Midterm 10/17 Flashcards
1
Q
What 3 needs do PAV’s meet that justify the investment of public funds
A
- Social stimulus for “Quality of Life”
- Economic stimulus for “Multiplier”
- Source of Community Pride
2
Q
A community built and operated PAV is to be 3 things:
A
Net income generator
Break-even operation
Subsidized operation
3
Q
What is the most common form of public assembly facility financing structure.
A
Public Ownership
4
Q
What is the most common form of ownerships and why?
A
Public Ownership/Public Employees because public bodies finance, construct, and manage the majority of PAVs
5
Q
The ten most common ownership entities of public assembly facilities
A
- City
- County
- State/Providence
- Authority
- University
- Non-Profit Corporation/Foundation
- Resident Company
- Sports Team
- Private Promoter
- Private Corporation
6
Q
To be effective all forms of governance and management should be
A
philosophically entrepreneurial and seeking a profit.
7
Q
The financial performance of a PAF depends on several factors, such as, but not limited to:
A
Competition for other facilities Capacity Rigging capability Willingness to take financial risk Labor rates Cooperative media
8
Q
What is an option for a PAV when selecting a mgmt. system
A
private mgmt
9
Q
Private management agreements are usually entered into to potentially help improve the bottom line financial position of a PAF
A
Increase operating revenue
Decrease operating expenses
Increase attendance
Increase ancillary revenue
10
Q
Reasons that governmental entities decide to privatize the management of a PAF
A
- Overcome bureaucratic controls
- The demand for more event activity
- The need for investment dollars
- Increase events
- Decrease financial losses
- The need for experienced professionals to open a new facility
11
Q
A private management agreement for a PAF usually includes
A
the potential for earning incentive income if the company exceeds predetermined financial and operational benchmarks.
12
Q
A trend in PAF management
A
professional sports franchises to own and manage the facilities they play in.
13
Q
8 Common operating dynamics
A
- Event booking and scheduling
- Event management
- Parking, traffic and transportation
- Crowd management
- Ticketing
- Advertising, marketing and sales
- Concessions and catering
- Facility maintenance and operations
14
Q
Executive Director’s/General Manager’s ultimate goal
A
To keep the system of governance mindful of the facilities mission, goals and objectives, especially in difficult economic times.
15
Q
The Executive Director/General Manager has a unique responsibility to manage both up and down the chain of command
A
- Manage up with your governing body
* Manage down with your direct report staff and those you supervise
16
Q
The challenge for all public assembly facilities
A
organize for success
17
Q
the public assembly facility manager must manipulate variables such as
A
time, space, monetary resources, and staffing
18
Q
The highest variable that will determine the success or failure of a PAV
A
Quality MGMT
19
Q
five common management functions
A
- Administration – People & Organization
- Sales and Marketing – Selling Time & Space/Event Activity
- Fiscal Management – Financial Performance
- Facility Services and Operations – Physical Plant/Event Management
- Ancillary Services – Revenue Sources
20
Q
Good managers tend to be
A
- People-oriented and inquisitive
- Eager to learn and apply new management and business principles
- Intensely devoted to fulfilling their job responsibilities
21
Q
In today’s competitive environment, successful managers must also be:
A
- Intelligent
- Knowledgeable
- Persistent
- Flexible
- Ethical
- An excellent motivator and leader of superior staff
22
Q
used to evaluate the manager’s and facility’s success or failure.
A
bottom-line financial data
23
Q
IAVM
A
International Association of Assembly Managers
professional association for any person who is actively engaged in the management of a public assembly facility
Active Members
Allied Members
Associate Members - Academic Faculty
Associate Members – Student
24
Q
The vision of the IAVM
A
”IAVM is the acknowledged leader in the public assembly facility management industry.”
25
the two primary commodities of the public assembly facility
Time and space
26
As a facility manager, your inventory is
available dates (avails) and space.
27
The importance of event booking in a PAF can be categorized by the following phrases:
•Quality of life
•Putting the facility “on the map”
Meeting the facility’s financial projections
•Cultural enhancement
•Helping to fill hotel rooms and tourist attractions
28
Two key ingredients to successful facility management
1. leverage
| 2. relationships
29
One of the most important tools used by a General Manager to insure the success of a public assembly facility
the scheduling calendar.
30
The number one administrative priority for a PAF manager
book the facility
31
the overall number one priority of a PAF manager
safeguard the customers, entertainers, teams and employees.
