Transcript Practical Events Management

Practical Events
Management
Lecture 4: Managing the Event
Jenny Flinn
[email protected]
Lecture Overview
• Project Management for Events
• Marketing
• Human Resource Management
• Finance
• Risk and Responsibility
The Event as a Project
• The production of an event or festival can be
defined as a project.
• According to Gray and Larson (2000:4)
“a project is a complex non routine one-time effort
limited by time, budget, resources and performance
specifications designed to meet customer needs”.
• Event management consists of a number of
management areas, project management integrates
these areas.
The Phases of Project
Management
• Project Management consists
of:
•
•
•
•
•
Initiation
Planning
Implementation
The event
Shutdown
Marketing for Events
• Marketing can be defined as:
“the management process
responsible for identifying,
anticipating and satisfying
customer requirements profitably”
(Chartered Institute for Marketing, 2005)
The Marketing Plan
• Shone and Parry (2001) suggest that a
marketing plan should cover the following:
• Statement of purpose, objectives and expected
results
• Analysis of the macro and micro environment
• Summary of event components
• Overview of target markets
• Marketing budget
• Marketing schedule
The Marketing Mix
• The general
marketing mix
•
•
•
•
•
•
•
Product
Price
Place
Promotion
People
Physical evidence
process
• The event
marketing mix
•
•
•
•
•
•
•
•
Product
Price
Place
Promotion
Programming
People
Partnerships
Packaging and
distribution
Human Resource
Management for Events
“A philosophy of people management based
on the belief that human resources are
uniquely important in sustained business
success. An organisation gains
competitive advantage by using its people
effectively, drawing on their expertise and
ingenuity to meet clarified objectives.
HRM is aimed at recruiting capable,
flexible and committed people, managing
and rewarding their performance and
developing key competencies”
(Price, 2004:32)
HR Strategy and
Objectives
• Getz’s (2005) three stage process for
staffing suggests:
• Identifying all tasks associated with the event’s
creation, delivery and shutdown
• Determining how many people are needed to
complete the range of tasks associated with the
conduct of the event
• Listing the numbers of staff/volunteers and
supervisors needed and the skills/experience
needed to form the ideal workforce
HR Issues
• HR for events is unique for two reasons:
• Events have a pulsating organisational structure
• Events often rely heavily on volunteers
• Issues can therefore include:
•
•
•
•
Recruitment
Training
Motivation
Retention
Finance for Events
• Financial control is vital as it:
• Allows us to judge likely success
• Allows us to judge the level of
planning
• Provides a total cost picture
• Is useful when looking for
additional funding
The Event Budget
Establish
Economic
Environment
Establish
Budget
Guidelines
Identify and
estimate cost
areas and
revenue
sources
Draft
budget
for
approval
Evaluate
draft
budget
and
prepare
control
ratios
Costs and Revenue
• Costs:
• Fixed
• Variable
• Also, think about
cash flow
• Revenue
• Ticket sales
(scaling)
• Sponsorship
(leverage)
• In kind support
• Merchandising
• Grants
• Fundraising
• Broadcast rights
• Special features
Financial Reporting:
Profit and Loss
•
•
•
•
•
•
•
•
•
•
•
PHOENIX EVENTS
Forecast Profit & Loss Account
(If 150 tickets sold at £3)
SALES
(FROM TICKET PRICES)
450
LESS COSTS OF SALES
180
(Venue Hire)
GROSS PROFIT
LESS EXPENSES
ADMINISTRATION EXPENSES
40
MARKETING EXPENSES
DECORATIONS
LOAN
50
NET PROFIT
90
270
40
50
Financial Reporting:
Balance Sheet
•
PHOENIX EVENTS
•
•
•
Current Assets
Debtors:
Collated from ticket sales
450
•
•
•
•
•
•
•
450
Less Current Liabilities
Creditors:
Venue
Printing
Decorations
Administration
Total assets less current liabilities
140
•
•
•
•
Less Long-term Liabilities
Loan
Net assets
•
•
90
Capital
Opening Balance
•
•
•
Add Profit
0
Less Drawings
0
Forecast Balance Sheet
(If 150 tickets are sold)
310
50
90
90
Risk and Responsibility
• Practical (real) risk
“the probability that a particular adverse event
occurs during a stated period of time, or results
from a particular challenge”
(Royal Society Study Group, 1992:2)
• Event risk
“a working definition of event risk is any future
incident that will negatively influence the event.
Note that risk is not solely at the event itself”
(Bowdin, et al., 2006:318)
The Risk Management
Process
• Identify potential hazards
•
Identify who they may affect
•
Identify potential risks associated with the hazard
• Assess the risk rating
•
Identify the controls that can be put in place to
reduce/manage the risk
•
Identify the final risk rating
•
Identify who is responsible for managing this risk
Potential Issues
•
•
•
•
Licensing
Legislation
Public liability insurance
Additional insurance
• You MUST include a full risk
assessment and copy of your
venue’s public liability insurance in
your event plan
Back to Project
Management
Project Definition
Scope of
Work
Work breakdown
structure
Task
Analysis
Responsibility
Activity
Sheets
Work
Packages
Schedule
Gantt
Chart/Critical Path