Guidelines for Successful Event Bidding

Ministry of Tourism / Visa International Tourism Research

Scholarship Research Report

January 2014

Paul Dunphy
[email protected]
Executive Summary

Event bidding is a complex process of communication between two key

players, the event owner and the event bidder, that comprises of five stages (1)
bid feasibility, (2) bid development, (3) bid submission, (4) bid presentation, (5)
and site selection.

In order to win an event bid the event bidder must try and achieve a state of ‘best
fit’. In order to reach a state of best fit, the event bidder must aim to exceed the
event owner’s specified and unspecified bid criteria relative to competing bids.
This specified and unspecified bid criteria is represented as the five rings in the
targeted model (figure 1).

Event bidding is not an exact science whereby success can be guaranteed by

following a set formula. The event bidder must treat each new bid as being
unique. However, there are a number of factors common to all successful event
bids that the event bidder is encouraged to employ.

These
include:
• Meeting both the specified and unspecified criteria
• Continuously adding value to the bid and the event
• Providing evidence of government support
• Demonstrating the ability to deliver the event through infrastructure,
community support and previous event management experience and
expertise
• Previous experience at event bidding
• Developing strong partnerships and bid leadership
• Conducting research and providing quality information
• Having figureheads to front the bid
• Making an emotional connection with the decision makers
• Providing evidence of community passion for the event
• Developing strong relationships and lobbying the decision makers.

1
Table Of Contents

Executive Summary
....................................................................................................... 1

List Of Figures
................................................................................................................ 4

1. Introduction
.......................................................................................................... 5

2. The Five Stages of Event Bidding

...................................................................... 8

2.1 Stage 1: Bid

Feasibility.......................................................................................................
..................... 8

2.2 Stage 2: Bid Development

....................................................................................................................
10

2.2.1 Primary Criteria

......................................................................................................................
............ 13

2.2.2 Enhanced Primary Criteria

................................................................................................................. 14

2.2.3 Secondary Criteria

......................................................................................................................
....... 14

2.2.4 Supporting
Factors...........................................................................................................
.................. 14

2.2.5 X-Factor
......................................................................................................................
....................... 15

2.3 Stage 3: Bid Submission

......................................................................................................................
. 16

2.4 Stage 4: Bid Presentation

.....................................................................................................................
17

2.5 Stage 5: Site

Selection........................................................................................................
.................. 17

2
3. Common Success Factors For Winning Event
Bids....................................... 18

3.1 Meeting the

Criteria...........................................................................................................
.................... 18

3.2 Adding
Value.............................................................................................................
............................ 18

3.3 Government
Support..........................................................................................................
.................. 19

3.3.1 Government Support: Political

Leadership......................................................................................... 21

3.3.2 Government Support: Policies

........................................................................................................... 21

3.3.3 Government Support: Funding & Resources

..................................................................................... 22

3.4 Providing The Evidence Of Your Ability To Deliver The Event

............................................................. 22

3.4.1 Event Related Infrastructure

.............................................................................................................. 23

3.4.2 Community Support

......................................................................................................................
..... 23

3.4.3 Event Management Experience

......................................................................................................... 23

3.5 Bid
Enhancers......................................................................................................
................................. 23

3.5.1 Previous Bidding Experience

............................................................................................................. 24

3.5.2 Partnerships
......................................................................................................................
................. 24

3.5.3 Bid Leadership

......................................................................................................................
............. 24

3
3.5.4
Research........................................................................................................
.................................... 25

3.5.5 Quality Information

......................................................................................................................
....... 26

3.5.6 Figureheads
......................................................................................................................
................. 26

3.5.7 Emotional Connection

......................................................................................................................
.. 27

3.5.8 Community Passion

......................................................................................................................
..... 27

3.5.9 Relationships &

Lobbying........................................................................................................
........... 27

4.
Conclusion...................................................................................................
....... 28

Appendix A: Hosting Requirements & Bid Criteria ......... Error! Bookmark not
defined.

Appendix B: Example of a Bid Document........................ Error! Bookmark

not defined.

4
List Of Figures

Figure 1 The Event Bidding Process

................................................................................. 7
Figure 2 Event Bid Feasibility
Questionnaire..................................................................... 9
Figure 3 Bid Document Framework When Bidding For International Events
.................. 11
Figure 4 The Bid
Document............................................................................................. 12
Figure 5 Government Letter of
Support........................................................................... 20

5
1. Introduction

Over the past two decades in New Zealand there has been an increase in the
number of individuals and organizations bidding for events. This increase in
activity has resulted in a small number of people who have developed an in-depth
knowledge of the event bidding process and what it takes to win a bid. Until now
this knowledge has is not been readily accessible to individuals or organizations
wishing to find out more about event bidding and how to ensure success. This
guidebook attempts to bring this information together from those experienced in
the event bidding process.

