Romil Bahl, A.T. Kearney Global Sports and Entertainment Practice Leader
May 13, 2003
2A.T. Kearney 7/39252
Executive Summary
Mega-sports events deliver substantial economic and social benefits to sports governing bodies and host cities/countries
In the future the stakes are higher — the cost and complexity of hosting a mega-sports event is ever increasing
To succeed, event organizers need to adopt a comprehensive and integrated event-management mind-set through the entire event lifecycle and execute to some best-practices• Organization and governance• Stakeholder and government collaboration• Revenue optimization and cost containment• Program management and communication• Risk management and contingency planning
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Mega-sports events deliver substantial economic and social benefits to sports governing bodies and host cities/countries
Mega-Sports Event BenefitsMega-Sports Event Benefits
Direct Event BenefitsDirect Event Benefits Induced BenefitsInduced Benefits Indirect Event BenefitsIndirect Event Benefits
• Broadcast rights
• Global and Local Sponsorship
• Tickets
• Merchandising/Licensing
• Infrastructure investment and legacy
• Domestic and international tourism
• Other local business revenues (e.g. retail)
• Government tax revenue
• Employment (e.g., construction, tourism, and event-related jobs)
• Multiplier effect of foreign visitor spending
• Social and cultural benefits
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In the future the stakes are higher — the cost and complexity of hosting a mega-sports event is ever increasing
Spiralling infrastructure costs
Increased technology requirements from media and fans
Higher security demands
Growing number of event participants
Expectations of sponsors/partners
Overall expectation each event will out-do the previous
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To succeed, event organizers need to adopt a comprehensive and integrated event-management mind-set…
Marketing, Sponsorship & MediaMarketing, Sponsorship & Media• Marketing & advertising• Internet Site• Public Relations • Communications• Media operations• Hospitality• Sponsor Management• Licensing and Rights Protection
Venues & InfrastructureVenues & Infrastructure• Stadiums and venues• Games village• International media center• Hotels• Airports• Rail and bus stations• Conversion to municipal use
Ticketing & SalesTicketing & Sales
IT, Internet & Telecom SolutionIT, Internet & Telecom Solution• Architecture & Integration• Event systems• Internet• Hardware and software• Testing & technical rehearsals• Event network (voice and data)• Network equipment & cabling• Wireless
Transportation and LogisticsTransportation and Logistics• Transportation infrastructure• Public transportation• Transportation planning
— Olympic Family— General public
• Transportation operations• Warehousing and logistics• Materials management
• Ticketing— International— Domestic
• Merchandise Sales• Accommodation sales
Comprehensive and Integrated Event
Management Mind-set
Source: A.T. Kearney analysis
Event CoordinationEvent Coordination• Scheduling of events• Roster development• Competition organization• Spectator services• Accreditation • Volunteer training and coordination• Officials and referees • Cultural program
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…event organizers need to use a rigorous and comprehensive mindset along the entire event lifecycle
Source: A.T. Kearney analysis
Size of Event
Mega-Sports Event
(e.g. Olympic Games)
Large-Scale(e.g. CricketWorld Cup)
Bid Setup &Strategy
ConceptualPlanning
Operational Planning & Build-out
Testing & Deployment
HostingPost-Event
Management
6 – 12 Months
48 – 60 Months
6-12 Months
36 – 48 Months
6 – 9 Months
1 – 2 Months
6 – 12 Months
3 – 9 Months
18 – 24 Months
6 - 9 Months
24 – 36 Months
3 – 6 Months
1 – 2 Months
3 – 6 Months
Time
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Revenue Optimisation and Cost Containment
Revenue Optimisation and Cost Containment
Stakeholder and Government Collaboration
Stakeholder and Government Collaboration
Organisation and Governance
Organisation and Governance
Risk Management and Contingency
Planning
Risk Management and Contingency
Planning
Program Management and Communications
Program Management and Communications
A.T. Kearney experience and research reveals organisers of successful events adopt certain best practices throughout the event life-cycle
Event ManagementBest Practices
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Best practices — organization and governance
Best PracticesBest Practices
• Rapid organisation establishment
• Evolving structure and size over the event-life-cycle – from a “thinking” to a “doing” organization
• Balance between process and functional view of organisation, transforming to a venue view
• Clear roles, responsibilities and accountabilities
• Obtain the required competencies and skills — use of third-party expertise
Staff
MOC
Venue 1 Venue 2 Venue N OperatingWorkforce
COO
CEO
Infrastructure Commercial Operations
IT
Construction
Marketing
Image
Sponsorship
Transportation
Sport
Accommodation
CEO
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Best practices — stakeholder and government collaboration
Operational Delivery
Communication
Support
Core
Type of Interaction
Significanceof Activity
Standing Committee
Discrete Legal Entity
Periodic Meetings Staff Integration
Best PracticesBest Practices
• Tight government collaboration– Specific-purpose government
entities– Full government backing at local
and national level
• Sponsor/supplier staff integration
• Regular stakeholder communication
• Proactive public and media relations
• Consistent issue escalation and resolution approach
Approaches for successful interaction with stakeholders
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Best practices — revenue optimisation and cost containment
Best PracticesBest Practices
• Innovative revenue optimisation– Ticketing– Digital assets– …
• Funding early in the lifecycle
• Comprehensive budget development and tracking
• Segmented budget control and accountability
• Complexity reduction focus
• Rigorous strategic sourcing
• Sponsor/partner “value-in-kind”
RevenueRevenue
Expense
Operations
Capital
Sponsor/Licensing
TV Rights
Ticket Sales
Asia
USA
…
Sponsorship
Local Sponsorships
Lotteries
…
Sports Facilities
Village
Media Center
…
Sports Events
Ceremonies & Programs
Transport
Security
…
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Best practices — program management and communications
Best PracticesBest Practices
• Program-wide blueprint
• Robust program management disciplines
• On-line collaboration and communication tools
• Knowledge management
• Cascading program management approach
– Overall event– Operational– Functional
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Best practices — risk management and contingency planning
Best PracticesBest Practices
• Risk management mind-set
• Consolidated risk capture and tracking
• Continual re-focusing of resources to highest priority risks
• Robust escalation and resolution processes
• Contingency planning and scenario development
• Crisis management planning
Crit
ical
i ty R
atin
g of
the
Ri s
k
Green
Amber
Red
Timing Rating of the Risk
Controllability Legend
High
Medium
Low
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A.T. Kearney has developed a mega-scale event management toolkit to support event organizers and sports governing bodies
Event Strategy & Structure
Strategy, Planning and Implementation Workstreams
Venues and Infrastructure
IT, Internet and Telecom Solution
Marketing, Sponsorship
and Media
Transportation and Logistics
Ticketing and Sales
Event Co-ordination
Program, Risk and Contingency Management
Program Tracking & Risk
Management
Budget &Financial
Management
Strategic Sourcing & Asset Tracking
ProgramCommunication
Program Governance
Event Organization StructureEvent Strategy, Blueprint &
RoadmapBid Strategy
Romil Bahl, A.T.Kearney Romil Bahl, A.T.Kearney Global Sports and Entertainment Practice LeaderGlobal Sports and Entertainment Practice Leader
A.T. Kearney5400 Legacy Drive
MS B1-1A-01Plano, Texas
75024