Corporate hospitality

In these straitened times, a few well-placed vol-au-vents could loosen clients’ grip on their wallets. So how do you put on a do that does the business? EN presents ten things to think about.

1. WHAT DO YOU WANT TO ACHIEVE?
This should be the starting point for your executive party planning committee (or Doris from admin, as she’s otherwise known), for behind every good shindig lies a good strategy.

“You don’t – or shouldn’t – just throw an event randomly because you feel like it,” says Cheryl Gibbs, PR director at IAMNOW Media.

“Always think about the event objectives, the style of the event, the type of delegates that need to attend and agree this before you start selecting a venue,” adds Chris Wilson of Tailormade Conference Management. “Venue choice, date, time of year and location will all determine the success or failure of an event. Get the foundations right and the rest will follow.”

2. WHO TO INVITE?
Corporate hospitality gives you the opportunity to branch out and meet new contacts whose custom you covet. But, says Wilson, it’s also important to remember the good people who already fork over their lolly to your cause.

“Rewarding current clients is a must,” he explains. “Remember, your current clients are someone else’s prospects and if you are not saying thank you in some way, your competitors might be.

“A good event can combine current clients with prospects and there is no one better than a current client to talk positively about your company.”

If you are inviting a selection of potential clients, Wilson adds, make sure the person getting the invitation is a decision maker and agree a good follow-up plan so they don’t just scoff the cheese ‘n’
pineapple combos and disappear into the night.

3. PLUS ONES: POTENTIAL PROBLEMS OR PERFECT FOR PARTIES?
Plus ones can be a bit of a headache: another mouth to feed, probably not interested in talking shop and a potential punterblocker who’s going to monopolise your client or target’s time when you want to unleash an unbridled charm offensive.

But, says Gibbs, having them along for the ride can sometimes be necessary, even downright useful.

“The people who always insist on having a plus one are the media and celebrities,” she comments. “If it’s important to have these people at your event then you more often than not will have to allow them a plus one.

“When events are in the evening and most people have been at work all day, the thought of going to another work-related event can be tiresome. Allowing them to bring a plus one means you are opening up your event to include a social element, which can often be more appealing.

“It’s also important to remember that not everyone is confident about walking into a room full of strangers alone – if they can bring a friend or colleague, they may be more likely to RSVP.”

4. THE BRIBERY ACT: FEARS, FACT AND FICTION
The Bribery Act came into effect in July 2010. Richard Thomas, a partner at Capital Law, notes that prior to the act being passed in the twilight of the Labour government, anti-bribery legislation had not been updated since the First World War and relied on proving an individual within a company had knowledge of wrongdoing, making it easy to “outsource” bribery to suppliers.

The act scrapped that, allowing companies to be held responsible even if they were unaware of the backhanders being trousered in their name.

Sanjay Parekh, managing director of WebExpenses, says that with this – and the possibility of ten years in the slammer and an unlimited fine if found guilty – in mind, the “primary fear” was that the distinction between hospitality and outright graft would disappear.

This would create “farcical” if somewhat philosophical scenarios like “when is a golf trip not a golf trip?” with no one knowing “where the champagne and canapés end and the corruption begins”.

“Paranoia around the Bribery Act has been so extreme that Premiership clubs were recently compelled to hire legal firms in a bid to allay fears about matchday hospitality because many companies are scaling back hospitality budgets as a result of the act,” he says.

Last spring justice secretary Ken Clarke poured oil on these troubled waters by delaying the legislation so the Government could draw up guidance making it clear that combating bribery was “largely about common sense, not burdensome procedures”.

Thomas says these guidelines have established that “genuine hospitality within usual acceptable industry standards will not be deemed to be bribery”.

“In order for hospitality to become bribery, the schmoozing has to be as a quid pro quo for the guest doing something illegal or in breach of their duties of employment,” he adds.

“The flaunting would need to be obvious – the example the Government uses its touring a party of foreign officials invited by a mining company to visit its open cast mine in Canada to persuade them to allow a similar mine to open elsewhere.

