Practical Events Management Lecture Four: Managing the Event

Lecture Overview Project Management for Events Project Management for Events Marketing Marketing Human Resource Management Human Resource Management Finance Finance Risk and Responsibility Risk and Responsibility

The Event as a Project The production of an event or festival can be defined as a project. The production of an event or festival can be defined as a project. According to Gray and Larson (2000:4) 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. Event management consists of a number of management areas, project management integrates these areas.

The Phases of Project Management Project Management consists of: Project Management consists of: Initiation Initiation Planning Planning Implementation Implementation The event The event Shutdown Shutdown

Marketing for Events Marketing can be defined as: 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: Shone and Parry (2001) suggest that a marketing plan should cover the following: Statement of purpose, objectives and expected results Statement of purpose, objectives and expected results Analysis of the macro and micro environment Analysis of the macro and micro environment Summary of event components Summary of event components Overview of target markets Overview of target markets Marketing budget Marketing budget Marketing schedule Marketing schedule

The Marketing Mix The general marketing mix The general marketing mix Product Product Price Price Place Place Promotion Promotion People People Physical evidence Physical evidence Process 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: Getz’s (2005) three stage process for staffing suggests: Identifying all tasks associated with the event’s creation, delivery and shutdown 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 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 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: HR for events is unique for two reasons: Events have a pulsating organisational structure Events have a pulsating organisational structure Events often rely heavily on volunteers Events often rely heavily on volunteers Issues can therefore include: Issues can therefore include: Recruitment Recruitment Training Training Motivation Motivation Retention Retention

Finance for Events Financial control is vital as it: Financial control is vital as it: Allows us to judge likely success Allows us to judge likely success Allows us to judge the level of planning Allows us to judge the level of planning Provides a total cost picture Provides a total cost picture Is useful when looking for additional funding 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: Costs: Fixed Fixed Variable Variable Also, think about cash flow 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 PHOENIX EVENTS Forecast Profit & Loss Account (If 150 tickets sold at £3) SALES (FROM TICKET PRICES) 450 SALES (FROM TICKET PRICES) 450 LESS COSTS OF SALES 180 LESS COSTS OF SALES 180 GROSS PROFIT 270 GROSS PROFIT 270 LESS EXPENSES ADMINISTRATION EXPENSES 40 ADMINISTRATION EXPENSES 40 MARKETING EXPENSES 40 MARKETING EXPENSES 40 DECORATIONS 50 DECORATIONS 50 LOAN 50 LOAN 50 NET PROFIT 90 NET PROFIT 90

Risk and Responsibility Practical (real) risk 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 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 potential hazards Identify who they may affect Identify who they may affect Identify potential risks associated with the hazard Identify potential risks associated with the hazard Assess the risk rating Assess the risk rating Identify the controls that can be put in place to reduce/manage the risk Identify the controls that can be put in place to reduce/manage the risk Identify the final risk rating Identify the final risk rating Identify who is responsible for managing this risk Identify who is responsible for managing this risk

Potential Issues Licensing Licensing Legislation Legislation Public liability insurance Public liability insurance Additional insurance Additional insurance You MUST include a full risk assessment and copy of your venue’s public liability insurance in your event plan 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 definitionScope of work Work breakdown structure Task AnalysisScheduleResponsibility