Romil Bahl, A.T. Kearney
Global Sports and Entertainment Practice Leader
May 13, 2003
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
A.T. Kearney 7/39252
2
Mega-sports events deliver substantial economic and social
benefits to sports governing bodies and host cities/countries
Mega-Sports Event Benefits
Direct Event Benefits
• Broadcast rights
• Global and Local Sponsorship
• Tickets
• Merchandising/Licensing
Induced Benefits
Indirect Event Benefits
• Domestic and international
tourism
• Employment (e.g., construction,
tourism, and event-related jobs)
• Other local business revenues
(e.g. retail)
• Multiplier effect of foreign visitor
spending
• Government tax revenue
• Social and cultural benefits
• Infrastructure investment and
legacy
A.T. Kearney 7/39252
3
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
A.T. Kearney 7/39252
4
To succeed, event organizers need to adopt a comprehensive
and integrated event-management mind-set…
Venues & Infrastructure
IT, Internet & Telecom Solution
• Architecture & Integration
• Event systems
• Internet
• Hardware and software
• Testing & technical rehearsals
• Event network (voice and data)
• Network equipment & cabling
• Wireless
Event Coordination
• Scheduling of events
• Roster development
• Competition organization
• Spectator services
• Accreditation
• Volunteer training and coordination
• Officials and referees
• Cultural program
Source: A.T. Kearney analysis
• Stadiums and venues
• Games village
• International media center
• Hotels
• Airports
• Rail and bus stations
• Conversion to municipal use
Comprehensive and
Integrated Event
Management
Mind-set
Ticketing & Sales
• Ticketing
— International
— Domestic
• Merchandise Sales
• Accommodation sales
Marketing, Sponsorship & Media
• Marketing & advertising
• Internet Site
• Public Relations
• Communications
• Media operations
• Hospitality
• Sponsor Management
• Licensing and Rights Protection
Transportation and Logistics
• Transportation infrastructure
• Public transportation
• Transportation planning
— Olympic Family
— General public
• Transportation operations
• Warehousing and logistics
• Materials management
A.T. Kearney 7/39252
5
…event organizers need to use a rigorous and comprehensive
mindset along the entire event lifecycle
Mega-Sports
Event
(e.g. Olympic
Games)
Bid
48 – 60
Months
Setup & Conceptual
Strategy Planning
6 – 12
Months
6-12
Months
Operational Planning
& Build-out
36 – 48
Months
Testing &
Deployment
6–9
Months
Hosting
1–2
Months
Post-Event
Management
6 – 12
Months
Size of
Event
Large-Scale
(e.g. Cricket
World Cup)
18 – 24
Months
3–9 6-9
Months Months
24 – 36
Months
3–6
Months
1–2
Months
3–6
Months
Time
Source: A.T. Kearney analysis
A.T. Kearney 7/39252
6
A.T. Kearney experience and research reveals organisers of
successful events adopt certain best practices throughout the
event life-cycle
Organisation and
Governance
Risk Management
and Contingency
Planning
Stakeholder and
Government
Collaboration
Event Management
Best Practices
Program
Management and
Communications
Revenue
Optimisation and
Cost Containment
A.T. Kearney 7/39252
7
Best practices — organization and governance
Best Practices
CEO
• Rapid organisation establishment
Infrastructure
Commercial
Operations
IT
Marketing
Transportation
Construction
Image
Sport
Sponsorship
Accommodation
• Balance between process and
functional view of organisation,
transforming to a venue view
CEO
Staff
• Clear roles, responsibilities and
accountabilities
COO
MOC
Venue 1
Venue 2
• Evolving structure and size over
the event-life-cycle – from a
“thinking” to a “doing”
organization
Venue N
Operating
Workforce
• Obtain the required competencies
and skills — use of third-party
expertise
A.T. Kearney 7/39252
8
Best practices — stakeholder and government collaboration
Approaches for successful interaction with stakeholders
Core
Standing
Committee
Discrete
Legal Entity
Significance
of Activity
Best Practices
• Tight government collaboration
– Specific-purpose government
entities
– Full government backing at
local and national level
• Sponsor/supplier staff integration
Periodic Meetings
Staff Integration
• Proactive public and media relations
Support
Communication
• Regular stakeholder communication
Operational
Delivery
• Consistent issue escalation and
resolution approach
Type of Interaction
A.T. Kearney 7/39252
9
Best practices — revenue optimisation and cost containment
Asia
TV Rights
USA
…
Sponsorship
Revenue
Sponsor/Licensing
Local Sponsorships
Lotteries
…
Ticket Sales
Sports Facilities
Village
Capital
Media Center
…
Sports Events
Expense
Ceremonies & Programs
Transport
Operations
Security
…
Best 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”
A.T. Kearney 7/39252
10
Best practices — program management and communications
Best Practices
• Program-wide blueprint
• Robust program management
disciplines
• On-line collaboration and
communication tools
• Knowledge management
• Cascading program
management approach
– Overall event
– Operational
– Functional
A.T. Kearney 7/39252
11
Best practices — risk management and contingency planning
Best Practices
• Risk management mind-set
Red
• Consolidated risk capture and
tracking
Amber
• Continual re-focusing of resources
to highest priority risks
Green
Timing Rating of the Risk
Controllability Legend
High
Medium
• Robust escalation and resolution
processes
• Contingency planning and
scenario development
• Crisis management planning
Low
A.T. Kearney 7/39252
12
A.T. Kearney has developed a mega-scale event management
toolkit to support event organizers and sports governing bodies
Event Strategy & Structure
Bid Strategy
Event Organization Structure
Event Strategy, Blueprint &
Roadmap
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
Governance
Program
Tracking & Risk
Management
Budget &
Financial
Management
Strategic Sourcing
& Asset Tracking
Program
Communication
A.T. Kearney 7/39252
13
A.T. Kearney
5400 Legacy Drive
MS B1-1A-01
Plano, Texas
75024
Romil Bahl, A.T.Kearney
Global Sports and Entertainment Practice Leader