Apr 19
Love0

Be Transparent

By Ethics, Meetings Management 5 Comments

I was chagrined to read the recent indictment on meetings, the Inspector General’s investigation into the GSA Western Region Conference in Las Vegas. ($823,000 and 6 planning meetings spent on a 300 +/- person training conference).  You may have seen the story in the news these past few weeks, a scandal unfolding as the new poster child of wasteful government spending.

It’s situations like this that give meeting professionals a black eye, and the behavior of a number of individuals involved here offends me on so many levels. (SIX PLANNING MEETINGS!?! Unconscionable.) I could devote a full month of blogging to the varying and egregious ethical issues raised in this report. But the one that I’d like to focus on today (my addition to the conversation that the wise Liz Zielinski opened up here) is the question of commissionable third parties.

A few quick definitions, for those of you not in the industry:

  • Third Party: a commonly used term for a meetings professional (individual or firm) who is not on the full time staff of an organization and who is subcontracted or otherwise hired to assist an organization with their events. Third party services may include: site selection, contract negotiation, housing management, full meeting logistics, event production, etc. Third parties are remunerated either on a fee-for-service basis, or by a commission received based on the size of the event that they are booking.
  • Client/Group: the group or organization who hosts the meeting, who may hire a third party to supplement their full time staff’s capabilities.

I disagree with the Inspector General’s assessment that, “since the GSA already employs several full-time event planners, the use of the third party seems redundant and wasteful.” There are certainly full time teams out there that are completely overloaded with work. The raison d’être  of an effective third party is to plug in and provide services to supplement the skills of the core team. Use of third parties is increasing in the meetings industry as many staff teams have been reduced to a minimum or outsourced completely. Third parties don’t carry the same overhead as ‘full time staff’ and can be added or subtracted to scale an organization’s capabilities quickly as needed.  Without knowing the workload on the full-time staff, there’s no way for me (or the IG for that matter) to really evaluate whether bringing in a third party was “redundant and wasteful.”  That being said, however, I am fundamentally concerned if our government policies even allow for the use of commissionable third parties rather than fee-for-service third party assistance.

Every client wants to assure that their own best interests are primary when a third party is being utilized. Our government has not only the right (but I would argue the obligation) to ensure that parties negotiating on their behalf actually have their best interests in mind.

It’s a simple fact: a third party paid on commission is financially incented to keep rates high, and to choose properties that offer the best commission percentage (which can be 3% – 10+%, depending on the property.)

It is my long-held opinion that third parties who claim that their site selection & negotiation services are “free to the client” are stepping into a disturbingly grey ethical area.

None of us work for free (and when we do, it’s called ‘donating services to a worthy charity,’ or an unpaid internship , which is education-in-lieu-of-financial-compensation.)

My opinion is simple: when you accept money for performing a service, I believe that the definition of ‘client’ changes to be “the entity who pays you.” When a meeting services company receives $12,000+ from a hotel for placing a meeting, the client is the hotel, not the group who ‘allowed’ them to place the meeting.

This “It’s Free to You!” promotional language, saying that “the budget for commissions comes out of a different pocket at the hotel, so it doesn’t change your rate” is patently ridiculous. In the aggregate, any increase in expenses (taxes, cost of electricity, food prices, labor rates) WILL most certainly affect the rates that the hotel is able to offer. And thus, exorbitant commissions absolutely raise the rate tide, for everyone. Let’s not pretend that the added expense doesn’t exist.

Don’t get me wrong – I’m not opposed to the concept of commission in general. It’s a very effective motivational tool for salespeople, and as Liz points out, there are many industries that use commissions quite successfully. But “commissioned salespeople” are just that – salespeople incented by the seller to bring in business. It is logically impossible that a representative can be negotiating in the best interest of BOTH parties in a contract. When a services company is paid by the seller, they defacto work for the seller. Period. I buy products where the salesperson makes a commission all the time – many of us do, and we’re quite happy with them. But I don’t delude myself that the guy selling me that car is really “working for me.”

Groups who choose to work with commissionable third parties should do so transparently and clearly with the full understanding of the organization’s executive leadership.  At a minimum, an annual review of service agreements should be conducted, with executive leadership having full awareness of commissions being made from the business being booked. Conversely, I suggest a regular auditing of all fee-based service contracts to ensure that there isn’t a “double dipping” going on. All hotel contracts booked by a fee-for-service agency should clearly identify rates as “net, non-commissionable.”

