SUSTAINABILITY:governments pass;businesses lead

Yesterday I read in the Strib that Sustainability was finally now emerging as a megatrend. The confirmation of this was not necessarily news, as client after client I interact with focuses on sustainability or at least “green” as part of their stated Corporate Social Responsibility program.

What I had given no thought to was WHY this was happening.  I had missed the connection that it has become a rich strategy in a global economy.  It lowers costs and boosts efficiency.  But what caught my eye was that it acts as a driver of innovation; creates new markets; and leads to new profit despite the recent downturn in economy.  In short, it increases corporate competitiveness. The article suggested businesses adapt and innovate or be swept aside, and ended with an interesting thought:  As scientists continue to make progress, companies and citizens are filling the void until government wakes up and catches up.

As I pondered that, it occurred to me that there is a message here for all of us in the events industry-not just for our corporate clients.  Oh yes, we recycle an event’s trash, we are big on bamboo serving utensils, we attempt to go “paperless” and occasionally, we give some effort to developing menus that include local, fresh grown products, or incorporate LED lighting to save energy.

But is it time to move the conversation up a step from a one day seminar we attend once in a while as a “refresher” to those we participated in a few years ago, and really spend some time thinking about how we can be thought-leaders in this arena?  The argument that it is often more costly may be short-sighted if in the long-term we become more competitive, grow our client base, and find new ways in which to stimulate our profitability and grow our businesses.   What do you think?

LESSONS LEARNED Pt 3 EXPERIENTIAL DESIGN

And now, some final thoughts on experiential design.  Over and over again, the importance of the Shanghai Expo to our event world is conveyed by various designers in various trade publications.  They communicate the same message – a message that has resonated with me and has driven me forward to improve my own skills and the experiences I create for my clients. Here are just a few more excerpts from EVENT DESIGN, October 2010 issue:

Each tells a simple story throughout the pavilion…

…meld architecture, media and message throughout…

Unique story telling…whimsical, interactive, artistically crafted…

The little gems discovered along the way are more memorable than the “over-the-top” elements

Use of building surfaces and advanced lighting technology to create art…building surfaces (became) a communication medium

Move from interactive to immersive

Unique storytelling …360 degree projections…floor, ceiling and surrounding walls

A different way of thinking won

Unify the exterior and the interior

An affirmation that there is no better medium to communicate a message than through design

Design plays a significant role in communicating ideas

The designer brings a story to life to deliver a message

You need a well-defined storyline and you need to use all parts of the experience:  the media, graphics, structure, space, and circulation through it in service to the messages that you want to communicate.  If you have a clear storyline and have everything support the few clear messages you want to communicate…

It’s not so much about the technology or materials; it’s about putting design in service to interpretation

High-level projection is everywhere and levels the playing field. It brings it back to content.  It is not about shiny technology…the resonant experiences were tied to emotional communication, not necessarily to technology.

For me, that sums it up.  The world of experiential design has spoken.  It’s time to put away for good the theme parties and pretty events without purpose of the 20^th century.  For now, save that for the social customer, although I predict they, too, will migrate to more personally meaningful events as time goes by.  Our industry is growing up. We provide a means to an end, and should not think of ourselves as the end by itself. Are you ready to join me in the exploration of this evolving world and its contribution to the New Economy of the 21^st Century?

MISCELLANEOUS RAMBLINGS

For a month now, I’ve been struggling with a short attention span and have jumped from one thing to another – seemingly accomplishing nothing. Maybe that is because I have no major pressing project to keep me focused – or maybe I just don’t recognize that perhaps I have returned to “normal”. Or maybe it was simply the distracting wonderful Minnesota October that signaled – don’t waste this time – it will soon change.

This morning, with the courtyard filled with withered brown leaves but a noticeable absence of summer birds not yet replaced by the wintering friends that choose this space to survive the harsh cold; and the gray skies and forecast of rain for a week merged with piles of beginning thoughts all over my desk. I am determined to “clean house” and get my thoughts organized. And that first step is to address that disorganized pile of paper to my left which I optimistically call “future blog topics”.

So, motivated by my “cleanup mode”, here are some thought-starters that have not yet been developed into anything meaningful – although I sense there are important thoughts here!

