On the menu: the outlook for meeting spend, layoffs, outsourcing, and technology. Experient note-takers were seated at every table, careful not to miss a morsel of the conversation, which included healthy portions of insight and practical solutions to industry angst. Consider this your invitation to grab a seat at the table.

Editor's Note: This is the fourth in a series of articles on the Experient Breakfast - a recurring forum for meetings and association executives to "simply talk about what's on their minds, and learn from each other without any structure imposed on them," according to Experient Senior Vice President of Strategic Sales Bill Reed. The most recent "A Place at the Table" article was published in the June 2009 issue of Convene (www.pcma.org/Convene/Issue_Archives/June_2009.htm).

Outlook for Meetings Spend
The group reported an extreme need for cost containment for scheduled meetings that involve travel. An informal poll taken at one table revealed that 40 percent to 70 percent of meetings involving travel had been eliminated.

• Some participants reported an across-the-board percentage reduction compared to last year, while others had experienced discretionary reductions made by business-unit leaders. Some said internal staff and training meetings are being cut to the bone, while client-facing meetings are under less pressure to trim costs extensively.
• Some reported that they are walking a fine line between being sensitive to the perception of spending too much on lavish items, and spending an appropriate amount so that customers feel appreciated and respected. One participant indicated that clients are involved in the decision-making process, and surveys are conducted for directional input (e.g., "I want to be pampered" versus "It is acceptable to make cuts").
• The consensus was that incentive trips are necessary to keep sales teams happy. Companies realize that it's part of their business and will not eliminate them from their budgets for perception reasons. The companies and industries that are still operating incentive programs are open to international as well as domestic meetings.
• Most Experient Breakfast participants stated they anticipate meetings to either increase or remain flat in 2010 versus 2009; no one expected fewer meetings in 2010.
• "Sales covers many sins," according to two participants. If a meeting generates increased revenues, it warrants little scrutiny from leadership. It's a different story if a meeting stakeholder is having difficulty communicating the impact of a meeting on an organization's bottom line.
• Upgraded travel items and areas of production and staging were targets of major cuts. Everyone reported they are scaling back on F&B (including fewer courses at sit-down dinners).

Staff Layoffs
Some participants reported that their organizations have reduced travel and meetings staff. One participant said that while there have not been layoffs at her organization, most employees are on edge, not knowing if they will come to work tomorrow and not have a job. It would almost be better to have the layoffs, she said, so if you're still employed, at least you know you're safe for the time being.

On the other hand, the workload for those left standing is overwhelming, according to one participant. The group discussed the importance of prioritization. One person had successfully outsourced some meetings in their entirety and charged the business unit for the cost.

Hotel Contracting
Negotiation was a hot topic.

• Some participants are staying away from luxury hotels and resorts due to the "AIG Effect." Others work for organizations that don't care about the perception issue, and are grabbing incredibly low room rates offered at luxury properties. One person cautioned the group: You may be able to afford the room, but sometimes you end up spending twice your budget in feeding attendees, so make sure you can negotiate discounts on F&B and AV.
• One participant expressed the concern that hotels are being too flexible - which may be a challenge when the economy turns around and prices escalate quickly, because meeting budgets will have been established based on "fire-sale" conditions.
• It was suggested that planners try to keep volume high with certain chains by keeping the business "in the family" - utilizing other mid-scale or economy brands within the chain.
• The need for procurement departments to review hotel contracts is more important than ever. One participant cited the example of his organization having three hotel contracts - with three totally different contract inclusions, rates, concessions, and clauses - with the same hotel for similar pieces of business. This was a prime example of the need for the procurement department to be involved - and also made a strong case for spending consolidation via SMMP (Strategic Meetings Management Program) implementation.
• In another example, a planner paid out a very large deposit on a hotel contract that the procurement department never saw, and that had very limited "protection" clauses. It turned out that the contracted hotel closed after the deposit. The procurement department had to fight to get the deposit back; however, there were no damages paid to the company for financial charges incurred.
• Contracts being signed by administrative staff members who don't have the expertise and concern for the risk clauses in the contracts is an ongoing challenge, according to some participants. It was shared that one administrative staff person recently signed a contract for the wrong year - and it wasn't discovered until a month before the actual meeting dates that the hotel was holding space for a year later. Unfortunately, the hotel didn't have short-term meeting space available.
• One participant reported not being able to get executive-level support for a mandated policy because it doesn't fit the company's corporate culture. Administrative staff members say that they enjoy planning the meetings (and getting the hotel perks), and resist centralization. The participant developed a program that encouraged the administrative staff to seek out in-house meetings experts for guidance. The meetings team also conducted optional educational
  sessions.

