practical events management lecture 4: managing the event jenny flinn [email protected]
TRANSCRIPT
Lecture Overview
• Project Management for Events
• Marketing
• Human Resource Management
• Finance
• Risk and Responsibility
The Event as a Project
• The production of an event or festival can be defined as a project.
• According to Gray and Larson (2000:4)
“a project is a complex non routine one-time effort limited by time, budget, resources and performance specifications designed to meet customer needs”.
• Event management consists of a number of management areas, project management integrates these areas.
The Phases of Project Management• Project Management consists of:
• Initiation• Planning• Implementation• The event• Shutdown
Marketing for Events
• Marketing can be defined as:
“the management process responsible for identifying, anticipating and satisfying customer requirements profitably”
(Chartered Institute for Marketing, 2005)
The Marketing Plan
• Shone and Parry (2001) suggest that a marketing plan should cover the following:
• Statement of purpose, objectives and expected results
• Analysis of the macro and micro environment• Summary of event components• Overview of target markets• Marketing budget• Marketing schedule
The Marketing Mix
• The general marketing mix
• Product • Price• Place• Promotion• People• Physical evidence• process
• The event marketing mix
• Product• Price• Place • Promotion• Programming• People• Partnerships• Packaging and
distribution
Human Resource Management for Events“A philosophy of people management based on
the belief that human resources are uniquely important in sustained business success. An organisation gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clarified objectives. HRM is aimed at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies”
(Price, 2004:32)
HR Strategy and Objectives• Getz’s (2005) three stage process for staffing
suggests:
• Identifying all tasks associated with the event’s creation, delivery and shutdown
• Determining how many people are needed to complete the range of tasks associated with the conduct of the event
• Listing the numbers of staff/volunteers and supervisors needed and the skills/experience needed to form the ideal workforce
HR Issues
• HR for events is unique for two reasons:
• Events have a pulsating organisational structure• Events often rely heavily on volunteers
• Issues can therefore include:
• Recruitment• Training• Motivation• Retention
Finance for Events
• Financial control is vital as it:
• Allows us to judge likely success• Allows us to judge the level of
planning• Provides a total cost picture• Is useful when looking for additional
funding
The Event Budget
Establish Economic
Environment
Establish Budget
Guidelines
Identify and estimate cost
areas and revenue sources
Draft budget
for approval
Evaluate draft
budget and
prepare control ratios
Costs and Revenue
• Costs:
• Fixed• Variable• Also, think about cash
flow
• Revenue
• Ticket sales (scaling)• Sponsorship
(leverage)• In kind support• Merchandising• Grants • Fundraising • Broadcast rights• Special features
Financial Reporting: Profit and Loss• PHOENIX EVENTS
Forecast Profit & Loss Account(If 150 tickets sold at £3)
• SALES (FROM TICKET PRICES) 450
• LESS COSTS OF SALES 180
• (Venue Hire)• GROSS PROFIT 270
• LESS EXPENSES • ADMINISTRATION EXPENSES 40• MARKETING EXPENSES 40• DECORATIONS 50• LOAN
50 • NET PROFIT
90
Financial Reporting: Balance Sheet• PHOENIX EVENTS
Forecast Balance Sheet (If 150 tickets are sold)
• Current Assets• Debtors:• Collated from ticket sales 450
450• Less Current Liabilities• Creditors:• Venue 310• Printing• Decorations• Administration• Total assets less current liabilities 140• • Less Long-term Liabilities• Loan 50• Net assets 90• Capital• Opening Balance • Add Profit 0• 90• Less Drawings 0
90
Risk and Responsibility
• Practical (real) risk
“the probability that a particular adverse event occurs during a stated period of time, or results from a particular challenge”
(Royal Society Study Group, 1992:2)
• Event risk
“a working definition of event risk is any future incident that will negatively influence the event. Note that risk is not solely at the event itself”
(Bowdin, et al., 2006:318)
The Risk Management Process• Identify potential hazards
• Identify who they may affect
• Identify potential risks associated with the hazard
• Assess the risk rating
• Identify the controls that can be put in place to reduce/manage the risk
• Identify the final risk rating
• Identify who is responsible for managing this risk
Potential Issues
• Licensing• Legislation• Public liability insurance• Additional insurance
• You MUST include a full risk assessment and copy of your venue’s public liability insurance in your event plan
Back to Project Management
Project Definition
Scope of Work
Work breakdown structure
Task Analysis
Schedule
Gantt Chart/Critical Path
Responsibility
Activity Sheets Work Packages