In tough economic times, companies are focusing
their attention on making sure they get a maximum return on
their investment (ROI). But businesses should also be aiming a
spotlight at a less visible component of corporate meetings:
the risks involved.
From employee safety to contract negotiations, there is no
shortage of concerns for corporate meetings planners. Here are
five corporate meeting risks of which planners should be aware,
and some solutions to address them:
1. Safety and Security Risk
In the last few years alone, the H1N1 flu virus, Icelandic
volcano ash cloud, and the earthquake and subsequent tsunami
that hit Japan have impacted corporations and their travelers,
putting both at financial and physical risk.
Solution: Meeting planners should expect the unexpected,
whether employees are traveling domestically or internationally
for meetings. Centralized meeting attendee management tools can
help ensure companies know where meeting attendees are located
and how to reach them in an emergency.
2. Budgeting Risk
When dealing with fluctuating costs for travel, currency
conversion, airline ancillary fees, and other expenses,
unexpected budget overruns can happen.
Solution: Companies should develop a centralized calendar of
current, future, and potential meetings to avoid being caught
off guard by unanticipated costs.
3. Sourcing Risk
When booking travel, conference rooms, sleeping rooms, and food
and beverage services, planners can lose buying power and
negotiating leverage when they don't work with preferred
suppliers. This can result in substantially higher costs.
Solution: Companies should establish policy guidelines that
require that meeting planners book all services from a list of
preferred suppliers. A rigorous, clearly defined sourcing
approach like this will not only build lasting supplier
relationships, it will save companies significant dollars.
4. Contract Risk
Corporate events may be planned by personnel who are not
trained in negotiation skills and unaware that their companies
use standard contract terms and conditions. These terms prevent
unnecessarily high cancellation fees and even legal liability
loopholes. It's important that the planner be aware of the
terms and include them in contracts.
Solution: Standardize meeting policies and processes around
contract negotiations. This way no matter who is booking a
meeting, everyone will be able to follow a well-designed
outline that will help avoid common mistakes, save money, and
reduce or eliminate legal risks.
5. Payment and Accounting Risk
Mistakes may occur in the supplier payment process in any
number of ways, from making late payments and incurring fees to
data that is entered incorrectly.
Solution: Centralizing and automating payments can ensure more
efficient bill paying and streamlined accounting processes that
will cut down on the risk of error. Using one single payment
method, like a corporate meeting card, for all meetings
expenses will generate additional visibility and more
comprehensive spending data.
Although there are a number of risks involved when executing
corporate meetings and events, the good news is that there are
also plenty of ways to mitigate them. Automated meetings
management tools, corporate meeting cards, and other tools that
can help centralize data and increase control over a company's
meeting spend are a few solutions to common threats.
Ben Thirlwall is vice president of global B2B product management at American Express, and is responsible for a product suite used by American Express corporate clients, which includes Corporate Meetings Payments Solutions.