Most events are of a limited duration. Even though their organizations may have sim- ple entrepreneurial structures, matrices or functional structures, the event itself can be networked or virtual (see Figure 6.2).
Figure 6.2 shows an example of how a virtual organization could work within the events industry. Core activities such as marketing, operations and administration would be managed from within the company. Anecdotally, from within the industry, this could be by one person or several. Accounts and finance, although core and dependent upon the expertise of the company personnel, could be undertaken by an accountant.
The size of the virtual company and the interaction with suppliers will then depend upon the size or number of events. The organization may only employ four people, but during an event it can see its workforce increased many times over as staff are employed on an event-by-event basis. Similarly, contractors are used to provide the services that are not core to the organization, and with the development of these, relationships net- works begin.
Analysis of the internal environment 87
Changes in technology and the ability to communicate fully and quickly have enhanced the effectiveness of virtual organizations.
The need to use specialist suppliers (e.g. caterers, seating and staging, sound and lighting specialists, the artists themselves) has encouraged the growth of small entre- preneurial organizations to use a network of suppliers.
Even with large organizations, such as charities and government, subcontracting and strategic alliances are very favourable.
Campbell et al. (2003) describe a virtual organization as being a network of linked businesses that coordinate and integrate their activities so effectively that they give the appearance of a single business organization. This removes the negativity that can be associated with being a ‘one-man band’, and provides the customer with a turnkey operation.
We would challenge the need to have the appearance of being a single business organization, but would emphasize the need for all suppliers and core organizations to be focused on the end product and service. The consumer is of utmost importance, and consistency with the individual goals and objectives of each and every company, employee and volunteer is required.
The net result is that the event should be flexible and responsive, specialist-driven and cost effective.
The structure shown in Figure 6.2 can have several key advantages:
1. It is more efficient because it has lower costs and greater outputs
2. Specialist firms with current expertise and experience can be contracted in on a needs-only basis
3. There can be clear budgeting with the costs known beforehand 4. It is flexible and relevant to each unique event
5. There is the opportunity for rapid communication and decision-making.
However, Bowdin et al. (2001) also identify disadvantages to this type of structure:
1. Quality control may be difficult as contractors provide much of the work 2. The reliability of supply may be compromised
OPERATIONS MARKETING
Accounts
Subcontractors Contractors Contractors Contractors
Subcontractors ADMIN
SUPPORT
Volunteers Freelancers Freelancers Freelancers
Figure 6.2 A virtual organization
88 Management of Event Operations
3. Coordination of suppliers may be difficult
4. Deficiencies in contracts work may result in costly and lengthy legal proceedings.
We will look at the concept of virtual organizations again in Chapter 9, where we dis- cuss in greater depth the advantages that can accrue from developing suppliers as partners.
Shone and Parry (2004) believe that event organizational structures will include five main functions (Figure 6.3):
1. Visitor services operations 2. Support services operations 3. Marketing
4. Administration 5. Finance.
These five functions can be further subdivided depending on the nature and size of the event. In some instances, the same people within one organization may be responsible for more than one function.
Hence it is clear that the many different organizational structures highlighted by Bowdin et al. (2001) are particularly varied within the event industry.
These different structures may occur within organizations ranging from a commu- nity event such as a town’s Scarecrow in the Garden competition, to a Regional Agri- cultural Show, to a complex political party conference, to the Queen’s Golden Jubilee celebrations, to the Olympics.
In each case it is essential that all people who are working together, in whatever capacity, know who is in charge and what is expected of them – i.e. their roles and responsibilities within the organization and the operation of the event.
As Shone and Parry (2004) say, there should be no ambiguity, so that safety and effi- ciency are not compromised.
Operations:
visitors features
Marketing department
Event organization
Administration department
Finance department Operations:
support services
Figure 6.3 Simplified events organization structure (Shone and Parry, 2004)
Analysis of the internal environment 89
You should undertake further reading of work that covers these different styles willhelp you to gain an appreciation of these different types of structures and their useful- ness and impact upon the company which they house.
Chapter summary and key points
This is the last chapter of Section 1, and represents the end of the analysis stage. The chap- ter has determined that one of the prime objectives of an organization is customer satis- faction through the achievement of a consistent and sustainable level of service. The determinant of the level of service to be provided will be driven by the competition and demands of customers and stakeholders – i.e. by the external environment. To provide the necessary affordablelevel of service, the operations manager is vitally concerned with effi- cient and effective use of resources. We also noted that resources might be limited in quantity and quality, and therefore the event manager must balance the two, potentially conflicting, objectives of customer satisfaction and efficient resource utilization.
The chapter has also studied different company structures and how these can influence the way in which organizations operate. Conversely, how an organization operates can affect its structure.
Chapters 1–6, form the first stage of the event operations management model and have identified those critical areas that require analysis – i.e. the external and internal environ- ments. The detailed analysis leads to the event manager being able to define the goals of the organization, having taken into account the varying needs of the stakeholders, the customers and the organization itself. The chapters discussed the importance of under- standing the critical success factors of the customers and establishing whether their needs could be met from the resources and skills available within the organization. From the analysis, the objectives of the event and also the objectives of the organization should be reassessed to see that the mission is still in line with the overall needs of the organization.
Section 2 considers the detailed planning stage of the event operations management model, taking the analysis further in order to plan the event carefully and methodically.
As discussed at the outset, it uses many of the techniques from project planning and operational management literature.
Event Operations Management Model: Tum, Norton and Wright 2005
Analysis stage
Section 1 Section 2 Section 3 Section 4
Detailed planning Implementation and delivery
Performance evaluation
External analysis
Mission
Setting standards of performance
Feedback
Measure performance Correction
Review Portfolio
analysis
Product development
Supply chain management
Location
People power
Forecasting
Capacity management
Scheduling Quality
performance Lifecycle of
services
Review Internal analysis
Risk management 6-stage event
planning process:
1. Define goals ⫹ target market 2. Research CSFs 3. Determine skills and resources required 4. Link skills, resources to CSFs 5. Develop strategies 6. Finalize plans