CHAPTER 3

Earned (or Operating) Revenue Details

A Word About Outsourced (Exclusive or Official) Contractors

There are variations of how the event service business is conducted at convention centers:

Convention centers with a robust business model may hold that most of the event services are exclusive. In doing so they may elect to outsource some or all of these services. A common arrangement is to outsource food and beverage, communications services, and parking lot management as exclusive contracts. Utility services and medical services are sometimes handled in-house. Event cleaning and security are open. In both volumes 1 and 2 of this book you will see outsourced references applied to food and beverage, communications, parking, and cleaning. The context will usually be in discussions related to profits or commissions.

I know that some convention center managers may be satisfied to rely on commission receipts and number and nature of service complaints to judge contractor performance. From time to time, outsourced contractors are also subject to a financial audit. My view is that this level of contract administration alone is not enough. More is needed. Exclusive contractors, no matter their reputation and experience, have to be well integrated into the convention center service organization. There is no better way of achieving that than to make them part of your KPI program. They should “own” what’s appropriate. This is especially important with respect to productivity metrics.

KPI: Earned Revenue and Profit or Commissions Per GSF Rented

Owner	Finance Department
Data Sources and Collection	The Finance Department will provide this financial data. GSF Rented data will be provided by the Sales Dept. data. If the “KPI: Operating Profit or Loss Statements for Each Event” is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Monthly or more frequently if data is collected by linking spreadsheets per the above

Why This KPI Is Useful

This KPI is a basic indicator of productivity and needs to be reviewed monthly.

Objective

Obtain a knowledge base for this basic productivity metric. This KPI may also be used to compare business performance with competitors.

Managing Unfavorable Conclusions and Inferences

An unfavorable trend is evidenced if there are no improvements over the previous year or results are less than business plan. Convention centers should as a routine matter increase service prices each year at or slightly below the rate of inflation. Abrupt monthly changes in earned revenue and profit/GSF Rented should always be closely reviewed. Consistent trends in the wrong direction, say three consecutive months, need to be taken more seriously. Look at KPIs related to labor productivity first and move deliberately to resolve problems. Follow up by examining event production planning such as the “KPI: Percentage of Utility Service Order Fulfillment before the Last Move In Day” (in Volume 2, Chapter 3).

How to Calculate and/or Organize Data

Note: For outsourced services substitute commissions for earned revenue and profit.

Presentation Notes and Formats

Table, line graph, or both, comparing current YTD, previous YTD.

Utility Services

KPI: Utility Service Market Pricing Comparisons for Competing Venues

Owner	Event Operations Department
Data Sources and Collection	The task of surveying other venues for pricing is best assigned to a reliable intern as a project—it involves lots of internet searches, phone calls, and e-mails. Don’t restrict the research just to convention centers that have in-house or exclusive utility services. For an outsourced operation, require the exclusive contractor to perform the same survey and report results to convention center management.
Reporting Frequency	Annually

Why This KPI Is Useful

It’s important to understand pricing power when it comes to service revenue. This is best accomplished by surveying and ranking electric and plumbing prices at competing convention centers. Some convention centers use cost plus pricing instead of market pricing, which limits earned revenues. Price comparisons, along with price complaints, provide a sense of how much pricing power exists.

Objective

Determine the best price, not necessarily the highest price, for utility services. It’s wise not to be the most expensive. If the finding is that there is pricing power, don’t overreach and boost prices too high. Roll up prices gradually.

Managing Unfavorable Conclusions and Inferences

If there are pricing complaints and instances of exhibitors downsizing the size and complexity of their exhibit booths and your prices are higher than competitor’s average prices, then you have probably reached the limits of your pricing power. Consider dropping certain prices.

Another unfavorable trend may be that the earned revenue is below expectations because pricing is far below survey average. In this instance consider increasing service prices close to the survey average. Be mind-fulthat a large percentage increase in one year, say above 5 percent, may be a source of complaint.

