Credit Suisse First Boston

<B>Credit Suisse First Boston</B>
<I>CSFB Centralizes Mtgs. Mgmt.</I>

By Chris Davis

Credit Suisse First Boston Corp. has centralized control over meetings management this year and hopes to save about $5 million of its estimated annual $50 million corporate events spend through documented negotiations and cost avoidance.

Under CSFB head of global travel and corporate events Michelle Lee, changes over the past three months have brought the company's meetings department under a more structured organization, increased the level of approval needed to stage an event, as well as the level of post-event reporting and documentation of cost savings.

The changes are part of a 50-page business plan that Lee created and implemented shortly after she became head of the corporate events department a few months ago. While the program, implemented in April, still is too new to document savings, Lee plans to shave at least 10 percent off expenditures incurred from CSFB's 700 annual corporate meetings.

"When I became involved with corporate events, the meeting planners already were strong and successful on the creative side of the business," New York-based Lee said. "The only part that was missing was the business side--providing structure and documentation of plans and initiatives to senior management and clients. It was clear we had exceptional staff in place that were creative and provided signature events. So my job was easy, just to provide the component that was missing."

Lee began by restructuring the department's 32 employees worldwide into a more centralized setup based on their geographic location. Four regional managers, one each in Hong Kong and London, and two in New York--one to handle executive meetings only--were designated to provide worldwide continuity.

"Because of time and culture differences, we wanted to ensure there was someone in each location to interact with clients, have financial control and handle staff management," Lee said, "which has led to a good combination of creativity and business knowledge. We have put a structure in place for cross-regional interaction, so if the host in Singapore holds an event in London, we'll have two planners--one with the host in Singapore to provide the host with a comfort level, the other in London so they have someone to ensure local knowledge and support. We save costs through that setup."

A detailed, automatic approval process also was established for internal meeting sponsors. An online form exists on CSFB's intranet, which sponsors must send to managers depending on the scope and cost of the meeting. "They need the approval of their management prior to the confirmation of any conferences," Lee said. "For some large meetings, that approval could go as high as the CFO."

The automated system is beneficial for saving costs through the removal of paper from the approval process, Lee said, but more importantly in cost avoidance. "We will not sign any contracts or agreements without those approvals in place, which ensures the event is budgeted, approved and actually going to occur."

CSFB does not mandate the use of preferred suppliers in meeting sourcing, but given that Lee is head of both transient and meetings travel, there is an effort to include them when applicable.

The company will attempt to book meetings air travel under the terms of its contracts with preferred carriers, but if those contracts aren't applicable for groups of 10 or more or involve more than one layover, the carrier won't be used. Similarly, CSFB will first consider preferred properties as meeting sites, but won't insist the event be held at one.

"What works for transient travel doesn't always work for meetings, but it is the first opportunity for us to ascertain if it's a feasible option, which strengthens relationships with our preferred suppliers," Lee said. "But CSFB focuses on providing signature events and doing things nobody has ever done before. For that reason, with the exception of ensuring we're cost-effective, we have not put restrictions on supplier selection."

The corporate events department also has instituted a comprehensive method of documenting return on investment, usually in the form of a face-to-face meeting or telephone interview with the meeting host, as well updates to a database that details each expense of each meeting. At the close of each event, CSFB planners complete a one-page survey form after interviewing the meeting host and document what meeting functions were done well and what needs improvement.

"That isn't automated because we want to make sure the forms are completed, and the chances of that are better because of the developed relationship between the host and planner," Lee said. "We also go back to the database and put in the actual costs of every dollar spent during the conference--food and beverage, air, ground transportation, everything--and enter it into the system. If they're budgeting for a similar meeting the following year, all the information is in the same database. It's an excellent resource providing total costs, spend versus budget and host evaluation."

The database also illustrates cost avoidance, as it documents what the planners were able to save in negotiations above what the hosts might have spent if they or a non-planner had formed the contracts.

Lee was able to get the changes to the meeting program approved quickly, needing only a single presentation with her boss, CSFB's London-based managing director. "He is very supportive of this department," she said. "There was no convincing necessary." Lee met with each of the 32 involved employees to explain what the changes would mean to their day-to-day routines, the benefits of the new program and to receive feedback, suggestions and ideas.

<B>Adding Video To The Mix</B>

Lee also has plans to further incorporate videoconferencing into the meetings program. CSFB has videoconferencing facilities and equipment all around the world, and Lee now heads that department. Eventually, CSFB travel agents will have access to the company's videoconferencing calendar and will offer the service to callers booking applicable travel or meetings.

"Agents will always book travel reservations as requested. However, in certain circumstances, they may also offer videoconferencing room availability in the two sites," Lee said. "We want to be proactive in cutting travel where it is possible. This is definitely not something we would mandate. However, we are looking to implement this service within the next six months. There are obvious synergies between the three departments that we want to take full advantage of and then pass it along to our internal clients."

CSFB and Lee may have more integration to come. The company's parent, Credit Suisse Group of Zurich, last month announced plans to buy New-York based financial services firm Donaldson, Lufkin & Jenrette in a $11.5 billion deal and merge it with CSFB.