OPERATIONAL AUDIT
For the
Fresno Convention and Visitors
Bureau
An Assessment and Recommendations to Prepare for
Long Range Success
America’s Performance Leader in Destination Marketing
January 31, 2007
Table of Contents
Introduction and Background ........................................................ 2
Auditing Methodology ................................................................... 4
Report Findings and Recommendations.......................................... 8
SWOC Analysis........................................................................... 15
The CVB Industry: Models and Mission......................................... 11
Historical Tourism Perspective ..................................................... 13
Board SWOC Analysis ................................................................ 15
CVB Stakeholder Needs Assessment ........................................... 17
Financial & Administrative Management Issues ............................. 18
Operational & Marketing Policies and Procedures ......................... 22
Review of Tactical Marketing Programs ........................................ 25
ƒ Market Positioning for Meetings & Leisure Tourism
ƒ Convention Sales
ƒ Convention Services
ƒ Visitor Services
ƒ Collateral Development
ƒ Membership Development
Profile of the Successful Tourism Bureau: Comparing the Fresno CVB .... 30
Tourism Bureau Governance & Responsibilities ............................ 34
Recommended Mission Statement and Objectives ......................... 45
Market Funding Options.............................................................. 47
New Marketing Plan Format ........................................................ 51
Measuring Performance .............................................................. 53
Joint Marketing Agreement for Center & Bureau ........................... 56
Strategic Planning: The Fresno Tourism Summit ........................... 58
Review of Major Recommendations ............................................. 59
1
Introduction and Background
This audit was requested by SMG Management, operators of the Fresno Convention and
Entertainment Center, in support of their management responsibilities and contract
requirements, including the Memorandum of Understanding, for the Fresno Convention
and Visitor Bureau on behalf of the City.
The assignment is to provide an objective, impartial and industry based assessment of
the marketing and operational effectiveness of the Fresno Convention and Visitors
Bureau and to provide recommendations for future success.
For background, SMG Management, the nation’s leading private management firm for
public facilities, was retained by the city in January 2004 to operate and manage the
Fresno convention and entertainment center’s (FCEC) five facilities.
Two months later, in an effort to provide a more productive partnership and assure
community success in convention development, the City requested that SMG enter into a
subcontracting agreement with the Fresno Convention and Visitors Bureau for the
purpose of marketing conventions and meetings and other related requirements.
The Fresno Bureau is a 501 c6 non profit organization with an independent board of
directors, which is the standard model throughout the industry — and its majority of
funding is derived from the City’s general fund with additional business member support.
Under this new subcontracting arrangement with SMG, the CVB was required to achieve
performance standards in room nights and meetings.
To further facilitate this agreement, the General Manager of the Convention and
Entertainment center was provided a board seat on the CVB’s Executive Committee,
along with representation on the Board and the Bureau’s Finance Committee.
Following a number of independent financial auditing concerns and recommendations
for needed control and protection of the bureau’s financial assets, last October it was
discovered that substantial funds, amounting to more than $60,000 in unauthorized
spending, had been charged to bureau credit cards. The bureau employee in question
subsequently resigned her position and an investigation by the Fresno Police
Department is now underway.
By year’s end, The Mayor’s/Council’s daily media briefings had noted that because of
financial irregularities, the Fresno City Council was considering withholding future
funding to the Fresno Convention and Visitors Bureau if they do not produce a clean
audit in the coming months and meet other standards set by the city’s convention
management company, SMG.
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Since discovery of the embezzlement, SMG management has worked in concert with the
volunteer CVB President to aggressively and immediately take the following
management steps to assure proper control and professional supervision:
1. Implementation of additional financial controls where the Center’s General Manager
and/or Finance Director and CVB President are required to provide written authorization
and expenditure of all bureau funds, as well as approval of program obligations from the
CEO/Executive Director.
2. An Independent CPA is now handling daily bookkeeping for the Bureau with SMG and
bureau President oversight. A separate and independent auditor has also begun to
produce the bureau’s 2005/06 financial audit.
3. Initiated and executed a memorandum of understanding with the bureau to tighten
financial controls, providing for an extension of time for the audit, new communications
systems, expenditure signature authorization changes, required organizational changes,
etc. In addition, an independent operational audit was required, to be hired by SMG
management and funded by the bureau.
This Operational Audit is a result of that action. It has been produced by leading travel
industry consultant Marshall Murdaugh, who for more than thirty years served as
President and CEO for some of America’s most successful destinations, including New
York City, the State of Virginia, Atlantic City and Memphis.
SMG hired Marshall Murdaugh Marketing because of his singular track record in the
ongoing development of destination audits for CVBs; most recently, Murdaugh has
produced more than sixty strategic planning assignments and audits for such
communities as Los Angeles, Palm Springs, Baltimore, Niagara Falls and Miami.
Murdaugh has also produced marketing assignments for SMG corporate as well as for
other leading businesses and associations in the hospitality industry.
He recently assisted in production of the tourism industry’s standards for CVB returnon- investment, and authored the chapter on CVB marketing in the new industry
textbook guide,” The Fundamentals of Destination Marketing and Management”, from
Destination Marketing Association International, the trade association of the world’s CVB
Industry. Murdaugh’s detailed credentials are included at the conclusion of this Audit.
The Operational Audit for the Fresno CVB follows.
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Industry Background on CVB Auditing
The need for performance assessment of CVBs has become quite prevalent today.
Following 9/ll and the faltering travel economy, a number of communities were faced
with declining tourism impacts, including hotel room tax revenue, and resulting
depressed marketing resources required to produce them. As a result, many cities called
for a new wave of assessments and market planning guidance for destination marketing
convention and tourism agencies.
At the same time, the meetings industry has seen significant shifts, as a ten-year
building boom has recently produced a whole host of new and expanded convention
centers. And other emerging cities have become new travel business competitors —
eager to fund marketing programs that allow them to increase their own market share
of the nation’s meetings and leisure travel segments.
Along the way, other destinations have proactively sought to evaluate and strengthen
their own efforts through the auditing and consulting marketing support process.
Today, the evaluation and enhancement of destination marketing organization (DMO)
sales and marketing performance has become a top priority as cities and bureaus assess
where they are in relationship to both the marketplace and their competitors.
Auditing Methodology
This entire audit has been developed as an independent and impartial report by Marshall
Murdaugh Marketing, and all of its findings and recommendations are solely those of the
consultant.
Our auditing approach on the marketing and operational effectiveness of the Fresno CVB
involved:
1. Diagnosis and analysis of current operational management and performance
standards as compared to industry best practices
2. Recommendations for enhancement to achieve long term success, including
governance, management and marketing
Ultimately, the intent is to provide the basis for the CVB to refine and implement
recommended solutions — to chart an optimistic course for future success.
Results and recommendations are also designed to: a) support and enhance marketing
and operational expertise and results for all involved, b) bring about greater economic
impacts to the convention/tourism industry and community of Fresno as a whole and c)
serve as a foundation for the strengthening of future marketing plans and long term
results.
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Our Diagnostics Approach
Throughout this assessment process, we employed diagnostics to determine the current
effectiveness of both qualitative and quantitative efforts, analyzing results based on
industry standards, best business practices, our own special competitive analyses, and
other techniques as required.
However, we have avoided the use of competitive- set analyses against other
destinations because of its limited potential for performance enhancement relative to
auditing needs. This is because all communities are inherently different, with different
economic conditions, tourism infrastructure, CVB staffing, state tourism initiatives,
convention facilities, customer requirements, airport enhancements and service, and a
litany of other component parts which all, to varying degrees, impact the community
results of tourism development.
The consultant also relied on his prior findings from numerous comparative performance
assessments conducted for other Destination Marketing Organizations (DMOs)
throughout the tourism industry. And his recently published “Self-assessment Manual for
Convention and Visitor Bureaus” (CVBs) was used as a guide throughout this process.
The two initial auditing components we undertook consisted of gathering extensive data
and a series of individual and group stakeholder meetings to seek input and guidance:
1. Requesting, gathering and analyzing available data from CVB records,
policies, procedures and relevant reports that may include, but were not
limited to:
Market Analysis: Review of community hotel occupancy, room nights generated, Lost
Business Reports, bureau sales records/booking reports, sales lead analysis, market
segment analysis of state, regional, national and international business, bureau
convention service reports, other available market and marketing research;
customer/client surveys, etc.
Bureau Sales & Marketing: Annual marketing plan, any long range strategic planning
documents, goals/deliverables, bureau productivity/activity report of achievable work,
process review, staff skill sets, job descriptions and core competencies, review of
customer prospecting techniques and sources, presentation materials, bid proposals
both written and verbal, productivity: Booking goals (how established) and actual
deliverables, meetings development/tourism positioning, motivational messages,
additional tactical support: advertising, web, direct mail, collateral, tradeshows, site
inspections, familiarization programs, etc. other management supervisory processes,
community stakeholder support review, membership information; retention, number of
members, etc.
Review of major written procedures, plans, processes: including
marketing/business plans, operational sales plans/manuals, program implementation
outlines
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Management oversight/operations/governance: Bureau bylaws, board size,
relevant governance policies, annual financial audit and related management oversight
standards, board job description, responsibilities and policies, annual budget, bureau
mission statement, bureau objectives, organizational chart, personnel policy &
procedures manual, code of ethics information, staff training programs, etc.
Market and marketing research documents: Annual visitor economic impact
study/or information, market share compared to state, regional or national volumes,
ongoing measurement tools for tracking visitor volumes, competitive analyses , visitor
profile studies, stakeholder needs assessment, customer service analysis, internet
Marketing plan for technology, marketing and media
Other assessments/analyses — return on investment reports, any standard
operating procedures for sales and marketing, membership development, goal setting,
tracking and delivery systems (the formalized process for reporting and confirming the
generation and reporting of business produced and measured — for sales deliverables,
bookings, etc.) any guidelines and directions for accomplishing individual marketing
programs (i.e., implementation outlines for such programs as familiarization programs,
site inspections, publications, advertising, etc.
Bureau communications programs: Copies of all recent negative/positive press and
bureau government/community/member relations initiatives
2. Throughout the onsite auditing process during the week of January 15, a series
of multiple meetings were held in both group and individual settings with community
stakeholders, bureau board members, CVB staff and others as follows:
SMG staff interviews included William Overfelt, Convention Center General
Manager/SMG and CVB contract administrator; John Adams, regional VP of SMG;
Veronica Ponce, SMG Sales Manager; Claudia Arguelles, SMG Director of Sales &
Marketing,
CVB staff interviews included Wayne Bennett, CVB Executive Director; Lara Calderon,
Tourism Sales Manager; Nichole Castillo, Housing Manager; Billie Kerstetter, Director of
Sales, Charlie Chitchjian, Membership Sales Manager.
Other meetings were taken with Kelly Carr, Fresno Sports Council Manager/SMG; Angela
Chi, former FCVB independent auditor; Roger Story, President Fresno Hotel and Motel
Association and bureau board member ; Jim Pardini, FCVB President; Andy Souza,
Fresno City Manager and Roger Montero, Deputy Mayor, who are both CVB Board
members; Nicole Zieba, Deputy Assistant City Manager; Ann Kloose, Aide to City Council
member Brian Calhoun; Steve Klein, General of the Radisson Hotel and CVB Board
member; Frank Kraus, board member and general manager, Fort Washington Country
Club; Mike Dages, City Councilman and Bureau Board member; and Al Smith, CEO,
Fresno Chamber of Commerce and CVB Board member.
An additional meeting with members of the Bureau Board was also held to discuss this
Operational Audit and to provide input through a community assessment of strengths,
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weaknesses, challenges and opportunities (SWOC Analysis). Those participating included
CVB President Jim Pardini and Board members Mike Dages, Roger Montero, Andy Souza,
Saundra King, Gordie Webster, Bud Long, Frank Kraus, William Overfelt and Layla
Forstedt.
Special thanks are also extended to members of the Fresno Hotel and Motel Association
who invited the auditing consultant to their monthly meeting for a presentation, input
and discussion.
A community, broad- based orientation of the community was also taken for
familiarization.
Finally, we wish to express sincere appreciation to each individual who participated in
these meetings and shared their candid beliefs, concerns, interests and
recommendations that were intended for the greater good of the bureau and the
destination it serves.
All recommendations throughout this audit are noted in italics, and then major ones are
also incorporated as a special section at the conclusion of this report.
The next step should be the review of this document — particularly its
recommendations — along with the current financial audit provided by the independent
CPA. It is hoped that these documents will provide a new roadmap for successful
performance management and oversight for the Fresno Convention and Visitors Bureau.
Note: Throughout this report, the term” Tourism” is used generically to mean the business of serving
travelers. The “visitor industry” is intended to be synonymous with tourism — comprised of travelers
who take diverse trip purposes and the numerous business entities that serve these customers. The
terms destination marketing organization (DMO), agency, bureau and FCVB are all intended, most
often, to be synonymous with the Fresno Convention and Visitors Bureau.
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Major Findings
Here, then, are the principal findings, followed by recommendations to optimize program
and performance success:
¾ Fresno is a proverbial sleeping giant for tourism industry development that
can be awakened through new convention and tourism marketing that should
bring dramatically stronger benefits to the community in new business, job
generation and tax development. But this can only be brought about through a
revitalization effort — a renaissance of renewed commitment from government
and local business stakeholders, additional manpower and financial resources for
community marketing — and with a performance-driven convention and visitor’s
bureau that successfully employs best business practices to tell the Fresno story.