How to Calculate and/or Organize Data

See Work Sheet 3.1. A similar work sheet can be used for plumbing.

ELECTRIC SERVICES - VENUE PRICING COMPARISONS – 2019
Service	Capital City CC	Venue 1	Venue 2	Venue 3	Venue 4	Venue 5	Ave.
110V
1000 Watts	123	135.3	153.75	92.25	79.95	129.15	118.9
1500 Watts	145	159.5	181.25	108.75	94.25	152.25	140.17
2000 Watts	170	187	212.5	127.5	110.5	178.5	164.33
208V
10 Amps	190	209	237.5	142.5	123.5	199.5	183.67
20 Amps	220	242	275	165	143	231	212.67
30 Amps	260	286	325	195	169	273	251.33
Exrension Cord Rental	17	18.7	21.25	12.75	11.05	17.85	16.43
Display Lt. Rental	160	176	200	120	104	168	154.67
Labor/Hr.
ST	55	60.5	68.75	41.25	35.75	57.75	53.17
OT	82.5	90.75	103.13	61.88	53.63	86.63	79.75

Work Sheet 3.1 - Electric services - venue pricing comparisons - 2019

Presentation Notes and Formats

Table, highlight highest prices in each category and highlight the Average column.

KPI: Utility Services (Electric/Plumbing)—Profit or Commissions Per NSF

Owner	Event Operations Department, Sales Department or Event Services will provide NSF for the events. Finance will in turn compile profit from each event by subtracting utility service electric and plumbing revenue profit/loss statement. Finance will also obtain commission data if these services are outsourced.
Data Sources and Collection	If the KPI: Operating Profit or Loss Statements for Each Event is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Quarterly or more frequently if data is collected by linking spreadsheets per the above.

Why This KPI Is Useful

Profit/NSF is a more precise measure of productivity (more so than profit/ GSF Rented) when reviewing utility services because nearly all the services occur within exhibit booths under similar conditions. Total exhibit booth square footage constitutes NSF. Revenue from these services has many elements and varies based on market pricing or the event type and economic sector. Expenses vary too, based on the services requested but more so on productivity. Labor is the major cost, such as time spent on each billable item.

Properly managing earned service revenue like utility services is a requisite management function. It involves in-depth knowledge of how service is planned and rendered, correct pricing policies, service order taking and fulfillment, details regarding labor productivity, and customer service concerns. Electric service comprises most of this earned revenue. Plumbing service is rendered in much the same way as electric, but business volume is much less.

Profit or commission per NSF is also a valuable KPI because it can be used for business forecasting

Objective

The initial objective is to obtain a knowledge base of this productivity metric. Once established, the objective is to grow profit or commission /NSF based on productivity and increased utility service sales to exhibitors.

Managing Unfavorable Conclusions and Inferences

The recommended actions are the same as the “KPI: Earned Revenue and Profit or Commission Per GSF Rented.” The only addition is to review the “KPI: Application of Electric Service Productivity KPIs to Individual Exhibit Halls” (in Volume 2).

How to Calculate and/or Organize Data

Presentation Notes and Format

Table, bar graph, or both, comparing current YTD to previous YTD and business plan. See Figure 3.1:

Figure 3.1 Electric service profit per NSF—3^rd Qtr

KPI: Electric or Plumbing Profit or Commission Per NSF for Each Event Type and Economic Sector

Owner	Event Operations Department
Data Sources and Collection	The Sales Department will provide information regarding NSF for each event type and economic sector. The Finance Dept. will calculate profit for each and fit them into each event type and economic sector category. Finance will in turn compile profit or commission for each event type and economic sector from the event profit/loss statements. Event Operations will conduct final analysis. If the KPI: Operating Profit or Loss Statements for Each Event is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Annually or more frequently if data is collected by linking spreadsheets per the above

Why This KPI Is Useful

Unique knowledge based on event type and economic sector history is of value and make rendering of service more efficient. It will also make forecasting more accurate.