The data for this guidebook was collected from a number of sources: (1) world-
wide academic literature on event bidding; (2) nonacademic publications such
as newspaper articles, interviews, presentations, reports, information booklets,
etc; (3) and interviews with New Zealand event bidders and event owners.

This guidebook is for those individuals and organisations (Regional and

National Sporting Organisations, Event Managers, Sport Trusts, Territorial
Local Authorities) new to event bidding and are considering getting involved.

This guidebook provides insight into (1) the main stages of the event bidding
process, (2) the theory of event bidding (3) what is required to win an event bid
(4) the common success factors for winning an event bid.

The Essence of Event Bidding:

Event bidding is a process of communication between the two main players; the
event owner and the event bidder*. The event owner is the entity, such as an
international or national sporting organisation, which owns the rights to an event
and is seeking a host to organise and run it successfully. The event bidder is an
entity or organisation that is seeking to secure the rights to host an event. In
most bids there is more than one event bidder resulting in a competitive bidding
process.

It is important to acknowledge that the event owner has a number of different

strategic objectives for their event that they hope to fulfil such as raising

6
awareness, improving infrastructure, increasing participation, increasing
revenue, etc through the hosting of a successful event. The event owner
establishes a set of criteria that they think is required to run a successful event
and therefore achieving their desired strategic objectives.

In the majority of cases, the desired outcome of event bidding is to win (in some
cases bids are submitted purely to gain experience) and winning is secured
through achieving a state of ‘best fit’ between the event owner’s criteria (both
specified and unspecified) and the event bidder’s offerings relative to other
competing bids. When best fit is achieved then in theory winning will follow. Best
fit can be described as:

“The desired state of the bid process where the event owner’s conscious
and unconscious needs and wants are best met by an event bid relative
to other competing bids.”

In order to reach a state of best fit in a highly competitive bidding situation the
event bidder must aim to exceed the specified and unspecified bid criteria
relative to other event bids. This specified and unspecified bid criteria is
represented as the five rings within the targeted model (Figure 1).
* While in most cases there is more than one organisation bidding for an event,
for simplicity event bidders have been represented in the singular.

7
 Antecedent Conditions:
• City Strategies/Policies/Event
Bidding Strategy
PRE-BID • Political & Management
ENVIRONMENT Environment
• Event Resources:
infrastructure, funding,
capability
• Bidding Resources

Feasibility Study
• Meet with host organisation
Reques • Review bid against event selection
t for criteria
Propo • Ask questions about criteria
sals • Review bid criteria
• Discuss with event owners
STAGE 1: BID • Decide to proceed
FEASIBILITY • Basic SWOT analysis

STAGE 2: BID DEVELOPMENT

X-Factor
Suppor
Developing the Bid ting
• Compile Bid Team Fact
ors
• Information gathering
• Discussions with Second
event owners ary
Criteri
• Relationship a
building/lobbying
• Develop SWOT Enha
analysis nced
• Reviewing against Prima
criteria ry
• Identifying key Criter
ia
decision-makers
&
figurehe Primar
ads
• Reviewing protocols, y
Criteri
procedures & a
critical
dates
•
Common
•
Success Factors:
Seeking letters of support
Meeting the Criteria,
Develop bid collateral (document, DVD,
Government Support,
Presentation etc) against owners’ criteria
Infrastructure, Community
support, Event & Bid
Experience, Partnerships,
Leadership, Research,
Quality Information,
Figureheads, Emotional
Connection, Community
Passion, Relationships

STAGE 3: BID Formal Bid Submission

SUBMISSION • Site visit (if required)

8
 Presenting
STAGE 4: BID The Bid
PRESENTATION
• Bid presentations
• Lobbying & information
gathering
• Utilizes Common Success
Factors

Site
STAGE 5: SITE Selectio
SELECTION n
• Offered rights to host the event
• Contract negotiations
• Signing of contract

Figure 1 The Event Bidding Process

9
2. The Five Stages of Event Bidding

There are five stages (Figure 1) to the event bidding process that include (1) Bid
Feasibility, (2) Bid Development, (3) Bid Submission, (4) Bid Presentation, (5) Site
Selection. However, at times these stages are not clear-cut as there can often
be overlap between stages during bidding activity. For example is some
situations the event owners may not require a formal presentation of the bid.

2.1 Stage 1: Bid Feasibility

Hosting an event and compiling a competitive bid can be an expensive
undertaking, therefore before commencing with a bid the event bidder is
encouraged to undertake a bid feasibility study. The purpose of the study is to
determine whether it is viable to bid for the event.

The bid feasibility stage commences when the event bidder receives requests for
proposals (RFPs) from an event owner who is seeking an organisation to run their
event. One of the first things that the event bidder should do is request for copies
of the bid criteria if this is not included in the RFP. At a quick glance this will
give the event bidder an initial understanding of what is required to host the event
and whether they have the resources to submit a comprehensive and competitive
bid.