¾ Today, it appears that this dream is not currently shared by many in this
community. This is demonstrated by the appallingly low, deficient CVB budget
that has not increased in ten years and the organization’s stagnant membership
numbers over the same period.
¾ To do so requires more adequate funding from government and
business interests. But this support will not be forthcoming until
government and community confidence in the bureau is restored. For
that to occur, all principal stakeholders must first share the belief that the CVB is
fulfilling its governance, management, operational and fiduciary responsibilities –
and that it also has the skill sets and programming capabilities to actually
produce higher volumes of productive business for the community through the
quantifiable, specific return on investment of public and private funding.
¾ For this new era of business success to occur and flourish, The Fresno
CVB must establish an industry standard, performance-based program
of marketing work that can effectively compete and be successful in today’s
convention/ visitor marketplace on behalf of the community.
¾ The CVB has not kept pace with the competitive marketing initiatives
of other destinations whose share of customer mind and market are
negatively impacting Fresno’s opportunity for future success.
¾ CVB Marketing tactics are deficient in promoting the city (such as direct
sales, advertising, promotions, public and community relations, website, etc.)
and there are few consistent evaluations of success achieved from this work. Nor
does the agency follow recommended business processes or practices provided
by the professional trade association of bureaus and employed by traditional
Convention and Visitor Bureaus. And future business results will be negatively,
residually affected by these deficiencies.
¾ Generally speaking, the CVB middle management staff is caring and
well meaning but has received very little senior management direction. Nor are
they schooled and skilled in current day techniques of destination marketing and
management. This is partly due to the fact that the CVB is not a member of the
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DMAI industry trade organization which provides training courses and materials
to hundreds of bureaus and their staffs throughout America.
¾ There have been no major bureau program priorities established or
publicly advanced by senior management and approved by the board; not the
pressing need for new marketing initiatives to produce more quantifiable
business for Fresno, the funding to produce this marketing work, plans to
produce additional quantifiable return on investment, efforts to repair existing
poor relationships with its government funding source, enhancement of
membership needs, or the long range, strategic planning requirements for the
industry or community.
¾ As a result, the bureau does not appear to be seen as the focal point for
community leadership of the visitor industry in Fresno — for destination
management and marketing, planning, coordinating community stakeholder
support, and long range visioning.
¾ Many of the issues facing the CVB appear to stem from recent concerns
about the perceived lack of leadership and loss of public trust due to the
embezzlement of public funds there, its stagnant long term city funding situation,
an apparently strained relationship with government and its no- growth industry
membership numbers for the past decade — all of which have not been
effectively addressed as traditional responsibilities of the CEO.
Delivering Long Range Success
Readers of this report may consider the above issues daunting, but it is not
unreasonable to expect — with board diligence and leadership — that major
improvements can certainly be achieved in a short-term time frame within the next
several months.
It is important to keep this thought in mind: Tourism for Fresno is truly a business of
optimism. And the problem- solving phase should be undertaken with the same
optimistic spirit for the future that was consistently expressed by stakeholders who
participated in this auditing and assessment process.
Major Recommendations
Summarized below are some of the major recommendations, together with a series of
secondary recommendations that flow from the major ones. While these may appear an
oversimplification, they are carefully considered recommendations that are dealt with in
detail in the report and based on thorough evaluation of the data gathered and
diagnosed.
•
Restore confidence in the organization by strengthening leadership of the staff
management team and the board through acceptable governance and policy
direction.
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•
Address the needs for required changes in the organization, including direction,
structure and the marketing effort.
•
Build collaboration and teamwork for convention and visitor development throughout
the community.
Secondary Supportive Recommendations
•
Build stronger, more productive relationships with the city council, community
stakeholders and the general public through improved communication and focused
activities.
•
Introduce the basic elements of performance management in the planning process,
setting objectives, tracking performance with accountability and providing ongoing
coaching and feedback to staff.
•
Revise the marketing plan format to meet industry standards that provide a
customer focused, market driven and results based program.
•
Continue to strengthen the underlying internal control procedures as related to
finance, administration and marketing documentation, as well as open dialogue and
communication of the corrections with all stakeholders, including the public it serves.
•
Focus on the future opportunity for an expanded budget fund with a plan provided
by the senior staff that states what the results of expenditures would produce in new
visitors and visitor receipts for all available marketing tactics.
•
Through strategic planning, closely monitor and manage key marketing issues
affecting the destination such as infrastructure issues, public perceptions, market
funding and the supportive, integrated efforts from other agencies who are involved
in tourism development for Fresno.
•
Put in place a positive government relations ongoing communications initiative of
accountability, candor and transparency to foster stronger and ongoing support from
the City and County and their residents, including the direct economic impact results
of CVB marketing programs that will deliver return on investment — in the form of
new visitors, visitor receipts and resulting tax revenues for the area.
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The CVB Industry’s Models and Mission: Where Fresno Fits
The history of convention and visitor bureaus (CVBs) dates back to 1896 when a
prominent Detroit journalist, Milton Carmichael, suggested that local businessmen band
together to promote the city as a convention destination and represent its many hotels
to bid for business.
During the subsequent 100 years, CVBs evolved a great deal. The leisure tourism
promotion function was later added. And today, CVBs are principally viewed as fullservice destination marketing organizations that lead the development of their
community’s hospitality and tourism sector and are often a driving force in the local
economy. There is a CVB in most every US community as well as throughout the world.
Bureaus have slowly transitioned over the past few decades from less effective general
service tourism promotion agencies that focused primarily on activity — such as
brochure and visitor service programming — to more quantifiable, results oriented
marketing efforts that forecasts and delivers results: higher volumes of visitors attracted
directly by bureau marketing initiatives, new visitor dollars, resulting tax revenues and
local jobs generated by this visitor spending.
Today, the CVBs principal business is marketing; that is, determining customer needs
and then filling them through a variety of tactical programs (advertising, direct sales,
customer service programs, collateral development, media publicity, etc.) — for the
hosting of meetings and conventions, sports events and leisure travel. These initiatives
are all designed to produce measurable, incremental economic returns for the
community through additional visitors, including new visitor expenditures, tax revenue
and resulting jobs that are generated and sustained through this spending.
Indeed, bureaus are now regarded and recognized as “Destination Marketing
organizations” or DMOs. And the international trade association has correspondingly
changed its name from the International Association of Convention and Visitor Bureaus
to Destination Marketing Association International.
To fulfill its mission, a successful CVB or DMO serves as a coordinating entity, effectively
bringing together diverse community stakeholders — from local government to trade
and civic associations to individual businesses –to attract visitors to their area. It
consolidates community wide disparate marketing efforts under one integrated
“umbrella” program.
Today’s convention and visitors bureau is certainly an unusual business model, in that it
primarily functions as an independent non- profit agency, fueled by government funding
(principally through the hotel room tax paid by visitors, but in the case of Fresno and
others, through general fund appropriations. Many bureaus, including Fresno, also
receive additional support from front- line business members who are in the business of
serving travelers.
It is primarily due to the business model and mission that the vast majority of US CVBs,
including the Fresno CVB (60.9%), are independent not-for profit associations classified
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as “business leagues” under Section 501-C (6) of the internal revenue code. In the past
fifty years, the bureau model has transitioned from a government agency to a much
preferred not-for -profit model due to its business orientation requirements including:
the need to quickly respond to changing market conditions, the requirement to provide
travel and entertainment expenditures to motivate customers, and the ability to provide
incentives to its sales staff for performance deliverables, just to name a few reasons.
However, performance accountability, sound business plans, and operational integrity
are important bureau requisites by the cities, counties and regions that support bureaus
and tourism development marketing.
There is still a wide variation in CVB models — from those who are government agencies
to departments of chambers of commerce. A few have merged operations with other
economic development agencies, or with convention centers, to form a convention and
visitor authority. Today the CVB models are:
501 c 6 non-profits ......................60.9%
City Agency ................................. 8.3%
County Agency ............................. 6.0%
Division of Chamber...................... 5.0%
State /Provincial agency ................ 3.7%
501 c3 ......................................... 3.7%
Other ..........................................12.4%
US Bureaus are principally funded through a legislatively dedicated portion of the hotel
tax paid by visitors or, in the case of other bureaus, including Fresno, through general
fund appropriations. In the latter case, revenue support is usually tied to bureau annual
performance and also the increased expenditures provided through visitors who stay in
hotels as hotel occupancy and average daily hotel rates increase over the years.
In many cases, government requires a management contract with the CVB that is
administered by the city manager’s office. In some cases, including Fresno, CVBs are
directly managed for municipal governments by their convention centers.
As more bureaus are formed in the future, it is anticipated that the non-profit
operational model will continue to be the model of choice.
However, in the opinion of the consultant, what is of less importance is the structure of
governance; more important is the fulfillment of the CVB mission.
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A Historical Tourism Perspective
Industry leaders point to the decade of the 1960s as a golden age of tourism for the
Fresno community, when it outpaced other California city competitors because of its
commanding geographic location, the development of a new convention center,
favorable pricing and an abundance of hotel accommodations for housing meeting
delegates.
With close to a thousand rooms within walking distance of the center, along with the
asset of affordability, and with little promotion required, Fresno became a great regional
draw for meetings and conventions business — and light years ahead of other California
communities at that time.
Through the ensuing years, some of the area’s downtown hotels were converted to
other businesses. One became a county office building. And the total number of rooms
near the center for housing meeting delegates declined to less than 400.
Money for revitalization didn’t keep pace with visitor requirements, according to some in
the community. And other cities throughout the State started to seriously focus on
tourism and convention development and began increasing their marketing efforts
correspondingly to produce business because of its positive economic returns for their
resident populations.
Today, the Fresno CVB budget is $850,000, comparing unfavorably to some other
smaller California cities including: Sacramento, $6.4 million; Palm Springs regional effort,
$5.5m; Long Beach, $4.75m; Santa Clara at 1.425m and Ontario,1.2 million.
More revealing is the no- growth of the Fresno CVBs funding support over the past
decade from both the city and the business community it serves — an anomaly
compared to most communities. Nor does the County provide any earmarked support
for tourism development through ongoing bureau funding.
Correspondingly, area visitor receipts for the past decade have lagged the growth rate
for the State; its market share of State visitor receipts has also dropped. According to
estimates from Dean Runyon Associates for California State Tourism, annual visitor
receipts in Fresno County showed a 43.6% increase from 1995 through 2004, or $639.2
million compared to $917.9 million, while the State’s total visitor receipts increased
47.7%. During this period, Fresno County’s annual market share of state visitor receipts
declined from 1.15% to 1.12%. This downward trend is likely to continue if area
marketing to attract visitors does not grow in relationship to other community
competitors throughout the state.
Bureau member revenue has also been flat for that comparative period at about
$109,000 annually. Nor did the number of members show any increase during the past
ten years, with 386 businesses partnering with the CVB in 1993-94, compared to today’s
roster of just 367.
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However, during the period from 97-98 to 2002-02, membership roles did show
increases, and reached a high of more than 500 members about five years ago. But
then an ongoing decline occurred when, according to the CVB staff, there were concerns
that the City would withhold financial support from the bureau. It is also likely that this
decreased business membership support occurred as a result of the drop in community
room night housing for conventions from 23,127 rooms in 1997 to a low of 7,857 in
2001-02. Throughout the decade, according to bureau figures, hotel rooms housed by
the CVB for conventions and special events have been both erratic and in total, showing
a slight decline, from 14,174 rooms picked up in 1994-95, compared to only 12,555
rooms in 2005-06. It is also fair to say that there is now an unusual industry dynamic at
work both here and throughout the industry; individual conventioneers are making
reservations more often directly with hotels and not using the room block made
available by bureaus in an effort to further reduce costs.
Still, over the years, the Fresno area’s visitor economy has seen growth, but not
necessarily at the same pace as other promotion-minded destinations. For 2004, the
most recent estimates from the State conclude that travelers to Fresno County spent
about $918 million dollars that year. At that rate, annual visitor receipts should top $1
billion dollars very soon. Visitors to Fresno have continued to fuel tax collections from
the city’s 12 percent hotel tax, approximating $9 million dollars in 2005, compared to
the $5.7 million dollars collected in 1996. Throughout this period, the city’s contributions
to the Bureau remained at about $740,000 annually, which is actually a net loss due to
ensuing inflation.
Beginning eight months ago, the Regional Jobs Initiative provided the bureau with
funding for tourism development totaling 100k for yearly projects, but that amount
doesn’t show up in the CVB budget and is considered a pass-through for projects
initiated for that program.
What is missing is evidence to support the auditing consultant’s conclusion that Fresno
continues to be even more adversely impacted by tourism marketing efforts of other
competing cities, the anticipated attendant loss of public awareness of Fresno, interest
to visit and resulting market share loss in actual visitation and visitor receipts. Answers
should be provided to assist the CVB and community in planning a long term, more
productive, results oriented marketing effort.
We have also sought reasons for this general malaise, and how this situation can be
positively addressed to make Fresno more competitive in producing higher volumes of
lucrative meetings, conventions, special events and leisure travel. Potential answers are
discussed and recommendations are made later in this Audit Report.
Next, we review the perceptions of community leaders serving on the Board of the
Bureau.
