Play As You Earn
Is your diary over Christmas packed with lacklustre corporate schmooze-fests and uninspiring client lunches? If so, Louisa Roberts finds out what your company could be doing to give key customers an unforgettable experience
I blame New Zealand. Its breathtakingscenery seems to instil its inhabitants with a mysterious need for near-death experiences (or life-enhancing adrenaline rushes, as they are sometimes called). It doesn’t take much to make them go bungee-j umping, and they’re no longer alone. Executives around the world are queuing up to join the “fun”. How else do you explain the apparent inability of modern salespeople, marketers and accountants to close a deal unless they are being parachuted out of an aeroplane? Even my dad has flown a Tiger Moth in work time – andhe’s acivil servant.
The “no fear” culture is clearly catching. As a result, corporate hospitality, which encompasses anything from team-building awaydays to balloon-rides over Moscow, is a thriving industry. Hundreds of firms are willing to help you find something to outshine your rivals at competitive prices. A recent study from Henley Management College discovered that “turgid business meetings” cost UK businesses 8 billion a year. It’s no wonder that firms wishing to make an impact with key clients are looking out for something abit more imaginative.
Dining with dinosaurs: London’s Natural History Museum is one of many famous old institutions to have marketed itsel as a corporate venue
Dining with dinosaurs: London’s Natural History Museum is one of many famous old institutions to have marketed itself as a corporate venue
“The packages available on the web through providers such as Virgin mean that we can all take part in all sorts of activities. This means that, with more experience and more money, our clients now expect more bang for their buck,” says Bevan Thompson, a director at UK Travel Solutions. “They expect us to move heaven and earth for them and the phrase ‘we want something different’ is usually the first thing they say to us these days.”
Can you blame them? After all, the thought of entertaining clients over a glass of warm champagne at Ascot for the fifth year in a row isn’t that inspiring. Jenny Crandley, managing director of Time, is averse to anything ordinary when it comes to arranging events for her clients, which include Microsoft and Credit Suisse. Crandley, who has a passion for “extravaganza and theatre”, organises the Royal Windsor Show and annual charity polo matches with the Prince of Wales. Last year she tried to find elephants for themed Indian parties, but the animals were already booked. Her reason for laying on such lavish hospitality is that anything less is wasted money, because a guest should always remember who took them to an event. A bonus of using a specialist events firm, she adds, is that it can handle the invitations, so avoiding any social embarrassment. It can also advise on the legal and tax implications of hosting major events.
“If my client is spending lots of money on an event and he specifically invites a finance director to sit next to him to discuss a certain deal, he isn’t going to be pleased when the FD’s PA turns up instead. We make it clear when inviting people that they cannot pass the invitation on to a colleague, and we don’t run the risk of offending,” Crandley explains.
Providers are pulling out all the stops in their bid to offer unmissable treats. When The Ultimate Experience created a 48-team City football tournament for a global brokerage firm, it erected two 20m by 60m clear-span structures on either side of a marquee to provide four five-a-side pitches, as well as space for food and drinks, on the grounds of the Royal Artillery Company. The subsequent party featured dancing girls and circus acts.
According to the National Corporate Hospitality Survey, the average business expenditure on entertainment per head in the UK last year was 490. While chief executives influence the spending decision in 29 per cent of cases, finance directors control the hospitality budget 19 per eent of the time – and this figure has risen from 11 per cent in 2000. It clearly pays to know your options and to have a clear idea of the value that an impressive bash could bring to the company’s bottom line.
So what can you expect to gain from spending big money on hospitality? According to Paul Macildowie, chief executive of financial recruitment firm Macildowie Associates, it’s mainly to do with personal contact.
“The cost of corporate entertainment has to be proportional to what you might get out of it. You can mailshot a potential client and you can call them, but until you’ve met face to face you’re probably not going to do business with them,” he says. “Our average sale per client is around 6,000 and on average we’ll get a couple of these a year per client, so from our point of view we’re looking at winning a 12,000-a-year account when we are wooing prospective clients. If you’re Cisco Systems, for example, and you’re trying to win business from, say, Boots, you may be looking at a multi- million-pound account. The amount you spend on entertaining will reflect that.”
Some companies prefer to add an alternative kind of value by sponsoring a charity event. Lucy Burton, events fundraiser at Help the Aged, is part of a team that is constantly developing new ideas to generate money and increase the charity’s profile, while helping corporate clients to organise events branded with Help the Aged’s campaign messages. A company could, for instance, sell tables for an event, and the charity will tap into its database of high-ranking corporate contacts and invite “useful” people with whom the company is particularly keen to do business.