Trend Followers vs. Trend Setters: Maybe I am too harsh in my on-going criticism of our industry’s take on trends. I am beginning to think the question “What are the Trends” mean for many in our world, “What are your clients asking for?” Perhaps for many event professionals the philosophy of “give them what they ask for” is the guiding principle – and so, they think of trends as being driven only by their customers- who generally are 2-3 years behind emerging trends. They want to copy something successful or a“wow” they have seen in a magazine, or heard about, and thus they request it be done for them as well. And it is. Sometimes, very expensively. And is that so bad – to be the source that fulfills a wish or a dream?

Perhaps I am simply a member of a smaller group that due to my nature always questions why? That my curiosity drives me to ask about cultural and learning trends that can be expressed in Event Design – and thus, I care less about what the latest color is than I do about how can I use color to facilitate the message, help people learn, and most of all, engage. And is that so bad – to be at the forefront of a changing world? Someone has to be – or we would still all be doing theme parties rather than marketing events.

I expect there is room for both approaches in the wide audience of those needing assistance with their event.

Bling is Back: I read this morning that luxury shopping after an 8% decrease in 2009, has soared. Moet Hennessy Louis Vuitton, Burberry, Hermes, and others have experienced double-digit increases in the first 9 months of 2010. And who is leading the pack as the consumer? A few days ago, I wrote about Lederman’s “Brand New Day” and the economical upswings of the BRIC…and yes, you guessed it, CHINA had a 20% increase in luxury purchases last year, and is expected to grow by 30% this year. By 2015, China is predicted to become the third-largest market for luxury goods.

And immediately following that article, I saw another sign. A book review of “Three Stations” by Martin Cruz Smith included this description: “Here is Moscow, bingeing on capitalism, greed and lust…and the image is unsettling. The rich and famous rub elbows with the down-and-out and the infamous in this superb performance. “

It is unsettling, isn’t it? To think that the BRIC countries are replacing the USA in so many areas we measure for success and importance. I need to spend more time processing this…how do we turn that emerging trend into something positive rather than threatening?

A New Economy: Two years ago, as we realized our folly and saw our worlds as we knew them crash, we recognized that we had falsely created something that was not sustainable. We understood that women entering the workforce in the 70s and 80s generally fed an economic growth within families and for our country that allowed an increased in our standard of living. And then by the 90s, still looking for sustained growth, we had another cultural shift, and second jobs and long hours pushed that economy forward. By the 2000s, we no longer had those untapped resources, and turned to borrowing on home equity to continue the perception that we were still growing. And for many, the local, national, and international ponzi schemes were the only way to achieve status and reputation.

Two years ago, the politicians and pundits alike talked about a false economic standard that was not sustainable and that we were experiencing a needed adjustment. What happened to that truth and how did it get buried in the rebellious dissatisfaction that in the 2010s, we are not perched on the precipice for another “feel good” ride?

And finally, the last thought for the day.

Tax increases vs Tax Cuts: Can someone just explain to me why with state and federal taxes cut in the early 2000s, the only way to realize economic growth was to encourage false hope through the borrowing against home equity – the very thing that caused our current issues? Even the tax cuts included in that maligned “stimulus” package, did not work as planned. Business cut staff because they could, and saved money PLUS received the stimulus tax cuts. Were we to cut taxes again, why would it this time encourage business to spend their money and create jobs – if that did not happen for the Republicans nor the Democrats the last two times it was tried? And what about the related fact – we all expect the Federal Government (whomever is in charge) to solve all the problems we can’t, but do not want to pay taxes to facilitate that help? Where do we think the money comes from? What am I missing here?

“DESIGN THINKING IS THE NEXT COMPETITIVE EDGE”

When I left the corporate world, I freed my innovative designer self from the constraints of keeping thoughts of consistent outcomes, proof, and best practices guide my every waking moment, and allowed myself the freedom to see the world as a place that welcomes new ideas and lets me do meaningful work to make a difference.