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The Fresno SWOC Analysis
What are the opportunities for assuring tourism’s strong future here and how do we
manifest them in light of ongoing challenges and complications?
In a brief but enlightening session with available members of the board, they provided
candid perceptions about the community and the CVB as they related to general
strengths, weaknesses, challenges and future opportunities. Major findings follow (with
brief consultant notes in parentheses).
Strengths
(Fresno’s strengths are many and diverse and offer great potential for new visitor
development and the benefits that would accrue to the community)
™ Fresno has an excellent geographic location in the center of the state for
meetings and conferences as well as proximity to major attractions
™ Nearby world class attractions — notably the three national parks visited by more
than 3 million people annually and the potential they have for Fresno
™ Affordability of product that provides an exceptional cost/value relationship
™ Excellent, reliable weather
™ SMG management for the City’s convention and entertainment facilities
™ CVB board diversity and business skills
™ Sports opportunities for hosting and attracting new visitors
™ California State University Fresno, its numerous benefits and expertise/support
for the community
Weaknesses
(These impediments to success must be addressed to assure a positive new road map
for the future)
™ Airline lift and competitive pricing
™ The perception of high crime and public un-safety
™ An under-funded bureau which is not competitive with other destinations
™ The current climate of concern about the bureau, its effectiveness, etc.
™ Negative customer perceptions of the city of Fresno; i.e., poverty, air quality,
high unemployment, etc.
™ CVB board governance liabilities; limited understanding of both its governance
responsibilities and the CVB industry against which the bureau should be
measured and compared.
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Challenges
(Every community has its challenges. The following must be addressed and converted
into opportunities for Fresno).
™ The Downtown hotel room block for major conventions is lacking
™ There is no strategic or long range planning for the visitor industry nor a true
community partnership
™ Creating a new vision for success
™ Developing a strong CVB partnership and participation from Fresno County
™ The existing relationships between the bureau and all entities involved in tourism
development; the city, county, business community and others
Opportunities
(Here, CVB board members positively focused on a collaborative, optimistic approach for
tomorrow).
™ Above all, recognize that our community’s opportunities are unlimited
™ Address the historical perspectives and concerns about the CVB and its culture —
and then move forward to build support for the bureau and its mission
™ Coalesce community interests to prepare for a consensus built program for the
future
™ Position Fresno positively in the meetings, conventions and leisure tourism
marketplace; stressing its attributes, abilities and opportunities for people
everywhere
Note: many of these issues and resulting recommendations are discussed in detail
throughout this audit.
16
Identifying CVB Stakeholder Needs and Opinions
For background, it is important to keep in mind two of the principal points noted earlier
in the Board SWOC analysis:
™ That a challenge was the existing relationships between the bureau
and all entities involved in tourism development; the city, county, business
community and others
™ That an opportunity for tomorrow was to address historical
perspectives and concerns about the CVB and its culture — and then
move forward to build support for the bureau and its mission
We also asked representatives of the Fresno Hotel and Motel Association their opinions
of the bureau. On a scale of 1 to 5, we asked — with 1 being low and 5 exceptionally
good — how would you rate the CVB based on its mission and in fulfillment of its
business support to you and the hotel community? Surprisingly, they collectively gave
the bureau a high 5.
But when they were then asked if they would support a voluntary $1 dollar assessment
fee on filled rooms (a pass- through to the visitor) that could potentially generate a new
million dollar CVB marketing fund to produce new hotel room usage, not one person
voiced agreement. Why, they were asked? Their response was that they would consider
joining in after the city provided more adequate financial support.
But the reality across America is that many city governments can’t always support the
tourism industry as the private sector would wish them to do. Instead, the hotel
community of Fresno should view this as a new opportunity for them (as is currently
happening in other destinations, and as outlined under our funding recommendations
later in this report).
In the opinion of the auditing consultant, the local accommodations industry has a good
relationship with senior CVB Management — but it appears to have limited confidence in
the agency’s business marketing abilities to produce more business for them. Otherwise,
they would have been more positive about supporting the voluntary funding initiative
mentioned above that could produce direct business for them all.
Next, we asked the CVB Executive Director for his personal grading assessment of
bureau relationships with various constituents, using a 1-10 scale. His opinions were:
relationship with city government, a 5; with county government, a 6 to 7
(although no long term funding is provided from them), with members and
other business stakeholders, a 10, with the local public, an 8 or 9, with the
print media, a 3, and with convention center management, a 5. Yet when
asked, he offered no recommendations for enhancing these important
relationships.
17
We conclude from our anecdotal assessment, and opinions from numerous stakeholders,
that there is a priority need for the CVB to repair its relationships and foster more
positive opinions of the agency and its mission of work. That requires it to address and
correct its operational management and marketing deficiencies. Then new community
coalitions can provide a productive new beginning of opportunity for the City’s tourism
industry.
Recommendation: The diverse opinions of CVB constituents should be validated
through an industry standard Stakeholder Assessment Survey. The process involves
production of a third party, internet based instrument that collects and analyzes the
opinions of members and community leaders to:
ƒ provide members and stakeholders with the opportunity to express their
opinions freely
ƒ provide the Fresno CVB with essential feedback and information for problemsolving and planning
ƒ identify areas that need to be addressed
ƒ ultimately improve the quality of service to the community
Survey costs in the $3,000 range are available from Performance Management of
Stamford, Connecticut, consultants to the CVB industry.
Financial and Administrative Management Issues
Senior bureau staff management has failed to exercise appropriate ongoing judgment
and fiduciary control of the bureau’s assets as follows.
On November 7, 2005, the Bureau’ s Financial Auditor met with the Executive Director to
express ongoing concerns about liabilities existing in the agency’s fiscal management
controls, including the abilities of the staff person assigned to that important task.
This meeting was then followed with a Management Letter to the Executive Director,
dated February 1, 2006, containing numerous recommendations for the senior
management to immediately implement to protect the financial assets of the bureau.
Since that time, the Executive Director failed to implement any of those
recommendations.
Then more than nine months following receipt of the independent auditor’s
management letter, it was discovered that a bureau staff person had embezzled more
than $60,000 dollars. Had any of the CPA’s financial management recommendations
been implemented by the Executive Director in a timely manner, the likelihood of theft
could have been significantly reduced.
For background, it is important to note that several years earlier, during the period of
time when the current Executive Director was serving as CEO for the Topeka, Kansas
CVB, there were public allegations, hearings and related press articles detailing alleged
misuse of agency funds by bureau staff. One would assume that having been at another
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CVB during the time when these issues were reported, that when later faced with
fiduciary management issues at the Fresno CVB, he would have taken immediate
corrective management action.
At the time that the Fresno CVBs independent auditor discovered this theft and reported
it to the Convention Center General Manager — who is contract manager for the CVB —
the bureau employee who admitted guilt had a meeting with the Bureau’s Executive
Director and acknowledged embezzlement of funds in the presence of another
employee.
At that time, the Executive Director should have taken the following immediate actions:
Give verbal notice to the employee of immediate termination, request the employee’s
keys to the office, escort the employee out of the building, contact the police, notify the
Board’s President, other officers and members of the Board, take necessary steps to
further protect the financial assets of the agency, prepare a plan for dissemination of
information to the city administration, the public, the bureau’s members and other
stakeholders. The Executive Director acknowledges that he took none of these actions,
but instead advised the employee to come to the upcoming meeting of the Executive
Committee of the Bureau and make the same report that had just been provided to him.
In the opinion of the consultant, this entire matter constitutes, at minimum, a major
omission of executive responsibility. At worst, it can be described as financial
management malfeasance.
Also not recommended by the Executive Director was an Ethics Policy for either the staff
or the Board, although the Executive Director says he produced and signed an
abbreviated, one- page code of ethics policy for himself, dated August 31, 2006, and
placed it in his file.
This would have occurred about ten months after his hiring by the bureau, six months
after his meeting and receipt of the follow- up management letter from the independent
CPA, and less than two months before the staff accountant admitted the embezzlement
of bureau funds.
Recommendation: An ethics policy should be immediately discussed and approved by
the CVB board that requires signatures from all staff. The policy should be made apart
of the bureau’s Personnel Policy and Procedures Manual. A recommended policy follows.
Recommended Code of Ethics and Guidelines for Conduct
For the Fresno Convention and Visitors Bureau
STATEMENT OF POLICY
It is the policy of the Fresno Convention and Visitors Bureau to adhere to the highest
legal and ethical standards applicable to our business. The integrity of each employee is
of utmost importance.
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RESPONSIBILITY
All Bureau employees are responsible for being knowledgeable about and for
maintaining conduct in compliance with the Code of Ethics and Guidelines for Conduct.
All employees shall conduct their personal affairs in such a fashion that their duties and
responsibilities to the Bureau are not jeopardized, and/or legal question does not arise
with respect to their work with the Bureau.
The Bureau’s disciplinary procedures (as provided in______) will be followed when
violations of the Bureau’s Code of Ethics or Guidelines for Conduct occur.
Legal and Ethical Standards
The Bureau will adhere to the highest legal and ethical standards applicable to its
business.
A. The Bureau’s business will be conducted in strict observance of applicable law.
B. In all situations, including those where there are no applicable legal principles, or the
law is unclear or conflicting, the Bureau’s business will be conducted in such a
manner that the Bureau would not be embarrassed if the full facts were disclosed
and in that regard, common sense should prevail.
C. The integrity of our organization and people is of utmost importance. Even the
appearance of legal or ethical impropriety is avoided.
Guidelines for Conduct
Confidential Information
Non-publicly disclosed information obtained from customers, vendors, and members as
well as such information generated internally with respect to customers, vendors,
members, employees, and Bureau affairs, will be safeguarded and will not be used or
disclosed except in the proper conduct of Bureau business.
Conflict of Interest
The Bureau prohibits its employees from engaging in any activity, practice, or act which
conflicts with the interests of the Bureau, its customers, vendors, or members. Several
examples of conflicts of interest that should always be avoided are set forth below.
Similar situations that create an actual conflict of loyalty, interest, or even the
appearance of such a conflict, must be conscientiously avoided unless approved in
advance by the president.
1. No employee should accept full-time, part-time, or temporary employment in
any organization that does business with the Bureau or is a competitor of the
Bureau.
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2. If an Employee or a member of his immediate family has a financial interest
in a firm which does business with the Bureau and the interest is sufficient to
affect the employee’s decisions or actions, the employee must report the
interest to the Bureau and must not represent the Bureau in such decisions.
3. No employee or member of his immediate family should accept gifts from any
person or firm doing or seeking to do business with the Bureau under
circumstances where it might reasonably be inferred that the purpose of the
gift is to influence the employee in the manner in which they conduct Bureau
business with the donor. Such gifts should be returned with a note of
explanation. However, employees are not prohibited from accepting
advertising novelties such as pens, pencils, and calendars or other gifts of
normal value when circumstances clearly show that the gifts are offered for
personal reasons.
4. No employee should, directly or indirectly, give, or promise anything of value
to influence any customer, vendor, or member in connection with any Bureau
business transaction.
5. No employee should directly or indirectly engage in conduct, which is
disloyal, disruptive, competitive, or damaging to the Bureau.
It is impossible to describe all situations, which may arise involving conflicts of interest.
Employees should contact their manager when a question concerning a possible conflict
of interest occurs.
All employees are requested to sign a confidential Code of Business Conduct agreement
upon acceptance of employment with the Bureau.
No employee should participate in civic or professional organization activities in a
manner whereby confidential Bureau information is divulged.
Personal and Financial Affairs
Personal and financial affairs of each Bureau employee are expected to be conducted on
a sound ethical and legal basis.
1. Employees should not engage in the use of illegal substances, or ethically
questionable or illegal activities.
2. Employees should not borrow from customers, vendors, or members of the
Bureau except those who normally engage in business of lending to others
under similar circumstances and without special concessions.
3. Telephone lines are vital tools in the Bureau’s work and must be kept open
for business calls. Personal phone calls should be kept to a minimum.
Employees will receive a monthly telephone bill for all long distance calls
made from their extension. Employees are responsible for the cost of any
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personal calls they make. Checks are to be payable to the Bureau in the
exact amount, and forwarded to Finance & Administration. Employees are
not permitted to provide the Bureau’s toll-free telephone numbers to anyone
except for business use.
4. The Bureau permits employees to utilize the mailing services for personal use
(i.e., overnight express and UPS). Before any mailing is sent, employees are
to have the mailing approved by the mailroom attendant and attach a check
in the exact amount made payable to the vendor.
5. All employees are responsible for assuring that sufficient funds are available
when making payments by check to the Bureau, customers, or members for
personal costs. If three occurrences of insufficient funds transpire, the
employee will no longer have the privilege of using the Bureau’s telephone
for long distance personal calls and an up-front cash payment will be
required for all personal usage of mailing services.
Accidents
All accidents on Bureau property, during business or functions, involving employees,
customers, vendors, visitors, or members should be reported immediately to Human
Resources regardless of how insignificant the accident may appear. When the accident
involves a customer, vendor or member, employees should not make any statements to
the injured person as to their opinions on the cause of the accident.
Attendance and Punctuality
If an employee must be absent because of illness or some other legitimate reason, the
manager is to be notified as early as possible, and certainly not later than the time the
employee normally starts work. If the employee is absent for more than one day, the
employee is to keep the manager informed of the situation daily. In this way, the
division’s work can be planned accordingly.