32
A promoter may reserve space in a facility at three distinct levels
1. Tentative
2. Confirmed
3. Contracted
33
'date protection” policy
When governing bodies institute scheduling criteria requiring a reasonable degree of separation between similar attractions
34
Marketing in in the context of public assembly facility management
the process of searching out and identifying potential business for a facility.
35
Two primary types of marketing for a public assembly facility
1. Marketing of the facility to the industry
| 2. Marketing the events to the community
36
In terms of sales and marketing, the 3 purposes of a PAF
1. Enhance the quality of life
2. Generate direct and indirect economic impact
3. Allow its citizens to “see and enjoy” sports and entertainment in a safe and comfortable environment
37
4 Advantages from an In-house AD agency
1. The ability to place ads at a lower rate
2. The ability to secure better ad placements in both electronic and print media
3. The ability to receive timely assistance on short notice
4. The ability to get free promotion spots
38
6 Types of Premium Access
1. Premium Seating
2. Luxury Suites
3. Party Suites
4. Courtside Seats
5. Club Seats
6. Personal Seating License (PSL)
39
6 Types of Commercial Rights
1. Naming Rights
2. Pouring Rights
3. Advertising Signage
4. Facility Sponsorships
5. Memorial Gifts
6. Branding of Food & Beverage
40
what the facility gives back to the company purchasing commercial rights.
Fulfillment Obligations for all commercial rights
41
3 basic outcomes of ticketing
1. Tickets were developed to serve as a form of access management…in a sense to count and control how many people enter a venue for an event.
2. Tickets were also created and developed to serve as a method to count and calculate the amount of money collected based on the number of tickets sold.
3. Tickets were created and used to value and designate a seating location.
42
2 basic tickets processes
1. Operations
| 2. Sales
43
The term used by some law enforcement officials to describe the criminal offense that is perpetrated by scalping in states where the activity is illegal
victimless crime
44
a residual of the re-sale or scalping of tickets by people who have purchased the tickets from a primary, authorized source of ticket sales.
secondary market
45
Database MGMT
the collection and use of the information that can be gathered from tickets sales transactions
46
Information included in database MGMT
* Demographic information
* Ticket buying patterns
* Price sensitivity
47
Another name for Yield MGMT
Revenue MGMT
48
The practice of Yield Management or revenue management for a PAF involves
the manipulation of prices in order to price tickets and seating locations differently for different customers and different times throughout the tickets sales campaign.
49
the most important method used to deterime what type of PAF the community wants, what it can afford, and how large it should be
a feasibility study
50
The dynamic nature of the industry make staffing very difficult because the manager must be able to assemble an
“elastic” workforce in order to adjust to the different labor demands associated with each event.
51
The most common type of PAF ownership and management structure
Public Ownership with Public Management.
52
is there a standard, single form of organization within the PAF management industry?
no
53
The entrepreneurial manager knows how to
devise and implement marketing strategies capable of producing favorable financial results.
54
The successful manager is
* A team leader
* A consummate advocate of the facility
* Aggressive in striving to achieve goals
55
What is important to remember about time and space
the value of these assets and the perishable nature
56
The booking calendar and its inventory of dates must be closely managed with uncompromising integrity and accuracy to
maximize profitability and to minimize any negative client/tenant relations.
57
Prior to any event being scheduled, the facility manager must answer 6 common questions
* Is the event consistent with the facility’s values and expectations?
* Are the dates, times, and spaces being requested available?
* Does the event fit? (i.e. Is the facility large enough to accommodate the space requirements)
* Will the event conflict with any activities of the primary tenant?
* Can the facility staff meet the demands of the event? (i.e. changeover)
* Does the person seeking to book the space have the necessary experience, authority, and financial resources?
* Is the proposed event safe and legal? If not, can it be made safe and legal?
58
Controversy of a proposed event should not
result in an automatic rejection.
59
Disallowing an event deemed “inappropriate” may
be illegal or invoke the First Amendment of the U.S. Constitution.
60
Prospective tenants desiring a date being held by another event organizer or promoter might ask for
a second hold or issue a challenge for the date sought
61
Getting a promoter “on” or “off” a date requires
non-refundable deposits and a move to contracted status as quickly as possible.
62
a financial mainstay for PAFs
sale of premium seating
63
the customer (ticket holder) deserves the opportunity to
“see and enjoy” the event/performance.