The amount of effort and resource put into the feasibility study will be dependent
on the size of the event. The higher the economic risk associated with hosting the
event, the more comprehensive the feasibility study that should be undertaken.
The majority of events bid for in New Zealand require a feasibility study which
ask some basic questions as set out in Figure 2.

10
 Event Bid Feasibility Questionnaire

Strategic Alignment
Does this event fit with our strategic objectives?
What are the economic, social, cultural and environmental benefits?

Resource Requirements
What will it cost to host the event?
Do we have the required resources to host a successful event?
What will it cost to submit a competitive bid? and do we have the
appropriate resources?
Can we meet the required criteria? (In terms of funding, hosting dates,
volunteers,
technical requirements, expertise etc).

Selection Process & Critical Dates

When is the event?
When is the bid proposal
required? Will there be a site
visit? If so when?
Will there be a bid presentation? If so when and
where? How is the selection process managed?
Who are the decision makers?
Will there be a chance to meet and lobby the decision
makers? What format does the bid proposal need to be
in?

Buy-in
Do we have community buy-in for the
bid? Do we have political support?
What figureheads would lead the bid?
Who are the other stakeholders who would support
the bid? What agency will lead the bid?
Who will own and finance the event if won?

SWOT Analysis
What are our strengths?
What are our weaknesses? and how can these be
mitigated? What opportunities exist?
What are the threats?
What are our points of
difference? What is our X-
factor?

Competitors
Who are our main competitors?
What are our chances of winning the bid?
What are the strengths, weaknesses, opportunities, and threats
confronting our competitors?

Figure 2 Event Bid Feasibility Questionnaire

11
If the event bidder feels satisfied that it is feasible to submit a bid they then
move onto the bid development stage.

2.2 Stage 2: Bid Development

The bid development stage is the most complex stage of the bid process. It is
also a very busy and demanding stage where the bidder needs to fulfil a number
of critical tasks often simultaneously. In order to develop the bid, a bid team
with a bid leader must be established. The bid team then collects all relevant
information and produces profession bid collateral.

The Bid
Team
One of the first tasks is to select a bid team that will manage the development
of the event bid. A critical person of the bid team is the bid team leader whose
role is to lead the team through all stages of the bid process. The leader is pivotal
in the bid as they oversee the pace and direction of the bid to ensure that all tasks
are being delivered on time.

Preparing a bid requires a wide variety of skills from people including by not
limited to:

• Excellent interpersonal skills for relationship building and lobbying;

• Writing skills for the content of the bid proposal document and supporting
material;
• Graphic design and film production skills for the bid document and
supporting material;
• Time management skills in order to be able to work under pressure
within tight time frames;
• An ability to collect and interpret information quickly;
• Strong presentation skills, creativity, competitiveness and a high
degree of tenacity.

Preparing the Bid

Document
The bid document is the most common way of communicating the bid and should
be a professionally produced document that addresses all the requirements in the
bid criteria while promoting strengths and addressing weaknesses.

12
When bidding for international events it is recommended that you promote
the destination of New Zealand first (figure 3). Its natural beauty and growing
reputation as a world class destination are a strong foundation to build a bid
upon. New Zealand’s reputation will be one of the greatest strengths that your
bid will have and it would be unwise not to leverage off this opportunity. The
next step is to promote the region and city that will host your event. This will
assist the decision makers in understanding the social, economic, cultural and
environmental context in which the event will be hosted.
Conclude with the venue and all the technical requirements requested in
the RFP.

New
Zealand

Region &
City

Venue

Figure 3 Bid Document Framework When Bidding For International

Events

Content of the bid

document
The content of each bid document (Figure 4) will vary depending upon what
information is requested in the RFP. However a standard bid document will
include the following information:
• Title page
• Contents page
• Introduction
• Overview of New Zealand, the region, host city (information on
location, population, climate, transport, leisure activities, etc)
13
• Overview of the Organising Committee
• Event Objectives (and long-term for the sport)
• Dates of the tournament

14
 • Financial requirements (event budget, travel arrangements for
officials, hotel accommodation, per diems, insurance, etc)
• Technical requirements (event & training venues, venue layout, medical
facilities, tournament offices, meeting rooms, security plan, catering, etc)
• Marketing, sponsorship & advertising (spectators, ticketing,
funding &
sponsorship, etc)
• Media and television requirements
• Supporting letters
• Pre and Post event travel and activities
• Any additional data required as per the event owner’s RFP

Figure 4 The Bid Document - World Masters Games 2017

The bid audio visual and the bid

presentation
In many bidding situations it is becoming normal practice that the event bidder
provides an audio visual (video or ipad) and does a formal presentation to the
event owner. While the content of the bid document is comprehensive and
addresses in detail what is requested in the RFP, the video and presentation may
not be as detailed but will reflect the common themes expressed in the bid
document.

15
The audio visual is a very visual medium that should reinforce the messages in
the bid document and include attractive scenic images of the destination and
venues. More

16
recent technological advancements has seen bids presented not in paper format
but in a electronic format such as ipads and other portable device. This makes
for a more dynamic bid presentation that is more compelling than a static paper
bid.