If an employee is absent from work for three consecutive days, or more, the employee
must submit a doctor’s release to their manager and Human Resources stating that the
employee is fit and able to return to work. This is for the benefit of the individual’s
health as well as the health of other staff members. Failure to submit the doctor’s
release upon return to work may subject the employee to immediately vacating the
premises to obtain a doctor’s release.
Canvassers
Salespersons and canvassers are not permitted to solicit business at the Bureau or other
Bureau locations, at any time.
Illegal Drugs and Alcohol
Possession or use of illegal drugs or alcohol on the premises or during working hours is
prohibited and is cause for separation of employment. Off-the-job use of illegal drugs or
alcohol, which could adversely affect an employee’s job performance, is proper cause for
administrative action in requesting the employee to seek counseling — through an
approved Bureau sponsored Employee Assistance Program (EAP).
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Parking
Paid parking decals are available by the receptionist for customers, vendors, members,
and visitors. Paid parking is provided to exempt employees and only to non-exempt
employees where it is essential for their job responsibilities. Employees without paid
parking are not permitted to use parking decals for personal use.
Safety and Health
It is the policy of the Bureau to comply with the requirements of the Occupational Safety
and Health Act in providing a safe and healthy working environment. All employees are
expected to cooperate fully in periodic fire drills and other safety procedures.
Solicitation, Distribution and Posting
It is the policy of the Bureau to maintain a work environment of no solicitation and no
distribution of literature. The sole exemptions to this policy are the annual United Way
campaign and other events regularly sponsored by the Bureau.
1. Employees should not solicit fellow employees or distribute literature on
Bureau premises or locations at any time.
2. Employees should not solicit fellow employees for any reason during working
time. Working time is when either the employee who is soliciting or the
employee who is being solicited is scheduled to work. Working time does not
include scheduled breaks, lunch periods, or the time before the start of and
after the end of the regular working schedule.
3. Employees should not distribute literature of any kind to fellow employees in
work areas at any time, or on any Bureau location during working time.
4. All materials posted on any Bureau location or property must be approved in
advance by the Human Resources Division.
Fresno CVB
Code of Ethics & Guidelines for Conduct Policy Acknowledgment Form
I acknowledge having received a copy of the Code of Ethics and Guidelines for
Conduct policy.
Signed _________________________________________________________________
Date ____________________________________________________________
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Operational and Marketing Policies & Procedures
Policies and Procedures — Based on a review of the bureau’s current written policies
and procedures, and discussion with staff members, it is clear that bureau management
has not kept pace in employing productive and current operational and marketing
standards for the staff.
In fact, most of the written documents — including processes for sales prospecting and
plans for marketing — are reminiscent of the bureau industry’s practices from the 1980s.
None reflect the types of best business practices and tactical models employed today by
most destination marketing associations across America.
The Executive Director agreed with this assessment. When asked why he had not
immediately put in place many of the newer, effective practices and policies available to
him, he said he probably should have — that he had been planning to do so during the
next few months. When asked, he said he had not reviewed these intentions to do so
with either the Board or the Executive Committee.
Recommendation: Obtain membership for CVB in DMAI and gain access to their
training and inventory of policies, standard operating procedures, etc., compile for staff
review and implementation.
Staff job descriptions: Current job descriptions for the staff are exceedingly brief,
amounting to just a small paragraph each. As such, they do not include or prioritize the
parameters of work, personal performance objectives, or clarify the core competencies
required to accomplish their assignments.
Recommendation: Allow the staff to begin this process for revising their job
descriptions using a template and then discuss and modify them, according to executive
requirements.
Meeting and reporting requirements: The current approaches used for ongoing
meetings with the board, the executive committee, stakeholders and the staff are not
consistently productive and there is no standardization of reporting format to assure a
path to success.
The most effective approach is the “three P meeting” which consists of a brief review of:
1. Plans previously agreed to by both parties
2. Progress of those plans since the last meeting
3. Problems identified that compromise with the successful completion of the
Plans.
A brief one page leave-behind is recommended.
Recommendation: implement the 3P Process with agreement of the other parties
involved in various meetings, as required.
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Management Contract issues-The contract oversight of the bureau, on behalf of the
City by Convention Center management, is being adversely affected on a continuous
basis by limited communications and reporting from the Bureau Executive Director.
Despite numerous emails from the center to the bureau over the past twelve months
that document consistent requests for ongoing planning meetings, none have been
scheduled by the Executive Director. When asked why he had not responded to these
requests, he said that he had been experiencing ongoing “computer malfunctions.” The
situation has become so aggravated that the bureau President has recently intervened
and directly mandated that the Executive Director establish a series of ongoing meetings
to fulfill contract requirements.
Recommendation: The Board must address and solve this deficiency in senior
management’s reporting, board communication and management responsibilities related
to the contract requirements between SMG and the Fresno CVB.
Tactical Marketing Program Issues
Market positioning for Fresno
Positioning is the marketing process of defining and consistently communicating the
major and priority motivational visitor attributes that separate Fresno from all other
competitive destinations.
Instead of following this industry accepted marketing practice, the Fresno CVB laundrylists all of its amenities, facilities and services without consistent regard to priority. That
is a self defeating process, for clearly, we cannot be all things to all people. Instead, the
bureau should identify, through recommended research, what are the major, consistent
“hot buttons” or appeals that have the potential to draw the great majority of
visitors here.
Leisure positioning
For the leisure visitor market, it would appear that the number one visitor attribute of
Fresno –and thus the best motivator for more travelers — is the collective appeal of the
three nearby national parks, which attract a total of more than three million visitors
annually.
If this is correct, then Fresno should “market annex” those facilities, pointing out
consistently that due to the city’s favorable geographic location, visitors can experience
these nearby wonderful sites — and also benefit from Fresno’s big city amenities as well,
that provide high value at lower costs.
When this positioning concept was reviewed with the CVB Executive Director, he
responded that this approach is already being used by other state CVB tourism
competitors, and implying that it would therefore be redundant for Fresno to do so as
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well. This is a misunderstanding of the marketing tactic and current situation: Clearly,
these other California cities who tout their geographic location are actually much farther
away from the three parks and therefore do not have the benefit of Fresno’s more
favorable geographic location. So it would be counterproductive for the Fresno CVB not
to employ this positioning advantage and instead remain silent — thus allowing other
competitive cities to pre-empt Fresno’s truly unique selling proposition.
Recommendation: An internet- based, projectable visitor profile study should be
conducted to clarify the Fresno community’s prime visitor attributes that best motivate
travelers, while also confirming what people know and do not know about Fresno.
Included would be demographic (age, income, party size, geographic location, etc) and
psychographic (customer likes, desires, interests) information. Cost for the study would
be in the $10,000 dollar range. It would provide an important investment, for years to
come, for all other business partners in the community.
Convention positioning
For the convention market, many meeting planners have anecdotally shared with the
convention sales staff that Fresno consistently draws larger delegate attendance for
conventions in comparison to other California cities. This, they reason, is because of the
city’s superior center-of- the- state location.
Yet the staff has never validated this information with customers or attempted to
quantify the actual percentage increases in delegates that the community can deliver on
average vs. other cities. This important benefit, along with favorable pricing of hotels,
restaurants, etc. offers an excellent convention market positioning for Fresno.
Recommendation: this convention market positioning information should be validated
with prior meeting planner customers.
Convention Sales
There are several very important marketing liabilities and deficiencies evident in the
convention sales program by senior CVB management that have minimized the
opportunity to successfully solicit and book lucrative new convention business for
Fresno. All have been reviewed with the Executive Director and are listed below.
1. The top industry system for producing new meetings is not used by the
Fresno CVB — Missing today is the sales staff’s knowledge and usage of the industry’s
most important marketing resource to qualify convention meeting prospects and the
solicitation of business that could generate more business for Fresno.
Known to the CVB industry as the MINT system, this Meetings Information Network
contains tens of thousands of meetings and their histories that have the greatest
potential for Fresno. This system has been developed by the Destination Marketing
Association International with information supplied by bureaus throughout the industry
who “mine” this data daily to secure positive sales leads for their communities.
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The MINT system is available to more than 500 member bureaus of DMAI, the trade
association for the CVB industry. But the Executive Director, who had previously been a
member of the organization during his tenure at previous bureaus, failed to join for the
Fresno CVB. When he was queried as to why this important system had not been made
available and employed for Fresno — at a cost of the $1,000 dollar annual membership
fee — he responded that his management efforts had been focused instead on reducing
the agency’s operational deficit.
This is a very serious omission of marketing opportunity for the city’s convention
business. If the bureau’s funding was so limited that it couldn’t afford this important
service, the matter should have brought to the attention of the board, a special funding
request should have been made to the membership, to the convention center — or for
that matter, to the city — all of whom would have gladly responded based on the
potential benefits to be accrued.
2. Market Analysis to produce new business is missing — The top resource for
tracking and assessing future success for the CVB is the CVB Lost Business Report that
has been adopted by most bureaus. Fresno calls their version “lost opportunity reports”
because they believe that descriptor better assuages local stakeholder concerns, but
instead, they should be known simply as Lost Business Reports. Nor does the bureau
follow the proper format of the report so that analysis could be provided to better
prepare for future convention solicitation efforts.
When properly produced, Lost Business Reports are an important aid in market analysis,
providing information on why cities lose convention business. Their analysis can lead to
potential future hotel room development, telling us the actions and opinions of meeting
planners, and allowing us to become more effective in developing new strategies for
meetings solicitation.
Here is how it works: Following a bid proposal for consideration of a convention, and
subsequent loss to another city, lost business reports that are filled out by the meeting
planner for the CVB can tell us specifically why Fresno has lost the business and to
whom. Reasons could be in a number of categories that are provided in the report;
including unavailability of adequate hotel rooms near the center, space restrictions at
the center, lack of community support, perception of the destination, inadequate air
lift/pricing or a whole host of other reasons.
At the end of the year, those reports are then combined to clarify by percentage, the
specific reasons for the lost business and to whom Fresno lost the most business.
Through analysis, we can then identify our principal competitors and what they are
doing successfully that we should be emulating or working to overcome. This Lost
Business Analysis system is not now employed properly by the Fresno Bureau and the
reporting format should be redesigned to meet industry needs. An excellent model for
emulation is now employed by the Baltimore CVA.
3. CVB success in booking convention business is sometimes inaccurate,
overstated and therefore lacks credibility — The volume of current business that is
booked for the community is at times overstated and should be re-analyzed and revised.
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This is because the bureau staff has inappropriately taken credit in the past for some
convention bookings. One example is the recent decision by the PGA to choose
Fresno — when the CVB had nothing to do with the initial decision — although the
bureau was later called upon by the customer for assistance in soliciting hotel rooms
and other services. This new business is a terrific opportunity for the city with all the
attendant positive economic impacts, but it should not be credited by the bureau as
their booking. The current definition of a confirmed booking should be revised
accordingly.
Recommendations:
The MINT system should be purchased and implemented immediately to search the
meetings industry to access potential business, and then present results to the board.
Lost business reports for the past year should be revised in accordance with industry
standards, and an analysis should be presented to the board that also clarifies the next
required steps to utilize this information for future marketing solicitation efforts.
The definition of bookings by the bureau should be revised to meet industry standards,
and the format for reporting bureau success in business development going forward
should be modified accordingly. Included should be the requirement for a file on each
business client that confirms that the bureau had previously communicated with, and
worked on behalf of the client, before submittal of a customer’s RFP and a
corresponding issuance of a CVB sales lead.
Convention services and housing
The manager for this area spends about 95% of her time handling the hotel housing
requirements for meetings and conventions. With a more effective software housing
program in place, the manager could be freed up to devote more time to other
important convention services, including assisting with pre and post tours.
The function of providing visitor information at conventions through an onsite kiosk
should be shifted to tourism, and that effort should be provided by volunteers.
Recommendation: Evaluate the current software program against others provided
throughout the industry, relying on information provided by Destination Marketing
Association International. The current Fresno housing software program is used at only
one other bureau in Peoria, and requires an annual user fee cost of $1300.
Consideration should be given to outright purchase of a new plan.
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Tourism Management
The Tourism manager’s job description and performance objectives /job parameters are
not functional, with combined and disparate responsibilities that are both managementbased — such as tourism sales — and clerical in nature, such as calling on members to
provide brochures, visitor inquiry fulfillment, etc.
The solicitation of new group tour business should be a priority (with 50% time
allocation), but not the servicing of conventions to produce tours. That should be a
responsibility of convention services.
There is also limited responsibility for media coordination (currently 5% time allocation)
and that function should be expanded, pending available funding. To this end, a PR
quarterly roundtable of members should be scheduled to review coordinated media
issues and possible publicity placement.
The visitor center program in the Water Tower is deficient in that due to lack of funding
and volunteers, it is only able to serve visitors for just several hours daily: Tuesday thru
Friday, 11 to 3 and Saturdays, 12 to 2. This is woefully inadequate.
When visitor centers are properly administered, they are capable of increasing customer
length of stay, with resulting new overnight stays and attendant expenditures, as well as
the enhancement of the value of the visitor experience and encouragement of repeat
visitation. Management has failed to understand and subscribe to this operational
objective.
Recommendation: Modify the performance objectives of this position and develop an
effective volunteer program to extend hours from 9 to 5, by emulating the program of
the Fort Worth Texas CVB, one of the finest volunteer visitor programs in the country.
