Gone are the days when the typical business meeting planner was given a budget, asked to organize an event and when all was said and done, simply added the cost to the company’s year-end marketing expenses. With new federal legislation being passed that demands greater accountability for corporate spending, meeting planners are becoming increasingly responsible for procurement and the always dreaded financial bottom line. All too often, large budgets are consumed by lavish meetings that only yield subjective and impersonal data with no real understanding of how such events are contributing to overall business. Meeting Professionals International (MPI) has recently encouraged the use of the Phillips Methodology in measuring return of investment (ROI), a model that expands on traditional formats for measuring business meeting success.

The Phillips ROI methodology can be broken down into the following ten-step model:

1. Develop/Review Objectives of Solution - The initial stage of planning should outline the company’s objectives as well as identify the area of business that is meant to be influenced by the proposed event. Procedures should be revised as needed and financial parameters should be clearly established.
2. Develop Evaluation Plans and Baseline Data - At this stage, the purpose for implementing the examination methodology should be defined. Initial data (the baseline) should be collected as well as identifying strategies for collecting future data.
3. Collect Data During Event – The data collected during the event is meant to capture the immediate responses of the participants. This data also reflects what was learned from the program and whether or not it was appreciated by those involved.
4. Collect Data After Event – Follow-up data including participant responses should be collected and behavior changes should be noted as well. This data should reflect change across all levels of development and show how each level has been affected by the procedures.
5. Isolate the Effects - It should determined to what degree business what impacted by the procedures. Here, the meeting can be analyzed on a superficial level in terms of the magnitude of change brought about by the meeting or event.
6. Convert Data to Monetary Value - At this point, the data that is collected should be converted to monetary values for a more specific analysis. Based on the monetary figures, it can be deduced whether or not the budget plan was adhered to and if the resulting gross revenue undermined meeting costs.
7. Find Intangible Benefits – The intangible elements are pieces of data that cannot be read strictly in monetary terms, such as absenteeism and turnover rates. The barriers to the specified objectives should be identified and reported.
8. Capture the Costs – At this stage, the costs of the operation should be pinpointed and clearly recorded. A log of expenditures will help determine the efficiency of the initial budget plan.
9. Calculate ROI – The return of investment can be calculated by dividing the event costs by the event benefits. Multiply the quotient by one hundred and the resulting percentage is the final ROI. The higher the ROI, the more successful the meeting.
10. Report to Stakeholders - When making the final report, it is important to include both the positives and the negatives. The report should clearly outline what elements of the plan-of-action worked, what did not, and what could be improved upon for future meetings and events.

By adopting the Phillips ROI methodology, meeting planners can avoid the unmanaged spending which is causing corporations to shrink already economical budgets. Planners shouldn’t fear the reporting of negative results. If a meeting turns out to be unsuccessful according to the financial bottom line, then the Phillips methodology will assist in correcting the errors for future ventures. This new way of measuring the success of meeting and events is contributing to the initiative to make meeting industry professionals a more proactive part of corporate infrastructure. Instead of simply performing the functions of “event planner,” the Phillips methodology is allowing meeting planners to become key contributors to the success initiatives of their respective industries.