MANAGEMENT IN AN INDUSTRY OF CONSTANT UNCERTAINTY

We work in a sector that lives with uncertainty. There are hardly any long-term contracts that provide a vision of future income and as a result, a timetable for organising our own and external resources.

Uncertainty is a brake on the growth for many agencies in our country. Every year the profit and loss account starts at zero and "you have to go out and earn your bread and butter". 
It´s true that some clients, especially large companies, organise events that in a medium-high percentage are repeated annually.

This allows agencies not to work blindly and take such events into account when planning the year, although always with some degree of uncertainty, since the projects are not guaranteed. However, the big problem is undoubtedly the non-recurring and impossible to schedule volume that disrupts any planning. A clear example was the year 2022. After two pandemic years, the calendar was disrupted and the volume of work was so high that it overwhelmed the human and financial resources of all agencies. The situation was impossible to foresee.

It is essential in any organisation, whether small, medium or large, to have a strategic plan with clear objectives to pursue in decision making. Relevant decisions taken with the short term in mind are often counterproductive, generate uncertainty and show a lack of direction.

The events industry is living a key moment when the professionalisation of organisations are increasingly necessary. We need solid companies that can better withstand economic cycles. The events industry, both agencies and other stakeholders are currently mostly made up of companies that suffer when economic or regulatory challenges arise.

Having a greater financial culture within organisations and relying on digital tools that provide us with agile information for decision-making is fundamental for successful professionalisation. From that point, it will be easier to grow and have a less volatile and atomised industry.

Diego Álvarez-Novoa, CFO and Head of Corporate Services at SOMOS Experiences