What is the biggest issue that stands between a policy and its successful delivery? Is it a lack of knowledge or ability in order to create one? Is it uncooperative or unable suppliers or intermediaries? Is it poor uptake or availability of appropriate technology systems? Or is it simply that end users either cannot or will not comply with edicts and have ways of getting around them?
Depending on your own experiences you could say one, some or all of the above but I think you might be missing something even more important. What is this something? It is what I call the three ‘P’s of internal Politics, Procedures and Processes and these have nothing to do with suppliers, intermediaries or individual travellers.
I have seen so many companies invest huge resources and money to create detailed and potentially rewarding travel programmes only to waste much benefit due to the three ‘P’s. Many of them choose not to identify this as the cause as it would not be considered ‘Politically’ correct to do so especially as the issues usually start at board level. A shame really as board level is where any rectifying needs to start.
So what am I actually saying? I believe that internal politics, inflexible procedures and lack of communication processes are the biggest road blocks when it comes to the delivery of a negotiated and delivered travel programme. I am also saying that non compliant travellers are not the biggest villains, it is more likely the messages they are receiving (or in some cases not) from much higher up the business chain of command.
Taking a closer look at any company’s board you can see why problems could occur. Rather like a herd of elephants you have the strong patriarch and around him a chain of command with different interests and abilities. Again, like any herd there is a fair amount of head butting and scheming going on. They all represent different interests from finance to sales, operations to procurement and some hold more sway than others.
Eventually these ‘band of brothers’ agree a policy. But do they really? You can be certain that there will be winners and losers but when it comes to something as emotive as travel they seem less inclined to feed their solidarity down the line. In some areas there can be a visible lack of zeal and that is all it takes to undermine a policy. Particularly when there are so many practical ways of getting around it.
Many companies end up with a policy that has been presented by procurement who are by no means top dog (or elephant!) at the board table, which is not satisfactory to all and then they have to communicate it to a sometimes incredulous work force. This is where we come to the second closely linked ‘P’ of procedures. Who is allowed to say what to whom and what are the ‘P’ for processes for doing it. How much can you or can’t you say about your decisions? How much should you justify them? How much should you mandate them?
Let us say those wise old elephants have at least given tacit support to the policy. Who is going to sponsor it and keep on the agenda as the process develops? Who is going to go to senior directors and ask them to pull their folk into line? How are those messages going to transmit through a company that, possibly, apart from payroll has no appropriate method for these types of communication?
My message to corporations is a simple one. Sort yourself out at the top. Put into place procedures and processes and only then consider the creation of a policy that is going to be committed to and enforced across the whole employee base. This will save you more than any supplier or intermediary will.
Tampilkan postingan dengan label travel compliance. Tampilkan semua postingan
Tampilkan postingan dengan label travel compliance. Tampilkan semua postingan
Rabu, 15 Februari 2012
Senin, 28 Februari 2011
Travel Services – Buying is just the beginning.
I have encountered many of what I would call classic buyers in my career selling travel services. By that I mean very professional people who know exactly what they want and how to get it at the best rate. They are well practised in procedures and buying protocol and have a clear plan. Good stuff, but is it enough? I do not think so.
I think there are better deals to be done and improved return if two other abilities are learned and brought into play. They are presentation and selling skills. Buyers should know how to buy but there are often other considerations that come into play when buying a service like travel. For example unless you really are going to issue a mandate that is capable of monitoring and enforcing there is likelihood you could lose 20% volume from the programme. You will also probably be buying from people who are frankly not up to dealing with professional buyers. This brings me back to selling and presenting.
Most travel suppliers are becoming more and more cynical and suspicious about the ability of buyers to deliver volume negotiated in travel deals. They are now starting to hold back a little and only give the best package to those that convince them they can deliver volume where there mouth is. The most mutually successful deals I have seen are where buyers are able to ‘sell’ their ability to deliver in a way that has credibility. I once helped a buyer create their own volume delivery agreement which they gave to a delighted supplier and got a fantastic market leading deal.
