November 2008 Franchising World

Planning ahead—many months ahead—is one component in the meticulous process of conducting an annual convention.

By Hilary Strahota 

In the event-planning business, it pays to be prepared. From large systems to small and everything in between, many are conducting annual conventions to offer educational opportunities for their franchisees and create a favorable environment for networking and team-building.

Even though each system does it differently, there are generally some common techniques of management such as formatting and types of content that many practice.

For the International Franchise Association, planning the annual convention is no exact science, but a process that requires a high attention to detail, organization and forecasting. IFA’s first convention was conducted in 1960, the same year the association was founded. While the format and number of attendees at that time present a vastly different picture than the size and scope of today’s event, the essence has remained the same year after year.

The IFA’s convention is now in its 49th year. With advances in technology, the Internet, attendee feedback, experiences at other events and more, the model continues to be tweaked along the way. The core elements considered during the planning process of IFA’s convention include general and concurrent sessions, speakers, promotions, venue logistics, an exhibit hall, networking events and evaluations.

Getting the Right People in Place 
Before all of the pieces fall into place when the event kicks off, the IFA’s Conferences Dept. makes the necessary adjustments to a master checklist of tasks and meets with the association’s Convention Committee.

The committee was formed several years ago to address the needs of the convention which had been growing at a steady pace. The number of members ranges from 15 to 20 and is comprised of representatives from each of IFA’s committees, forums, councils and a few at-large members to ensure the event is responsive to each area of membership and the industry.

The mission of the committee, currently chaired by IFA First Vice Chairwoman Dina Dwyer-Owens, CFE, of The Dwyer Group, is to provide direction and suggestions for the general sessions and educational programming, assist in the development of a marketing plan, and help identify prospects for sponsorship and exhibits.

The Conferences Dept., led by IFA Vice Pres. of Operations Debra Moss, meets with the committee twice a year. Each committee member is responsible for planning one to two concurrent sessions at the convention, which entails developing the content, identifying the speakers, arranging conference calls with panel participants to determine their presentation needs and reviewing the speakers’ materials. Last year, there were 33 different sessions.

“It’s important to listen to your constituents,” said IFA Senior Dir. of Meetings Anne Poodiack. “Find out what issues they are addressing so you can be sure your programming meets their needs.” 

IFA asks members to submit topic ideas shortly after the convention concludes. Then the committee vets the topics and selects the ones they think are the most pressing and timely.

In addition to the work of the committee, having an extensive checklist of tasks that correspond to different months and weeks, and assigning Conferences Dept. staff to handle the myriad of items assures adherence to deadlines and helps immensely in the planning process. Responsibilities such as processing registrations, assigning exhibit space, preparing of the “Staging Guide” (hotel logistics and audio-visual needs), selecting food and beverage, and writing copy for promotional materials are some of the many tasks delegated to association staff members.

Forecasting 
Predicting how many individuals will attend the convention each year can be difficult when it involves hotel rooms and meeting space. But for those systems that have already conducted several conventions, much like the IFA, monitoring the attendance trends from previous years is a good indicator for planning in the future.

Knowing ahead of time roughly how many general and concurrent sessions will take place during the event is important prior to booking a venue. The formatting will determine what meeting space requirements the convention will have. It’s a good idea to develop a onepage synopsis of your needs, broken down by guest rooms, meeting space and concessions requested.

It’s also hard to predict if every session will be well-received and attended. One potential solution is to require attendees to sign up for sessions in advance so that rooms can be assigned to match the size of the crowd.

But, even if that measure is taken, that still doesn’t guarantee the sessions will fill as expected.

“People change their minds,” said Poodiack. “They like to go where their colleagues are going.”

Booking a Venue 
With the hotel contract, be sure to negotiate the room rate, meeting space, and any attrition clauses. Sometimes when minimum food and beverage costs are achieved, meeting space is offered on a complimentary basis. One pitfall during the negotiation stages is when meeting planners don’t ask for enough space from the hotel or other facilities where the event will take place.