Outsourcing Meetings
The pros and cons of outsourcing meetings were hotly debated. Outsourcing, according to one participant, can bring creativity to an event - the so-called "fresh-eyes" advantage. Others felt they would have difficulty getting outsource expenses approved at a time when their companies are laying off staff. Some corporations have been successful in hiring laid-off staff on a contract basis, someone offered.

• One participant has saved costs by outsourcing the hotel research and contracting portions (to Experient), because no fees to the company are incurred since the compensation comes from hotel commissions.
• Many at the table felt that it was worth the money to keep internal staff on, even if they're not busy all year. A few of the group felt that their internal customers count on seeing the same faces each time, and also that they know their company's culture better than outsourced planners would. A conversation ensued about how important it is for the outsourcing organization to do its homework.

Meeting Procurement Cards for Payment
Everyone agreed that tracking your meeting spend can be a challenge, especially when you are in an environment of decentralization and there is no meetings policy in place. The group discussed different levels of success in using payment cards (P-Cards) for meetings.

• Some participants reported that this is a great way to help track meeting spend, and it allows you to segment expenditures by internal general ledger codes or generic categories.
• Others said they have trouble with compliance and, as a result, with streamlining the payment process. They reported they now are managing two processes - compliant and noncompliant payments.
• One participant reported that an executive at his firm is one of the noncompliant offenders because this person likes to build up points to use for personal travel. Some in the group found this to be unethical.
• The struggle is in controlling which expenses are used for general T&E expenses versus for key meeting expenses. Discussion items included building policy on the use of P-Cards to help develop consistent utilization, and working with P-Card providers to help provide more efficient reconciliation capabilities and obtain a comprehensive understanding of true meeting spend.

Meetings Technology
Being tasked to do far more work with fewer resources seemed a universal challenge. Many Breakfast participants commented on the importance of technology resources to generate greater efficiencies.

• There were specific references to key technology enablers that provide integration with transient travel. Two participants shared with the group that they manage technology utilization in conjunction with their SMMP efforts.
• The preliminary budget process for new tracked meetings has been a challenge for some. Stakeholders with infrequent meetings are inclined to significantly under-budget meeting expenses as they focus on travel, hotel, and key event expenses without accurately forecasting for key expense categories like F&B, AV, and other critical meeting-spend categories.
• Desire was expressed for more event-budget calculators to be provided in conjunction with the technology solution, to help less experienced stakeholders have a better comprehension of meeting budgeting. Post-event budgets against actual costs are proving to be a challenge, and can be a result of the multiple reimbursement processes used by many of the corporations.

Social Networking
There is continuing confusion about how to use social media.

• Some organizations have social-media sites blocked so employees can't use them while at work. Some have embraced the technology and have created employee-only sites that employees can link to.
• There was agreement that many people still feel that social media is a fad and eventually will go away. They may not be right, but these people are closed to the concept and won't try it. Generally, many don't see the value of using social media for business purposes.
• Twitter can be used during meetings to provide instant and more compelling interaction with the audience. It can be as simple as establishing a hashtag for the event or speaker. Participants seemed to find that aspect of social networking interesting, but admitted they don't personally know enough about these technologies to be able to suggest them for use at their meetings.
• It was recommended that if you want to encourage the use of social-media technology at your events, you might consider having a "geek squad" type of service on site to help people set up their profiles and security settings appropriately.