If management asked you, "what are our current and long-term liabilities for meetings and events", how quickly and confidently could you provide that?
Would your answer be a little "fuzzy" like the image on the left?
It is understandable that the primary focus for managing meetings data is to report volumes; spend; savings; and cost avoidance in various categories. This provides critical information on "meetings in progress" and "final meeting costs" for reporting and negotiations. Every company with a Strategic Meetings Management Program (SMMP) needs an ongoing assessment of their results.
But what about the liabilities created at contract signing, from cancellation and attrition clauses, especially for those events that will occur months later; in some cases a year or more in the future?
In order to track and report reliable data for this, it is essential to structure the cancellation and attrition clauses in your contracts with fixed amounts and dates that these charges would be invoked. This should be a standard within your policy and standard operating procedures.
You definitely don't want leadership to be uninformed or surprised by the liabilities that the company would incur if they were considering canceling the meeting or reducing your room block.
Make it easy on yourself and elevate your level of business intelligence around the overall meeting activities and expenses by making sure that your reporting to leadership is 3-fold.
|Cancellation & Attrition Liabilities
|In Progress Activities & Expenses
|Final Activities & Expenses
For more information on Strategic Meetings Management Programs (SMMP), check out our Blog and download the free SMMP documents, created to assist you with your programs.