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Corporates & Associations Trends in the meetings industry

Jurriaen SleijsterExecutive Vice President - MCI

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Agenda1. About me & about MCI

2. About Associations

3. About Corporates

4. The future of meetings

5. Conclusion

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About me

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Jurriaen SleijsterExecutive Vice President - MCI

• Studies – PR & Comm, MBA & Executive Courses

• 24 years in the Meetings Industry: – PCO @ ESC– MD of an M&E agency in the UK– MCI

• What else?– Married; lived & worked in 5 countries– Love sports, SF books, Music– Mad about Management…

A Dutchman in Switzerland…

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About MCI

Event Management, Communication & Association Manag ement

Outsourcing Event Management

We manage a portfolio or a series of events for clients on a long-term basis

Creative Production

Beyond supplying audio visual solutions we help our clients to achieve their live communication objectives through conference architecture and creative production design. We help our clients to improve their communication and strengthen their brand impact and corporate message at live events

Association Management

Growing client communities and revenues, by increasing their market outreach, educational services and brand awareness in their target markets.

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Building Community

MISSION

What We Do

� Strategic Meeting Management / Consolidation

� Venue Sourcing

� Meeting Planning

� Creative Events & AV Production

� Content & Registration Technologies

� Incentive Travel

� Destination Management (DMC)

� Performance Improvement Programmes

MCI helps companies, governments and associations bring people together to create meaningful connections and win.

� Strategic Consulting/Review

� Association Management (AMC)

� Marketing & Communication

� Educational and Learning Programmes

� Professional Congress Organization

� Exhibition Management

� Registration Technologies

� Public Affairs

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Our Story

Corporate Meetings and EventsAssociation Conferences (PCO)

Leader in Switzerland

Vision to be the consolidator in our fields of work

Adding value with Association Management (AMC)

The only truly global leader in the industry

Building Community

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Expanding our presence in Asia, Latin America & Australia

50% of our customers work with us GLOBALLY

Adding value with Production and Staging in Asia

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MCI - A Global Partner

“ We work across cultures, sharing knowledge and help ing organizations expand into new markets, strengthening their commun ities across the globe.”

Roger Tondeur, President

2012 in numbers:• +3’200 projects• +1’300 talents• 47 offices• 23 countries• €307’438’000 turnover

MCI - Clients & Service Types (2011)

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3%

7%

18%

23%

49%

0% 10% 20% 30% 40% 50% 60%

Consulting

Production

Incentives

Strategic Meetings Management Programmes

Strategic Planning & Execution

1%

6%

9%

13%

15%

56%

0% 10% 20% 30% 40% 50% 60%

Abstract Handling

Consulting

Production

Hotel Accomodation, Registration, Exhibition &…

Association Management (Full Service)

Professional Congress Organization (Full Service)

Corporate Division Service Types (2011)

Institutional Division Service Types (2011)

Corporate46%

Assocs, Gov’ts and

NGOs54%

Client Types

Corporate Division Industry Segmentation (2011)

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Healthcare55%

Information Communication

Technology12%

Banking, Insurance & Consulting

11%

Automobile, Aerospace &

Logistics4%

Energy3%

Engineering & Manufacturing

3%

Travel & Leisure3%FMCG

3%

Government and NGO

3%PR & Advertising

1%

Sports Federation1%

Luxury1%

Institutional Division Industry Segmentation (2011)

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Healthcare66%

Government and NGO5%

Banking & Insurance & Legal Services

8%

Engineering & Manufacturing

5%

Environmental & Scientific

Organization3%

Professional Services

4%

Public Sector & Utility1%

Energy2%

Consumer Goods2%

Automobile, Aerospace &

Logistics1%

Information Communication

Technology2%

Sports Federation1%

Building Community, Energizing Performance

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Building Community, Energizing Performance

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Revenues 2008 – 2011 in CHF

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85,8

6

94,0

8

107,

16

115,

29

224,

01 244,

69

245,

05 269,

01

0

50

100

150

200

250

300

350

400

2008 2009 2010 2011

CH

F M

illio

nsTurnover Structure

Gross Margin Budget Under Management

309.87

338.77352.21

384.30

85,86

94,08

107,16

115,29

3,39 5,12 3,07 4,10

0

20

40

60

80

100

120

2008 2009 2010 2011

CH

F M

illio

ns

Revenue Structure

Gross Margin Profit After Tax

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Creating a More Sustainable Global Marketplace

MCI is recognized as a company that started the “green era” in the meetings industry. Today, we are thought leaders for Corporate Social Responsibility in our fields of work.

