At CPO Rising, we’ve taken the time over the past year to highlight the various components of modern complex spend management. Each spend category within this greater banner (travel, meetings, contingent labor, print / marketing materials, etc.) presents its own set of specific challenges, pressures and strategies. While there are general capabilities and competencies that fit into any program across these strategic spend categories, an enterprise’s size heavily plays into how category-specific programs are developed, executed and managed.
The modern small- or medium-sized business (SMB) has faced a consistent issue over the years in regards to two of these complex spend categories. To start, business travel is a must; every organization, regardless of size or stature or location, must travel to spur business development and outreach with key clients, customers and other organizations. And, travel’s “sister” category, meetings and events, are also a necessary function of how the average organization connects with the business world.
Meetings and events, especially at SMB organizations, are a critical means of branching out into new markets and industries, as well as connecting with an existing client base. Like business travel, it can be considered a “cost of conducting business,” but that type of thinking ignores the strategic value of both of these categories. For the modern SMB to effectively manage its events, drive ultimate value of its strategic meetings and build a long-term, efficient program, a few major steps must be taken.
- The spend and supplier management aspects of events management are more important than any other for the SMB organization’s events management program in the initial developmental phases. While many of the events management-centric articles here on CPO Rising point to the evolution of this space, for SMB organizations in particular, spend and supplier management should be top-of-mind before diving into more advanced aspects. Finances will always remain a primary focal area for the typical SMB, and
- “Engagement management” principles should follow as programs become more developed. Engagement management is the new events management, for sure, as we’ve talked about here in the past. However, for the modern SMB organization, focusing on principles within this arena (lifecycle of value touchpoints, social media interaction, mobile engagement, etc.) prior to honing spend management processes is akin to “putting the cart before the horse.” When the procurement and sourcing capabilities are robust and actively contributing to cost savings / reductions on meetings spend, it is time to build in engagement management principles.
- The attendee experience will ultimately be the driving metric behind years two and three of the events management program. Savings are often the barometer for spend management performance, even within complex spend categories. Significant budgets are allocated for business travel, corporate events and temporary labor, and any reduction in costs goes a long way to improving the financial health of any enterprise. However, the market is experiencing revolutions in these complex categories, so much so that savings isn’t at the top of the performance list anymore. In the “intermediate” years of the SMB events management program (typically years two and three), improving the attendee experience should be a top priority. Metrics such as “emotional ROI” and quality / effectiveness are true indicators of the value of an SMB enterprise’s meetings and events.
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