Objective

Obtain a knowledge base which differentiates the utility service profit or commission value for each event type and economic sector.

Managing Unfavorable Conclusions and Inferences

Recommended management actions are the same as those for “KPI: Utility Services (Electric and Plumbing) Profit /Net Square Foot (NSF).”

How to Calculate and/or Organize Data

The calculation method is the same as “KPI: Utility Services Profit or Commissions/ NSF.” It will have to be done for each event type and economic sector.

Presentation Notes and Formats

This format will have to be rich with data as it covers multiple event types and economic sectors all organized to show comparisons and results over time. Begin with tables organized where the best performers are on top then. List others below in descending order. Bar graphs will work also as annual statistics are compared.

Food and Beverage (F and B)

F and B service is one of the top convention center profit centers. Nearly all centers outsource this service to large and leading F and B companies. Outsourcing contracts are generally long-term and competing companies typically propose generous commissions and levels of investment. The F and B contract is probably the most important outsourcing decision convention centers make and not just for financial benefits. F and B service and food quality are one of the principal concerns of event organizers. The quality and reputation of a center’s F and B operation can weigh heavily on an event’s location decision. It requires detailed contract management.

KPI: F and B Market Pricing Comparisons with Competing Venues and Local Retail Food Outlets

Owner	General Manager or whomever administers the F and B contract
Data Sources and Collection	Rely on the F and B contractor or assign the task of surveying local food outlet and restaurant pricing to a reliable intern as a project. If the “KPI: Operating Profit or Loss Statements for Each Event” is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Annually or more frequently if data is collected by linking spreadsheet per the above.

Why This KPI Is Useful

F and B pricing at convention centers is always a controversial issue. It is important to have a knowledge base of pricing at other local food outlets and competing convention centers.

Objective

The objective is to develop defensible pricing and improve revenues preferably driven by premium retail food and beverage sales and high-quality catering service. This means common items like hot dogs, garden salads, or soft drinks are priced near the average of local outlets.

Managing Unfavorable Conclusions and Inferences

If there are pricing complaints and instances of exhibitors or attendees sending out for “take out” and your prices are much higher than local food outlet averages, then you have probably reached the limits of your pricing power. Consider lowering certain prices.

How to Calculate and/or Organize Data

List and display pricing in work sheet form similar to “KPI: Utility Service Market Pricing Comparisons for Competing Venues,” showing average price per item.

Presentation Notes and Format

Table. Highlight highest prices in each category and highlight the Average column.

KPI: F and B Profit or Commission Per GSF Rented

Owner	General Manager or whomever administers the F and B contract
Data Sources and Collection	F and B, commissions are reported by the contractor to the Finance Department. GSF Rented is obtained from the Sales Department. If the KPI: Operating Profit or Loss Statements for Each Event is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Monthly or more frequently if data is collected by linking spreadsheets per the above.

Why This KPI Is Useful

Reviewed on a monthly basis, this KPI is necessary to track F and B revenue performance and question results that are behind plan. F and B service has many elements and requires alert management. Lots of things can go wrong; cleanliness and appearance of food outlets, menu selections, and overall service levels from order taking to presentation, to seating and ambience, and of course food taste and quality. The quality and reputation of a center’s F and B operation weighs heavily on an event’s location decision. The F and B contract is probably the most important outsourcing decision convention centers make and not just for financial benefits. F and B service and quality are one of an event organizer’s principal concerns.

Objective

Consistent, steady growth, based in part by price increases but more so through higher volume sales of premium retail food and beverages and high-quality catering.

Managing Unfavorable Conclusions and Inferences

A decline in this productivity measure may well be consistent with a decline in all the Number of Events and Space Use KPIs. However, the decline may also be attributable to the business performance of the F and B contractor. Pay particular attention to the number and nature of customer complaints; poor menu selections, overpricing menu items, rude and indifferent service, and retail food competition in the convention center locale. If all these items come up as unfavorable, it’s time for some serious discussions with the F and B management and its corporate office.