Then review and put in place the recommendations for visitor center management under
archived newsletters at: MMTourismMarketing.com.
Membership Development
The Membership program and its current deliverables are unsatisfactory, with no growth
for the past ten year period in either revenue or membership categories. Nor has there
been a revised member fee assessment plan in at least six years.
Recommendation: This program should be revised immediately with the
establishment of performance goals in each of those categories. In kind services
provided by members should be inventoried, evaluated for value, and the information
shared with constituents (see section under funding options). A new membership fee
schedule should also be established by committee.
Employee compensation should be based on a combination of salary and incentive pay
based on new member’s produced and retention deliverables.
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Collateral Development
The bureau’s visitor magazine, which is produced independently, is well designed. So
are supportive materials from the Convention Center, which are used to support the
bureau’s bid proposal packages. But the CVBs other publications and sales promotional
materials lack graphic integrity or a family look.
Of greater concern is the financial arrangement with the publisher of the visitor guide,
which provides for the firm to solely profit from the sale of advertising, rather than a
shared financial arrangement with the bureau.
Recommendation: the Board’s marketing committee should review this issue, as well
as the issue of website development. (See below).
Development of the website has been hampered by delays, and it is questionable that
the bureau has the skill sets to produce this much needed program. Today the web has
become the most important resource for travel planning throughout the industry, yet its
visibility and priority of need for the Fresno CVB is exceedingly low. We have not
attempted to address this comprehensive issue, but for guidance, we refer the
marketing committee and staff to the section on Internet web development in the book,
“Fundamentals of Destination Marketing and Management”.
Profile of the Successful Tourism Bureau:
Comparing the Fresno CVB
In order for a tourism destination to achieve optimal success, an important requisite
must be an effective, business -standard destination marketing organization in place
that regardless of its size and budget, effectively operates on behalf of the community.
The effective CVB should deliver a successful, umbrella program for its tourism business
constituents that assists them in enhancing their profit potential through the production
of new visitor business to the destination.
How, then, should we interpret success? What is the profile of today’s successful
bureau, and how can the Fresno CVB mirror its deliverables for business excellence?
There are basically three major areas or success criteria, which when taken collectively,
provide generally recognized standards for evaluating today’s successful bureau.
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Criterion I:
The Bureau delivers performance of economic development benefits in
fulfilling its core mission
First, the bureau’s productivity results, or “economic impacts, “are based on the
attraction of incremental visitors through various market segments. These results
are:
‰
‰
‰
Quantifiable
Forecast whenever feasible in advance as a series of goals
Reportable to Bureau leadership, stakeholders and other community
constituents
In other words, the bureau forecasts its future successful achievements and provides
them in advance to its constituent community.
Criterion II:
The Bureau provides marketing, management and operational excellence
through its financial oversight, market research and market planning ,
business execution and evaluation steps.
As such, the agency strives to deliver the highest standards of performance in the
areas of:
‰
‰
‰
‰
‰
‰
‰
Economic impact results against market segments
Successfully planned, designed and executed marketing initiatives and a
business standard marketing plan
Reporting and accountability systems
Long- and short-term planning
Goal-setting, tracking and delivery
Staff and program performance evaluation, professional staff development
and employee compensation and recognition
Community partnership and alliance- building to galvanize tourism industry
interests, stretch resources and leverage success.
This is really the core work of the successful Bureau under the direction of the
CEO/Executive Director, and the most well regarded bureaus employ state of the art
management systems found throughout the industry today.
31
Criterion III:
The Bureau is the recognized leader in the community for effective tourism
development
On the surface, this last criterion appears to be extremely subjective. But the bureau’s
assessment should be impartially evaluated by asking all of its diverse stakeholders to
address and evaluate the agency.
Without question, today’s CVB should be well regarded for its local leadership position.
Stakeholders (i.e. hotels, attractions, art and cultural institutions, related businesses and
other associations, government, etc.) should look to the bureau as the focal point for
destination management and marketing, planning, coordinating community stakeholder
efforts, research and long range visioning.
In other words, through leadership of the Executive Director who is the bureau CEO, the
CVBs role is that of the voice of the industry, the inspiration, the chief lobbying
organization and the chief cheerleading organization.
He should also closely monitor and manage key marketing issues affecting the
destination such as the need for competitive market funding, sustainable tourism issues,
infrastructure requirements, visitor amenities and service issues.
How can the Fresno CVB match these criteria for excellence? In the opinion of the
consultant, it can confidently do so over time: By focusing on requirements for new
Executive and Board Leadership, new governance and management systems, a
business- standard marketing plan, resulting performance deliverables — and the
enhanced confidence from all of its stakeholders.
Next, we review principal functional areas, outline major concerns and provide
recommendations for each.
32
Board Governance, Structure, Responsibilities
We reviewed the Bureau’s bylaws and found them lacking, particularly in that no term
limits have been imposed for board elections. This section should be revised and Board
members should be able to serve for no more than two consecutive terms.
The current size of the board, with 21 members, is fairly standard in the industry. But
the executive committee, with its current three members, should be expanded to four,
five or six seats to offer additional oversight expertise, assure scheduling attendance for
monthly meetings and aid in the process for selecting future new officers for the Board.
The principal requirement is:
•
A clear understanding by the Board of the culture of the CVB industry and the
Fresno Bureau; its mission, objectives, marketing standards of excellence,
performance accountability measurements, etc. This is a principal responsibility
of the Executive Director to arm them with knowledge about the CVB destination
marketing approach. In this way, board members can provide more effective
oversight for the agency and also help imbue the community with these new
understandings of bureau programming and performance results.
•
The board also should be aware and follow its own job description for
governance; what it is responsible for, as compared to the staff’s role, and that
of committees and task forces. Also, it should review additional business policies
for consideration.
•
Finally, because of one of its most important requirements to manage the CEO, it
should endorse a plan for CEO evaluation.
Recommendations: The Board should review its bylaws and add term limit provisions,
modify the size of the Executive Committee, and put in place the recommended policies
that follow.
In addition, members should familiarize themselves with the new industry textbook on
CVBs from the Destination Marketing Association International, “Fundamentals of
Destination Management and Marketing. The General Manager of the Convention Center
has offered to purchase copies on behalf of the Board members. Also, additional copies
should be provided to bureau staff members, who are all unaware of its importance to
their ongoing work.
33
Tourism Bureau Governance:
The Traditional Roles of the Board, Staff and Committees
In today’s successful management model for the Association Management Industry
throughout America — including traditional Convention and Visitor Bureaus — here is
how principal responsibilities are aligned to assure performance excellence, regardless of
agency size.
What Boards Do:
•
•
•
•
•
•
•
•
•
Manage and evaluate the Executive Director
They set the long-range course for the organization by providing vision, values
and strategic direction
Establish its mission and its principal broad- based objectives
Frame policy directives
Work to coalesce government and community interests for tourism development
Appoint Committees and Task Forces
Approve the budget, business plan and marketing plan, performance goals to be
achieved, along with major purchases
Establish salary ranges for the staff
Individually serve as communications conduits to represent the board and CVB,
listening to member questions/ needs and passing them along to the President,
Board, committees or executive director.
What Committees and Task Forces Do:
•
They frame issues and program needs, make and approve broad based
recommendations and give the staff general direction to accomplish
assignments.
What the Staff does as led by the Executive Director:
•
Provides ongoing support, guidance and understanding to the Board, to
government and community leadership about the culture of the Destination
Marketing Industry and the CVB’s role.
•
Manages the finance and marketing programs, provides staff direction and
assures performance success through goals that are approved by the Board
•
Develops and execute the work of the CVB in response to the Board’s broad
based direction
•
Prepare and write the Marketing Plan and gain approval and consensus from
stakeholders
•
Evaluate the program’s success and consistently share it with the Board and all
of the agency’s constituents in a series of meetings that stress a review of plans,
progress and problems.
34
•
Frame issues for the Board and Committees/Task Forces, providing researchbased information on the front end so that members of the governing bodies can
make more intelligent directional recommendations.
•
Pro-actively offer recommendations for the Board/Committees’ consideration
Recommendations: The Board should consider approval of the following industrystandard policies for board governance and provide them to new board members as
part of their orientation.
It should also plan an orientation session with an association expert who could
further assist in review of principals and processes for successful board and
committee governance. Issues should include the use of the title “Board Chairman”
for the Chair person, rather than “President” which is usually the title of the Staff
CEO/Executive Director; the use of standing committees vs. limited-use task
forces, etc.
Benefits of this governance structure:
•
The authority to move the organization forward rests in the hands of the
person the board should hold responsible for the success or failure of the
organization’s mission accomplishment, (the Executive Director).
•
The CVB day-to-day operations should take direction from only the ED;
One Executive Leader, one direction, with evaluation based upon
performance of duties.
•
The Executive Director receives direction and guidance from the Board of
Directors via approval of a staff-produced marketing plan, job description,
and priority list of goals to accomplish. The BOD evaluates the ED based
upon how well initiatives are accomplished.
35
Bureau Governance Guidelines
Listed below are the traditional responsibilities for a Staff President/CEO/ED and a Board
of Directors that are standard with the US association community and convention and
visitor bureau industry.
Task
Long term goals (l year or more)
Short-term goals (Less than l
year)
Day-to-day operations, program
development
Marketing plan & budget
Capital purchases over $50,000
Decisions on building, renovation,
leasing and expansion over
$25,000
Supply purchases
Major repairs over $10,000
Minor repairs $10,000 and under
Board
Administrator/CEO
Approves
Monitors
Recommends, provides input
Establishes & carries out
no role
Makes all management decisions
Approves
Approves
Makes decisions,
assumes responsibility
Develops and recommends
Prepares requests
Recommends (could also sign
contracts if given authority)
Establishes policy
and budget for supply
Approves
Purchases according to board
policy
Fees
Billing credit and collections
Hiring of staff
Staff deployment, assignments
Termination of staff
Policy should include
amount to be spent
without board
approval
Works with
administrator
Adopts policy
Adopts policy
No role
No role
No role
Staff grievances
No role
Personnel policies
Staff salaries
Adopts
Allocates line item for
salaries in budget
Staff evaluation
Evaluates only
Administrator
Emergency repairs
Obtains estimates, prepares
recommendations
Authorizes repairs up to prearranged amount
Notifies board chairperson & acts
with concurrence
Develops fee schedules
proposes and implements policy
Approves all hiring
Establishes assignments
Makes final determination and
decisions
Grievances generally stop at
administrator level
Recommends, administers
Approves salaries with
recommendations from supervisory
staff
Evaluates other staff
Recommendation: The Fresno CVB Board should review and adopt as appropriate.
36
Policies for Board Consideration
We encourage the Board to review its processes for governance and match the model
for CVB excellence that is at work throughout the industry.
Suggested approaches follow:
I. BOARD GOVERNANCE PARAMETERS AND STYLE
The Board should approach its tasks in a manner that emphasizes outward vision,
encourages diverse viewpoints, strategic and proactive leadership in a clear distinction
between Board and staff roles.
In this spirit, the Board will:
1. Focus chiefly on organizational policy making, which is directed towards achieving long-term goals,
while delegating to the staff the administrative or programmatic means of attaining those ends.
2. Direct, control and inspire the Bureau through the establishment of the broadest organizational
values and policies.
3. Model the principles of Board excellence by governing with honor and integrity, by fulfilling
appropriate self-imposed commitments in matters of attendance, policy-making principles, and
respect for clarified roles, by speaking with one voice, and by resisting any tendency to stray from
governance processes adopted in Board policies.
4. Be accountable to the funding sources and membership for competent, conscientious, and
effective accomplishment of its obligations as a body. No officer, individual, or committee of the
Board will usurp this role or hinder this commitment.
5. Monitor and regularly discuss the Board’s own process and performance.
6. Ensure the continuity of its governance capability by continuous Board development and training.
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II. BOARD JOB DESCRIPTION
The function of the Board is to lead the Bureau toward the desired outcomes and ensure
that they occur. The Board’s specific contributions are necessary for proper governance
and management.
Consequently, the contribution of the Board should be:
1. To serve as the link between the Bureau, its funding sources, and the community in which it
operates. (Dependent on contract requirements, the Board Chairman should participate in dealing
with the highest level of government relations issues, including funding, governmental contract
negotiations, Mayoral interests, etc. A fully coordinated government relations plan should be
developed to foster that enhanced reputation with support from the Chairman and CEO).
2. To write governing policies, which, at the broadest level, address:
a. Goals - As established from time to time in strategic plans and other planning processes.
b. Executive Permission - That establish the prudence and ethical boundaries of acceptable executive
activity, decision-making, and organizational responsibility.
c. Governance Process - Specifying how the Board conceives, carries out, and monitors its own task.
d. Board/CEO Relationship - Outlining how roles and responsibilities are determined and
monitored to assure effective performance of, and appropriate compensation for, the Chief
Executive Officer.
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III. BOARD MEMBER CODE OF CONDUCT
The Board expects ethical and business-like conduct of itself, as a body, and of each of
its members, as individuals. This commitment includes proper use of authority and
appropriate decorum in-group and financial behavior when acting as Board members.
Meetings of the Board should be conducted in a traditional business-like environment,
although they may be followed by a social function such as a reception or dinner.