None of us work for free.

This all boils down to transparency and ethics: we should all be proud of how we do business, and prepared to disclose and defend the fees we are paid. This information should be available to the client organization’s leadership, to the attendee staying in the hotel room, to your ultimate ‘customer’ footing the bill for an event – in this case, the taxpayer. And as a taxpayer here, I’m uncomfortable.

You’re a taxpayer, too: what’s your opinion?  Should US Government policy allow for the hiring of commissionable third party meeting services agencies? Would your group use one?

 

(FULL DISCLOSURE: MonkeyBar Management provides site selection & contract negotiation services to some of our clients. Clients pay us a fee for our services directly, we do not accept commissions.)

Apr 18
Love0

Wiggle your Tooth

By Managing Change 2 Comments

A few weeks ago, my oldest niece (4 1/2 years old) skipped soccer practice. She had her first loose tooth and was afraid “something would happen.” She was simultaneously fascinated with wiggling the tooth, captivated with it to the point of distraction, and paralyzed with the fear of losing it. Would it hurt? Would it bleed? How would her mouth look with an empty hole? Tales of the tooth fairy sneaking into her room at night to take the tooth & leave money were further unsettling (and I can hardly blame her on that one.) All the ‘rational adults’ were trying to coax her through it:  “We’ve all done it, and it didn’t hurt at all!” “It’s a part of growing up!” (And she wasn’t at all sure she wanted to grow up.) She stopped eating. She used it as a crutch to avoid other experiences.

In any moment when facing change or uncertainty, we’re all just some version of that little kid again – we can become fixated on a challenge in front of us. The challenge can propel or paralyze us. Taking on a new client, losing a job, learning a new skill, developing a new program, starting a fundraising campaign, joining a new network, giving a presentation … uncertainty is the breeding ground of fear, fear is the breeding ground of paralysis, and paralysis equates to not growing.

Growth is hard, but change is the only constant. You already know this, but in case fear is clouding your memory, here are a few ways to make it easier:

Get educated 
Whatever it is that’s giving you the butterflies – learn everything you can about it. It’s not just a catchy tagline, knowledge really is power: information is the quickset in the foundation of concrete confidence. You can’t control whether or not you’re the smartest person in a situation, but you CAN choose to be the best informed. Push yourself purposely to look beyond your normal reliable sources for insights, follow a few Google searches down rabbit holes and see what you find.

Invest in a network 
Build yourself a diverse & trusted network long before the metaphorical tooth starts wiggling. Find people in real life that you admire, that you can rely on for advice, and pointedly ask them for it.  You’ll be surprised how generous people are with their insight, and how much they want you to succeed. Steer clear of the bullies who will taunt you with tales of doorknobs & string.

Imagine the worst
Play the “and then what happens if” game with yourself: once you can articulate exactly what the worst outcome would be in any situation, it’s not quite so scary. You’re better prepared to deal with whatever result comes your way – and it’s rarely as bad as you imagined it to be. If the worst comes to pass, see #2, above: You’ve got a support system.

Practice uncertainty
Confidence is a muscle you need to exercise. Purposely put yourself just a little bit outside your comfort zone regularly to make yourself more comfortable navigating changes. Identify for yourself an hour a week minimum where you focus on a smaller discomfort goal (as simple as learning a new app or going to a different place for coffee). Put it on your calendar as your professional development.


ACT. And remember what you feed will grow.  
Keep wiggling that tooth: control your own destiny. There’s nothing quite like the endorphins released when you successfully conquer even the smallest of your uncertainties. The second hurdle isn’t quite as scary as the first one. Above all, remember that fear breeds where energy is stagnant: keeping up your momentum will feed your confidence.

You just might surprise yourself.

You just might surprise yourself.
Take a minute and think: what’s the “loose tooth” in your world that you’re avoiding today?

Apr 17
Love0

“Goal” is a 4-Letter Word

By Event Design, Managing Change 2 Comments

Back around the turn of the century (HAH! That seemed to fun to write, but now just makes me sound … ancient), I spent a few semesters teaching a college level “Introduction to Meeting Planning” class, required for students in the Travel & Tourism degree/certificate program. One of the not-in-the-book lessons was an overview of the psychographic qualities required to be a truly successful meeting & events professional. I spoke candidly about the fact that great meetings professionals need be very comfortable with the idea of failing dramatically in a very public way (1000 people will be in the ballroom for dinner at 7pm: ready-or-not, here they come!)