“Almost everything is negotiable,” said Moss. “Don’t just sign a contract, ask for concessions. Consider what is most important to the success of your meeting and then request complimentary rooms (beyond the standard one per 50), suites or ground transportation for VIPs, reduced rates for staff rooms, discounts on food and beverage, and complimentary passes to the health club. The worst they can say is no.”

Room attrition clauses specify that a certain percentage of the room nights booked for the event must be achieved. When the group fails to meet that percentage, they are assessed a fee or are responsible for the unsold rooms. Sometimes, smaller groups run into challenges with such clauses because the hotel doesn’t perceive them as a huge revenue generator.

“When in the negotiation stages with the hotel, we always ask for 80 percent room attrition,” said Poodiack. “We are prepared to walk away if that requirement isn’t met.” 

Identifying Speakers 
Determining the experts in the field and which of those experts would deliver a quality presentation for attendees can be time consuming. But, generally committee members are individuals who have strong ties to the franchising community and whose involvement makes them familiar with the right people. This has helped take the quality of programming to the next level. But, as the word “committee” suggests, the members do not work alone. They share ideas and exchange knowledge, they network at other events and they consult the IFA to determine the most suitable options. When conducting evaluations of speakers, it’s good to keep a historical file to refer to so as to avoid selecting someone who fell short previously. 

For the general sessions, the Conferences Dept. considers high-profile keynote speakers who can provide name value and at the same time deliver meaningful and insightful comments. Selecting and booking speakers months in advance is essential, especially if they are in high demand, because their schedules can fill quickly with other engagements. The IFA seeks to confirm speakers at least three months ahead, but it can vary.

Selecting someone whose name alone is a draw has added value. Many attendees wouldn’t normally get to hear from high-profile speakers in person, such as last year’s keynote former U.S. Secretary of State Gen. Colin Powell, USA Ret., which creates another angle in the area of event promotion. While having renowned speakers won’t make or break the event, the selection process is not one that should be handled casually. Contacting speaker’s bureaus or browsing a booking agency’s listings can usually trigger some ideas.

Handling the Costs 
Sponsors play a role in the financial success of the association’s convention. Fortunately for IFA, franchisor or anyone who supplies a service or a product is a potential sponsor and with nearly 1,300 franchisor members and 500 supplier firms, the opportunities are abundant.

There are lots of things that can be sponsored—you just have to be creative. The most important thing is to offer sponsorships that deliver value to those looking to increase their visibility. Breakout sessions, meal functions and general session speakers tend to be the biggest draws, which means they present great sponsorship opportunities. Highprofile keynote speakers, which are not cheap, are a good example. What company wouldn’t vie to have their logo up on the main stage screens when the keynote speaker addresses the crowd? Depending on the level of the sponsorship, IFA sponsor perks can include signage, complimentary registrations, logo exposure, inclusion of promotional material in attendee registration bags and more.

Overall, the money generated from sponsorships is a small percentage of the convention budget. The greatest share of revenue comes from registration sales. When determining the cost of the registration, factoring in the cost-per-head for meals (if provided), conference materials, general session production, printing and promotion, audio-visual, and speaker expenses will determine an appropriate price point that meets expected costs and generates revenue.

Revenue can also be generated by selling exhibit space. For the IFA convention exhibit hall, which features supplier firms, there’s a great buyer-to-seller ratio. In addition, the franchise executives in attendance at the convention are eager to visit the exhibit floor to meet with company representatives to help equip them with solutions for their systems.

Managing costs is critical to the financial success of the meeting. In particular, food and beverage expenses often mean the difference between a profit and loss—or even just making budget. Moss suggests tracking actual attendance at each event year-over-year on a percentage basis. If the percentage remains consistent several years running, it can be used for future guarantees.

Promotion, Promotion, Promotion 
Once the venue is booked, speakers invited, content developed and event format outlined, consider what’s missing. The integral piece of the puzzle here is marketing. And, by this stage of the planning process, promotions should have already begun.