The deal itself is the beginning not the end of the project. There are numerous ways people can get round a policy and I have seen them all. I could write a book about it! However many loopholes can be closed , or at least made harder, by the ability of the buyer to get to the right internal audience along with a strong sponsor and present their case. To me this is more important than the deal itself.
I have always tried to tell myself that to be successful I should out-sell the salesman and successfully communicate how clever I (the company) has been. After all if you have used you selling skills to get an exceptional programme you might as well you communicate the benefits to ensure everyone knows and acts upon it.
There is so much talk and activity around apps, social networking et al. perhaps if we used some of these fast developing tools to focus on compliance and rationales then companies would have greater control and diminished leakage. A better ROI than repetitive tendering and programme changes to keep a leaking travel bucket full.
I think there are better deals to be done and improved return if two other abilities are learned and brought into play. They are presentation and selling skills. Buyers should know how to buy but there are often other considerations that come into play when buying a service like travel. For example unless you really are going to issue a mandate that is capable of monitoring and enforcing there is likelihood you could lose 20% volume from the programme. You will also probably be buying from people who are frankly not up to dealing with professional buyers. This brings me back to selling and presenting.
Most travel suppliers are becoming more and more cynical and suspicious about the ability of buyers to deliver volume negotiated in travel deals. They are now starting to hold back a little and only give the best package to those that convince them they can deliver volume where there mouth is. The most mutually successful deals I have seen are where buyers are able to ‘sell’ their ability to deliver in a way that has credibility. I once helped a buyer create their own volume delivery agreement which they gave to a delighted supplier and got a fantastic market leading deal.
The deal itself is the beginning not the end of the project. There are numerous ways people can get round a policy and I have seen them all. I could write a book about it! However many loopholes can be closed , or at least made harder, by the ability of the buyer to get to the right internal audience along with a strong sponsor and present their case. To me this is more important than the deal itself.
I have always tried to tell myself that to be successful I should out-sell the salesman and successfully communicate how clever I (the company) has been. After all if you have used you selling skills to get an exceptional programme you might as well you communicate the benefits to ensure everyone knows and acts upon it.
There is so much talk and activity around apps, social networking et al. perhaps if we used some of these fast developing tools to focus on compliance and rationales then companies would have greater control and diminished leakage. A better ROI than repetitive tendering and programme changes to keep a leaking travel bucket full.
Rabu, 09 Februari 2011
Getting back to basics with business travellers
How much does the average business traveller know about travel programme management? I would argue strongly that the answer is very little which is a problem. How much does the average travel buyer know about the practicalities of using travel to meet individual traveller’s needs? Again I would argue very little except for their own particular experiences. Is this a healthy state of affairs? No.
It has always vexed me how little time and effort is spent educating, briefing and convincing business travellers of the rationale used when creating a travel policy. How can a company expect their travellers who obviously know their budgetary and practical travel needs better than anyone else to follow a policy that seems diametrically opposed to their objectives. Should they be told simply to do what they are told? Or should they have the company policy fully explained and justified.
I am not talking rocket science here. To start with one could get down to basics. Key travellers and budget holders should be approached and asked to explain any reasons why they have issues with the policy and invited to ask specific questions to illustrate these concerns. This will bring out the usual range of arguments about why certain airlines are used, why prices vary so dramatically and why can they not simply go out and choose the best fare for their own budgetary and travel needs.
These arguments are the underlying reasons why most corporations have significant known (and unknown) travel compliance issues yet very little is done about it. The average company seems keener to go out and negotiate prices with suppliers than undertake possibly more productive internal ‘housekeeping’ through communication and collaboration.
Here are a few basic example answers to basic questions that might provide surprising results if travellers understood why certain things are done that way:
Q: Why do I have to use agent X when if I book direct with an airline or use another agent I might get better?
A: The company as a whole needs a total picture of its spending and location of travellers for safety, security, financial and procurement reasons. Part of our contract with agent X ensures we get all this information and support in order to maintain control and drive improvement. Any bookings made outside the programme are lost to the company and weaken its ability to support the individual and corporate needs of all stakeholders.
Q: Why am I made to use certain airlines and certain fares when I can possibly go out on my own and find something better?