“Business class airfares, five-start hotel accommodation, some fine dining and a show would not be deemed to go beyond the genuine hospitality and promotional expenditure. However, allowing them a few nights in Las Vegas on the company on their way home would be.”

5. PLACES, PEOPLE!
Getting an event organiser on board might seem like an easy option for a stress-free do – but make sure you do some homework before you hand the reins to an external party planner.

“Many people profess to be event organisers, but working with an inexperienced organiser can be a recipe for disaster,” cautions Wilson.

“Ideally you should work with one that has a proven track record backed up with independent references that you can contact yourself. Also look for an organiser than has an affiliation to a professional body, such as the Association of British Professional Conference Organisers.

“Once you have selected your organiser, agree a specific contract with a fixed fee quotation and a timeline stating what needs to happen when and to what standard.”

6. THE IN-HOUSE OPTION
If you’re a regular schmoozer, you might want to take it upon yourself (or your faithful troops) to plan the perfect soiree. Sure, it sounds like a lot of work (because it is) but, as Lawrence Jones, chief executive of server and cloud hosting specialist UKFast, explains, it gives you the control to maximise the value of an event. After all, who knows what you want a do to do for your business better than you...do?

“Historically, accountants and business professionals have played down the importance of corporate hospitality but I think it’s essential to running a successful business and I’ve chosen to bring elements into the business fulltime so that we can consistently produce quality events,” he says.

“It started a few years ago with a video department at UKFast. It can seem extravagant to have that service at your disposal full-time but you have to ask, how many times will you outsource that each year and what will it cost?

Then you measure the actual value of being able to control an environment like that and for me it’s a no brainer.”

UKFast even has an in-house personal trainer who organises hospitality trips to the company’s retreat in Snowdown, where clients can play Sir Edmund Hillary to their hearts’ content.

“He gets the most value out of those trips and makes them memorable for every person that goes,” Jones adds.

“We also have our own full-time chef who caters for board meetings, roundtables and large corporate dinners. If other businesses like Google and Facebook have these things, why not a small business in Manchester? We can guarantee that the standard of food that goes out is of its highest nature every single time.”

Which brings us to...

7. THE DO ITSELF
What are going to lavish on your lucky guests? Talking about food and drink is an obvious ice breaker for any crowd, so you definitely don’t want them discussing a) how bad it is, b) how there’s nothing they can eat or c) how it ran out after five minutes – although in the case of the latter, everyone will clear off to the chippy, so they won’t be talking at all. Disaster.

“Fancy champagne and canapés are lovely but unless you have ridiculously high budgets, the quantities of food and drink will be few and far between and your attendees will be left thirsty and hungry,” counsels Gibbs.

“There is nothing wrong with a nice glass of wine and a cheese and pickle sandwich!

“As a vegetarian myself, buffets always cause headaches because a) there is never anything decent for a vegetarian (a stuffed plum tomato doesn’t count) and b) if it’s fancy food, you never know what’s actually in it. I’m sure those who have allergies and intolerances feel the same way so it’s a good idea to plan ahead and ask your attendees if they have any special dietary requirements.

In this day and age it’s a little naive to think we’re all straight down the middle meat eaters.”

It’s all about horses for courses, adds Jones. Er, metaphorically speaking. “The kind of food, drink, transport and accommodation you provide should suit the event that you’ve invited clients to,” he says.

“When we invited clients to the Royal Variety Performance in Salford, for example, we arranged for a silver Mercedes to pick up each guest and take them to the Lowry Hotel, and we drank champagne. But when we take clients to a rugby game at Twickenham, we take our own chef down to cook up a great barbecue outside and we drink Prosecco and beer.”

8. SPEAKER'S CORNER
Once the assembled throng are fed and watered, having a good speaker to enchant them with words of wisdom can make your event one they talk about for ages. Equally, a bad one could get you a one-way ticket off some Christmas card lists.

Wilson says getting it right relies on defining from the outset what you want the speaker to do, be it entertain, inspire or motivate.

“It sounds simple,” adds Joe Dixon of PR firm and event organiser MC2, “but when selecting a speaker, the key driver should be the needs of the audience and what they hope to achieve from attending the event.”