The appropriate length of time for the audio visual is recommended to be two to
three minutes.

The degree of content of the bid presentation will be dictated by the amount of
time allocated to present but also reinforce the messages in the bid document.
The bid presentation is possibly your last opportunity to influence the decision
makers so having a professional and well-honed presentation is essential.

The Theory behind Event

Bidding
A way of understanding each stage of the bid development process is to picture
an archer’s target comprising of five concentric rings (Figure 1). The event bidder
aims to fulfil the requirements of each of the five rings, starting from the outside
and working towards to the bull’s-eye in the middle.

2.2.1 Primary
Criteria
The outside ring comprises of the primary criteria, where primary criteria are
essential to the success of an event i.e. infrastructure such as venues,
transportation networks, telecommunications, funding, accommodation etc.
The primary criteria are sometimes known as the technical requirements of the
event.

The primary criteria are the foundation upon which the bid is built and therefore
the event bidder must be clear of what the stated primary criteria are. In most
instances, the event owner will have a list of primary criteria that the event bidder
must fulfil for a bid to be considered. In some situations the primary criteria will
be used by the event owner to screen out bids that will not meet the basic hosting
requirements. However, meeting all the primary criteria does not ensure that the
event will be won but is an essential step to achieving bidding success.

17
The primary criteria are essential for the successful hosting of an event and will
vary between sporting codes and events. Not surprising, the primary criteria
required to host

18
an international rugby tournament will be quite different from that of a national
swimming event.

2.2.2 Enhanced Primary

Criteria
The second ring in the archer’s target is called enhanced primary criteria. Due to
the highly competitive nature of event bidding, event bidders must do more
than just meet the requirements as set out in the primary criteria. By adding
value or enhancing the primary criteria the event bidder is attempting to gain a
competitive advantage over rival bidders. Bidding organisations will propose
state-of-the-art infrastructure such as sporting arenas, transportation networks
and telecommunications facilities that are over- and-above the basic
requirements set out in the primary criteria. So while it is essential to meet the
primary criteria established by the event owners, the nature of competition
dictates that this will likely not be sufficient to gain competitive advantage over
rival bidders. Therefore event bidders must continuously be looking at ways in
which to enhance their bid.

2.2.3 Secondary
Criteria
The third ring comprises of the secondary criteria. Secondary criteria are
established by the event owners and comprise of the ‘nice to haves’ but are not
essential to the success of the event. While it is not mandatory for the event
bidder to fulfil the secondary criteria they do help to enhance an event. While
meeting the secondary criteria is not fundamental to the success or failure of
an event they can be fundamental to the success or failure of an event bid.

Where the primary criteria is mandatory to ensure a minimum standard of quality

(resulting in a somewhat level bidding environment) the secondary criteria
consists of factors that event bidders can fulfil to the degree they choose.
By exceeding the secondary criteria, a bidding organisation can create a point of
difference or competitive advantage over rival bidders. The secondary criteria
gives event bidders an opportunity to express themselves and to be perceived to
be adding value to the owner’s event.

2.2.4 Supporting Factors

19
The fourth ring in the archer’s target is called supporting factors. Supporting
factors are those offered by an event bidder outside what is requested in the
primary and secondary

20
criteria. Supporting factors enhance an event and are fundamental to the success
or failure of an event bid.

The supporting factors are what set apart one bid from another. In a competitive
bidding environment where bids are perceived to be on an even-par in relation to
the primary and secondary factors, the right to host the event is likely to be the
result of a competitive advantage in relation to one or more of the supporting
factors.

While supporting factors enhance an event they don’t necessarily need to relate
in anyway to the successful operation of the event. Supporting factors tend to
make a strong connection with the event owner’s emotions. An example of this is
New Zealand’s natural beauty where it is often used an emotional draw card in
many New Zealand bids. New Zealand has become such a popular destination
that people are now looking for an excuse to come here. While New Zealand’s
natural beauty may have no bearing on the successful operation of an event it
most definitely enhances an event bid.

Other examples, of supporting factors can be activities on offer outside the event
such places of interest, places to visit, shopping facilities, and entertainment
opportunities. The quality of these activities can have a strong bearing on the
event owner’s decision- making process. These activities add value to the
participants overall experience of the event and as a result enhance the bid.

2.2.5 X-
Factor
The final ring within the targeted model is the X-factor; the ‘bull’s-eye’ of event
bidding, and it is the X-factor that all bids should be aiming to achieve. The
X-factor can be defined as the one overwhelming factor that all bids should aspire
to, that exceeds the event owner’s expectations in terms of fit and wins the bid.

