Question:
Describe about is shrinking budget or short lead times the number one challenge facing the event industry today?
This essay is about the different challenges that the event management companies face today. In particular, shrinkage of budgets and short lead times are focused onto, to judge whether they are number one problem that these companies face.
Have we ever wondered how does the Opening ceremony of Olympic Games come into action? Have we ever wondered about how beautiful fireworks show come alive? We must have visited some birthday party and admired the decoration and arrangements. We must have gone to a college fest and enjoyed ourselves. We all must have watched Kate Middleton sat “I do”. Did we ever think of how these things were organised? It’s all because of some event management company. The professionals work day and night to create the best results possible for guests, sponsors, stakeholders, spectators. Event management mean to co-ordinate, run, and plan an event. They try their best to put forward a planned, nicely conducted, and enjoyable event. Now-a-days, event management teams are needed in all sectors. They include entertainment, government, finance, fashion, music, sport. So, their job has a large range of thrilling challenges and different situations. Event management at present is a million dollar industry and is growing very fast (Nationalcareersservice.direct.gov.uk, 2015).
The event organizer always wants to make best for the client and most appropriate for the occasion. Cutting short of the budget by the client is a normal phenomenon because everyone wants to save more and spend less. As the economic decline continues event organizers and managers have to provide uncommon, motivational events on smaller and tighter allocation of budgets (Liverpoolchamber.org.uk, 2015).As opined by Sheehan et al., (2006), as a result of shortage of budget the Event Organizer always tries to provide their employer with unique and creative solutions to fight against the shrinkage of budget. This results in the invention of many techniques which was previously unknown. Such an example is the use of graphics in making films which helps the producer to cut short his budget and also saves a lot of time.
According to Parry (2015), it has been observed that there has been a reduction in budget of around 20% from their original budget during the past 2 – 3 years as reported by respondent event manager personnel. Recently most of the companies have started planning events in house and around 1/3 of the clients organize it only to reduce their budget. More than 20 events a year are promoted by a single company hence if the event manager is not able to cut short their initially allotted budget then it will be very difficult for them to maintain or to get the next contract for his company. While doing so sometimes event managers have to compromise with the quality of their service as a result the event standard deteriorates.
As stated by Bowdin et al (2012), budgets should be changed according to the circumstances. The shortening of the budget may result in behavioural changes in the event managers. This change may cause a drastic effect on their business. The budget when decreased de-motivates the employees as a result the whole event may be compromised. The spending within the budget creates a “use it otherwise loose it” mentality in the event managers so they try to spend little and save most. This less spending of the event managers may affect the quality of the event (Usenix.org, 2015).
Managers become very preoccupied with reviewing the budget with the customer and mostly forget to focus about the actual issues which would help him in winning of customers (Bbc.co.uk, 2013). As stated by Bladen (2012), the reduction in budget creates a rivalry among the event managers which help them to bring out more efficient ways of conducting an event in lower and affordable cost. This is a healthy competition where the event managers are always facing challenge to think of ideas which would make their event more successful as well as affordable.
Lead time is the time between the start and execution of a particular process. In event management, it is the time taken to complete a project. Different events need different lead time for its completion. Short lead time is a common problem faced by most of the event management companies. It is becoming a challenge day by day (Middlebury, 2010). Short lead times are gaining prominence in today’s times. Event management companies think they will face this challenge in future. If budgets are signed off earlier, the additional time may be used appropriately for sourcing the cost effective and desirable venue. Suppliers can help in delivering unique and more memorable events. It gives a good return on the investment. It is a trend now in event industry to work in shorter lead times. Some clients have a typical 12 month planning cycle but now most events take place in 3 months lead time. Every planner loves the long lead times and is found loathing the short lead times (Liverpoolchamber.org.uk, 2015).
Clients who give short lead times do not realise that giving longer lead times would have helped them in making the event successful. Due to short lead times, the roles and responsibilities of each become clear for the event management professionals. There is no room for error in case of the misunderstandings if there is short time in hand (Liverpoolchamber.org.uk, 2015). According to Mehndiratta (2008), often event managers get sleepless nights due to short lead times. They get last minute instructions to plan an event. Thus, the planners and managers can prove themselves to be amazing in managing everything in short lead times. So often, they take up the challenge in a positive way.