64
cost accounting
a more for-profit, business oriented system of controlling revenue and expenses and used to determine the financial health
65
There five (5) typical operating budget formats
* Line Item Budget
* Incremental Budgeting
* Performance Budgeting
* Planned Program Budgeting System (PPBS)
* Zero Based Budgeting
66
Line Item Budget
the most commonly used format in PAF budgeting
67
incremental budgeting
referred to as the “fair share” approach
68
Performance budgeting
focuses on efficiency
69
Planned Program Budgeting System (PPBS)
evaluates programs vs. goals
70
zERO bASED bUDGETING
blends efficiency and improved policy making
71
The budget process and system used to project the financial outcome of a PAF with an uncontrollable event schedule and event outcomes is referred to as
Best case/ Conservative/ Worst case
72
four very useful financial management tools
* Income Statement
* Balance Sheet
* Detailed Operating Cash Flow Statement
* Capital Expenditures Statement
73
All financial statements must be in compliance with
Generally Accepted Accounting Principals, (GAAP)
74
PAF deals in cash in many aspects of their business operations, including,
- box office sales,
- parking collections,
- food and beverage sales,
- merchandise sales
75
One of the financial systems used to track the significant amount of supplies and equipment used in a PAF on a day-to-day and event-to-event basis
inventory control
76
the financial process that a PAF GM competes with the promoter or team to finalize the ticket revenue and event expenses after the event is over
The settlement
77
The most significant aspect of a PAF settlement begins with
negotiating a thorough and all inclusive contract.
78
The system used to set-up and control a negotiation process includes 6 STEPS
* Research and Preparation
* Relationship building
* Information gathering
* Strategy selection
* Negotiation to a BATNA and Win-Win
* Implementing and managing the agreement
79
The essential process that a PAF Manager must understand when legally managing the Human Resources of their facility
Due Process
80
The Due Process system includes (6)
* Position Announcement
* Accurate and complete Job Description
* Employee Manual
* Verbal Performance Review
* Written Performance Review
* Termination, if necessary
81
five (5) basic ways in which the PAF manages the risk in the environment
* Risk Avoidance
* Risk Assumption
* Loss Prevention
* Loss Reduction
* Risk Transfer
82
Risk avoidance
based on historical data and the safety of attendees, avoid booking the event, but with justification
83
Risk Assumption
assuming the consequences of a loss
84
Loss Prevention
activities utilized to lower the chance of a loss to make the occurrence of a loss less frequent
85
Risk Transfer
the original party exposed to the loss is able to obtain another party to bear the risk (i.e. insurance)
86
The most common method used by a PAF Manager to transfer risk during an event is to buy a blanket insurance policy to protect the PAF in case the tenant should fail to obtain insurance coverage is named for its acronym
Tenant User Liability Insurance Policy (TULIP)
87
When managing a PAF, everyone on the staff must remember, it’s all about the
experience
88
The PAF has two customers
1. The entity that rents the PAF for an event (Promoter/Team)
2. The customer who buys the ticket (Guest)
89
There are two basic types of primary revenue in a PAF
* Primary revenue (rent)
| * Secondary revenue referred to as Ancillary Revenue
90
There are two basic types of ancillary revenue in a PAF
1. promoter related
| 2. customer related
91
Promoter related rev
In-House Marketing
Television, radio, and print advertising
Utility fees
Labor charge-backs
92
Customer related rev
Ticket fees
Food and Beverage sales
Parking fees
93
The negotiated amounts of rent follow the 3 structures
1. Rent as a percentage of gross ticket sales
2. Rent as a percentage of net ticket sales
3. Rent as determined by the number of people in attendance
94
five (5) areas in which a PAF can generate ancillary revenue by charging the Promoter or user of the facility for additional services
1. In-House Marketing and Advertising Agency Fees
2. Television and Radio Broadcast/Production Fees
3. Utility Fees
4. Labor Charge-Back Fees
5. Equipment Rental Fees
95
(4) areas in which a PAF can generate ancillary revenue by charging the Customer for additional services
1. Ticketing Service Charges
2. Food & Beverage Services
3. Merchandise Sales
4. Parking, Traffic and Transportation Services
96
In-house operations advantages
Ability to retain control
Ability to retain flexibility
Ability to retain all financial control and profits
97
Private Contractor advantages
Capital Improvement investment
Use of proven systems and personnel
Provides liability protection
98
The PAF Manager must assess the infrastructure of the business environment of the PAF to determine whether of not to issue and RPQ and RFP for a Private Foodservice Contractor. Some of those items include
```
Analysis of labor pool
Level of staff skill
Staff training requirements
Financial resources
Capital equipment needs
```
99
The sale of alcoholic beverages in a PAF carries both
high risk (liability) and high rewards (profits).