The X-factor can be found within either the primary, secondary criteria or as either
a supporting factor or common success factor. For example, government support
could be a requirement of the primary criteria but how this government support
is presented and perceived can have a great bearing on the bid outcome. In the
case of New Zealand’s bid to host the 2011 Rugby World Cup, the Prime Minister

21
Helen Clark made the effort, under great time constraints, to represent New
Zealand’s bid. Her presence was very influential in the favourable outcome.
The way this high level political support was

22
presented (in person) could be an example of an X-factor. Had the Prime
Ministers of the other bidding nations been present then Helen Clark’s presence
would have been less impactful and unlikely have been an X-factor.

The X-factor is about exceeding the event owner’s expectations in one area that
overwhelmingly puts the bid out in front. Event owners are looking for a
point of difference that sets a bid apart from the rest. One way the X-factor
could exceed the event owner’s expectations is by connecting with the event
owner’s emotions. Therefore, whether the X-factor comes from primary or
secondary criteria or is a supporting factor it must make a strong emotional
connection with the event owner. The purpose of the X-factor is to influence the
objective selection process through the use of emotions. An example of this can
be found at the highest levels of international sport. The 2008 Beijing Olympic
Games were selected not just on their ability to meet criteria but also on
emotional factors such as the will of the International Olympic Committee to host
the Games in the biggest country of the world, one fifth of mankind.

While event bidders should aspire to achieving the X-factor that clearly gives their
bid the competitive advantage or point of difference over rivals, not all winning
bids may have an X-factor. While many bids may meet event owner’s
expectations, few exceed them. Event bidders that seek the X-factor, are pushing
the boundaries of event bidding and upping the ante in terms of bid
competitiveness. In order to stay competitive event bidders must continuously
be looking for ways in which to add value and achieve the X- factor.

2.3 Stage 3: Bid Submission

The bid submission stage commences when the bid collateral – bid document and
supporting material – is submitted to the event owners. This can occur several
months prior to the bid presentation or in some cases can occur just prior to or
during the presentation. In some situations, where the events are of an
international calibre, the event owners will conduct site visits of the bidding
destinations. Once the bid collateral has been received the event bidders are
invited to present their bid to the event owners.

23
2.4 Stage 4: Bid Presentation
In most cases after the collateral has been sent, the bidders make a live
presentation to the event owners. Presenting the bid is a crucial stage in the event
bidding process. It is the event bidder’s last opportunity to influence the
outcome of the bid. Therefore the event bidders utilise the relationships that
they have developed and nurtured leading up to and during the bid. They will
continue to lobby those who have the ability to influence and make the final
decision. This can be done through informal conversations or through hosting
decision-makers. Information gathering is still occurring through this stage in
order to secure a competitive advantage over rival bidders.

Stage 4 culminates with the event bidder presenting their bid face-to-face to the
event owner. With professional presentation skills, the event bidder addresses all
the essential criteria that the event owners have requested. To add strength to
the bid the event bidder must present a number of supporting factors that add
value to the event.

2.5 Stage 5: Site Selection

The final stage, site selection, commences after the all bids have been
presented. A decision is made on the site where the event will take place. This
decision can occur right at the end of the presentation, or it can come several
months after the presentation. Once the successful event bidder has been
informed then discussions regarding hosting rights take place culminating in the
signing of a contract. In some situations the discussions can take several months
before a contract for the hosting rights is signed.

24
3. Common Success Factors For Winning Event Bids

Event bidding is not an exact science as a combination of many factors contribute

to the final outcome. However research has identified a number of common
success factors that show up regularly in winning bids.

3.1 Meeting the Criteria

Event owners have a number of strategic objectives that they hope to achieve
through the event. These can be increasing participation, leaving a legacy in the
form of infrastructure, gaining an international profile through television
coverage, raising the host community awareness, etc. Linked to these strategic
objectives are criteria that the event owner has defined that will ensure a
successful event. Therefore, it is not surprising that one of the most important
common success factors for winning event bids is fulfilling the requirements as
set out in the criteria. Event owners often make it clear what they require and if
they are not met then a bid will surely fail.

3.2 Adding Value

The desired outcome of event bidding is to win and in order to win an event bidder
must continuously be considering the event owner’s aspirations for their event.
These aspirations can be found in both their high level strategic documents and
in the bid criteria. In considering these aspirations the event bidder must try to
achieve the best fit between the event owner’s specified criteria (conscious needs)
and unspecified criteria (unconscious desires) and the event bidder’s bid
(offerings) relative to other competing bids. In order to achieve the best fit in a
highly competitive environment the event bidder must be seeking ways in which
to add value to the event. Added value is the way of achieving a competitive
advantage over rival bidders. It is through continuously seeking added value that
event bids evolve. Just meeting the requirements as set out in the primary
criteria is often not enough in a competitive bidding environment. Event bidders
are adding value to primary criteria resulting in enhancements to the outcome of
the event.

25
Adding value should be a conscious process undertaken throughout all stages of
the event bidding process in order to maintain a competitive advantage over rival
bidders. It

26
is through adding value that one is more likely to achieve the desired outcome of
event bidding – best fit.