Oh yes, the successes of that past life left me with an understanding and appreciation for that old world of efficiency and predictability. I continued to use those skills to manage my business, as well as when interacting with my client and designing events to meet desired outcomes. So instinctively, I have been able to maintain a good balance between those two differing mindsets. Little did I know that would become the wave of the future, predicted by some to be the evolving business model that will fuel the “New Economy”.

But lately in what I term my own version of “When I get old, I shall wear purple”, I may have allowed myself to tip a bit too far into this “wonderfully open and optimistic way of being.”

So it was good to be reminded by Roger Martin in his recent book THE DESIGN OF BUSINESS of some great guidelines – that will help make his prediction that “Design Thinking is the Next Competitive Edge” come to fruition.

As background, Martin postulates there must be balance between Innovation which explores problems whose solutions can’t be found in past experience or proven by data and the Efficiency model most companies obsessively rely upon. Both are needed to regularly generate breakthroughs and create value for an organization. His model proposes a reconciliation between the prevailing point of view of the Creatives who deliver a world of originality and invention but normally are not sustainable long-term, and the tried and true Analytical organization that build size and scale and carefully maintain status quo.

Martin suggests that neither do well alone in today’s world and the business world would be well-served to integrate these two diverse approaches into one in order to achieve a competitive edge going forward.

What particularly resonated with me were five things that designers must do to be more effective with colleagues that sit at the extreme of the reliability spectrum in the corporate world:

1. Reframe the extreme views as a creative challenge. Designers must embrace the challenge to find creative ways to help the analytic see value in looking at a creative solution

2. Empathize with that colleague. Too often the designer shows lack of respect for the analytic which only leads to rejection. Designer must be mindful that we are responsible for understanding the client needs and wishes. Engage to learn what they are worried about; what is their greatest hope or worry. Learn what would be minimally acceptable conditions needed for them to embrace the design solution. How much risk will they be willing to absorb?

3. Learn to speak their language. Productivity, consistent outcomes, proof, best practices are comforting. Break-through, new to the world, and “awesome” are considered dangerous, and uncertain or guesswork are downright scary!

4. Translate unfamiliar terms of the design world into familiar terms the analytic can understand. Learn to use analogies as a means to provide substantiation based on past events. Encourage sharing of data and reasoning but not conclusions.

5. When it comes to proof, use size to advantage.

In summary, designers need to appreciate legitimate differences, seek to communicate on client terms, using tools with which they will be familiar, and stretch out of our own comfort zones to understand and interact in the comfort zones of the client.

This all makes sense to me and I am chagrined to think I needed to be told that so many opportunities for improvement lie before us. These are simple suggestions to keep in mind that can help each of us in this industry. If we want corporate business, we need to understand corporations and their needs and put away forever, the idea that a great idea for a WOW event will automatically liberate those buckets full of dollars being stored someplace to fund parties. We need to use our skills to understand our customer before we can see the pathway to meet their needs.

At the same time, since I know advancing knowledge is a core drive for me, I’m glad I stumbled onto this whole new approach to design of business philosophy that has been growing and tested in universities across North America for the last 5-10 years. I think I can catch-up and get back on track so I can remain an informed and competitive player as the economy goes through this latest great transformation – predicted, by the way, before we knew about the Great Recession of 2007-2010!

DICHOTOMY OF THE RECESSION…

Over the last 15 months, I have continued to be puzzled about what seems to be a dichotomy inherent in this recession we are all moving through.

Early in 2008, I tried to counter the sad faces at my-then place of employment with facts to support that with some innovative positioning, one could weather the downturn, grow as a company and increase on the other side of the schism with increased market share. With a flicker of hope, we then authored a white paper – “Do or Die” which you most likely can still find posted on that company’s website. Nevertheless, within a month or two, survival of that employer meant lay-offs, re-orgs, and a start-over marketing story.

And yet, as one of those displaced workers, I started hearing within a week of my departure of new opportunities in our marketplace and would I be interested in helping with this or that project. So as I continued my job search, I free-lanced where I could, and survived quite well in this economy– without a company, website, marketing plan or even a business card – after I had been out of circulation as an independent event designer and producer for about three years.

I’ve previously shared my experience of a small event that went viral in July 2009, and the corporate anniversary last September with a long-time client whose budget was cut 50%; and yet we produced the best customer event to date.