1. Board members must represent unconflicted loyalty to the interest of the Bureau and its
constituents. This accountability supersedes any conflicting loyalty such as that to advocacy of
interest groups and membership on other boards or in other organizations. This accountability
supersedes the personal interests of any Board member acting as an individual consumer of the
Bureau’s services.
2. Board members must avoid any conflict of interest with respect to their fiduciary responsibility.
a.
There must be no self-dealing or any conduct of private business or personal services
between any Board members and the Bureau except as procedurally controlled to assure
openness, competitive opportunity, and equal access to “inside” information.
b.
Board members must not use their positions to obtain for themselves, family members, or
close associates, employment or business with the Bureau or management company. And
any potential conflicts of interest should be disclosed during board meetings with members of
the board.
c.
Should a Board member be considered for employment, he or she must temporarily withdraw
from Board deliberations, voting and access to applicable Board information.
d.
Should staff decide to engage a member company to provide services necessary to the
operation of the headquarters building or necessary to the operation of the Bureau itself, such
a decision shall not require deliberations by the Board of Directors.
3. Board members may not attempt to exercise individual authority over the Bureau except as
explicitly set forth in Board policies.
a.
Board members’ interaction with the Chief Executive Officer or with staff must recognize the
lack of authority in any individual Board member or group of Board members except as noted
above.
b.
Board members’ interaction with public, press, or other entities must recognize the same
limitation and the similar proscription of any Board member or Board members to speak for
the Board. Notwithstanding this, Board members must recognize that the public, media, or
other entities may consider them to be speaking for the Board or the Bureau, and must act
accordingly.
c.
Board members will make no judgments of the Chief Executive Officer or staff performance
except as outlined in explicit policies (when fully articulated and approved).
39
ADDITIONAL CVB GOVERNANCE POLICIES
FOR BOARD CONSIDERATION
POLICY TYPE: EXECUTIVE PERMISSIONS
POLICY TITLE: COMPENSATION & BENEFITS FOR EMPLOYEES
1. The Chief Executive’s Officer’s compensation and benefits may change only upon permission of
the Executive Committee.
2. The Chief Executive Officer will have sole responsibility for the Bureau staff including hiring,
termination, performance evaluation, salaries, benefits, and assignment responsibilities.
All assignments of the staff will be through the Chief Executive Officer. (The CEO will make the
Executive Committee aware of any salary increase that was 5% above the mean annual increase.)
POLICY TITLE: COMMUNICATION & COUNSEL TO THE BOARD
1. Perform the duties of the office within the context of commonly accepted Bureau ethics, as well as
adhere to applicable governmental laws and regulations.
2. Inform the Board of relevant trends affecting the Bureau and the business community.
POLICY TITLE: STAFF TREATMENT
The Chief Executive Officer will:
1. Follow all appropriate national, state and local labor laws when interviewing and hiring employees
and will not promise or guarantee permanent employment to any employee.
2. Abide by all applicable governmental laws and regulations, including, but not limited to: labor laws,
Equal Employment Opportunity (EEO) laws, ADA regulations, etc.
3. Treat all employees with respect and dignity.
POLICY TITLE: FINANCIAL PLANNING
The Chief Executive Officer will:
1. Propose an annual budget for adoption by the Board at least 30 days prior to the beginning of the
subsequent fiscal year that reflects the priorities established by the Bureau’s Board of Directors.
2. Propose a balanced budget unless otherwise approved by the Board.
3. See that an independent outside audit of the Bureau’s financial records is conducted annually. A
report of such audit is to be presented to the Board.
40
POLICY TITLE: FINANCIAL CONDITION
The Chief Executive Officer will:
1. Collect and disburse funds for the Bureau within the confines of the established annual budget and
maintain expenses within income unless otherwise authorized by the Board of Directors.
2. Provide monthly and quarterly financial records to the Executive Committee and Board, which
indicate the status of the annual budget and financial condition of the Bureau.
3. Have the authority to move monies from one line item to another line item as long as it does not
affect the overall budget of the Bureau and as long as the Board-approved priorities of the Bureau
are satisfied.
4. Abide by the financial procedures and investment policies established by the Board.
POLICY TITLE: ASSET PROTECTION
The Chief Executive Officer will:
1. Establish and maintain reasonable and prudent business practices to deter liability claims.
2. Maintain adequate insurance against theft, casualty losses, and liability claims.
3. Assure that assets are adequately maintained, protected, and not risked unnecessarily.
4. Assure that staff responsible for handling the Bureau’s funds and assets is bonded.
41
POLICY TYPE: BOARD-CEO RELATIONSHIP
POLICY TITLE: DELEGATION TO THE CHIEF EXECUTIVE OFFICER
1. All Board authority delegated to staff is delegated through the Chief Executive Officer, so that all
authority and accountability of staff, as far as the Board is concerned, is considered to be the
authority and accountability of the Chief Executive Officer.
2. The Chief Executive Officer will implement the policies of the Board.
3. The Chief Executive Officer is accountable to the Board of Directors and reports directly to the
Chairperson, who acts on behalf of the Board of Directors.
POLICY TITLE: CHIEF EXECUTIVE OFFICER JOB DESCRIPTION
The Chief Executive Officer’s job description is annually reviewed and may be revised.
This revision may take place if in the judgment of the Chief Executive Officer and the
Board, (through the Chairperson) it is deemed necessary when the Chief Executive
Officer’s contract is re-negotiated or otherwise by mutual consent between the Chief
Executive Officer and the Board.
POSITION TITLE:
REPORTS TO:
Chief Executive Officer
Board of Directors, through Board Chairperson
PURPOSE: Position is accountable for directing and managing the staff and operations
of the Bureau to ensure successful accomplishment of strategic goals, on behalf of the
Board of Directors and membership.
ESSENTIAL JOB FUNCTIONS:
1. Develops the annual marketing and business plan of the Bureau, working with the Board of
Directors, members and staff, consistent with the vision and mission of the Bureau. Directs the
staff in the development of programs to implement and accomplish plan objectives.
2. Serves as spokesman for Bureau and its membership. Meets with funding sources, members and
the community to provide information regarding business concepts, issues that impact commerce,
and Bureau programs and services. Makes presentations at business events and other meetings
and articulates the Bureau’s vision, mission, and position on issues. Represents the interests of
members to other private and public constituencies.
3. Works with the Board of Directors on the development of policy, formulation of plans, and oversight
of Bureau operations. Guides the deliberations and activities of the Board and provides input and
support to committees and task teams. Responsible for the effective management, fiduciary
responsibilities and governance of the Bureau, ensuring compliance with all applicable laws and
regulations.
42
4. Works with staff to distinguish member needs, prospective changes in industry and in the business
environment, and to identify opportunities for new programs and new directions for the
organization. Participates in program formulation, development and implementation.
5. Ensures the effective utilization of financial and human resources. Is solely responsible for the
acquisition, direction and management of the staff of the Bureau. Provides direction and guidance
to functional directors and reviews proposed changes in operational policies and practices.
OTHER JOB FUNCTIONS:
Participates in coalitions with other related organizations.
INTERNAL RELATIONSHIPS:
Senior management report to the Chief Executive Officer.
EXTERNAL RELATIONSHIPS:
The Chief Executive Officer is appointed by the Board of Directors and operates
under the immediate control of the Chairperson.
The Chief Executive Officer has regular contact with the elected officers, the
Board of Directors, committees and task forces. Maintains personal contact with
the membership, funding sources and elected officials to the greatest degree
possible. Maintains appropriate relations with business leaders, related
organizations, media and trade press to enhance the image of the Bureau and
the attainment of its objective.
POLICY TITLE: MONITORING EXECUTIVE PERFORMANCE
1. The Board monitors the performance of the Chief Executive Officer.
2. The Chairperson of the Board and the Chief Executive Officer will meet to determine what data will
be required from each to complete the Chief Executive Officer’s performance evaluation, salary
review and/or contract modification. In addition to other data, the Chief Executive Officer will
provide a list of performance standards, which have previously been agreed to by the Chief
Executive Officer and the Chairperson as acceptable and responsible measures of past
performance. The Chief Executive Officer will also provide a recommended list of performance
standards that will be used for the subsequent year.
3. The Chairperson and Chief Executive Officer will determine what pertinent information may be
needed by the Executive Committee for performance evaluation, salary increase, incentive
payment, and/or contract modifications.
4. The Chairperson will meet with the Chief Executive Officer and complete a performance evaluation
and salary/benefits review. The Chairperson may, at his/her discretion, appoint a Compensation
Committee to participate in the evaluation.
43
5. The Chairperson will present the recommendation for the performance evaluation and
remuneration and/or contract changes to the Board of Directors, for input and approval, in closed
session.
6. The Chairperson may call a special meeting of the Board of Directors to review the current issues
or seek additional direction at any time.
7. The Chairperson will be responsible for the Board’s compliance with the Chief Executive Officer’s
contract or other terms of employment. Contract discussions and negotiations will be conducted
between the Chairperson and the Chief Executive Officer.
Evaluating the CVB Executive Director
The Fresno CVB Board has recently decided to formally evaluate the CEO through an
appointed committee.
To assist, we offer evaluation recommendations below. However, it is also
recommended that the entire board oversee this evaluation procedure because one of
their principal responsibilities is the management and supervision of the Executive
Director. At this point in time, this would seem particularly appropriate.
The Board’s evaluation of the chief executive officer requires a disciplined, written
business model that incorporates as much objective criteria as possible, and including
both qualitative and quantitative components.
In the future, evaluative criteria should be reviewed and agreed to by both parties at the
beginning of the evaluation period. And the Board, or its designated committee (such as
the Executive Committee or a smaller chosen compensation/evaluation task force)
should meet with the ED and provide this annual evaluation, and resulting approved
compensation, following each year’s completion.
Here are the standard categories included for a traditional CEO evaluation.
1. Qualitative components (usually amounting to 50% of the evaluation).
Each of these categories should be assigned a percentage, which may vary
somewhat dependent on Board interests, but will aggregately total 50% of the
evaluation.
•
•
•
•
•
Board relations
Fiscal management
Annual marketing/business plan development and tactical execution
Staff management
Stakeholder relations, community leadership provided
44
2. Quantitative components (usually amounting to 50% of the evaluation).
Based on predetermined goals established by the Executive Director and agreed
to by the board at the beginning of the evaluation period. Again, these
categories may be weighted, with some receiving a higher percentage, but in the
aggregate totaling 50% of the entire evaluation.
•
•
•
Market Funding plan developed and implemented
Number of members and $ revenue generated
Other tactical programs for the future, which could include: Positive media
publicity produced as measured in circulation; Advertising messages/web
measurements delivered and conversion of visitors determined along with
dollar generation
All of these written criteria should be spelled out in detail as part of an enhanced job
description for the Executive Director. The board may also include additional “Personal
Performance Objectives” or deliverables with the advance understanding of the ED.
Laying the Foundation for CVB Performance Success:
Recommended New Mission Statement and Objectives
The Mission Statement
An organization or businesses well-crafted mission statement should reflect its purpose
and core responsibility.
It should also be the clear reason for the existence of the Fresno CVB — why the bureau
is in business after all — and total business planning and developments that follow must
subscribe to it as the foundation of purpose. Therefore, it is critical that there be clarity
and consensus around the mission.
In our judgment, the bureau’s current mission statement is too broad- based, confusing
and requires a more focused approach. It now reads:
“ The primary objective of the Fresno Convention and Visitors Bureau is to
strengthen the local economy by marketing the city and county as a destination
for meetings, conventions, trade shows, special events, amateur athletic
championships, and leisure and group travel through marketing, sales,
advertising and promotion and the providing of services and materials to
enhance the visitor experience.
We recommend that it be replaced with a statement explaining that the Fresno
Convention and Visitors Bureau:
45
•
Is the official marketing agency for government and community tourism
development for the City (and the County, pending supportive ongoing funding)
•
Produces incremental economic impacts or benefits for the community and its
tourism business partners ( and these must be forecast and identified on an
ongoing basis)
•
Focuses on meeting and leisure travel development as its name implies
Our recommended mission statement is:
“The Fresno Convention and Visitors Bureau is the City’s official
tourism marketing organization whose mission is to generate
incremental economic impact for the community through the attraction
of visitors.”
Developing New Objectives
The Mission Statement should then be followed by broad-based objectives that support
it by establishing the ongoing work and responsibilities of the CVB.
We recommend the following objectives:
1. Generate positive awareness of Fresno as a destination of choice for
meetings, conventions and leisure travel business.
2. Stimulate interest and desire on the part of consumers to take action
and visit.
3. Maximize the length and frequency of stay to increase economic
generation and enhance the value of the visitor’s experience.
4. Increase the business volume of Fresno’s tourism business partners
and constituents.
5. Proactively support the development of additional tourism products and
services to enhance the visitor experience.
6. Maintain a research base for the City’s tourism industry.
7. Create positive awareness, support and participation in the Convention
and Visitors Bureau and its marketing programs.
All future plans — including the strategic plan, the marketing plan, and department and
individual performance objectives must flow from the mission statement and these
broad based bureau objectives.
Then, for the annual marketing plan of work, each objective should be carried out by
listings of strategies, which are followed by specific work programs or tactics that can be
modified over time, based on changing market conditions and other evolving needs.
46
Recommendation: This is the business framework that should chart the future course
for the organization. It should be a approved by the board and made available to
community stakeholders, incorporated in the Annual Marketing Plan, special reports and
revisited as part of a Bureau Strategic Planning Process.