3.3 Government Support

The common success factor, Government Support provides the best possible
guarantee that the essential resources (government approvals and
consents, funding, infrastructure, etc) that are required for a successful event
will be available, and that assurance can only be given by a supportive
government. Providing evidence of government support is important, as it provides
the confidence that what is promised in the bid will be delivered, ensuring that
the event will be run to the required standards. To instil this sense of
confidence it is essential to highlight this support in the bid collateral such
as letters of support in the bid document (Figure 5), government representation
on the bid DVD and at the bid presentation. Government support adds credibility
to a bid and also provides the event owners with a level of comfort that there is a
commitment from government towards the event.

There are several reasons visible government support is critical to the success of
a bid in New Zealand. Many events are hosted on public land requiring
appropriate approval and consents. Gaining support from the local authority to
fast track the consent process is highly desirable. Councils in New Zealand are
rapidly increasing their appreciation of the role that events play, not only to their
city’s economic and social well-being, but also how they are perceived both locally
and internationally. As a result, governments are putting more financial and
human resources into securing and hosting events and the level and accessibility
to these resources is an influencing factor in the bidding process.

27
 orncr OF THE
MAYOR
AUCKLAND

12 June 2012

PhiRipe Bourdaris
Tournament
Director
International
Rugby Boord
Huguenot House 33 - 35 St.
Stephens Green
Dvbfin 2
IRElAND
Dear Phillipe.

By now you will have received the New Zeatond Rugby

Union's bid to hos! the
IRB Junior World
Championship in 2014.

The New Zealand Rugby Union will hove mode it

clear thol thei,- bid is conditional upon finonciot
support from bolh central government (Ministry of
Economic Development) and local government
(Auckland Tourism. Events and Economic
Development Lid). I om aware that central
government hos now confirmed lhejr support 1$1.45
million) towards the event.

The IRS Junior World Championship 2014 is on

excaing opportunity for Auckland and maintains
the momentum gained from hosting Rugby World
Cup 2011.
ti is my strong desire lo poss on to you Aucl:lond's
enthusiasm in coruidering a bid to host fhe IRB Junior
World Championship in 2014. I understand that fhe
bid deadline is 16 June 2012 and fhof fhe board of
Auckland Tourism. Events and Economic Development
Lid does not meet unfit the 22"" of June 2012.
AS this Is on excimg opportunily for Auckland that
involves o considerable amount of rolepoyer money,
I hope lhol you con oppreciote if is essential that lhe
board is able lo undertake proper due diligence of
the LRB Junior World Championship 2014.

I hope Iha! this short delay does nof inconvenience

your bid process nor difVfe in your mind hOw
seriously Aucl:Jand is considering lhis opportunity.

'°f-'- 28
 Once I have confirma1ion of Auckland's support I will
inform you immediately.

Len
Brown
MAYOR OF
AUCKLAND
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Figure 5 Government Letter of Support

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3.3.1 Government Support: Political Leadership
The support of a political leader is an important component of the bid as political
leaders are seen to represent the principles of government and the guarantee to
deliver. If a bid is important enough it is advantageous for the political leader to
become more involved in the bid rather than just providing passive support.

The political leader’s personality traits can have a big outcome on the result of a
bid. In the case of the bid for the 2005 ITU Triathlon World Cup the Mayor of
New Plymouth was passionate and fully supportive of the bid. He gathered a wide
variety of staff and community stakeholders into one room where the event owners
could have their questions answered immediately. The ability to have a political
leader who can lead a bid team and have the influence to implement change is
invaluable.

3.3.2 Government Support: Policies

Whether it is central or local government, the policies and procedures they have
in place can either make or break an event. An example of this is the debate
over the location and building of the 60,000-seat stadium for the 2011 Rugby
World Cup in Auckland. Three possible locations in the wider Auckland region
were identified. Without the appropriate central and local government policies
that ensure adequate funding and streamlined consenting processes the facility
will not be delivered on time. This is one possible reason why the New Zealand
Rugby Football Union partnered with the New Zealand government in order to
instil the International Rugby Board with confidence that a 60,000-seat capacity
stadium will be ready in time for kick-off.

Often the best way that a city can add value to a bid and to the quality of the event
is by having event-friendly policies where consents and approvals can be easily
obtained. To the event owner and the event organiser, a fast track, no-fuss
consenting process can be measured in terms of dollars and time. A city that
has customer-friendly consenting processes can quickly gain a competitive
advantage over those cities that don’t and this ability to make customer-friendly
decisions can often be an important factor in the event owner’s decision-making
process. As an example, Wellington City has a reputation as a vibrant city and

30
prides itself on its event-friendly policies and not surprising is very successful at
attracting events.

31
3.3.3 Government Support: Funding & Resources
In addition to political leadership and event-friendly policies, governments often
offer financial support. This can be provided in a number of formats: (1) as a
direct cash contribution; (2) as a tax exemption; (3) through underwriting the
financial risk of hosting an event; (4) providing physical components such as
costly infrastructure or as resources such as human expertise (that would
otherwise have had to come from the event organiser’s budget). Funding and
resource support is as an important aspect of government support.

