENEFITING FROM A COMPETITIVE ANALYSIS
• CHAPTER NINE - EXCEEDING EXPECTATIONS THROUGH EXECUTION
• CHAPTER TEN - ESTABLISHING CODES OF CONDUCT AND SETTING COMPANY STANDARDS
• CHAPTER ELEVEN - TRACKING AND ANALYSING YOUR RESULTS
• CONCLUSION
• APPENDIX
• INDEX