A: When the company negotiates these deals with airlines it looks at the total annual requirement of the group. It agrees fares that will be available throughout the period which represent significant discounts and other benefits. There will be occasions when lower fares will be possible but availability will be strictly limited and restrictions will apply. By going outside the programme and taking these one off individual discounts it will weaken the company’s ability to get greater benefits for all over a longer period resulting in higher cost. The overall benefit to the company of a negotiated deal is far higher than the occasional individual saving
Q: I went to an overseas conference and found other delegates who travelled on the same plane but paid less for their ticket than me. What’s going on!
A: The likelihood in today’s market of any person on a plane paying the same as another is very small unless they were booked together at the same time or booked on a fixed price. Airlines shift their prices constantly linked to time before travel, numbers booked and historic data. For example there is no such thing as a standard price on a low cost airline. That is why it is best to book early when fares are historically cheaper.
Q: Why should I pay fees to agent X? I could do it myself much cheaper.
A: The fee to Agent X is not just for making your booking but for a vast range of services provided by them to you and the company. These include back up, management information, billing, account management and a raft of others. All this is lost to you and the company if you book outside the programme to everyone’s detriment.
These roughly drawn up examples hopefully illustrate the need to communicate with
travellers to explain that the company is not totally mad and has valid reasons for
requiring their compliance. I bet that if you asked your travellers these questions they
would not give the same answers! After all, how can you expect people to do what
you ask when you don’t explain why? Surely a better way than introducing a mandate
and trying to enforce it on an incredulous traveller.
It has always vexed me how little time and effort is spent educating, briefing and convincing business travellers of the rationale used when creating a travel policy. How can a company expect their travellers who obviously know their budgetary and practical travel needs better than anyone else to follow a policy that seems diametrically opposed to their objectives. Should they be told simply to do what they are told? Or should they have the company policy fully explained and justified.
I am not talking rocket science here. To start with one could get down to basics. Key travellers and budget holders should be approached and asked to explain any reasons why they have issues with the policy and invited to ask specific questions to illustrate these concerns. This will bring out the usual range of arguments about why certain airlines are used, why prices vary so dramatically and why can they not simply go out and choose the best fare for their own budgetary and travel needs.
These arguments are the underlying reasons why most corporations have significant known (and unknown) travel compliance issues yet very little is done about it. The average company seems keener to go out and negotiate prices with suppliers than undertake possibly more productive internal ‘housekeeping’ through communication and collaboration.
Here are a few basic example answers to basic questions that might provide surprising results if travellers understood why certain things are done that way:
Q: Why do I have to use agent X when if I book direct with an airline or use another agent I might get better?
A: The company as a whole needs a total picture of its spending and location of travellers for safety, security, financial and procurement reasons. Part of our contract with agent X ensures we get all this information and support in order to maintain control and drive improvement. Any bookings made outside the programme are lost to the company and weaken its ability to support the individual and corporate needs of all stakeholders.
Q: Why am I made to use certain airlines and certain fares when I can possibly go out on my own and find something better?
A: When the company negotiates these deals with airlines it looks at the total annual requirement of the group. It agrees fares that will be available throughout the period which represent significant discounts and other benefits. There will be occasions when lower fares will be possible but availability will be strictly limited and restrictions will apply. By going outside the programme and taking these one off individual discounts it will weaken the company’s ability to get greater benefits for all over a longer period resulting in higher cost. The overall benefit to the company of a negotiated deal is far higher than the occasional individual saving
Q: I went to an overseas conference and found other delegates who travelled on the same plane but paid less for their ticket than me. What’s going on!
A: The likelihood in today’s market of any person on a plane paying the same as another is very small unless they were booked together at the same time or booked on a fixed price. Airlines shift their prices constantly linked to time before travel, numbers booked and historic data. For example there is no such thing as a standard price on a low cost airline. That is why it is best to book early when fares are historically cheaper.
Q: Why should I pay fees to agent X? I could do it myself much cheaper.