How to Calculate and/or Organize Data

Presentation Notes and Formats

Table, line graph, or both, comparing current YTD, previous YTD and business plan.

KPI: F and B Commission Per GSF Rented for Each Event Type and Economic Sector

Owner	General Manager or whoever administers the F and B contract
Data Sources and Collection	F and B, commissions are reported by the contractor to the Finance Department. The F and B contractor will identify commissions by event name. For times when there are simultaneous events taking place, center management along with the contractor should decide (based on their knowledge of the event) how to allocate F and B revenues to which event. The Sales Department will provide information regarding event type and economic sector and GSF Rented. The Finance Department will assign commissions to the event name. As the events are categorized by type and economic sector, then the commission data will accompany the named event. If the KPI: Operating Profit or Loss Statements for Each Event is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Annually or more frequently if the data is collected by linking spreadsheets per the above.

Why This KPI Is Useful

Unique knowledge based on event type and economic sector history is of value and will make rendering of service more efficient. If this knowledge base is extended, it could also reveal information about menu preference, specialty items for sale and the effect of pricing for each event type and economic sector. This KPI should prompt a deeper dive into the type of menu items most ordered per event type and economic sector. For most F and B companies their point-of-sale systems are capable of collecting and sorting through an enormous amount of sales data. They may in fact already be using the data. It should be integrated into a convention center’s KPI program.

Objective

Obtain and build a knowledge base of commission history per event type and economic sector.

Managing Unfavorable Conclusions and Inferences

Many of the same management practices and reactions apply to this KPI as they do to “KPI: F and B Profit or Commission per GSF Rented.” This KPI parses the whole of F and B performance. So what may appear to be a favorable performance overall may hide a poor performance when looking at just an event type or a single economic sector. A decline when compared to previous year’s performance for a particular economic sector, say health science events, should prompt a deeper dive into related KPIs such as customer complaints. An alert F and B management team should be able to see certain trends in their point-of-sale data which indicates a problem. It’s important for center management to press for explanations and solutions as soon as practical.

How to Calculate and/or Organize Data

The calculation method is the same as “F and B Profit or Commissions/ GSF Rented.” It will have to be done for each event type and economic sector.

Presentation Notes and Format

This format will have to be rich with data as it covers multiple event types and economic sectors all organized to show comparisons and results over time. Begin with tables organized where the best performers are on top then listed below in descending order. I do not believe graphics will work in telling this story. Comparing nine economic sectors and performance vs. the previous year and businees plan will overwhelm the reader. there is too much data compressed into the graphic. See Figure 3.2 below:

Figure 3.2 F and B commissions per GSF Rented by economic sector (in dollars)

Things to Watch for—Misinterpretations, Nuances, and Cautions

Favorable F and B Financial Performance Is Not Enough: From time to time, you will find F and B contractor management focused mostly on financial matters to the detriment of customer service. Customer service and food quality are more important.

Parking

Many convention centers outsource this service to large and leading commercial parking lot operators. For some convention centers parking is a major profit center. It is also a source of convenience for exhibitors and attendees who are commuting into the event and are unfamiliar with the various means of public transit. Parking is a necessity if consumer shows are common and the convention center is located outside the urban core of a city with no mass transit.

KPI: Local Parking Lot/Garage Fees Comparison

Owner	Event Service Department or whomever administers the parking contract
Data Sources and Collection	Rely on the parking contractor or assign the task of surveying local parking lot fees to a reliable intern as a project.
Reporting Frequency	Annually

Why This KPI Is Useful

It is important to have a knowledge base of pricing at other local parking lots and competing convention centers. The price to park has to be fair and relatively consistent.

Objective

Develop a reasonable parking fee schedule. Consideration should be made to vary fees based on day of the week or time of day and whether an event is open or just in a state of move in or out.