They agree that a having a celebrity or famous athlete can undoubtedly be a draw – but don’t expect your guests to be dazzled by a simple sprinkling of stardust. A big name could be your downfall if they only turn up for the hefty fee and sleepwalk through the same old routine they’ve obviously done a million times before.

“It’s important that the speaker is willing to tailor their message to the audience,” Wilson explains.

“So if a speaker is booked and they take no time – or aren’t willing – to do a pre-conference briefing call then I would say don’t use that speaker.”

He recommends asking for at least three independent testimonials on past performance.

Another crucial tip: think about content before you unleash them on the mic. Know your audience, as well as your own brand. A cheeky after-dinner anecdote or even a bit of blue can go down a storm if the booze is flowing, but inappropriate content or salty language at a sober seminar will live long in the bumclenchingly awkward memories of your cringing attendees.

Once you’ve got your star attraction, make the most of them.

“There’s nothing worse than a speaker making a real impact then disappearing,” says Dixon.

“The Hamiltons hosted the EN awards last year and were at the event from beginning to end, making sure that anyone who wanted to could chat to them, which everyone was talking about afterwards; you should make sure your speaker is prepared to do this.”

Look and learn, folks! (The cheque’s in the post, Joe)

9. THE SPORTING LIFE
Alongside a good speaker, another big draw is the cut and thrust of sporting contest.

“The beauty of sporting events as corporate hospitality is that you get an opportunity to share an unknown outcome with your clients,” says Jones.

“No one knows what the score will be or how a game will progress.

That puts you on a level together and provides a natural talking point or ice breaker. Whether the clients are fans or not, the outcome will be exciting. You have shared a moment together and developed a bond going forward. There is nothing else like that.”

If you don’t want to shell out a fortune to slap your logo on a team’s shirt or stadium, a well planned contra deal can give you invaluable access to the guts, glory and glamour of competition.

“In the early years at UKFast, we built our brand around our sponsorship with Sale Sharks Rugby Club. I found the value that they needed from the service we could provide. Originally the service we provided wasn’t part of our core business so we went out of our way to get experts in to design, build and market the club’s website.

“That’s paid off two-fold for us. Not only did we reap the benefits that go with main sponsorship at a high-profile club but the design skills we developed in-house to manage the Sale Sharks website has grown into a significant revenue stream under the UKFast brand.

“If we had just paid for a straightforward hospitality deal rather than doing a contra deal, we wouldn’t have had the opportunities to introduce players to our clients after games and we wouldn’t have benefitted from the merchandise and the chances to visit local schools with the players and talk about the link between business and sport.

“The value of the relationship is worth much more than money... Any business can offer money but few, if any, can replace that kind of partnership.”

UKFast has since swapped codes now sponsors rugby league side Salford City Reds.

10. THE MORNING AFTER
It’s easy to get lost in sampling menus, choosing centrepieces and auditioning after-dinner jazz quartets – but remember, while it’s nice to wow the crowd and give a bunch of chartered accountants a night they’ll never forget, the whole point of wining and dining is to get something out of it for your business. So once the streamers have been cleared away, the last empty bottle has tinkled into the recycling bin and you’ve recovered the HR director’s trousers from the roof, how do you capitalise on a rip-roaring shindig?

“The biggest mistake made is putting on a great event and then thinking that’s the job done,” says Dixon.

“An event is nearly always a means to an end. Make sure you stay focused on what the event was meant to achieve; that means setting aside time to contact all attendees on a oneto- one basis to follow up.”

Wilson adds that embracing social media is a “brilliant way of getting feedback” but prepare for an unabashed assessment of how it all went down.

“You look at the hashtag of the event and there is absolutely nowhere to hide because people will tweet and say quite categorically whether the event is a success or a failure,” he says.

You should also plan ahead to get photos and video of your speaker in full flow and the audience having a whale of a time. You can use this to give guests a bit of extra value by, say, emailing them a clip of the keynote speech.

Plus it gives you an arsenal of vox pops and media proving you’re the host with the most, which should make life easier when you do it all over again.

Picture: Group hugs: Reds’ sponsor Lawrence Jones says sporting events offer a chance to share an “unknown outcome”.