As stated by Whitfordet al. (2013) there are certain disadvantages of short lead times that have become a challenge for the industry. They include higher last minute transport fares, higher cost of printings, difficulties in group booking, few venue options, and fewer choices of entertainment packages. Creativity is hindered. The creativity of the planners is not showcased to the fullest. Planners get in dilemma on whether to explain the clients the drawbacks of giving short lead times or whether to deliver better in short lead times. They face these challenges and it becomes difficult to come up with the solutions.Often certain things are compromised with. Everything that is wanted may not be achieved. The time has to be spent wisely. Staying focused is the key to success. So event managers often find it difficult to put up an event in very short time. It possesses a challenge for them (Liverpoolchamber.org.uk, 2015). Mehndiratta (2008) states that the practise of giving shorter deadlines has turned into business and now planners get little time to pull things together.
Even though proliferation of shorter lead times is getting better, it is still now a problem (Ignitemag.ca, 2015). There is disagreement on whether lead times have got longer for big events. Boag and Cuskelly (2000) agrees that lead times are now shorter than what it used to be five years ago and it has brought along certain challenges.
In conclusion, we can say that running such a company of event management can be difficult. It is a very complex task. Many factors influence the success of event planning. Be it a small event or be it a large event, the procedure of planning and managing is a hectic job. There are many issues that hinder the functioning of such event management industry. The two most important factors are shrinking budget and short lead times. Short time creates problems for the event managers to provide good places for their customers as because most of the good places need to be booked before a long time and cannot be booked within a short notice of time but still the event managers are able somehow to show their skills and manage well deserved place according to the event as well as great food which shows really how hard they work to make it up to the customer. Shortening of budget though makes the event planner very sceptic about the use of different products but the restriction in budget brings out the unique ideas from the event planner, which is more profitable for the customer. Indeed shrinkage in budgets and short lead times are the challenges in event management industry today. Short lead time is the number one challenge it seems.
References:
Bbc.co.uk, (2013). BBC – Events: Planning and Management – myRisks Information. [online] Available at: https://www.bbc.co.uk/safety/resources/aztopics/event-planning-management.html [Accessed 6 Jul. 2015].
Boag, A. and Cuskelly, G. (2000). Event management. Belconnen, ACT: Australian Sports Commission.
Ignitemag.ca, (2015). Incentives + Meetings | Short Lead Times | Ignite Magazine. [online] Available at: https://ignitemag.ca/incentives_meetings/event_short_lead_times [Accessed 3 Jul. 2015].
Liverpoolchamber.org.uk, (2015). The Top 10 Challenges Facing Event Organisers – Liverpool Chamber of Commerce. [online] Available at: https://www.liverpoolchamber.org.uk/article.aspx/show/2321 [Accessed 3 Jul. 2015].
Mehndiratta, V. (2008). Event management. Chandigarh, India: Abhishek Publications.
Middlebury, (2010). Event Planning – How much lead time is required to plan an event?. [online] Available at: https://www.middlebury.edu/offices/business/scheduling/EventFAQ/node/153091 [Accessed 3 Jul. 2015].
Nationalcareersservice.direct.gov.uk, (2015). Events manager Job Information | National Careers Service. [online] Available at: https://nationalcareersservice.direct.gov.uk/advice/planning/jobprofiles/Pages/eventsmanager.aspx [Accessed 6 Jul. 2015].
Parry, A. (2013). Top challenges for event organisers in 2013 – by Rachael Cotton, head of trade and corporate sales, Alton Towers Resort – Event Industry News. [online] Event Industry News. Available at: https://www.eventindustrynews.co.uk/festivals-outdoor-event-news/top-challenges-for-event-organisers-in-2013-by-rachael-cotton-head-of-trade-and-corporate-sales-alton-towers-resort/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A%20event-industry-news%20(Event%20Indu [Accessed 6 Jul. 2015].
Usenix.org, (2015). Challenges in Event Management | USENIX. [online] Available at: https://www.usenix.org/publications/login/august14/paree [Accessed 6 Jul. 2015].
Whitford, M., Dunn, A. and Cooper, C. (2013). Event Management. Oxford: Goodfellow Publishers Ltd.
Bowdin, G., Allen, J., Harris, R., McDonnell, I. and O’Toole, W. (2012). Events Management. Hoboken: Taylor and Francis.
Sheehan, M., Diggs-Brown, B., Newsom, D., Grellier, J. and Shone, A. (2006). ALR279 public relations and event management.
Bladen, C. (2012). Events management. London: Routledge.
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