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The Future of Professional Congress Organization

The Future of Professional Congress Organization. Roger Tondeur MCI AIPC July 2006. The Future of Professional Congress Organization. The MCI Group – An Introduction Trends in Associations and their Impact on PCOs / DMCs Local PCO/DMC – The Future? Opportunities for Local PCOs

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The Future of Professional Congress Organization

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  1. The Future of Professional Congress Organization Roger Tondeur MCI AIPC July 2006

  2. The Future of Professional Congress Organization • The MCI Group – An Introduction • Trends in Associations and their Impact on PCOs / DMCs • Local PCO/DMC – The Future? • Opportunities for Local PCOs • From Local PCO to Core PCO • Emergence of Association Management Companies • Conclusions • Questions and Answers

  3. The MCI Group – An Introduction

  4. MCI Group • MCI is the foremost Pan-European association, communications, and event management company • 18 years of experience (founded 1987) • 4.000 projects+ • 400.000 hotel room nights booked/year • One Company, a World of Experiences • (360 staff, € 120 M turnover) • 13 European offices, plus Singapore, Strategic Alliance in the USA

  5. MCI Group – International Presence

  6. Serving Corporations and Associations MCI is the Preferred Vendor for global companies Lilly, HP, AstraZeneca, BMS, Roche, Amgen, France Telecom, Abbott, Orange, DaimlerChrysler MCI manages 23 associations on a strategic level EULAR, ECTS, ESPEN, FIDI, WLPGA as core PCOISN, WFSBP, PMI, ISPE, as AMC

  7. Trends in Associations and their Impact on PCOs / DMCs

  8. Trends in Associations (national, regional, international) • Meetings increasingly “only” part of the overall strategy of an organization • Change from volunteer to professional management • Importance of greater central involvement/control • Need for “progressive development” of any organizational activity • Long term accountability to stakeholders (including pharmaceutical industry) • Technologicaladvancements

  9. Trends in Associations • Meetings decreasingly the single most important activity of an organization - diversification of activities • Limited or even decreasing funding resources (= success of meetings is even more critical) • Return on investment for association, sponsors, partners • Varying objectives depending on destination • Emergence of international “Core PCOs” and “Association Management Companies” • Importance of a greater international presence(particular in South & Latin America) (“go there”)

  10. Trends in Destination Selection • Selection increasingly based on overall strategic goals of associations / mission cycles • Association/meetings professionals have more (pre-)decision making influence • Pre-selection of regions and possibly countries • Open and formal RFP for candidate destinations and local vendors • Need for transparency when making selections • Increasing preference to work with professional convention bureaus

  11. Market Environment • Companies and associations are using global strategies, creating a need for a global approach to strategy, with local execution. • “Relationships” are no longer sufficient in the world of procurement departments, PCOs have to move towards long-term contracts and added value. • Commoditisation and consolidation • Increased return on investment and stakeholder value • Experience and purchasing power are needed to be credible. • Transparency, competence, flexibility and price are important elements as businesses and associations focus on core competencies.

  12. Local PCO / DMC – The Future?

  13. Perceptions of Local PCOs by Associations + Local knowledge + Professionalism + On the ground (time, culture, language) + Time saving + Cost efficiency - Need for “investment” - Lack of transparency - Lack of trust - Objectives may not be the same - Costly

  14. Local PCO/DMC - The Future? • All the trends indicated before • Less control over events (including selection of destination) • Less opportunities to make money (budget constraints) • Works with PCOs or AMCs rather than volunteers (greater control) • Core PCOs have increasing purchasing power But….. • Local knowledge and contacts, purchasing power remain important • Ideally complement the strengths of associations and add value

  15. Example: Transportation of your delegates Opportunities for Local PCOs

  16. How can Local PCOs be successful? • Understand your partners (associations, AMCs, Core PCOs) • Offer seamless integration with association or Core PCO • Be transparent • Offer local competence and added-value • Have a pro-active approach • Show your flexibility • Find the price – quality balance

  17. Areas of Collaboration • Accommodations • Social events • On site services • Transfers / welcome services • Local / regional marketing • Local / regional sponsorship and exhibition sales

  18. How to Find the Best Collaboration • Clear expectation management • Distribution of tasks • Acceptance of limited scope for local PCO/DMC • Understanding of all parties’ needs – The Association, The LOC, The Local PCO/DMC & The Core PCO • Work as a team and not against each other • Provide a clear value-added Your reputation will travel far!

  19. From Local PCO to Core PCO

  20. Scope of Work of Core PCOs • Work with associations (or corporations) over several events • Travel with them to various locations (national, regional, international) • Align their goals with the associations • Align their working styles • Become “one team” • Build long-term relationships with key stakeholders (e.g. sponsors) • Securing the association’s interests • Knowledge maintenance & development • Marketing • Congress Culture • Content • Cost Control • Guarantee unified high service and product level

  21. How are Core PCOs Structured • Taking full responsibility as much as requested • Dedicated team members (year after year) • Leaving appropriate roles to the local entities: DMC / PCO • Work with specialized departments • Sponsorship / fundraising • Events marketing • Technical • Accommodations • Purchasing • Finances • Program development

  22. Benefits for Core PCOs • Long-term relationship (= secure business) • Closeness to decision makers • Ability to influence and/or be part of the decision making process (including site selection) • Become part of the overall strategy of an organization • Can be pro-active about their own business future • Can grow with the associations they service (= create own business)

  23. The Emergence of Association Management Companies

  24. From DMC to Association Management Company Control over the Association / Event Association Management C. Core PCO Local PCO DMC

  25. Trends towards Association Management • More Associations seek stronger central control - use Core PCOs, AMC’s or Integrated AMC’s • Decision on locationis made more strategically – based on an association’s need • Return on investment for associations and partners critical • Core relationships must be served more constantly (e.g. sponsors) • Meetings are increasingly seen as “only one aspect” of an association • IPCAA Recommendations: • “Use experienced, financially solvent, and loyal PCO”

  26. Community Admin Sec. Gen Finance Treasurer Web Conference Members Advocacy President Conference LOC/POC Education Publishing Education Locals Journal Publisher Industry relationships Institutional relationships Web IT Partner Integrated Association Management Present Past Assoc. Assoc. Assoc. Assoc. More centralised control

  27. Association Management • Central office and association management • Membership administration and development • Strategic planning, management and development • Financial planning, management and controlling • Communications and marketing (hardcopy and electronic) • Branding • Corporate relations and fund development • Strategic relations and partnerships • Educational programs and knowledge management • Leadership development • Government affairs

  28. Conclusions

  29. Conclusions • Associations are becoming more sophisticated (must become) • Local expertise remains very important • PCOs who understand professional trends (national, regional, international) will ultimately be successful • PCOs can and must become strategic partners of associations or corporations • There is increasing need for more strategic services to associations • PCOs must be pro-active as the business environment changes quickly • National, regional and international collaborations become more important

  30. The Continuum of Partnership

  31. Questions & Answers

  32. MCI HQ 75 rue de Lyon 1211 Geneva 13 Switzerland Phone: + 41 22 33 99 500 Fax: + 41 22 33 99 501 Email: mci@mci-group.com

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