Sell it to the C-suite. Create a process. Partner with procurement. Build compliance. And save millions.
It's downright exhausting at times. It can take years to do. Starting aprogram is a tough job that's often met with even tougher resistance across a company.
But if you asked Tom J. Tolvé, CMP, senior manager of meeting operations at Novo Nordisk, Princeton, N.J., if he'd do it again, he'd probably say yes. Tolvé co-led the effort to put an SMMP in place back in 2005 and has helmed the program through various evolutions over the past four years. As a result, he and his team have cut meeting costs by an average of 15 percent.
It began in 2005 when Novo Nordisk's executive team wanted to get a better understanding of the company's spend on meetings and “they just couldn't do it,” he says. “That really catapulted the decision that yes, we need this project.” Having come from Bristol-Myers Squibb, which had a strong SMMP in place, Tolvé seized the opportunity to initiate the program.
“The first thing we did was benchmark against industry colleagues and find out what worked and what didn't from those who already had plans in place,” says Tolvé. “Then we collected all this industry data and compiled it into best practices for the company.”
The next step was to get support and feedback from other areas of the company. He assembled a task force of people who had some involvement in meetings, including admins who planned meetings as part of their jobs, as well as those on the clinical team who were responsible for meetings but didn't actually do the planning.
It took Tolvé and his task force more than a year to finalize the standard operating procedure (SOP) he had drafted and get senior management's approval. And it took another six months to complete a phased rollout of the program to each department within the company. By April 2007, the entire company was on board, and the SMMP was a mandated process that everyone was expected to follow.
“The primary purpose of the SMMP is to make sure that everyone is working within the same guidelines for sourcing and working with our preferred partners, says Tolvé. In a nutshell, if an event has at least 50 cumulative room nights, 50 attendees, or a budget of $50,000 or more, it must be registered through Tolvé's department.
There are also sections in the SOP stipulating the process for registering a meeting, how to handle room-rate commissions, procedures for canceling a meeting, guidelines on food-and-beverage spend, maximum allowable room rates, and timelines for when each step of the process must be turned around, such as reporting post-meeting attendee data.
With the SOP finalized and the SMMP implemented across the company, finally Tolvé could breathe a sigh of relief and give himself a pat on the back. Well, not quite. His work was far from over. “You write something and put it into action, and then you have to revise it 137 times because you realize what sounded good on paper is never really realistic when it comes to execution,” says Tolvé.
Guidelines on turnaround times and spend all were revised as the process got going. In addition, the team made the decision to centralize the sourcing function. “When we first developed this program, we did not have a dedicated agency to do all of our sourcing. We realized that was a mistake, and so we went to bid and brought in one agency [Robbinsville, N.J.-based Meeting Alliance] to handle all sourcing.”
Another important component of the program wasit to everyone in the company. “We didn't have a fun name for this program,” says Tolvé. “We were calling it the Novo Nordisk Centralized Meeting Consolidation Program. That doesn't exactly roll off the tongue.”
The team decided to rename the program MeetingSource and began changing all collateral to reflect the new name. It was a big endeavor, says Tolvé of the effort to rebrand the program, but it was worth it.
Good Cop, Bad Cop
Getting people — especially admins — to actually use the system has been one of the biggest struggles. “Let's face it,” says Tolvé, “hotels have a great way of wooing potential clients, and there are a lot of people who enjoy being wooed.”
Not surprisingly, admins did not react positively when they were told they would no longer benefit from hotel perks. “When we first rolled out this program, there were some people who wanted nothing to do with me and this system. They would see me coming and walk in the opposite direction,” he recalls. “We definitely had people who tried to circumvent the process.”
Getting people to register their meetings through the system often requires a dose of education. “We play good cop, bad cop a lot with our legal and finance departments,” he adds. “When acomes to legal for review and it hasn't gone through the appropriate channels, they red flag it — same with accounting. It really then becomes an opportunity for me to educate this person on the process.”
Another ongoing struggle is getting people to comply with timelines for reporting post-meeting data. Oftentimes communication and education about the business reasons behind data reporting are enough to get people to comply with the process, but when that approach doesn't work, Tolvé often relies on what he jokingly refers to as “the scare tactic.”
“If an internal person is really behind on the deadline for reporting, we will go right to his or her manager and explain the business reason for needing this data,” he says. If the offender is a third party, referencing the agreed-upon contractual terms is usually enough of a motivator to get results.
But it's not all “follow the program or else.” Tolvé has also been known to offer rewards to those who adhere to the system and meet deadlines. “Last year I ran an incentive where everyone who submitted their post-meeting data within the 45-day timeframe was entered into a drawing to win a weekend in New York City and dinner for two.”