Guy BigwoodGroup Sustainability Director

Dedicated advisors on sustainability for associations, corporations, destinations and venues worldwide

� Unique expertise in Sustainable Event Management, certification and tool development.

� Delivered over 120 training presentations to +15000 people.

Organizer of over

events about sustainability

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Investing In Talent Development

MCI is committed to the development of our people, and to providing the highest valueservice and professionalism to our clients.

Avinash ChandaranaGroup Director of

Learning & Development

662enrolments to MCI Institute workshop organized at group and regional level20% increase on 2009

5018combined total of learning hours received24% increase on 2009

332learning hours delivered in over 25 different topics35% increase on 2009

43training days combined total of face-to-face and on-line workshop

83attendees to MCI Institute’s Academies held in Europe and Asia

16staff attained MPI’s Global Certificate in Meetings and Business Events – Level 3

Trends…

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About associations

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About associations

� Understand the client: trends in associations

- A conference is business

- An association is more than its annual conference

- Gradual change from volunteers to professional management

- More central control and governance

- Less funding: success of conference even more important

- Competition between associations increases

- "Relationships only" not longer sufficient

- Outsourcing as an option: Associations use PCOs and AMCs

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About associations

� How to approach associations:

- They are all different (even if they have common traits)

- Do your homework (history, size, rotation pattern, Board, sponsors)

- Proposal:

• logistics

• local partnerships

• "added value" beyond the conference: can the association make a positive impact?

- Combine efforts with a "local host" if appropriate

- Relevant experience: show your track record

- Don't spam

- Remember: associations talk to each other… reputation!

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AMCCore PCODMC / Local PCO

Makes the decisions of the Association

Influences the decisions of the Association

Dependent on the decision of the Assoc.

Overall collaborationLong-term collaborationOne-time collaboration

Becomes the AssociationLong-term relationship as

a partnerShort-term relationship as

a vendor

Defines the goals with the Association

Long-term project based alignment of goals

Must follow given goals

Close to full control / Great business stability

Limited control / Limited business stability

No control / No business stability

About associations

� The impact of the intermediate player:

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About associations

� Sources of information about associations:

- ICCA (www.iccaworld.com)

• International Congress & Convention Association

- IAPCO (www.iapco.org)

• International Association of Professional Congress Organizers

- AC Forum (www.acforum.net)

• Associations Conference Forum

- IPCAA (www.ipcaa.org)

• International Pharmaceutical Congress Advisory Association

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About Corporates

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About Corporates

� Everybody uses events…

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About Corporates

� Understand the client: trends in Corporates

- Everything must be measured: ROI

- CSR: doing well by doing good

- Global contracts: looking for global suppliers

- Outsourcing as an option: Corporates use M&E Planners

- The rise of procurement

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About Corporates: purchasing Evolution

Service Level Agreements

Production

Coordination

Analysis, Strategy,Concept, Creativity

FEE

% Markup + Commissions

Fee or Time-based

Time-basedOr Transaction Fee

Bonus Schemes

Transparency

More business?

OLD SCHOOL NEW SCHOOL

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About Corporates: mutual understanding

� Understand business context of event to source suppliers that can bring value

� Involve more budget owners, show your expertise, respect and recognize theirs

� Promote measurement of objectives

� Beware of technology: process must follow people (not the other way around)

� Provide more data driven ideas, concepts, and KPIs

� Seek insight and demonstrate ability to propose business solutions

� Have your own procurement department

� Understand what your clients are seeking with their procurement initiative

Procurement Event Agencies

MASTERFOOD

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About Corporates: Pharma companies

� Impact of legal restrictions and public perception…

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About Corporates: Pharma companies

� Impact of legal restrictions and public perception…� “…To that end, we are discontinuing certain activities , even though these

practices were, and continue to be, considered acceptable in the industry. We have put a global ban on providing any gifts to healthcare professionals, other than low monetary value cultural and educational items.