Managing Unfavorable Conclusions and Inferences

Consider this; you are already somewhat aware that your parking fees are higher than most local lots and there are empty spaces that should be filled given the events. A growing number of exhibitors and attendees are skipping the convenience of parking on-site and paying to park elsewhere. You probably have reached the limits of your pricing power or your lot is poorly operated, inefficient and unsafe.

How to Calculate and/or Organize Data

List and display pricing in a work sheet similar to “Utility Service Market Pricing Comparisons for Competing Venues,” showing average fee for certain days and times.

Presentation Notes and Formats

Table. Highlight highest prices in each category and highlight the Average column.

KPI: Paid Parking Spaces Filled and Profit or Commission Per Number of Exhibitors and Event Attendees (Guests)

Owner	Event Service Department or General Manager or whomever administers the parking contract
Data Sources and Collection	Parking profits will be provided by the Finance Department. Paid parking spaces filled will be supplied by the Parking Lot Manager. If outsourced, parking spaces filled and commissions will be reported by the contractor to the Finance Department. The Sales Department will provide information the number of event exhibitors and attendees (guests) for the month.
Reporting Frequency	Monthly

Why This KPI Is Useful

The number of paid parking spaces and profit or commission history based on the number of event exhibitors and attendees (guests) is useful because it focuses on how event guests choose to travel and their choice of parking options at the event destination.

Objective

Obtain and build a knowledge base of paid parking lot use and profit or commissions based on the number of event guests in the building.

Managing Unfavorable Conclusions and Inferences

The overall expectation should be more guests, more paid spaces filled and more profit or commissions. Developing a baseline and/or average based on the number of guests in the building is a sensible check on parking lot financial performance. Clearly, if the actual number of spaces filled and profits or commissions are less than the average, less than the forecast and, do not fit with the actual number of guests, then an explanation is required.

How to Calculate and/or Organize Data

PAID PARKING PER NUMBER OF GUESTS - EVENT DAYS
Month	# of Paid Spaces Filled	Parking Profit or Comm.	# of Guests (Exh. And Attendees)	Paid Spaces Filled/# of Guests	Parking Profit or Comm./# of Guests
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cum. Ave. (last 3 yrs.)

Work Sheet 3.2 - Paid parking per number of guests

Presentation Notes and Formats

Tables, line graphs, or both, comparing current YTD, previous YTD and business plan.

KPI: Parking Profit or Commissions/GSF Rented

Owner	Event Service Department or whomever administers the parking contract
Data Sources and Collection	Profits or commissions are obtained from the Finance Department. For outsourced parking lot management, expenses for services outside of the contract such as equipment maintenance or special security can be obtained from the Finance Department. If the “KPI: Operating Profit or Loss Statements for Each Event” is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Monthly or more frequently if data is collected by linking spreadsheets per the above

Why This KPI Is Useful

This KPI is a productivity metric based on business activity. I regard this KPI as an alternate means of assessing parking profit or commission performance. However, this method may be preferable because it uses the same format as other productivity metrics which all relate to event space use.

Objective

Consistent, steady growth based in part on market pricing but more so on convenience, availability and safety for customers.

Managing Unfavorable Conclusions and Inferences

The same narrative from KPI: Paid Parking Spaces Filled and Profit or Commission per Number of Exhibitors and Event Attendees (Guests) applies.

How to Calculate and/or Organize Data

Presentation Notes and Formats

Table, line graph or both, comparing current YTD, previous YTD and business plan

Things to Watch for—Misinterpretations, Nuances, and Cautions

Parking Lot Management Must Have an Uncompromising Level of Enforcement: The operation of the parking lot has to have a visible and uncompromising level of enforcement or the convention center parking lot may be taken advantage of and become difficult to manage. In general, rules will apply to fees and fee times, “tailgating,” repairs, overnight use of a vehicle for sleeping, using the parking lot as a loading dock, and so on. The convention center lot regulations and security measures should be similar to the city for enforcement actions such as booting, tow-aways, and impoundment fines.