Today on ‘tax day’ (in the US), I’m reminded that in the meetings & events business, there is no option to “file for an extension if you don’t get everything done on time” – they are immobile deadlines. 500 people are heading to San Diego on the 26th for a three day conference, 20 people land at the airport in Coeur d’Alene Thursday night to start their executive retreat weekend. The planning timeline starts from those immobile deadlines and works backwards. There’s no calling attendees to say, “gosh, could we just shift that 2 days later, we’re not quite done.” These immobile deadlines force prioritization decisions about what’s “good enough” – decisions that we may not have the discipline to make if deadlines are flexible.

(it's not a "goal," it's a deadline)Need to make a personal or professional change in your life? Launch a project? Some of the best advice I’ve ever heard is “put it on the calendar” (a variation on the “ship it” philosophy from Seth Godin.) When something is on the calendar, you think differently about it. It’s integrated into the work plan. You marshal resources accordingly (bring in subcontractors, outsource what you can’t do yourself,) delegate better, waste less time, and prioritize more smartly.

Talking to a client yesterday, he quipped, “GOAL is a four-letter word.” He has a project that launches in 15 months. It’s on the calendar: everything works backwards from there. In areas beyond meetings (and daily publishing,) there is a pervasive culture of comfort with deadline slippage: “Just a few more weeks won’t hurt.” “The programmer ran into a technical issue.”

Nonprofit organizations can be among the worst offenders with nebulous goals (“we’d like to launch XYZ, but we don’t have the resources right now.”) An additional layer of decisionmaking (The Board) can be a convenient excuse for inefficiencies or management’s failure to prioritize. Expectations plummet. Time is wasted. XYZ goes ‘on hold’ while the can just keeps getting kicked down the road. The next Board meeting looms, and the tyranny of the urgent takes over. Soon, customers – both internal and external – don’t know what to expect. Or rather, they know that “whenever” (or never) seems to be just fine with the powers that be.

They’re not ‘goals,’ they’re deadlines for specific things that you will accomplish.

Stop cheating yourself, and your customers: Put it on the calendar.

Apr 15
Love0

Turn the Page

By Managing Change 16 Comments

This ‘Life’s Little Instruction’ from March 27 has sat there for weeks now on my countertop, taunting me.

Do I?

Dare I?

(But what’s on the next page?  And what if I don’t like it as well as I like this page?!)

I laughed at it again this morning: “When you think you have things figured out, turn the page.” <—–  That sentence reflects the essence of the reason MonkeyBar Management was founded. Because here’s the secret: none of us have “it” figured out. And yet, we have to turn the page anyway. Life only lives in one direction.

Each day, in big  and small ways, we must leap across the gaps in front of us, grab the next bar. We must keep up the momentum, or we stay stuck and withering.

Whether it’s an entire industry, an organization, a project, or something as simple as cleaning out your closet as the seasons change, we’ve all felt that moment of panic, of doubt: “Do I have it figured out?” “Do I have the courage to let go?”

In my 20+ year career working with nonprofits and small businesses, I have seen more projects and ideas and entire organizations fail (or fall into decline) because of a lack of courage. The courage to let go of a toxic  team member, to confront a problem, to break from tradition (euthanize that sacred cow), to turn down a major financial supplier whose money forces ethical challenges. Courage in the face of daunting gaps is what separates incredible from forgettable.

What page are YOU ready to turn? What’s stopping you?

The calendar lies to us: there is no such thing as “all figured out.” Some questions will always remain. Success is found when you conjure up courage in spite of the questions. So now, let’s go forward into the gap of uncertainty, and turn the page together.

Apr 10
Love0

Bob Smiland, Los Angeles, CA

By Testimonials

“Simply put, there is no one better to work with than Kellee for any type of business program or event. She understands the needs of all parties, and finds the way to make everyone feel successful and accomplished. Her communication skills and responsiveness are excellent and she is a pleasure to work with!”
Bob Smiland, CEO,
Inner-City Arts
(formerly Monrovia Growers)