Options for Funding the Critical Needs for Marketing
How does the Fresno CVB compare to America’s average bureau? The bureau’s staff size
of nine approximates the median number of 11 full –time employees for the average US
bureau.
But when it comes to budget, and attendant marketability to produce visitor results, its
current annual budget of $850,000 pales in comparison to the average bureau’s
$4,344,688. budget (according to the latest CVB Profile Analysis from the Destination
Marketing Association International).
What’s more, Fresno is at a distinct disadvantage when compared to other nearby
competitor communities within the state and throughout the region.
There is now available a wide variety of funding options for bureau consideration, but
they require a professional appraisal that can lead to planning and potential
implementation. They include:
1. Membership Development
Viewed primarily as a supplement to CVB funding throughout the industry, the average
US bureau with a membership program produces about 20% of its total revenue from
dues paying members. Fresno falls short in that formula result, but hasn’t put a new fee
assessment plan in place for six to seven years.
2. Menu-based “Pay to Play” Initiatives
A supplement to across the board member participation is menu- based programming,
sometimes referred to as “pay to play.”
These initiatives are designed to provide additional services to members who agree to
provide additional financial remuneration for their partnership participation. The most
popular menu based programs include:
Funding from Private Sources, as received by other bureaus:
•
•
•
•
•
•
•
•
Print advertising
Web site advertising/Links
Coop advertising
Promotional Participation
Event Hosting
Publication Sales
Visitor Information Center(s) sales
Service Fees
•
•
•
•
•
•
•
•
47
Convention Registration
Corporate Sponsorships
Chamber of Commerce
Business Improvement District
Convention Center Building Revenue
Donated (non-cash) Products and Services
Investment Income
Other
Other Donated Services as received by other bureaus may include:
•
•
•
•
•
Travel and entertainment
Sales/marketing/promotion
Bookkeeping/accounting
Car(s)
Computer services
•
•
•
•
•
•
Equipment
Postage
Printing
Rent
Volunteer staff
Other
Required for implementation of these funding initiatives are the specialized skills
provided by a membership director who is usually employed on an incentive basis plus
salary.
3. In-kind services
Monitoring the receipt of funds and services provided to the bureau by its various
constituents and program is an effective way of determining the total marketing weight
of the agency — although it doesn’t affect the increase of actual resources. Never the
less, the CVB currently does no monitoring of this service component, but should begin
to do so and report all additional resources collected at year’s end, including
publications’ advertising, room night accommodations provided for client site
inspection/familiarization tours, other hosting and volunteer services, participation in
trade shows, etc. This in-kind category should be added to the member revenue
produced to reflect the bureau’s total marketing effort and industry support.
4. Other Coalitions, Alliances, Partnerships and Sponsorships
Corporate partners who are interested in reaching potential new customers may provide
major funding for future CVB efforts. Programs may include such diverse opportunities
as special event sponsorships, the refurbishing, decorating or furniture and fixtures for
the administrative offices or visitor kiosks, comp or reduced ticket fares for
transportation including limousine and airline services, and a whole host of purveyor
support. This, however, is a labor intensive, time consuming initiative that is usually
provided by larger bureaus with greater staff time capability, special expertise and
access to supplier markets.
However, one potential opportunity is forging a closer partnership and sponsorship with
banking institutions or the local newspapers/media businesses to consider assisting in
funding the development of a much needed visitor research study that could aid not
only the bureau, but the partners as well, along with the membership, the city and the
county.
48
5. Maximizing the City’s general fund appropriations
If the bureau could over time, enhance its market effectiveness that assures the City of
strong , reliable return on investment from programs such as conversion of visitors from
advertising programs, then it should be feasible for the city to consider benchmarking its
current annual contribution from the general fund and modestly increasing the
assistance level proportionally, based on the positive annual results of the bureau’s
program and the growth of the hotel tax revenue collected by the city.
For example, if tax collections increased by 4% over the previous year, and the bureau
accomplished pre-determined, quantifiable goals for production of room nights,
conventions or leisure travel visits, it would be eligible for a 4% increase. In current
dollars, that could amount to an increase of about $30,000 for its current $740,000
budget. This would at least allow the CVB to keep pace with inflation in providing goods,
services and adequate salaries to its staff.
6. Exploring new funding from the county
The method for this approach requires a business and marketing plan that is considered
credible to county officials and will help them fulfill the development of jobs in the
county through projected visitor spending. This concept doesn’t appear feasible under
the current staffing structure, but it has much merit for the future.
7. Foundation Grants
A relatively new alternative funding opportunity for bureaus is Foundation Grants.
Fresno could potentially profit from this new opportunity for bureau funding — and it
doesn’t take a lot of effort, energy or special expertise. Nor is it necessary to hire
specialized staff positions, employ grant writers, or spend an inordinate time researching
foundations to produce results. However, it should be noted that this funding is not
designed for long-term efforts, but rather for startup programs or one to three-year
duration.
Grants in the form of cash, goods and services have been made to numerous bureaus
for such diverse needs as:
•
•
•
•
•
•
•
Hospitality and educational training programs
Cultural tourism promotion
Package tour development
Convention and sports marketing
Advertising
Visitor center development
Internet marketing support
The initial challenge is understanding the culture of foundations and matching their
funding mission interests with the objectives of the Bureau. Grant makers typically fund
nonprofit organizations that qualify for public charity status under section 501 c (3) of
the Internal Revenue Code (for purposes of: education, culture, arts, etc.) A new C3 is
required to receive funds, but this is quite easy and inexpensive. And the existing board
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of directors can serve both agencies. The one-stop resource for grant success is the
Foundation Center. Located in midtown of New York City, the Center’s mission is to
support and improve institutional philanthropy and help grant seekers succeed. A virtual
tour of the Foundation Center’s excellent website will answer most questions.
This program can be outsourced, or managed by the membership director with oversight
from the CEO. We recommend that its feasibility be first explored with foundations
headquartered in the Fresno area.
8. Voluntary Marketing Assessment by Hotels
This is an important and viable source of bureau funding that is now employed by
bureaus in Ontario, South Carolina and Rhode Island which could increase the bureau’s
annual budget by about $1 million dollars for performance-based marketing.
Several destinations have recently introduced a hotel-approved program of voluntary
supplemental marketing support through visitor fees. In Toronto, Canada, for
instance — where no enabling hotel taxing legislation is available — the
accommodations industry has recently agreed to impose and collect a percentage fee
from guests on all rooms and services, and then provide the total funding directly to the
CVB. Prior to this action, the bureau agreed to a new marketing agreement with the
hotels using these proposed funds.
In Myrtle Beach, South Carolina, where the CVB receives about half of its funding from
member contributions and the other fifty percent through a traditional dedicated hotel
tax, it is also now initiating this type of hotel- based voluntary program. Participating
hotels there have agreed to levy a $1.00 charge for each filled room night. The monies
collected will be provided to the bureau for special marketing needs as identified by the
participating hotels. The program is projected to produce about $3.5-$4 million for the
first full year.
The Myrtle Beach CVB currently plans to use the funds for advertising, public relations
publicity and other tactical marketing initiatives designed to produce new customer
awareness, and ultimately higher volumes of business for both the hotel properties and
the destination.
This concept has significant merit for Fresno — particularly if the City of Fresno
considered matching funding dollars with the hotels through this plan. The program
should be designed to deliver strong return on investment from traditional or web-based
advertising that could convert inquires into higher volumes of visitor parties and track
them through third party research. Such programs are now operating with dozens of
states and cities throughout the US.
Recommendation: Funding is one of the most important long range considerations for
the Fresno community of tourism interests, and it requires thoughtful strategic
deliberation. It should be apart of a future long range planning program which the
bureau should implement.
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Recommended Marketing Plan Format
Without an industry standard marketing plan and supportive budget, destinationmarketing organizations tend to be reactive organizations that make decisions through
committee. But with a plan that is customer focused, the agency then has a pro-active
guide for effective integration of effort and program management and evaluation.
The following recommended marketing plan for the Fresno CVB is a standard, successful
model employed throughout the industry. It allows for providing strategic direction
against target markets, outlines detailed plans for success, forecasts specific results by
individual and effort, and delivers a step-by-step series of action steps or work tactics.
Developing this marketing plan will also help prioritize the work of the bureau by
analyzing market opportunities collectively, and based on anticipated returns and related
costs. Rather than programs produced through multiple committees in a reactive and
segregated approach, the marketing plan, with its proactive approach, should forge
stronger community alliances over time, foster team spirit and strengthen common
purpose throughout the bureau and its membership.
This plan should also reach for success across all bureau programs through the use of
an integrated approach that provides synergism of effort. Under direction of the
executive director, it should be produced with full staff team input and support, with the
conviction that the final plan belongs to everyone on the staff and to the local
community of tourism industry interests. Therefore, key community leaders and
constituent groups should also provide initial input.
Goal Delivery
Goals can be established by using benchmarked prior year results as a foundation. For
effective goal delivery, individual staff should be encouraged to initially develop
measurable objectives from the bottom up, using the benchmarking report and other
market data as guides. This approach provides their opportunity to envision their own
targets and commit to delivery.
Then a collaborative effort should be conducted with management for any goal
adjustments in relationship to current market support, market conditions, etc
Marketing Plan Outline
The new marketing plan should include:
•
An Executive summary, including a detailed review of the implementation
process
•
The Bureau’s destination marketing process — How new visitor business
will be attracted to the Door County community through coordinated group
action.
•
Plan highlights — including major quantifiable and productive goals to be
achieved.
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•
Introduction — Including the marketing mission, visioning process and value
statements that chart the course for success.
•
Major objectives — The cascading objectives that encompass the
comprehensive response to the mission statement should be included here as
parameters of the plan development. All programming of the bureau should fit
within the parameters of these seven objectives, which we offered under the
“Mission Statement” section.).
The Marketing Plan’s principal building blocks then follow:
•
Marketplace complications — all the impediments or roadblocks to success,
including perceived complications. These can be drawn from Stakeholder
assessments, a SWOC Analysis and a recommended Visitor Profile Analysis as
outlined in this audit
•
Major challenges — competitive city hotel inventories, other marketing
budgets, economic conditions, etc. that unfavorably impact Fresno’s ability to
create customer share of mind and market.
•
Marketplace Opportunities — where the new doors to success can be
opened. These may be developed in partnership with key members and the
board.
•
Departmental Reports and Productivity Goals — These comprehensive
sections are the core of the plan. Each department or area will produce a
detailed business plan including:
¾
Specific department mission
¾
Relevant regional/national trends
¾ Current year productivity/activity achievements (following the first year’s
benchmarking effort).
¾ Planned highlights for the New Year
¾ Projected sales goals in firm numbers, comparing them to work of the
current year (again, this can be accomplished following the first year’s
results)
¾ Each market segment should be specifically addressed, incorporating each
specific marketplace complications
¾ Their competitive analysis
¾ Major strategies to be undertaken
¾ Primary target audiences to be reached
¾ Specific tactics or work programs to accomplish the strategies.
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•
A comprehensive marketing calendar should list all major strategies by
month, containing trade shows, sales forums and sales missions to be
undertaken, media relations /advertising and direct mail placed, Publications
/collateral to be produced, major membership development initiatives, etc. This
component will offer numerous opportunities for stakeholder participation and
other marketing alliances.
•
A detailed budget
(Consideration should also be given to transitioning the bureau’s marketing work to a
calendar year basis that matches the arrangements of the private sector, particularly the
hotel industry. Most bureaus are similarly operated, but also provide fiscal year financial
records in accordance with government requirements).
Measuring Fresno CVB Performance
When Fresno’s tourism economy is strong, as measured by industry indicators such as
hotel occupancy reports, is that the effective measurement of the Bureau’s efforts? Not
any more than a weak tourism market should conclude that the Bureau’s efforts are not
satisfactory.
Instead, to consistently evaluate the CVBs ongoing success, it should have in place a
comprehensive monthly and annual analysis of all of the specific marketing activity and
productivity that it produces.
This report becomes the bureau’s mirror. It is the measurement response to the
agency’s mission statement. It is singularly the most important tool used for measuring
ongoing bureau performance. It should also be employed as the genesis for developing
the bureau’s goal- setting process (forecasting the pre-determined delivery of bureau
productivity measurements after year one).
The document should report categories by month, compared to the previous month, and
year-to-date, culminating with an annual report that compares final results to past year’s
efforts.
This report should be disseminated to principal constituents, made available to all
through the members’ only portion of the web site, used to highlight the bureau’s
annual report, marketing plan and other communications programs for the community.
Therefore, the Fresno CVB should principally measure its success by consistently
delivering and reporting:
•
•
Promotional activity
Marketing productivity
Promotional Activity includes such work as literature distributed, visitors serviced at the
information center, sales calls made, etc. As more promotional activity is produced and
targeted appropriately, there should be corresponding increases, over time in marketing
productivity.
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Marketing productivity is the most important output for CVBs. These business
measurements include convention business booked and resulting room night revenue,
hotel reservations made and resulting economic impacts, as well as other important
indicators of the organization’s successful selling efforts on behalf of the community.
Whenever feasible, productivity should be forecast and stated as goals to be delivered.