Exercise Tight Control over “Free” and Complimentary Parking: This can easily get out of hand; for example, parking will be requested for union shop stewards, union business agents, friends of the mayor or board members, family members of the contractor or center employees, and so on. The effect may be a measurable reduction parking revenues.

Non-event Day Paid Parking: If in an urban area with other employment centers nearby, non-event day parking may be an excellent source of revenue.

Communications

Communications services include wired telephone service, wired and wireless internet services and many more special communications services that use the convention center’s communications infrastructure. For convention centers that host technology events, this service is essential and growing. Tracking the progress of growth and business performance as a KPI is important. Most convention centers outsource this service to established communications companies capable of keeping up with rapidly changing technology and investing in capacity and service upgrades.

KPI: Market Pricing Comparisons to Competing Venues, Exhibitor Appointed Communications Contractors, and Portable WiFi Devices

Owner	Event Operations Department or whomever administers the telecommunications contract
Data Sources and Collection	The task of surveying communications services from competing venues is best assigned to a reliable intern as a project. To obtain the price differences between portable WiFi hotspots available for rent and hotspots on an exhibitor’s mobile device, you may be best advised by a telecommunications consultant. For exclusive contractors, they are able to provide this information through their competitive research.
Reporting Frequency	Annually

Why This KPI Is Useful

It’s difficult to reckon with telecommunications pricing at convention centers. Pricing has been affected by the “free” WiFi movement, the capacity problems surrounding high concentrations of wireless users, and the expense and ROI risk as convention centers try to keep up with new technology. All this coupled with instances of excessive pricing practices has drawn unwanted attention to communications services.

Excessive pricing by contractors is common and center management has felt its unfavorable consequences. A series of occurrences starting in 2012 sheds light on this matter. At several convention centers, the issue of exclusivity with respect to WiFi led to a string of bad publicity incidents accusing centers of stopping, blocking, or jamming personal WiFi (MiFi) hotspots operated by tradeshow exhibitors. The controversy continued, heavy fines were levied, and then in January 2015 the Federal Communications Commission (FCC) issued an unequivocal enforcement advisory prohibiting any form of intentionally blocking or disrupting personal WiFi hotspots. Exhibitors who chose other means for wireless internet services did so because of excessive pricing. In order to make sense and provide groundwork for pricing policies and decisions, it is best to do a thorough survey of pricing at competitive centers and other meeting venues as well as portable WiFi hotspots that can now be used at convention centers.

Objective

Obtain knowledge of ranking among competitors. This KPI will assist in developing a reasonable and fair pricing schedule.

Managing Unfavorable Conclusions and Inferences

When internet service first started at convention centers, there was a saying, “there is margin in mystery.” There is no mystery anymore and exhibitors are well informed about both wired and wireless services. Centers have to review pricing periodically. Review price comparisons carefully as opinions of fair price change rapidly. Review other communications service KPIs to see if trends are unfavorable. If so, you most likely have a problem as well with customer service. It may be time to consider a price roll back and, if the service is outsourced, time for a serious discussion with the communications contractor and their corporate offices.

How to Calculate and/or Organize Data

List and display pricing in a work sheet similar to “KPI: Utility Service Pricing Comparisons for Competing Venues.”

Presentation Notes and Formats

Table. Highlight highest prices in each category and highlight the Average column. Explain by narrative portable WiFi hotspot rental devices and mobile devices and their effect on convention center pricing.

KPI: Communications Profit or Commission Per GSF Rented

Owner	Event Operations Department or whomever administers the telecommunications contract The contractor will provide commission data or monthly estimates to the Finance Department. GSF Rented is obtained from the Sales Department.
Data Sources and Collection	If the “KPI: Operating Profit or Loss Statements for Each Event” is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Monthly or more frequently if data is collected by linking spreadsheets per the above.

