Romil Bahl, A.T. Kearney Global Sports and Entertainment Practice Leader May 13, 2003.

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


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


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


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


…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


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


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


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


• 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


Best practices — revenue optimisation and cost containment


• 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

…


Best practices — program management and communications


• Program-wide blueprint

• Robust program management disciplines

• On-line collaboration and communication tools

• Knowledge management

• Cascading program management approach

– Overall event– Operational– Functional


Best practices — risk management and contingency planning


• 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


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

Romil Bahl, A.T. Kearney Global Sports and Entertainment Practice Leader May 13, 2003.

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