The best PR for the program, however, is word-of-mouth, he says. “Nine times out of 10, when someone registers a meeting, relinquishes control of the sourcing process, and gets aligned with the preferred vendors in the company, they end up coming back to me and saying, ‘You were so right, I still got to be involved, but I didn't have to do the grunt work.’ They tell a friend and before you know it, more and more people are singing our praises.”
Partner with Procurement
Another important facet of Tolvé's job is proving the SMMP's value to procurement. And while meeting managers and procurement executives have been known to clash at many companies, that is not the case at Novo Nordisk. “I'm blessed when it comes to my relationship with procurement,” says Tolvé. “They really respect [the expertise] that I bring to the table, and all they ask is that I keep them in the loop.”
To strengthen the relationship, he proactively submits a monthly report to procurement detailing all the metrics his team has captured for meetings companywide. “Basically the report is a summary of trends,” he says. “If I see a sharp increase in one area [such as cost per attendee], I will do an analysis to determine the reason and include this in the report.”Next Page: Money Back
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Metrics Tolvé measures and reports monthly to procurement include the number of new meeting requests received, the number of meeting requests logged per department, and the number of completed meetings. For the meetings in which post-meeting data has already been submitted, Tolvé also reports back to procurement on the number of attendees per meeting, average cost per attendee, total spend for the meeting, total savings achieved, and savings as a percent of the actual cost.
Achieving measurable cost savings isn't enough for Tolvé — who has also found ways to generate revenue through his department. When Novo Nordisk uses third-party agencies to plan its meetings, the commission from the hotel is split between the third party and the company.
He also has negotiated preferred agreements with some smaller hotel chains, audiovisual companies, and destination management companies in various cities. “Thestipulate that we will get anywhere from a 3 percent to an 8 percent rebate when we use these vendors,” he says. The funds are reinvested into the meetings department to offset the cost of the online meetings tool as well as the purchase of meeting materials, such as folders and badges.
Tolvé has developed another revenue stream by allowing internal brand teams to sponsor certain aspects of company meetings. While this option would not be suitable for an investigator, CME, or advisory board meeting, he has offered it for internal sales meetings andtrainings.
“We will let a brand team sponsor the breaks or even the entire event,” says Tolvé. “Each brand team is always jockeying to get their brand seen and make sure our sales reps understand the messaging.” This offers them a chance to reinforce that message in other areas of the event outside of the meeting room or training session. The brand team pays a certain amount to Tolvé's department for the privilege and, in turn, their brand is represented throughout the event — on napkins, ice sculptures, banners, and the like. “The money simply gets transferred from their cost center into ours.”
In addition to reinvesting the funds into his department, Tolvé uses the money to support the company's corporate social responsibility initiatives. “We have made donations to local organizations such as Cradles to Crayons, (which helps support low-income and homeless children) and are in the process of embarking on a larger scaleprogram with the funds that we will generate in 2009.”
Next Step: Small Meetings
The next step: expanding the program to include meetings that come in below the current 50/50/50 rule. “We are looking into implementing a small meetings tool to get a tighter capture on that spend,” he says. But it's really a question of being careful what you wish for. “There are not always enough resources to take it to that level [of detail].” Based on his track record, it's probably safe to say he'll find a way to get it done.
Novo Nordisk's Turnaround Times
Meetings that have 50 attendees, 50 room nights, or a budget of $50K must be registered via Novo Nordisk's online meetings software tool. Here is the chain of events that a meeting request goes through once registered in Novo Nordisk's online system.
Within one business day: Someone from sourcing reaches out to the meeting requester to set up a “qualifying meeting” where both parties will discuss the details of the request and qualify the need to have the meeting.
Within two business days of holding the qualifying meeting: Someone from sourcing will send a written recap of that conversation to the requester confirming everything that was discussed. Sourcing will also begin sending leads out to hotels at this time.
Within six business days of when leads are sent out: Sourcing responds to meeting requester with availability and options for holding the meeting.
Within three business days of venue selection: Sourcing obtains a meeting contract from the selected venue and turns it over to Novo Nordisk's legal department for review.
Within five business days of receiving the contract: The legal department must review the contract and turn it over to the meeting requester.
Within two business days of receiving the contract from legal: The meeting requester must sign off on the contract and return it to the meetings department.
The meetings department then logs the signed contract into the system and returns it to the person who will be responsible for planning the meeting.
Post meeting follow-up: 45 to 60 days after the meeting wraps, the meeting host or business owner must log post-meeting data into the system. This includes attendee demographics, spend per attendee, and other qualifying data, which will be used by the meetings team to compile monthly reports to procurement.