All around me, the meetings and event industry was hit hard. Industry trade publications seemed to write about nothing else; every industry discussion focused on how to cut costs to retain clients; The Special Event Conference and Show lost exhibitors and attendees; and even a recent ISES chapter meeting report on the State of the Industry survey was bleak, with reports of planner vs. vendor discussions on how to best lower client budgets. The message of nothing left to give was heard loud and clear.

And yet, the Catersource/Event Solutions Conference grew and the energy there was phenomenal. In spite of a 60% reduction in budget for the evening event we worked on, the attendance increased almost 40% and vendor generosity was overwhelming as we worked together to accomplish our goals.

As I continued through the months to ponder these apparent misconnects, I wrestled with several theories, but for the most part I was stuck in the “just keep pushing forward and you will emerge at the head of the class.”

Until this morning, that is. Then reading through three different approaches in the Second Opinion column of Corporate Event Magazine, I finally put it together – I think.

The question was posed by a corporate planner concerned that “pinching pennies” was not sufficient so was looking for effective budget cuts that would not endanger the brand or lose customers to competitors. The magazine responded with three widely different approaches all demonstrating non-traditional, innovative and collaborative thinking to create win-wins for all involved.

• One levered the power of a single venue across three previously separate events. Although they remained separate events, they took place in the same city at different venues, and shared a single evening venue, creative, thematic, entertainment elements over course of three days. The result was a savings of $80,000.
• Another chose not to cut costs, but to add new revenue streams – all nonintrusive to attendees, inexpensive to implement, and all improved the attendee experience.
• And the third used an approach of cutting behind the scenes – one step eliminated the conference binder but posted it for download and supplied a free CD on site. Those that wanted a binder, purchased them online for $45-$75 each – creating a savings of $100,000. Another step dealt with almost invisible changes in the meal inclusions to cut per person meal charges up to $20 per person per day. One example shared did not cut items, merely restricted the number of a specific item to choose from.

In all cases, each response represented value as the responders found a way through innovation and collaboration to break through the barriers of traditional thinking. Each set out to approach their situation in a new light, put aside old paradigms, take risks, and break the rules in order to accomplish their goals, provide value and carefully balance audience needs with that of their internal or external client.

I submit this challenge to all of us: If we find ourselves consistently offering variations on a theme that worked ten years ago, we need to stop and self-police ourselves. Only if we can respond that our proposed reworked solution is still viable, applicable, and will yield desired results, should we go forward. If we proceed because it is comfortable and easy to implement, we do not produce value in the marketplace. We need to tirelessly pursue every option open to us as we look at our world differently.

As this economy continues to slowly improve, we will not find ourselves back in the familiar world of excess of the late 90s and early 2000s. This is not a RETURN it is a RESET. Those of us who cannot invent, discover, and implement new approaches during this time of experimentation will not be long-term players in the future.

OUR ECONOMIC VALUES

The morning paper today was filled with economic discussions– from the announcement of Michael Moore’s CAPITALISM: A LOVE STORY opening in theatres today; to the Business Section lead story of “Saint Nick-o-Less” and a re-evaluation of gift-giving based on need and necessity; to reports of stock markets falling and financial legal suits; to an opinion column David Brooks wrote for the New York Times which hit home to me.

Because yesterday, I received a general announcement to all card-holders of the credit card company I use-explaining the latest new interest rate increase. My immediate reaction was USURY!

So I was especially interested to learn what Brooks had to say about our economic values. I found I was nodding in agreement through the entire column, as he described our economic values slide and advocated for a restoration of those values with a “goal to make the US again a producer economy, not a consumer economy.” www.nytimes.com/2009/09/29/opinion/29brooks.html?_r=1

As I entered my office, my usury complaint about the credit card company, and Brooks’ column merged together. I wondered why I react negatively to a rate increase that impacts me, and yet I try to show tolerance for those in our industry that utilize a pricing policy that is equally usurious.

A small part of me, says good for them if they can continue to win business while doing that, and a larger part of me waits for them to be impacted as our customers demand more pricing transparency AND accountability and realize how much more message value they would receive if expertise pricing from vendors was reasonable.