Why This KPI Is Useful

Profit or commissions per GSF Rented is a valuable KPI because it is a basic productivity metric. It can also be used to forecast profits or commissions for future events. This KPI differs from electric and plumbing/ NSF because a major fraction of communications services may occur outside exhibit halls. Services may also be rendered in meeting rooms, auditoriums, and ballrooms.

Objective

Consistent, steady growth, based in part on price increases but more so through higher volume service sales, innovative digital service offerings, and productivity improvements.

Managing Unfavorable Conclusions and Inferences

It would be a surprise if this KPI declined considering the growth of mobile wireless devices and the dependence of business on digital communications. However the problem may be a decline in the rate of growth of this KPI. One reason may be that your communications infrastructure is experiencing capacity problems because your convention center has not invested in new technology infrastructure to meet demand. The other issue may be the price of service.

How to Calculate and/or Organize Data

Presentation Notes and Formats

Table, bar or line graph, or both, comparing current YTD, previous YTD and business plan. See sample a bar graph (Figure 3.3):

Figure 3.3 Communications service commissions per GSF Rented

KPI: Communications Profit or Commission Per GSF Rented for Event Type and Economic Sector

Owner	Event Operations Department or whomever administers the communications contract
Data Sources and Collection	Profit or commissions are reported by the contractor to the Finance Department. The Sales Department will provide information regarding event types and economic sectors and the GSF Rented for each. Finance in turn will compile profits or commissions for event types and economic sectors. If the “KPI: Operating Profit or Loss Statements for Each Event” is used and its work sheets completed, then through linking spreadsheets using MS Excel, this KPI can be automatically updated very soon after each event.
Reporting Frequency	Annually or more frequently if data are collected by linking spreadsheets per the above.

Why This KPI Is Useful

Unique knowledge based on event type and economic sector history is of value with respect to revenue and commission expectations and forecasts. It is also useful because it will improve event planning for WiFi access and broadband capacity.

Objective

Find out which event type and economic sector is the most profitable for communications services. This information is valuable because it applies a productivity metric specific to event types and economic sectors.

Managing Unfavorable Conclusions and Inferences

As described earlier, given the explosive growth in communications services it’s hard to imagine this productivity metric being unfavorable. More likely is that it will continue to grow and higher value services will be added. I would, however, pay attention to the rate of growth of communications services during technology events. Assume that service volume and sophistication shown at these events will eventually follow at other events like financial service events and manufacturing and health / science events. Pay close attention to pricing. High wireless service prices have driven some exhibitors to lease portable wireless devices (aka MiFi) for internet communications. This is lost revenue and also cause for intermittent interference on convention center WiFi.

How to Calculate and/or Organize Data

The calculation method is the same as “KPI: Communications Service Profit or Commissions/GSF Rented.” It will have to be done for each event type and economic sector.

Presentation Notes and Formats

This format will have to be rich with data as it covers multiple event types and economic sectors all organized to show comparisons and results over time. Begin with tables organized where the best performers are on listed in a descending order. Bar graphs may work also as annual statistics are compared. This KPI should prompt a deeper dive into the type of billable items most ordered per event type and economic sector. Table 3.1 shows a sample KPI prepared.

COMMUNICATIONS COMMISSION PER GSF RENTED BY ECONOMIC SECTOR
	2018	2019	2019 Plan
GSF Rented	1,545,800	1,661,950	1,700,000
Technology	$4.58	$4.72	$4.70
Finance	$4.22	$4.35	$4.35
Mfg., Ind. and Const.	$3.96	$4.08	$4.10
Health Science	$3.88	$3.92	$3.95
Transportation	$3.41	$3.44	$3.45
Fashion	$2.75	$2.78	$2.80
Consumer Goods	$2.67	$2.70	$2.70
Food	$2.65	$2.65	$2.65
SMERF	$2.56	$2.56	$2.56
Arts and Leisure	$2.23	$2.14	$2.15
Average - all sectors	$3.29	$3.33	$3.34