A: The fee to Agent X is not just for making your booking but for a vast range of services provided by them to you and the company. These include back up, management information, billing, account management and a raft of others. All this is lost to you and the company if you book outside the programme to everyone’s detriment.
These roughly drawn up examples hopefully illustrate the need to communicate with
travellers to explain that the company is not totally mad and has valid reasons for
requiring their compliance. I bet that if you asked your travellers these questions they
would not give the same answers! After all, how can you expect people to do what
you ask when you don’t explain why? Surely a better way than introducing a mandate
and trying to enforce it on an incredulous traveller.
Senin, 23 Agustus 2010
Travel Compliance – So very easy.
After 42 years in the business and 3 years out I am still aghast that almost all corporations I meet and hear about have not been able to crack the compliance issue. By this I mean their directors, executives and workforce being given a travel policy and complying with it.
I cannot really see the point of building a technology and service infrastructure, buying new innovation and deeply detailed specifications only to fail in the most basic and obvious areas of communication and buy-in. You can have the smartest schemes, the keenest deals and the best online and offline support but if you do not tell people what you have done, why you have done it and got the unflinching support of ALL your board then there is very little point for the time and effort put into it.
To me it is so glaringly obvious that, before anything else, the fundamental communications groundwork must be in place. This should include:
a) What you are doing.
b) Why you are doing it.
c) What will be achieved?
d) A clear rationale for change.
e) Unequivocal evidence of executive management support.
f) A total mandate from the man at the top.
All this as a minimum should have total distribution to existing travellers and new entrants to the company. It should be kept alive by updates, progress reports, competitive performance tables and possibly even a ‘bad boys’ list.
There also has to be two areas that MUST be addressed and the both have equal importance as, without both, you will get nowhere. Firstly you have to clearly answer all the criticism and arguments against compliance before they are ever raised. This is easy as everyone should know what they are. They will range from ‘what if I find a better fare’ to ‘the timings offered were all wrong’ to ‘it’s my budget and I can spend it as my business demands’
The last comment raises the second biggest issue which is managing the cost, savings and credits of policy compliance. If you cannot do this one then I doubt you will move forward from where you are today. The answer could be anything from internal ‘incentives’ to central budgets but you must find it.
So there you are. Easy! No I am not being flippant, it should be easy. After all, if travel is really that commodity you buy then it should be treated like computers, software or anything else you purchase and get the same type of compliance. Then and only then can you move on to all the aids and gizmos available to keep the policy fresh, interactive and easy to follow.
I cannot really see the point of building a technology and service infrastructure, buying new innovation and deeply detailed specifications only to fail in the most basic and obvious areas of communication and buy-in. You can have the smartest schemes, the keenest deals and the best online and offline support but if you do not tell people what you have done, why you have done it and got the unflinching support of ALL your board then there is very little point for the time and effort put into it.
To me it is so glaringly obvious that, before anything else, the fundamental communications groundwork must be in place. This should include:
a) What you are doing.
b) Why you are doing it.
c) What will be achieved?
d) A clear rationale for change.
e) Unequivocal evidence of executive management support.
f) A total mandate from the man at the top.
All this as a minimum should have total distribution to existing travellers and new entrants to the company. It should be kept alive by updates, progress reports, competitive performance tables and possibly even a ‘bad boys’ list.
There also has to be two areas that MUST be addressed and the both have equal importance as, without both, you will get nowhere. Firstly you have to clearly answer all the criticism and arguments against compliance before they are ever raised. This is easy as everyone should know what they are. They will range from ‘what if I find a better fare’ to ‘the timings offered were all wrong’ to ‘it’s my budget and I can spend it as my business demands’
The last comment raises the second biggest issue which is managing the cost, savings and credits of policy compliance. If you cannot do this one then I doubt you will move forward from where you are today. The answer could be anything from internal ‘incentives’ to central budgets but you must find it.
So there you are. Easy! No I am not being flippant, it should be easy. After all, if travel is really that commodity you buy then it should be treated like computers, software or anything else you purchase and get the same type of compliance. Then and only then can you move on to all the aids and gizmos available to keep the policy fresh, interactive and easy to follow.
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