Governments, especially at the local government level, can play an important role
in providing in-kind support to an event. Councils in New Zealand often have the
human resources that can provide event management assistance, marketing
expertise and support. In addition, councils have a number of well-
established communication channels (street banners, community notice boards,
event calendars, websites) that link into their local communities. Event owners
place a high value on such publicity opportunities.

To conclude, in New Zealand it is now accepted practice to have government

support when bidding for a major event and this is becoming a requirement set
by event owners. Government support comes in many forms: streamlined consent
procedures, funding, publicity, human expertise and infrastructure. It is the
high level politicians that symbolise or represent this support and having them
visible enhances the likelihood of bid success.

3.4 Providing The Evidence Of Your Ability To Deliver The Event

It is important in your bid to provide evidence of your ability to deliver as this

helps to instil the event owner with confidence that the outcomes of their event
will be achieved. Ability to Deliver the Event consists of three common success
factors. The first factor includes essential event related infrastructure such as
venues, transportation networks, accommodation, funding. The second factor
includes the support of the host community, while the third factor is having event
management experience.

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3.4.1 Event Related
Infrastructure
Infrastructure generally is comprised of the tangible bricks and mortar essential
to the hosting of the event. Examples of infrastructure can include -
accommodation, sporting
& medical facilities, transport (access to rental cars, taxis, public transportation),
and transportation networks – road, rail, airports, ports etc.

Meeting the minimal infrastructure requirements is a part of the screening

process that event owners demand to ensure standards of quality are reached.
Infrastructure is therefore often included in the primary criteria set by the event
owner. If event bidders cannot meet the infrastructure requirements set by the
event owners it is very unlikely that they will be able to progress much further
in the event bidding process.

3.4.2 Community
Support
An event is a short-term entity that regularly moves from one location to the
next and
‘imposes’ itself upon the host community. The host community is often utilised
for its vast resource of local knowledge, expertise and volunteer labour. Like any
guests, the event organisers like and need to feel welcome in order to function
effectively. Therefore event bidders use community support as a selling point so
that the event owners can feel assured that competitors, officials and spectators
will be made to feel welcome, and an environment will be established in which the
event will function effectively.

3.4.3 Event Management

Experience
Event management experience of the event organiser is an important common
success factor. The nature of event bidding is such that event owners are reliant
on professional event managers to organise events and deliver their associated
outcomes. Confidence can be gained through presenting the event organiser’s
previous event management experience and high level of expertise.

3.5 Bid Enhancers

33
The common success factor Bid Enhancers consists of those skills & resources
that a successful bid team utilises during the bid process that are deemed to
enhance an event bid.

34
3.5.1 Previous Bidding Experience
Previous bidding experience is an important factor in bidding success. The more
opportunity a bid team has at bidding for events the greater the chance of success.
Experience provides greater insights into the bidding process and what is
required to win.

3.5.2
Partnerships
Strong partnerships are an important factor in bid success. Partnerships can
assist with compiling the bid, providing additional resources, providing bid advice
and expertise, presenting the bid and assistance with hosting the event. Some
event bidders will have multiple partnerships while working on a bid. It is not
uncommon to have airlines, local and central government agencies, regional and
national tourism organisations, national sporting associations, etc supporting the
bid.

In the case of New Zealand Cricket’s successful bid for the 2015 Cricket World
Cup, partnerships played an important role in the bid process. New Zealand
Cricket established a partnership with the New Zealand Rugby Union where the
rugby union provided advice from their recent experience bidding for the 2011
Rugby World Cup. Though not a formal member of the bid team, establishing a
partnership with an external organisation like the New Zealand Rugby Union
would likely have saved New Zealand Cricket time and costs because they would
have been less likely to make mistakes through inexperience. The value to the
New Zealand Rugby Union is that they gained further experience in the event
bidding process but also gained insight into the operating and management
systems of New Zealand Cricket.

While establishing partnerships is mostly voluntary, sometimes partnerships are

forced upon the event bidders by the nature of the bidding cycle and if these
partnerships are not embraced the risk of bid failure is high. New Zealand
Cricket’s joint bid with Cricket Australia is an example of this, where they
partnered together on the bid and will partner on the co-hosting of the 2015
Cricket World Cup.

35
3.5.3 Bid Leadership
An important component of the bid team is the bid leader. Somebody needs to
have the drive and passion to lead the bid through the often difficult bid
process. Strong

36
leadership is required in developing partnerships and managing the associated
relationships and to pull the group together and make it work.

Jock Hobbs leader of New

Zealand’s bid for the 2011
Rugby World Cup

Leadership is not only valued in setting the direction of the bid team but it also
plays an important role in adding to the bidding team’s credibility. In the case of
the 2011 Rugby World Cup bid, Jock Hobbs (Chairman of the New Zealand Rugby
Union) was well regarded in international rugby circles and had the ability to
influence key decision makers.