� We remain committed to providing accurate information about our medicines to healthcare professionals in a variety of forums and we will continue to provide opportunities for them to learn about our products both from our own employees and from other healthcare professionals speaking on our behalf. However, we will no longer pay for doctors to attend internatio nal conferences but will instead focus our efforts on local educational oppo rtunities.

� Overall, the new Policy is designed to make sure that across all our activities with healthcare professionals, our focus will be on providing them with evidence-based, reliable information about our medicines and avoiding anything that could be perceived as an inappropriate inducement to prescribe those medicines.

About Corporates: Pharma companies

� The changing role of the Pharma Meeting Planner

- « From internal service provider to strategic partner »

• …driven by Pharma code & need for results

- New tasks:

• Process Alignment

• Spend Monitoring

• Volume Consolidation

• Standardization & Compliance

• Supplier- and Risk Management

• Strategic Relationship with Brand Teams

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The future of meetings

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The future of meetings

� The value of meetings:

- "We must start talking about meetings as an engine of economic development & transformation"

- "We need to move beyond tourism"

� Clients are looking for strategic solutions

- Aligning strategy and operations

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The future of meetings

� Agency convergence: Growth of global DMCs, M&E agen cies, (core) PCO's & AMC's

� Mergers and acquisition; the big agencies are getti ng bigger

� Advertising agencies buying or starting up event ag encies

� Clients looking for a one stop shop

- Events, incentives, conferences

- Concept and strategy, sponsorship

- Web, Collaterals, Marketing intelligence, Media partnerships

- Dealer activation campaign (B2B)

- Customer activation campaign (B2C)

� The new professional needs to be a consultant to th eir clients

� Career opportunities lie in growth of the agencies

The future of meetings

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Human Development

Marketing & Communications

Conferences

Meetings

Events

The future of meetings

� From Expertise to Experience to Efficiency

- The life cycle of a service company

- Commoditization of services

- The need for innovation

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The future of meetings

� Designing meetings and conferences

- Attending a conference is an "experience"

- Design impacts the experience:

• Room layout

• Light, sound, smell, colors

• Type of interaction (presentation, discussion, working groups, etc.)

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The future of meetings

� Addressing deeper motivations of participants

- CSR

- Environment, managing the footprint

- Legacy projects

- "Emotional engagements"

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The future of meetings

� Technology

- More interactive tools at conferences

• Dedicated devices

• Mobile technology

- Improved data storage and -sharing

• Multi-year data of conferences

• Improved search engines

- "Conference Capture":

• On-line availability of sessions, presentations

• Attending on-line "after the event"

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The future of meetings

� "Live" versus "virtual"

- The rise of virtual meetings & exhibitions

- Hybrid events

- The changing role of live meetings

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The future of meetings

� Social media

- "Always connected": replacing meetings?

- Generation gaps

- Power applications versus "tools for fools"

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The future of meetings

� Shortage of experienced staff

- Fast growth of the industry

- Formal education trying to keep up

- From "logistician" to "knowledge manager"

- From "conference planner" to "consultant"

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The future of meetings

� Everything must be measured

- ROI

- Added Value

- Procurement

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Conclusion

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Conclusion

� Go beyond the conference: add value to the clients

- Understand the trends associations & corporates are going through

� Recognise an evolving industry with some signs of ma turity

- Price pressure, Consolidation, Commoditization

� See the opportunities of a fast-growing industry

• In the context of a growing planet, with shifts to new economies

� Enjoy! It’s a great industry to be in!

• "When people come together, magic happens"

Thank you!

Jurriaen SleijsterMCI