Sponsorship.. are there lessons to learn from the real world?

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Dwayne Holmes
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1 Sponsorship.. are there lessons to learn from the real world? Jonathan Graddon PMP. 17th April 2013

2 Premise Sponsorship in the real world brings significant benefits to the sponsoring organisation and those that receive the sponsorship, whereas sponsorship, in terms of project and programme management is quite often less of a success, thus jeopardising the delivery of these projects and programmes.

3 Definitions Sponsorship (endorsement) is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property. While the sponsoree (property being sponsored) may be non-profit, sponsorship is done with the expectation of a commercial return. Source : IEG Sponsorship Glossary Corporate Sponsorship A project / programme Sponsor is the single individual with overall responsibility for ensuring that the project (or programme) meets its objectives and delivers the projected benefits. Source : EPMO Project / Programme Sponsorship

Project Success PMI global survey shows 64% of projects meet their objectives Further analysis showed the most important critical success factor is having ACTIVE

4 Project Success PMI global survey shows 64% of projects meet their objectives Further analysis showed the most important critical success factor is having ACTIVE SPONSORS. Source : Project Management Institute annual global survey (2011) of practitioners and project management leaders. Sample size of over 1,000 professionals.

5 What is Effective Sponsorship? The eight characteristics of effective project sponsorship are : 1. AVAILABLE making time for the PM when needed, and easy access 2. A CAN-DO attitude 3. The project / programme CHAMPION 4. A good COMMUNICATOR 5. A DECISION MAKER, making informed decisions 6. Will make things HAPPEN 7. Having ORGANISATIONAL RESPECT 8. KNOWS the role

6 Real World Sponsorship $ Projected spend globally in 2011 was US $46.3 billions In America, the largest segment spend is : sports Global Spend : North America : Rest of World : US $46.3 billion US $17.2 billion US $29.1 billion Source : IEG

Sky City Breakers New World We recognise that netball holds a special place in the hearts of New Zealanders and our

7 NZ Sponsorship Examples Vodafone Warriors The Vodafone Warriors have a culture of commitment, strength, faith, and family - all traits we are proud to be involved with. Sky City Breakers New World We recognise that netball holds a special place in the hearts of New Zealanders and our customers alike and as a 100 per cent New Zealand owned company, we take pride in our significant community involvements nationwide. That's why we are so proud to sponsor Netball New Zealand and the Silver Ferns.

8 Characteristics of Real World Sponsorship The Sponsoring organisation : 1. WANTS the sponsorship, it aligns to their corporate brand/image 2. Expects to COMPETE for the right deals 3. WILL INVEST considerable time, effort and money in making it work 4. Will want RETURNS on their investment 5. MAINTAINS FOCUS on the deal, leveraging and optimising 6. CANCELS the contract if things go wrong and cannot be recovered

9 Survival Required! Those receiving sponsorship may also depend on it : The New Zealand Rugby Union re-signed five sponsors for the All Blacks as it strives to balance the books.. Even with this renewed support we face significant challenges to keep financing the game at current levels, chief executive Steve Tew said in a statement. The cold hard reality is that our national game costs the NZRU $100 million a year to run. Source : NZ Herald 29 th May 2012

10 Risk in the Real World As in the PM world, things can go wrong : In 2009, Tiger Woods was outed by tabloids for cheating on his wife. He lost millions in endorsement deals from Gillette, Accenture, AT&T etc. Michael Phelps was forced into an apology after UK tabloids published a photo of him inhaling from a pipe used to smoke cannabis. His sponsor, Kellogg, immediately stated his sponsorship would not be renewed. In the wake of USADA s report into using banned substances, Lance Armstrong was dropped by every single major sponsor, including Nike, Annhauser-Busch, Radio Shack, Oakley and the Trek Bicycle Corporation.

11 Problems with PM Sponsorship (or why doesn t sponsorship always work in the PM world? ) 1. The Sponsor doesn t want the project / programme 2. The Sponsor isn t made accountable 3. The Sponsor is too busy 4. No previous sponsorship experience 5. The role is not in the Sponsor s job description 6. The project will deliver anyway, so why bother? 7. There is a fallback plan in case of failure. blame the PM!

12 PM World v Real World 1. The Sponsor doesn t want the project / programme 1. The Sponsor wants it and will compete to get it Make the project attractive 2. The Sponsor isn t made accountable 5. The role is not in the Sponsor s job description 6. The project will deliver anyway, so why bother? 7. There is a fallback plan in case of failure. 2. The Sponsor is totally accountable 5. It will be in the relevant staff job descriptions 6. The Sponsor s key role, so focused on measurement and results. 7. The Sponsor is accountable but will also manage risk Establish ground rules

13 PM World v Real World 3. The Sponsor is too busy 3. The Sponsor s key role, so time will always be available. Time management 4. No previous sponsorship experience 4. The Sponsor s key role, so experience is essential! Training, mentoring and support.

articulating the project s benefits for the organisation raising the project s

14 Applying Real World Solutions 1. The Sponsor doesn t want the project / programme Make the project attractive by : articulating the project s benefits for the organisation raising the project s profile/importance with senior management raising awareness across the organisation selling the win-win of sponsorship try to create a competitive situation dangle the carrot

Applying Real World Solutions 2. The Sponsor isn t made accountable 5. The role is not in the Sponsor s job description 6. The project will deliver anyway, so why bother? 7.

15 Applying Real World Solutions 2. The Sponsor isn t made accountable 5. The role is not in the Sponsor s job description 6. The project will deliver anyway, so why bother? 7. There is a fallback plan in case of failure.. blame the PM! Establish ground rules by : senior management endorsement clearly defining and approving roles & responsibilities communicating and thus continuous association maintaining focus with senior management add the responsibility into job descriptions add responsibilities into personal objectives maintain a close and supportive working relationship

16 Applying Real World Solutions 3. The Sponsor is too busy Time management by : clearly explaining the Sponsor s role scheduling meetings well in advance maintaining a schedule for project deliverables that require approval reminding the importance and visibility of the project remove time wasting - escalating only as required regularly communication maintains stickyness

17 Applying Real World Solutions 4. No previous sponsorship experience. Training, mentoring and support : sponsor training courses coaching / mentoring schemes reviewing lessons learned knowledge base PMO support : steering committee meetings phase gate reviews reviewing of key documents etc.

18 Questions

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