Help the Aged’s recent events include the opening of Clifford Chance’s new offices at Canary Wharf, which was celebrated with a charity dinner, and a “Living legends” evening at the Dorchester. It also organises a regular sports tournament in association with funeral plan provider Golden Charter (it is currently organising a bowls championship). The team is keen to be flexible about developing ideas for such corporate events and also helps companies to manage fundraising staff incentive schemes, including the Great North Run and the London Marathon.
According to Barton, it’s important to involve employees when selecting a company’s charity of choice. “People often overlook the fact that elderly people deserve charity, and they often automatically choose a cancer charity instead. But clients become very loyal when they get together with us. They are involved with issues on the front line, often delivering our messages to large groups of people through corporate events,” she says. “It’s a valuable resource for us to communicate messages such as the fact that over two million UKpensioners live below the poverty line.”
The message here is clear: when businesses and charities piggyback each other for events, everyone stands to gain. But networking and goodwill events are a complete waste of time if no one bothers to turn up. According to the National Corporate Hospitality Survey, people who work in banking and financial services take up 43 per cent of the invitations they receive. But they’re not as picky as those who work in the media and entertainment industries, who accept only 35 per cent of invitations. Public-sector workers, meanwhile, attend 85 per cent of the events to which they’re invited.
People say that they will go to event in order to strengthen a relationship, to network, to visit an unusual venue or to see their favourite sport, but Time’s Jenny Crandley knows an even better way to ensure that they attend your function: invite their children too.
“It sounds cynical, but it works every time. We now begin with invites that are designed to attract a child. Last year we took 200 adults and children to see Chitty Chitty Bang Bang and then to have tea at the Savoy. We had a 98 per cent turnout – the family that couldn’t attend had an ill son, so we sent them tickets for a later date. The whole thing was cheaper than sending 10 couples to the British Grand Prix. We started getting inquiries in January about what the nextyear’s event would be.”
Crandley explains that considering a guest’s family is becoming more important as executives’ lives get busier. Inviting someone to a rugby game will not impress their wife, (or husband) if they have already spent the entire week away from home on business.”
With hundreds of event management and corporate hospitality companies ready to take your money and provide you with the party of the year, what issues should you be looking out for? Alistair Scott, sales and marketing director at Sodexho, offers some tips.
“There is normally a good reason for a special price, which might not be immediately obvious. Always buy officially. If you’re ever unsure about who is the official hospitality firm, ask the venue. If you buy from an official source, the seats will be in blocks and a proportion of the cost will go back into the development of that particular sport, rather than liningthe pockets of the unofficial agent.”
Sodexho provides hospitality at a wide range of sporting and cultural events, including the Chelsea Flower Show, the Grand National and Henley Regatta. It has also organised a Big Brother wrap party and served 6,000 teenagers in one hour at the Millennium Youth Games (all the staff were weari\ng Afro wigs and 1970s fancy dress) so it is accustomed to clients who expect unique ideas.
Scott admits that it’s hard to quantify the benefits of entertaining, but says that cementing business relationships and generally thanking clients for their loyalty can only be a good thing. “If you’re not entertaining them, your competitors certainly will be,” he adds.
The party season is now in full swing, and if you are anticipating an evening of yet more warm champagne and cold vol-au- vents with a client tonight, then perhaps you should get your thinking cap on and start organising something a bit less forgettable for next year. You’re not scared of heights, are you?
TOP TIPS FRO CORPORATE EVENTS
1 Don’t be dull. Ask the experts for some suggestions about what you can do that sets you apart, suits your clients and fits the budget.
2 Join forces with a charity. Consult your staff about which charity to choose and find out what it can offer you in return for your money – can it guarantee that the right people will turn up and will it use its publicity to boost your reputation?
3 Target the children. Busy executives spend too little time at home. If you invite their kids, they are more likely to come along.
4 Ensure that your marketing or PR team understands the reasons for their budget limitations – and what they need to do to prove the return. If they appreciate the potential value of each new client’s business, they are more likely to come back with a realistic quote.
WHAT DO YOU WANT TO DO NEXT?
Most major art galleries and museums around the world, and many castles and stately homes, are keen to hire out space for corporate entertaining. In London, for instance, the Royal Academy of Arts and the Natural History Museum offer stunning backdrops for themed parties. Bear in mind that many events companies cater for a particular region or city, so check the internet and ask around for local recommendations.
