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Let's say your boss asks you why your company should keep you on staff. After all, most of the organization has gone through a downsizing phase, and everyone is being required to prove their worth. Your boss says, "If you can justify your position to me, as well as the whole meeting thing, you'll be OK."
The value of meetings? It's not easy to demonstrate, but it is possible.
Keep in mind that most of today's business professionals know something about communications services and equipment, such as satellite videoconferencing, "virtual" meetings via computer-top cameras, groupware software, prevideotaped presentations, electronic mail, etc. Communications companies tell them they can save a lot of money and time by using such services.
Take meetings, for example. Phone companies claim audio teleconferencing can save a company thousands of dollars by eliminating the need for travel expenses, such as airfare and lodging. You pray your boss doesn't hear this and think, "I'll just have my assistant call the long-distance company. What do I need a meeting planner for?"
Although those of us in the meeting and convention industry understand why some companies believe face-to-face meetings do not result in a good return on investment (ROI), you're the one who has to prove the opposite is true.
Unfortunately, few meeting professionals have collected the appropriate data to show a significant ROI after a meeting--partly because it was never required and partly because they don't know how.
Steps to Showing ROI
As a speaker I have often been faced with a similar dilemma: How can I show
there has been a change as a result of an audience hearing my message? How can
I demonstrate that "soft skills"--communication, time management,
customer service, etc.--have been learned in some way?
I look at measurable, observable behaviors before and after a meeting. One program I've been tracking for the past five years for various groups has shown a 2,000-percent ROI. Many of these same principles can easily be applied to meeting planning.
-Obtain buy-in from senior management. Upper managers need to not only cooperate with you at the minimal level, but also talk about and support your programs and tracking methods in front of other managers, as well as the people attending a meeting.
-Define measurable, observable behaviors you would expect after a meeting. If you are introducing a new product, for example, you might want to determine how much of that product you expect a company unit (individual, group, region) to sell and by when. If you are organizing a sales meeting with current or prospective clients, you should show that product interest increases or sales grow because of information relayed at the meeting. Also, if you are organizing a training class to improve your sales representatives' product knowledge, you should expect their time spent asking technical questions to decrease.
What if you plan a meeting at a resort for senior management and sales executives or distributors. They share information about the company's strategies, iron out some problems and play lots of golf. What do you measureÑhow far below par they played this year vs. last?
Believe it or not, there are measurements. For instance, some of the salespeople may have learned a new way to approach old customers that enabled them to sell larger orders or new products.
Always look at the possible outcomes of any meeting and determine how to know if an outcome occurred--how is it observed or measured? Not all the criteria on your list will happen, especially the first few times you begin the process. But you'll refine it as you go along.
-Establish a premeeting measurement using these criteria. What is the information now? Before the meeting, for example, how many contacts did sales representative X have? How many does he have after the meeting?
You may not have a premeeting measurement for every area, but you will after you begin to track the results of meetings.
Figure "True" ROI
To determine the 2,000-percent ROI mentioned earlier, I asked the attendees
of my "Time Management Triumphs" program to complete a preseminar
survey. It asked such questions as how much time was spent focusing on low-priority
activities.
Two months after the program, I sent the attendees another survey (with an incentive for returning it--a copy of one of my tapes). This survey asked how much time was spent on unproductive, low-priority activities before the seminar; how much of this time has since become productive; and if efficiency improved, what it was worth in dollars to the company (based on annual salary)? (It's important to get at least a 25-percent return on surveys to achieve a respectable ROI figure.)
I multiplied this dollar amount by a standard 255-day work year to establish the increased productivity -- in hours and dollars (to get an hourly rate) -- for an attendee for one year. To estimate the entire group's increased productivity, I simply averaged the results of the survey respondents (about 50 percent of the attendees responded).
We then determined the costs for the attendees to come to the seminar by using this hourly pay rate and adding in any expenses, such as travel expenses. We then factored in my fees and expenses and divided the overall increased productivity by the cost of the meeting to get "true" ROI.
Some might say true ROI should not come from information supplied by the attendees, but from their boss, peers, or subordinates (if applicable) to get a more objective report. They are right. However, I have found the system gets bogged down in reporting, and little data actually gets collected. While I'm not averse to doing it, I have yet to find a CEO willing to invest the resources to quantify such research. Many seem happy with the estimated ROI based on the above methods.
Don't let the process of measuring meetings intimidate you. You could try to figure out every variable, including setting up and monitoring a control group that didn't attend the meeting. But you'll likely drive yourself crazy and paralyze your efforts.
Just be sure to think through the process, establish measurements and get the support of senior management. You will be light years ahead of 99 percent of your colleagues if you do.
Copyright 1995 Morgan Seminar Group
Rebecca L. Morgan, CSP, is a engaging speaker and seminarist. She is the author of four books, "TurboTime: Maximizing Your Results Through Technology," "Calming Upset Customers," "LifeÕs Lessons: Insights and Information for a Richer Life," and "Professional Selling." For information on her speaking services, books, and tapes contact her at 1440 Newport Ave., San Jose, CA 95125, 408/998-7977, 800/247-9662, fax: 408/998-1742, rebecca@RebeccaMorgan.com, www.RebeccaMorgan.com. Please contact Rebecca for permission to reprint or repost this item.
Personal Productivity/Time Management | TurboTime | Customer Service | Professional Selling | Management/Communication | Training | Motivational
Morgan Seminar Group | 1440 Newport Ave. | San
Josˇ, CA 95125-3329
(800) 247-9662 | (408) 998-7977 | Fax (408) 998-1742 |
rebecca@RebeccaMorgan.com