During the past few years, the IFA has started moving away from print and toward electronic tools. Using the various components of the event, such as the destination, educational sessions, networking perks, and keynote speakers, several promotional campaigns are designed. The frequency and range of promotions include e-mail blasts, brochures, mentions in IFA’s publications, e-mail signature taglines, Web site promotions, early-bird registration rates, and “flash” presentations.

Using attendees’ positive experiences during the event can also help promote future gatherings. Word-of-mouth is extremely powerful and IFA has used testimonials as a persuasive means to encourage attendance at future programs. When attendees’ experiences are positive, they are more apt to encourage their colleagues to attend the next year. Creating a buzz around your event is a must—highlight why the event is a “can’t miss” opportunity. At the same time, negative experiences can be extremely detrimental.

Once the event is underway, the staff at work should exercise their best customer service skills and professionalism to ensure positive attendee experiences. With conventions, especially larger ones, things are bound to go wrong, but diligent advance work will generally assure a smooth delivery. IFA prepares and sends its Staging Guide to the key people at the facility no less than three weeks in advance. This sends a signal to the hotel that you have done your work, operate on a highly-professional level and expect the same from them. The Guide includes all the details they need to execute a flawless event including room sets, technical requirements, menus and VIP arrangements. There are always last minute changes—the hotels expect them. But delivering the bulk of your requirements in advance sets the right tone for an efficient execution. IFA is constantly taking notes to make things better for the next year.

Post-Convention Action Items 
Evaluations are a critical step when assessing the event and determining how to improve in future years. Evaluations can be distributed to attendees, exhibitors, or whoever has the potential to give meaningful feedback regarding the event. The association distributes brief evaluations after every concurrent session and roundtables, and following the event, distributes a more thorough electronic evaluation to all attendees and exhibitors.

The Conferences Dept. also meets with the facilities or hotel staff after the event to wrap up loose ends, discuss what went right and identify areas of improvement. Hundreds of thank-you letters are also sent out to speakers, sponsors, exhibitors and the hotel.

The willingness to keep an open mind throughout the process has helped the conferences staff to identify the best ways to improve the annual convention once the event has concluded. The convention model is tweaked each year because those involved in the planning have gleaned insights from the experience and from the evaluations. Great ideas come from talking to others in the business. For example, this year’s speaker presentations, attendee lists and presenters’ biographies will be loaded onto flash drives to be included in attendee registration bags. Everyone gets the value of collecting all the presentations even if they can’t attend the sessions.

IFA’s 2009 Convention 
Despite financial challenges, franchise executives across the board should recognize the IFA’s 49th annual convention, which will be conducted Feb. 14-17 in San Diego at the Manchester Grand Hyatt, as an investment in the future success of their businesses. Registration tallies and exhibit booth space have already surpassed the point they were the same time a year ago which is a testament to the popularity of the event.

While the educational component of the convention is attractive, the elements that make it the premier networking opportunity are the largest draw. Attendees take advantage fostering relationships with new contacts, reengaging with old contacts and learning what their peers are doing to stay on track financially to continue with growth plans.

The popular Taste of Franchising will be back, in addition to a revamped fun and festive closing gala, interactive concurrent sessions and roundtables, and world-class general session speakers, which all provide a positive experience for all in attendance. The association’s major honors will again be bestowed upon leaders from the franchising community for IFA Hall of Fame, Entrepreneur of the Year, Bonny LeVine women’s mentorship and Ronald H. Harrison awards.

A new feature for 2009 is a series of “mini-Super Sessions” that will replace a set of concurrent sessions on Tuesday afternoon. Instead, larger sessions will be offered on customer service, “Generation Y,” the state of the economy and a franchise town hall meeting to address regulatory and legislative issues.

IFA’s goal is to bring together diverse franchising leaders during its annual convention to share best practices to enhance the future of franchising. With the right people in place, the proper forecasting and thorough planning, any franchise system can be adequately prepared to conduct an annual convention to benefit their franchisees.

Hilary Strahota is editorial content manager of the International Franchise Association. She can be reached at 202-662-0791 or hstrahota@franchise.org  .