Many planners are unsure as to what third parties — everything from site researchers and contract negotiators to event management companies and DMCs — can do for them. With the endless amount of projects that stack up on your desk each day, it might be time to consider outsourcing as a viable option. Perhaps you are not quite sure what role a third party could play in the planning and supporting of your meetings, or maybe you have not had a good experience with outsourcing in the past.
The Role of the Third Party
First, let’s discuss the role of a third party and look at outsourcing. A third party is typically used when the planner does not have the resources, cannot complete the task on their own or they feel that someone else has a greater expertise or broader capabilities. Although third parties are unique in their capabilities, they can provide you with a multitude of specialized services and support designed to fit your specific meeting needs.
Outsourcing allows the planner more time to focus on other elements of the meeting that they excel at, which helps to contribute to a successful meeting. With the diversity of third parties, it is important for you to find someone who best suits your needs and compliments your in-house resources. Equally important is partnering with a firm with the qualifications, skills and infrastructure to get the job done right. A third party must understand the culture of your organization and your meeting goals and objectives. It is imperative that they grasp the type of service level expected and know your attendee and company backgrounds so they can represent your company clearly and effectively. Remember, a third party is an extension of your team and must possess the same qualities and professionalism as anyone at your company. Make sure you completely communicate your needs to the third party to achieve a highly productive meeting.
Deciding if a third party can benefit you and what role they will play for your company is the first step. An evaluation of your company’s meeting needs is most important for determining what should be outsourced. What does your company excel at? What needs to be kept in-house? What areas require expertise in a specialized area? Determine what goals and objectives must be met and thoroughly educate the supplier on them. Plan to invest in your third party by providing a detailed orientation and training about how you want this third party to support you. Without this commitment, you may not be happy with the results.
Outsourcing can save valuable time when it takes advantage of a specialized expertise. The best way to find the right third party for you is to get a referral from a colleague or someone you respect in the industry. Another great way to meet a potential business partner is through attendance at industry events. This gives you a chance to meet and chat casually about the services they can offer your company before deciding to go through a more detailed and formal proposal process.
Show Me the Money
Compensation is another point that must be taken into consideration when determining if a third party will work for you. Third-party suppliers can be compensated in a variety of ways, including hourly rate or flat fee for fulfillment of a well-defined project, commission, placement fee, cost plus or inclusive package. When evaluating if a third party is right for you, address the form of compensation in the proposal and evaluation process. Compare all factors including time, costs, benefits and how the service increases overall value. Suppliers with large buying volume can actually save you money and add significant value and return on investment to your event.
Keeping Control
One of the biggest concerns that planners may have is how a third party will affect their role within their company and how a third party could eliminate or reduce the planner’s role. A true partnership works as an extension of your department, office or individual efforts. The fear of losing ones identity is another major issue for planners. A third party acts as a liaison between the planner and the suppliers. They promote who you are and capitalize on the combined leverage to achieve the best possible negotiations and results. A planner can benefit from the buying power that a third party has from all of the customers under their umbrella.
Planners are also concerned that they’ll lose control. However, the planner always remains in control and manages all facets of the planning and support service process, both internally and externally. The planner is aligned with management to turn their goals, objectives and vision into reality and to use all resources available to make it happen. You can capitalize on this clout and still direct how and what negotiations take place while managing the overall process.
The Bottom Line
It is important to realize that not all third parties are created equal. Get referrals from people you trust. Organizations have learned many valuable lessons on how to partner with an outside company. Just be sure you find someone with the qualifications and skills that will compliment your internal resources and work well with you. Discuss your meeting needs and criteria up front to ensure all your expectations are met.
Although outsourcing can prove to add quality and significant value to your meeting, it is important for you to determine what is best for your company. The need to outsource will change on a project basis. Meeting planners will add value to their organizations as they manage internal resources and outside services to assure that all organizational goals and objectives are met. So conduct your own meeting needs assessment, evaluate and select your supplier partners with care, train and educate them, review results together and most importantly, make them a strategic partner and you will be thrilled with the results.
ROBYN RUSSELL is a project manager at Meeting Sites Resource, a global specialist in meeting site research and hotel/contract negotiations. Robyn is a member of the MPI Orange County Chapter and has served on the Education and Planning Committee. She can be reached at rrussell@meetingsites.net.