Some meeting/event companies have taken three separate pricing strategies of the past and combined them; assessing charges for employee time, commissions from hotels, venues, and other vendors AS WELL AS a 20-40% profit made from the work of others-without whom we could not deliver integrated services. In fact, recently I heard of one example where a company does not even want to be involved in concept or production at all. Taking advantage of the recession’s impact on our business, they hope to hire the entire team from the independent free lance pool and expend no internal time or expense. Do they expect profit with no investment and recognition and industry awards, with no sweat or financial equity?

I don’t profess to be the expert that knows WHICH pricing methodology is the best; I just know I want it simple. In my past professional life, I have often spent more time discussing our pricing strategy vs. that of the competitors’ than is spent on understanding the client’s needs and brainstorming ways to meet them. So as I started CEK, I chose to establish a price for my expertise. Almost 20 years later, I still believe customers are willing to pay well for expertise they do not have internally; they just are not willing to pay a premium to get a service from us they could purchase for less dollars if they went direct.

But the real question in this discussion is: WHY are those triple-charging event companies often the ones that run into financial trouble – go into bankruptcy, or have one reorganization after another- without any change in the product or level of service?

I used to think it was weak leadership and lack of business acumen, but perhaps there is a lesson here that we can take from financial institutions. Do we need showy offices, a new car every year or two, weekly golf outings, out of sync bonuses and other perks we have grown to feel we are entitled to? Are we charging more than we are worth simply to maintain our sense of ballooning entitlement as reflected in all that we “have”? Are clients impressed with what we have or do they return to us for assistance because of what we DO for them?

This may be a topic to think more about as I expect there is not an easy answer.

CORPORATE CELEBRATIONS IN THE NEW ECONOMY

In the summer of 1988, I was deeply involved in planning my first 50th anniversary celebration for the company for which I then worked. Over the next 20 years, I’ve applied the knowledge I gained then to help several clients acknowledge similar milestones in their corporate history. But none have been as gratifying as that first experience–until this September, and the golden anniversary of a long-time client of Creative Events.

We started early with initial plans, not only to celebrate, but to show off a bit with all the accomplishments over the years that had helped build the brand of this thriving company. And then, the recession took its toll.

By Spring of this year, although business was still strong for this client, we had re-visited our vision, re-established budget parameters, re-assessed what was important and were proceeding with caution. We had a budget that mirrored that of the one that guided us a decade before for a 40th anniversary celebration. That meant we had to rethink tent structures in the parking lot, food and beverage expenditures and many of the environmental elements that had come from our creative committees. Over and over through-out the summer, we altered our plans and cut, while striving not to slash the internal enthusiasm that surrounded this project.

My vendor partners rose to the occasion – we decreased not only food inclusions and quantities but linens, staff, floral, lighting and all the things we’ve grown to think of as “must-haves” to create a successful event. Through-out it all, we struggled to keep focused on telling the story of the brand. If it reinforced the message, it stayed; if not, it was suspect.

Event day came and the guests-many from major corporations in the metro area-arrived…and toured…and asked questions…and visited…and paid tribute… and enjoyed a brat and a beer while leaning on a “naked” hightop, covered only with a corrugated baseball or 50th anniversaray logo…and never once asked why the food was not cutting edge or why we were not using the latest touch screen technology to tell our story. In fact, for the last two weeks, they’ve been showering the client with accolades for allowing them to learn more about the company and its capabilities…why, they had no idea that they could get this or that service/ product here. MISSION ACCOMPLISHED.

Another life’s lesson learned. I know why events are held; I am passionate about telling the story and message of the client. And yet, even in the midst of this challenging economic time, I was distracted with worries about the window dressings.

It’s time for our industry to take stock. We do not do justice to our clients if we focus only on the “WOW” and forget our business is to create the immersive brand experience that allows the audience to not only learn more about the client and their offerings, but also encourages an interactive dialog about those services. The emerging New Economy is a call to action: celebratory events are not dead; but they may have morphed into a more effective experience. If we re-prioritize with emphasis first on achieving client outcomes and then, as budgets allow, add affordable accoutrements to enhance the experience, we will continue to grow as a viable solution in the marketplace.