It’s astonishing how many companies forget that major events should be treated like any other expensive purchase or contract. If your company does not have a specialist events organiser, don’t be tempted to leave all the arrangements to the most junior office administrator. Make sure that a senior manager is directly responsible for the key decisions. They should visit several organisers, ask them for their suggestions and check their references before making a decision – as well as agreeing the price. Remember that, when it comes to the “wow” factor, the cheapest option could turn out to be the most expensive if it doesn’t work.
Useful contacts
The Ultimate Experience (www.the-ultimate.co.uk) organises corporate events of all kinds.
UK Travel Solutions (www.uktravelsolutions.com) offers a complete corporate hospitality service.
Sodexho Prestige (www.sodexho.co.uk) arranges event catering.
Time (01344868886) specialises in top-end corporate events.
John Morgan Corporate Entertainment (www.4x4driving.co.uk) is a specialist in outdoor events, including dirt buggy racing, clay pigeon shooting, archery and off-road driving.
Harrison Tate (www.harrisontate.co.uk/corporate_hospitality.htm) is a provider of bespoke wine-tasting events.
Barcelona Golf Holidays (www.barcelonagolf.co.uk/corporate- entertainment.htm) and Catalonia Golf Holidays (www.ukschoolofgolf.com/corporate.htm) both offer golfing events in Spain.
Opera Brava (www.operabrava.co.uk/corporate.htm) provides a team of professional opera singers who will perform at any venue.
Team Tactics (www.teamtactics.co.uk/index.htm) organises corporate entertainments ranging from Christmas parties in Paris to major sporting events and driving tanks.
www.mamarine.com promises spectacular corporate events at sea.
Art in the Capital (www.artinthecapital.com) arranges corporate events in London galleries.
www.eventwise.co.uk provides sports events, theatre trips and flower shows.
Help the Aged is one of many charities that encourages firms to get involved in events. You can contact its fundraising team at www.helptheaged.org.uk.
Square Meal (www.sguaremeal.co.uk) lists venues and events across the UK, highlighting new or exciting options.
SEASONAL CHEER
In December 2000 stock market information service Bloomberg gave its 1,500 London-based employees an extra-special Christmas present. The gift came in the form of a party par excellence. Described by the tabloids as one of the most extravagant office parties ever, the event was said to have cost 1 million and was based on the theme of the seven deadly sins. It included: neck-massage stations, manicure booths, a sushi bar, a cabaret, a casino and live bands. The focal point of the party was the “lust room”, with its 8m-wide bed covered with purple satin, while one of the 10 bars, based on the theme of gluttony, was lined with a trough filled with sweets.
In the boom days of the 1980s such an ostentatious display might well have passed without comment. But times have changed. In the wake of recent accounting scandals and the rise of shareholder power, most companies are now choosing lower-profile events. According to Mike Kershaw, managing director of The Ultimate Experience, extravagance is no longer cool. “People are much more conscious of the bad publicity that such events can bring,” he says. “Now it’s the very wealthy individuals who are hosting lavish parties behind closed doors. They may work for the big City firms, but the companies themselves are staying low key.”
Despite this, some employers are still happy to splash out on a really stunning party. Saatchi & Saatchi, for instance, laid on stretch limousines to take guests to its annual bash.The venue was divided into rooms by massive drapes surrounding a central dance and show area. Acrobats flew from the ceiling and there was a fire and light show by Israeli act Pyromania.
Companies still recognise the benefits of a good beano at Christmas – particularly since the chancellor doubled the tax-free limit on annual parties to 150 per head last year. The increase is very good news indeed,” Kershaw says. “It acknowledges that staff entertainment has a place in the economy and recognises that the Christmas party is an integral part of motivating people. This is a good way of showing an employer’s appreciation for its staff.”
According to Kershaw, the latest trend at the high end of the market is to hire a big name for the evening. “Everyone has done the fantastic food, the fantastic wine, the great decor,” he says. The thing now is to get someone famous. City firms might hire Robbie Williams, Blue, Atomic Kitten or Jamie Cullum. It’s great entertainment and it’s also good brand association.”
There is also a suitably charitable bonus to this form of entertainment. The usual deal is that stars will sing in return for a generous donation to charity,” Kershaw adds. “So there’s a philanthropic benefit to the event as well.”
Louisa Roberts is assistant editor of Facilities Management World
Copyright Chartered Institute of Management Accountants Dec 2004/ Jan 2005