Budgets have been slashed and some of the perks of the job such as business lunches and dinners have been put on hold. As the head of sales, corporate hospitality has always been key to the success of my role. It helps me form solid business relationships and can make a client feel they owe me something in return. How can I negotiate this budget exclusion, albeit on a smaller scale? MM, Dubai
I used corporate hospitality a lot when I worked in advertising – both the intimate business lunch or dinner approach and the big event (sports fixture, concert and so on) with lots of clients and prospects busy networking with us and with each other. It’s a valuable business tool – but like any such tool, there are times when it is the right implement to use and times when it is not as appropriate. It cannot be the only way you try to influence relationships. As the old saying has it, if the only tool you possess is a hammer you treat everything you encounter as a nail.
So I think the answer here is to make the business case – either the case for a discretionary business development support activities budget, or the case for each individual activity you want to undertake. If you go the former route, you should think carefully about the form of the hospitality you want to offer and justify why the expenditure is worthwhile. Sometimes this justification will be qualitative – it will talk to the need to build or improve a relationship or relationships with a client, customer, supplier or prospect, for example. But whenever possible, look for the quantifiable angle – you intend to discuss a contract worth US$500,000 that the prospect has in his gift, and you believe it is best to do this on neutral territory in a relaxed environment where an in-depth conversation can have time and space to be nourished.
A discretionary business development support activities budget should be used sparingly and must be carefully targeted. This is not a slush fund and neither is it a way to bribe targets or entice them. You need to show that you know and understand what will appeal to a particular target, and why inviting the target to a lunch, a sporting event or any specific activity or engagement is likely to add to the bottom line. For example, a target may have a particular interest in cricket. Inviting that target to a one-day international match may create the informal setting and generate the amount of face time that you need to open conversations about the future of the relationship, and opportunities to deepen or widen the business connection. But there is then no need to take that same target off to dinner that evening – that would be overkill. Equally, an informal lunch together need not be in that top city centre venue where people go to be noticed – the conversation you want to have can equally take place in a good but not excessive establishment.
An important point about this discretionary budget for me is that it is transparent – you have to show how you have spent the budget and you may be asked retrospectively to justify your choice of entertainment and your choice of target. So, if you do decide to invite 10 prospects to a football match and you plan to entertain them in a private box, you must be able to show why you have chosen the people you select, and why you need the support of the staff members you invite to attend. These activities must be seen as business building and absolutely not as perks (a word you use in your question, and one I would avoid like the plague) either for you and your staff or for the recipients.
Let’s also be pragmatic. Any budget that is available is not there for a return to the excesses of earlier years in the world of corporate hospitality, and that is probably a good thing. Targeted use of hospitality is better than the distribution of general largesse, especially as the recipients swiftly come to expect the hospitality. Before you know it, they treat your hospitality as their right rather than your gift, leaving you in the trap where every year you must do more and more or you look like you no longer value the people on whom you lavished attention the year before.
Sometimes a specific targeted need or opportunity will arise. The need might be to do something to mend a fracturing relationship. For example, while an opportunity might be a chance to attend an event of some prestige or importance. Same principles apply – make a business case, show how responding to the need or opportunity will build or protect business, be transparent about costs and make the request.
Doctor’s prescription
Corporate hospitality is a useful tool in the building or maintenance of key relationships. Do not abuse it, and any sensible organisation will allow you to deploy it from time to time.
Roger Delves is the director of the Ashridge Executive Masters in Management and an adjunct professor at the Hult International Business School. He is the co-author of the book The Top 50 Management Dilemmas: Fast Solutions to Everyday Challenges. Email him at business@thenational.ae for advice on any work issues
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Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
List of officials:
Referees: Chris Broad, David Boon, Jeff Crowe, Andy Pycroft, Ranjan Madugalle and Richie Richardson.
Umpires: Aleem Dar, Kumara Dharmasena, Marais Erasmus, Chris Gaffaney, Ian Gould, Richard Illingworth, Richard Kettleborough, Nigel Llong, Bruce Oxenford, Ruchira Palliyaguruge, Sundaram Ravi, Paul Reiffel, Rod Tucker, Michael Gough, Joel Wilson and Paul Wilson.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The five pillars of Islam
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
RESULTS - ELITE MEN
1. Henri Schoeman (RSA) 57:03
2. Mario Mola (ESP) 57:09
3. Vincent Luis (FRA) 57:25
4. Leo Bergere (FRA)57:34
5. Jacob Birtwhistle (AUS) 57:40
6. Joao Silva (POR) 57:45
7. Jonathan Brownlee (GBR) 57:56
8. Adrien Briffod (SUI) 57:57
9. Gustav Iden (NOR) 57:58
10. Richard Murray (RSA) 57:59
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
BUNDESLIGA FIXTURES
Saturday
Borussia Dortmund v Eintracht Frankfurt (5.30pm kick-off UAE)
Bayer Leverkusen v Schalke (5.30pm)
Wolfsburg v Cologne (5.30pm)
Mainz v Arminia Bielefeld (5.30pm)
Augsburg v Hoffenheim (5.30pm)
RB Leipzig v Bayern Munich (8.30pm)
Borussia Monchengladbach v Freiburg (10.30pm)
Sunday
VfB Stuttgart v Werder Bremen (5.30pm)
Union Berlin v Hertha Berlin (8pm)
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
%3Cp%3E%E2%80%A2%20Looming%20global%20slowdown%20and%20recession%20in%20key%20economies%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Russia-Ukraine%20war%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Interest%20rate%20hikes%20and%20the%20rising%20cost%20of%20debt%20servicing%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Oil%20price%20volatility%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Persisting%20inflationary%20pressures%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Exchange%20rate%20fluctuations%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shortage%20of%20labour%2Fskills%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20A%20resurgence%20of%20Covid%3F%3C%2Fp%3E%0A
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now