3.5.4 Research
Another common success factor is the need to undertake basic research when
bidding for an event. Conducting research is essential as it helps to really
understand the nature of the bid process and where the power base is and what
will win the bid. Research also assists with understanding the technical
requirements of the bid, i.e. contractual obligations, infrastructure, TV, media,
sponsorship. You need to know a variety of factors before you can commence
the bid; who your main competitors are and what their strengths and
weaknesses are, who the key decision-makers will be, the critical bid dates,
understanding the protocols of the sport etc.

Research can be as basic as asking a number of simple questions of the event

owners in order to understand the essential criteria of the bid or in a more subtle

37
way, speaking to those knowledgeable in the sport or activity who understand
protocol and power bases.

38
Research does not have to be formal but rather it is more likely to be an informal
process that continues throughout the bid process.

3.5.5 Quality
Information
Bidding is a two-way communication process between the event bidder and the
event owner. High quality information needs to be provided by the event bidder
that concisely addressed the questions that are asked. The bid document is the
most common medium in which quality information should be provided.

A professionally presented bid document is essential as it sends a message to the

event owners that the event bidder is professional in their approach. This focus
on quality information presented professionally instils the event owners with
a degree of confidence. It conveys a message - if a bidder is organised well
enough to provide this quality information in a professional manner then they are
more likely to deliver the event professionally as well.

3.5.6 Figureheads
Figureheads, such as political leaders or celebrities, are becoming frequently used
as messengers to communicate and support bids. Figureheads therefore often
have a strong linkage with political support by adding credibility to an
organisation’s bid and have the ability to influence the event owner’s decision.

Grant Dalton,
figurehead
for Auckland’s 2014/15 Volvo Ocean
Race Bid

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3.5.7 Emotional
Connection
When bidding for events one must not assume that decision-makers are experts,
or that they only use rational criteria for selection. International research
provides examples of how emotional factors have come to influence what should
be a rational decision making process. In some bid situations the attractiveness
of the event location, to the decision- makers and their wives, have clearly
determined the final bid outcome! While event bidding is meant to be a structured
and rational process emotions play a large part in the final outcome.

3.5.8 Community Passion

Closely aligned to community support, community passion is the host
community’s passion for a particular sport or event. While community passion
on its own does not have a direct influence on the successful delivery of the event,
it does lead to community support which then creates an effective and functioning
environment providing for the event to operate in. The ability of the bid team to
be able to display the host community’s passion for the event or game is often
important.

As a success factor community passion can be presented in either its

existing or potential state. In the case of the bid for the 2011 Rugby World
Cup New Zealand’s passion for rugby was represented as a “stadium of four
million” and presented to the IRB as a strong case to host the event in New
Zealand.

3.5.9 Relationships & Lobbying

A lot of emphasis should be placed on relationships in the bidding process. The
use of well-connected people in a bid is a common occurrence because of their
ability to influence key decision makers, collect and pass on vital information to
the bid team. An informal aspect of event bidding is lobbying. A form of
persuasion, lobbying is now a recognised practice in event bidding. Event bidders
must do as much extensive lobbying as they can however, lobbying is a process
that can occur over many years. In some bids the lobbying process starts
anything up to 10 –12 years before a bid is even submitted.

40
Lobbying, in some situations, is not allowed or frowned upon and event bidders
must therefore understand the varying protocols of each individual bid, where
they need to look at what is acceptable and what isn’t acceptable in terms of bid
protocols.

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4. Conclusion

Event bidding is essentially a complex process of communication between key

players: the event owner and the event bidder. The event owner has a number
of criteria that they need fulfilled to ensure the success of their event. The event
bidder must show that they can best fulfil these criteria relative to competitors -
known as a state of ‘best fit’.

In order to reach a state of best fit in a highly competitive bidding situation, the
event bidder must aim to exceed the specified and unspecified bid criteria
relative to competitive event bids. This specified and unspecified bid criteria is
represented as the five rings within the targeted model (Figure 1).AA

In the event bidding process there exist a number of common success factors
that help to win an event bid. These include:
• Meeting both the specified and unspecified criteria
• Continuously adding value to the bid and the event
• Providing evidence of government support
• Demonstrating the ability to deliver the event through infrastructure,
community support and previous event management experience and
expertise
• Previous experience at event bidding
• Developing strong partnerships and bid leadership
• Conducting research and providing quality information
• Having figureheads to front the bid
• Making an emotional connection with the decision makers
• Providing evidence of community passion for the event
• Developing strong relationships and lobbying the decision makers.

In conclusion event bidding is not an exact science whereby success can be

guaranteed by following a set formula. It is a complex and confusing process
where each new bid should be treated as being unique. While there are many
variables that influence the bid outcome, the bidding process can be presented as
five stages within which there are a number of factors common to all
successful event bids. This guidebook has endeavoured to simplify the
bidding process and provide insights on how to ensure success.
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