Table 3.1 Communications commissions per GSF Rented by economic sector

Cleaning

KPI: Event Cleaning Pricing Comparisons to Competing Convention Centers

Owner	Event Operations Department or whomever administers the event cleaning contract
Data Sources and Collection	The task of surveying cleaning prices is from the cleaning contractor or is best assigned to a reliable intern as a project. This is best accomplished by surveying and ranking cleaning prices at competing convention centers. Importantly, include the cost for vacuuming aisle and lobby carpet, “trash out” (exhibit floor cleaning after exhibitor freight is moved out) and waste hauling prices in the survey.
Reporting Frequency	Annually

Why This KPI Is Useful

Market pricing comparisons will help determine the range of possibilities for pricing. Event organizers and exhibitors regard cleaning service as a commodity, so there is little about cleaning that is special to justify a higher than average price.

Objective

Determine the best price that fits the perceived pricing power.

Managing Unfavorable Conclusions or Inferences

It’s wise not to be the most expensive. If you are below average, roll up prices gradually, don’t overreach.

How to Calculate and/or Organize Data

List and display pricing in table form similar to the “KPI: Utility Service Market Pricing Comparisons for Competing Venues.” Calculate and include the average price. Also find out the average price for vacuuming aisle carpet, “trash out” (the move out cleanup) and for waste hauls off site by container. The last measure should be by cubic yards or by weight.

Presentation Notes and Formats

Table. Highlight highest prices in each category and highlight the Average column.

KPI: Event Cleaning Profit or Commissions Per Total Carpeted Area

Owner	Event Operations Department or whomever manages the event cleaning contract
Data Sources and Collection	The Finance Department will have all event cleaning profit or commissions. When outsourced, the cleaning contractor will report commissions to the Finance Department. Revenue earned by charging the event organizer for waste hauls will be provided by the Event Operations Department. The Event Operations Department will provide the total square footage of carpeted areas. This includes all NSF, aisle, and lobby carpet.
Reporting Frequency	Monthly

Why This KPI Is Useful

This KPI gives an important productivity measure of cleaning service performance.

Objective

The objective is to grow cleaning profit or commission/Total Carpeted Area based on productivity and increased cleaning service sales to exhibitors. This information will be used to forecast event profitability and to establish a benchmark cleaning service profit/Total Carpeted Area.

Managing an Unfavorable Conclusion or Inference

A decline in this productivity metric is probably caused by poor labor productivity. Cleaners are a casual workforce. For most cleaners, it is a part-time job or an entry into the labor force until they find something more reliable. The work is mostly late at night into the first few hours of morning. There is time pressure and occasionally conflicts with other trades who may be working late. Breaks in the routine and pace of work only slow the process down. Planning, coordination, and supervision are key elements in keeping productivity levels high.

How to Calculate and/or Organize Data

Presentation Notes and Formats

Tables, line graphs, or both, comparing current YTD, previous YTD and business plan.

Things to Watch for—Misinterpretations, Nuances, and Cautions

Remember to Include the Waste Haul Fees Paid by the F and B Contractor: These fees are normally included in the F and B contract and are paid annually.

KPI Reports Should Record Discounts and Package Deals by Footnote: These circumstances occur from time to time as a price concession, for single payers, like event management or a corporate sponsor. They normally pay in advance for high volume services which are the same for each exhibit booth or selected exhibitors.

Periodically Review First Day Cleaning Prices for Vacuuming Exhibitor Booths: This review may reveal that a major fraction of exhibitors will arrive on opening day and unpack their products to be displayed. In this process their booths are likely to become messy again. Exhibitors will then complain that their booths were not cleaned overnight. Most centers and contractors don’t argue but rather vacuum the booths again. The best method to compensate for this is to raise opening day booth and aisle cleaning prices.