The most important productivity measurements for the Fresno CVB should be:
•
•
New conventions booked and room nights generated, including
convention center bookings
Bureau member support, including dues, alternative funding from business
partners and additional non-dues revenue provided for expanded marketing
initiatives
With long term implementation of an expanded marketing effort, we would also
incorporate:
•
advertising impressions generated , their conversion to actual visitors and
resulting economic impacts
•
New tour operator sales leads generated and attendant dollar value
•
Positive media publicity impressions produced of credible travel stories to
influence travel decisions and resulting $ value in comparable advertising
space costs
These represent the key performance indicators to be reported at Board level.
Listed next are examples of the other performance measures for the monthly
and annual marketing report.
Convention Development
Sales calls made to meeting planners
Sales leads generated to properties
Bid proposals produced
Conversion of sales leads to business booked
One hotel bookings
Attendant Rooms produced
Economic impact
Convention center bookings
Attendant Rooms produced
Economic impact
Total conventions booked
Total attendant room nights
Total estimated economic impact
Membership
Total members
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Total dues revenue
Renewal — no. of members
Renewal Revenue
Retention Rate
Loss rate
No. of new members
New member revenue
Member revenue by category (provided in categories, such as member listing
fees, advertising support, etc.
Visitor Center
Visitors serviced
Marketing Report
Collateral distributed
Web user sessions produced
Future measurements may include:
Tour Development
Sales calls made to tour planners
Sales leads generated to properties
Group tour Bookings produced
Attendant Room nights generated
Economic impact produced
Group tour programs booked
Media Publicity
Publicity generated in circulation
Value in $ cost of ad lineage rate
Press releases issued
Calls to writers
Media inquiries serviced
Individual writer site visits hosted
Writer group familiarization tours hosted
Recommendation: The staff should establish this new performance based report for
monthly and annual reports to the board.
Following the Monthly Marketing Report and the development of relevant productivity
goals, the Bureau should have a quick way for analyzing performance throughout the
year against each pre-determined goal.
To this end, a Consolidated Marketing Analysis is recommended. This one-page senior
management report tracks all productivity categories, comparing the annual goal for
each program, against monthly and year to date results.
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Recommended Center/Bureau Joint Marketing Partnership
Agreement
The objective of the following recommended joint agreement is to further develop a
seamless, integrated operation of mutuality by both agencies that best support the
meetings industry and the customers that Fresno serves.
This calls for both agencies to agree to support one another in manpower and financial
resources that provide collaborative success. Much progress has already y been made in
this regard. One example is the bid proposal collateral that is co-produced by the center
and bureau in the solicitation of business. We recommend that new ideas be reviewed
for inclusion.
_______________________________________________________
Marketing/Operational Partnership Agreement
For the Fresno Convention and Entertainment Center and Fresno Convention and Visitors Bureau
Goal: to develop a seamless annual marketing/operational approach to the successful
development of convention and sports business for Fresno. This annual agreement,
produced three months prior to the annual budgeting and business plan, provides a
framework of partnership. It includes tactical commitments and strengthens synergism
of effort to provide optimum performance.
Collective commitments:
•
•
•
Develop joint goals for bookings, room nights, space and revenue
Ongoing meetings: Management keeps an open dialogue and meets
together on a monthly basis to review collective plans, progress and problems
The initial task: Reviews and confirms agreement on the standardized
definitions of business performance in accordance with the standards of the
Destination Marketing Association International, including confirmed bookings,
Lost business, cancelled business, etc.
Bureau commitments
•
•
•
•
•
•
•
Track the room night usage from booked business in a timely manner for
both conventions and sports events
Pro-actively promote the Convention Center in all of our selling activities
Attend weekly (monthly or quarterly) joint sales meetings
Partner with the sales and executive staff for customer events
Conduct joint site inspections with all customers
Block all meeting and exhibit space accurately
Provide history and RFP for meetings and conventions and sports functions
(when appropriate)
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•
•
•
•
•
•
Provide diligence in monitoring and reporting hotel room pickup use
Maximize the use of the exhibit and meeting space at the convention center
for meetings and trade shows, principally for associations and tradeshows
Develop a new- hire cross training program for Convention Center sales staff
Exploration of a new Welcome Plan for all major events and meetings, which
would include welcome banners, visitor information booth, media
announcements to the trade and local public, etc.
With regard to inquiries for sports events and potential bookings, the bureaus
should immediately contact or refer clients to the sports council
Deliver a Year-end Report for the Convention Center that:
a) Reviews past year CVB bookings of meetings for the future, including
meeting space, hotel room nights produced and estimated economic impact
to the community.
b) Forecasts the booking goals for the coming year.
Center commitments
•
•
•
•
•
•
•
•
•
•
Make available a perpetual ONLINE CALENDAR for the Building to share with the
Bureau
Attend all weekly/quarterly sales meetings of the bureau
Quote competitive pricing
Attend tradeshows with Bureau when appropriate (identify all)
Provide tours and related food and beverage during bureau sponsored FAM/site
trips
Partner with bureau during all appropriate sales missions
Partner with bureau during all customer events
Make effort to work with bureau’s sales managers to accommodate short term
bookings within the 14 month timeframe
Develop a new hire cross training program for bureau sales staff
Deliver a year-end report for the CVBs Board to review the year’s joint efforts,
including recommendations from the CVB.
In addition
Update marketing/sales activity with the CVB staff every quarter
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Strategic Planning Recommendation
Finally, as the board prepares to digest this document, we recommend the need for a
long range planning process through a new initiative entitled:
“The Fresno Tourism Summit”
Developed by the bureau board with a keynote kick-off from Fresno Mayor Autry,
the Fresno Summit would:
™ Provide a new, constructive beginning for the CVB and Fresno’s
tourism partners
™ help provide a new roadmap for community success in tourism
development
™ Coalesce diverse community interests
™ Provide a new spirit of optimism through an integrated, collective
effort of community leaders
™ Create a new team approach for tackling major challenges to tourism
success
Invited to attend and participate would be bureau members, the cultural community,
sports partners, chamber executives, City, County and State officials , and other
stakeholders interested in strategizing future programs for an integrated, area wide
program of new beginnings to put Fresno on the tourism map.
The one-day session could include:
1. A strategic session identification of big picture needs to be addressed over time
and attendant strategies for accomplishing them.
2. An idea fair, similar to the successful “Camp Creative” created annually by the
Florida Space Coast’s Office of Tourism
3. Unveiling of new information and future plans from the CVB (a new visitor profile
study, new marketing initiatives, new organizational staffing, etc.)
Recommendation: the board should conduct a strategic planning session to
discuss this and other supportive issues. For background, see the archived review of
strategic plan outlines on the web from MMTourism.com.
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Major Audit Recommendations
Here is a compiled list of all major recommendations provided in this audit.
Validate the diverse opinions of CVB constituents through an industry
standard Stakeholder Assessment Survey. The process involves production of a
third party, internet based instrument that collects and analyzes the opinions of
members and community leaders to:
ƒ provide members and stakeholders with the opportunity to express their opinions
freely
ƒ provide the Fresno CVB with essential feedback and information for problemsolving and planning
ƒ identify areas that need to be addressed
ƒ
Ultimately improve the quality of service to the community
Survey costs in the $3,000 range are available from Performance Management of
Stamford, Connecticut, consultants to the CVB industry.
An ethics policy for the staff should be immediately discussed and approved by the
CVB board. The policy should be made apart of the bureau’s Personnel Policy and
Procedures Manual. A recommended policy follows.
The CVB should become a member of Destination Marketing Association
International, and then access their training services and inventory of policies,
standard operating procedures, etc. Compile for staff review and implementation.
Staff should revise their job descriptions, using a template that includes major
work parameters/personal performance objectives, and review with management for
approval.
For business report meetings, adopt a standard Plans, Progress and Problems
format outline.
Commission an internet- based projectable visitor profile study of Fresno to
guide future marketing efforts.
Implement tourism and convention positioning statements using the visitor
profile study (above) and validated information from meeting planners
For optimum convention sales, implement the MINT system for customized
customer prospecting, revise lost business reports and provide an analysis of why
Fresno loses convention business and to whom; also revise the booking policy to
accurately reflect booked business results by the bureau.
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For convention housing, evaluate the current software program against others
provided throughout the industry, relying on information provided by Destination
Marketing Association International.
For tourism management, modify the performance objectives of this position
and develop an effective volunteer program that extends hours to a 9 to 5 schedule.
Then put in place the recommendations for visitor center management under archived
newsletters at: MMTourismMarketing.com.
Develop a professionally managed Membership Development solicitation
program that aggressively produces more revenue and additional members, along with
the monitoring of new partnership programs on behalf of the bureau.
The Board should review its bylaws and add term limit provisions, increase the size
of the Executive Committee to four, five or six members, and adopt policies regarding
board job description and evaluating the CEO. New board members should familiarize
themselves with the culture of the CVB new industry through the new textbook from the
Destination Marketing Association International, “Fundamentals of Destination
Management and Marketing.”
The Board must address and solve the ongoing deficiency of senior staff
management in the reporting, board communication and management responsibilities
related to the contract requirements between SMG and the Fresno CVB.
The Board should consider planning an orientation session with an association
expert who could further assist in review of principals and processes for successful
board and committee governance. Issues should include the use of the title “Board
Chairman” for the Chair person, rather than “President” which is usually the title of the
Staff CEO/Executive Director; the use of standing committees vs. limited-use task forces,
etc.
Adopt a newly revised mission statement and supportive objectives, sharing
them with community stakeholders, incorporating them in the Annual Marketing Plan,
special reports and revisited as part of a Bureau Strategic Planning Process.
Review recommended funding options as part of a long range strategic planning
process and implement accordingly.
Implement a new marketing plan format for the bureau, and consider employing
a calendar year marketing program that matches the planning period needs of major
constituents.
The staff should establish a new performance based reporting system for
monthly and annual reports to the board.
Produce a new marketing and operational partnership agreement for the
Center and Bureau to enhance marketing and service requirements
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Produce a board- sponsored strategic planning session and incorporate “The
Fresno Tourism Summit,” a new program launch for community leaders.
In five years, conduct an operational audit review for the bureau to keep
performance and management success on track.
In conclusion
By addressing the important issues and needs recommended above, The Fresno CVB
must now work, with guidance of the Board, to chart a long range planning process to
assure success in relationship to the industry it serves.
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Consultant’s Background
One of America’s top tourism/convention industry consultants, Marshall Murdaugh Marketing has
developed more than sixty strategic planning assignments — including performance based
audits — for city and state destinations, tourism related businesses and travel organizations.
Before establishing his consulting service firm six years ago, Murdaugh served for more than
thirty years as President and CEO for some of America’s most successful destinations.
He was Tourism Commissioner for the State of Virginia under four Governors (1970-83) where he
is perhaps best known for developing the award-winning “Virginia is for Lovers” marketing
campaign that helped bring about a new era of multi-billion dollar tourism business to the
Commonwealth. He was later named President and CEO for the New York City Convention and
Visitors Bureau (1988-1994), The Atlantic City Convention and Visitors Authority (1994-2000) and
the Memphis Convention & Visitors Bureau (1983-88).
Murdaugh recently authored the chapter on Destination Marketing for the new industry textbook,
“Fundamentals of Destination Management and Marketing”. He also helped develop the
Convention and Visitor Bureau industry’s return- on- investment performance standards for the
Destination Marketing Association International. His own “Performance Assessment Manual” for
convention and visitor bureaus has become a major industry auditing resource. And his quarterly
“E Murdaugh Marketing Newsletter” is read globally by international tourism executives (on the
web at: MMTourismMarketing.com).
Murdaugh is the recipient of the prestigious Lifetime Career Achievement Award from the
Association of Travel Marketing Executives, served as Chairman of that organization and also as a
Board member of the Travel Industry Association of American and the New York Society of
Association Executives. He also served as a consultant to the Visit USA Program and received the
first Special Citation from the US Department of Commerce for Distinguished Service to that
Agency. He is a former member of the Board of the International Association of Convention and
Visitor Bureaus, past Chairman of the Tourism Committee, and was an active Member of the
Association for nearly twenty years.
Marshall Murdaugh Marketing’s client list includes corporate planning and market development
work for SMG Management, the leading private management center for public facilities including
convention centers, special event centers and arenas; The Dolci Association Management
Company of New York, managers of the New York Society of Association Executives; the David
Green Company of Chicago, a national leader in convention sales support for destinations; and
Harrah’s Entertainment, one of the world’s premiere casino gaming companies.
Murdaugh’s auditing work includes the Greater Miami Convention and Visitors Bureau/MiamiDade County, Baltimore Area Convention and Visitors Association, Niagara Falls Tourism Canada,
Charleston West Va CVB, Palm Springs Bureau of Tourism, the City of Los Angeles for the LA
CVB, Wilmington, Delaware and the Oneida County New York Tourism Bureau.
He has also produced strategic planning programs for numerous destinations, cities and states
including the Palm Springs Desert Resorts Regional Convention & Visitors Authority; City
Government of Palm Springs, Puerto Rico Convention Center District Authority;, Mexico City,
Mexico CVB/KWE Public Relations; Fairfax County, Virginia Convention and Visitors Corporation;
State of Maine Office of Tourism; Hilton Head South Carolina Chamber/CVB; Savannah, Georgia
for the Bureau, principal hoteliers and Convention Center; Atlantic City Convention and Visitors
Authority; The Pennsylvania Capital Region of Harrisburg/Hershey; Memphis Convention and
Visitors Bureau and many others.
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