100
PAFs are not allowed, by Federal Law
enter into an exclusive pouring rights agreement with alcohol purveyors.
101
trends in food & beverage operations include
Destination restaurants and lounges
Credit, debit, ATM and smart cards used for foodservice in the PAF
Locally made micro brewed beers
Four pour beer taps and plastic bottles replacing draft beer
Local, regional and ethnic foods
In-seat ordering from a cellular phone
102
three basic types of merchandising contracts in the PAF industry
1. The flat rate fee
2. The per-person fee
3. The percentage-of-sales fee
103
There are a few important aspects of the parking, traffic and transportation services provided by the PAF Manager. They include
Limousine, Bus and RV Parking
Valet Service
Parking Lot Only Events
104
The basis for a successful, safe and secure event management process is
comprehensive planning.
105
The most critical aspects of the event management process are
The communication of pertinent details (dissemination of information)
The coordination of all event related details
106
One of the most important concepts and thought processes that a PAF Manager needs to understand is
they are not only the manager of the venue, but they are also the Event Manager on event days.
107
transparent event process
to plan and prepare in a way that both the performer and the audience are focused on their experience and are not subject to distractions.
108
what kind of approach should PAF manager use in the event planning process
proactive
109
event management philosophy that needs to be followed is
the same effort and attention to detail needs to be exerted on the smaller events that is put forth on larger events!
110
One of the key elements of event planning that is critical for the PAF Manager and their staff to focus on is
time sensitivity
111
The number one objective in every event employee’s job description and the focus of every event employee training session should be to
create an excellent event experience.
112
Creating safe and secure event staffing levels will depend on
Type of facility
Type of event
Anticipated audience
Demographics of customers
113
a well informed customer is usually
a well behaved customer
114
the production rider determines
the number of stagehands, riggers, loaders, and other back-of-the-house event personnel
115
determined by the PAF Manager
the front-of-the-house staffing levels
116
are two inseparable aspect of event management
Customer service and crowd management
117
Primary responsibilities of risk management include
```
Event Certificate of Insurance
Proper contract administration
Risk assessment
Security and crowd management planning
Emergency and crisis management
```
118
A typical assessment model includes
Asset assessment
Threat assessment
Vulnerability assessment
Risk analysis
119
one of the most difficult to manage and potentially the most dangerous areas to manage for a PAF Manager
The Operations and Event Services (OES) area
120
The OES area of a PAF has a number of tasks that occur before, during and after and event, including in between events. These are usually referred to as
Reconfigurations
Conversions
Changeovers
121
four (4) main functional areas in an OES department
Engineering
Maintenance and Housekeeping
Event Services
Trades
122
Three of the re-occurring themes that are especially applicable in the OES department are:
1. This department serves two clients…the promoter/team and the customer/guest
2. The department must function to a level that does not negatively affect the experience of the event or the guest. This is referred to as operational transparency.
3. The safety and security of the promoter/performer/team and the customer/guest is a primary responsibility from the time they arrive on the property until they have departed the premises.
123
The number one objective of the OES department
the ultimate safety and security of everyone in the facility.
124
optimistic pessimism
"what if" thinking
125
A few of the organizations that enforce safety standards and codes in a PAF include
Storage of Hazardous Materials (HAZMAT)
Occupational Safety and Health Administration (OSHA)
Americans with Disabilities Act (ADA)
National Fire Protection Association (NFPA)
126
green management
This is an initiative that has grown out of the concern in our society to be more environmentally conscious.The initiative cuts across all segments of our commercial and domestic buildings, and includes the design, construction, renovation and operation of facilities.
127
LEED
Leadership in Energy and Environment Design. This initiative was established in 1994.
128
The Green Building Council (GBC) members continue to refine LEED using a system to rate compliance that includes six major areas
1. Sustainable sites
2. Water efficiency
3. Energy and atmosphere
4. Materials and resources
5. Indoor environmental quality
6. Innovation and design process
