1. Kathleen Frankford > NEXTFactor Enterprises
Defending Your DMO
Kathleen Frankford > NEXTFactor Enterprises

2. ABOUT NEXTFACTOR ENTERPRISES:
NEXTFactor Enterprises Inc. is a consulting company in the tourism and transportation industry that provides strategic planning and marketing services.
In 2014 NEXTFactor led a ground-breaking initiative on behalf of Destinations International called DestinationNEXT. 
ABOUT NEXTFACTOR ENTERPRISES:
NEXT Generation Destination Marketing and Management | 2

3. When is the last time you truly assessed your organization in a deep and meaningful way?
NEXT Generation Destination Marketing and Management | 3

4. Impetus for an Organizational Review
Various stakeholders share concerns that the DMO is not bringing a “business mindset” or “lean mentality” to the operations.
Poorly run
Overstaffed and highly paid executives
No ROI for work produced
Not enough resources allocated for marketing and sales
Continued assurance DMO will hold up to scrutiny
New DMO leader – help expedite acclimation
to new role
Help DMO optimize resources and operations
NEXT Generation Destination Marketing and Management | 4

5. FOCUS ON: Engagement Purpose
CULTURE
ORGANIZATIONAL STRUCTURE
FUNCTIONAL POSITIONS
SYSTEMS AND MAJOR PROCESSES
RESOURCE ALLOCATIONS
INTERNAL CAPACITIES AND OUTSOURCING OPPORTUNITIES
Review and assess current revenue streams and, to the extent possible, the profitability of each revenue stream.
Assess operations and processes utilizing comparisons to Destinations International studies, other highly regarded Destination Marketing Organizations, and/or best business practices
NEXT Generation Destination Marketing and Management | 5

6. The Purpose is NOT To serve as a “witch hunt” or embarrass the DMO
Focus solely on examples of solid management. By design the focus needs to address areas that provide opportunities for improvement or greater impact
The organizational assessment should be designed through a combination of:
The needs of the DMO
Industry best practices
NEXT Generation Destination Marketing and Management | 5

7. The Structure Determine needs and pain points
Define Process and Deliverables
Communicate Observations
Make Recommendations
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8. Determine Needs What are your most scrutinized areas?
Staffing levels and salaries
Allocation of funds
Financial integrity
Processes
Optimization of existing resources
New, former or existing special projects
Business model
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9. Process and deliverables
Analyze all revenue and expense categories (line item detail)
Assess staff time allocated to specific operating areas
Analyze total compensation and benefits by staff member and specific operating area
Review and compile vendor contracts including terms and conditions and annual budgeted cost
NEXT Generation Destination Marketing and Management | 5

10. Process and deliverables
Produce easy to reference “Fact Sheets” and develop for key areas in question:
Building
Visitors Center
Company vehicles
Compile a salary comparison of top 5 compensated positions
Destinations International
Chamber study
Published market studies (or conduct separate study)
Compile staff benchmarking
Area organizations – Chamber, EDC Community Foundations
NEXT Generation Destination Marketing and Management | 5

11. Process and deliverables
Compile trend data
Salary information
Full and part time staffing
Interview and summarize interviews with Executives at high performing Destination Marketing Organizations
Interview staff members to understand time spent on high value items, culture mentality and areas of opportunity
NEXT Generation Destination Marketing and Management | 5

12. Process and Deliverables
11. Analyze and, where appropriate, provide recommendations on:
Performance Review Process
Compensation
Job Descriptions
Organizational Structure
Expense Reimbursement Process
Vendor Selection Process
Vendor contracts
Assemble a comprehensive information packet and presentation for key stakeholders
Present overview of findings to designated key stakeholders
NEXT Generation Destination Marketing and Management | 5

13. Potential Observations
Allocation to program expenses
Integrity of budget and financial processes
Advertising shifts and impacts on key revenue streams
Membership growth or decline trends
Staff Observations
Financial and marketing impact of special projects
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14. Potential Recommendations
Convene a Task Force of Board and Non-Board members to complete a comprehensive strategic review of key areas in question
Visitors Center
Building
Business model
Special programs and grants
Review and develop an updated compensation policy and consistent review process
Consider hiring an outside consultant to assist with culture development and shaping
Work with the staff to develop an ROI mindset for all positions, projects and initiatives
NEXT Generation Destination Marketing and Management | 5

15. Potential Recommendations
Implement a time-tracking tool such as Harvest to accurately allocate employee time
Develop a consistent bidding process
Realign budget
Conduct annual financial audit
Human Resources
Filing systems
Hire HR consultant
Designated staff member
NEXT Generation Destination Marketing and Management | 5

16. Research and Data Shuts down claims made by your opposition
Lends credibility to the DMO and CEO
Eliminates the need to be defensive
Promotes confidence and transparency
NEXT Generation Destination Marketing and Management | 4

17. Questions?