One Year to Go: Vancouver Perspective

Allen Brooks, Vice President, Olympic Marketing

From the windows of the Vancouver office, the Inukshuk-inspired Omega countdown clock can be seen standing tall like a silent sentry, reminding all passersby of what is imminently approaching.  The celebrations surrounding the “One Year to Go” milestone seem to be a distant memory.  The fervor of that day is replaced with an even more heightened frenzy of continued planning and preparation.

Having experienced the advanced planning and activities associated with six Olympic Games, four of which involved living in the Host City for an extended period, there are aspects of what is happening in and around Vancouver that are both familiar, yet entirely new, in comparison to this city’s predecessors.   The Vancouver 2010 Organizing Committee (VANOC) is not alone in experiencing budget reductions, vocal opposition, and the constraints of limited resources, all while the silent ticking of the Omega countdown clock grows louder with each passing hour. But VANOC also faces the delivery of an Olympic Games in an economy more uncertain than any in decades.  The sponsors of the 2010 Olympic and Paralympic Games are partners not only in the financing and service provision of these Games, but are also “partners” in the impact felt to the collective bottom lines.  Thus, they have an even keener shared interest in the success of the world’s preeminent sporting event.

SportsMark’s current work with our Vancouver clients is focused on providing solutions to the very real challenges being faced, as they strive to realize returns on investments and operational commitments made during very different times.  As with VANOC, some perspective can be gained from earlier Organizing Committees and Olympic Sponsors. 

Focus on the Core

Budgets are tightening, and costs are escalating.  Project scope continues to be defined as requests, requirements, and “nice to haves” are fielded.  VANOC’s primary responsibilities and goals are the staging of a safe and secure Olympics, the care of the athletes and broader Olympic Family, the preparation of world-class competition venues, and facilitating media participation for the benefit of a global audience.  It is this homestretch period when continued decisions are made about what truly must be funded and included in the ultimate scope of service to be delivered in 2010.     

Just as VANOC must focus on these core elements, so, too, must sponsors focus on their core business and central reasons for sponsorship of the Olympic and Paralympic Games.  Challenging decisions must be made around activation concepts, invitation strategies, and target markets.  The significance of “doing fewer things, but doing them exceptionally well” is even more important now.  Our client support aims to keep the “must do’s” front and center, while keeping the most rewarding “nice to have’s” firmly in mind and ready for available funding and implementation.

Manage the Budget

An early and consistently positive story out of Vancouver has been that of corporate sponsorship.  Not only have iconic corporate names representing the broad cultural tapestry and history of Canada come aboard in support of the 2010 Olympic and Paralympic Games, but they have done so with unprecedented financial and Value-In-Kind contributions.  With less than one year to go, VANOC finds themselves $15M shy of their approximately $750M sponsorship target.  A venues construction program delivering completed venues with a year to go bolsters confidence in both VANOC and the hopeful athletes.  Tourism BC anticipates riding the wave of Olympic exposure and will be investing $130M in a three year campaign, which is expected to boost tourism revenues from $12.6B to $19.6B by 2015.

The current economic times, however, do provide additional complexity to things like reaching that finish line of corporate sponsorship, financing the rising federal Olympic security budget (originally $175M, now $900M), completing vital infrastructure projects, and realizing significant returns by corporate sponsors who committed sponsorship investments in days colored with far more financial optimism.   Our recent support to sponsor clients has, not surprisingly, focused significantly on how to do more with less.  Reviewing project scope, recasting budgets and assessing objectives are collaborative necessities that are done with an eye squarely on what will deliver the greatest return, carry the largest impact, and most favorably position the brand. 

Overcome the Pressure

No other Canadian sport, individual or team of athletes carries the national expectation of first-place Gold like that of Canada’s hockey teams.  Anything short of “owning the podium” will undoubtedly be seen as unsuccessful.  Likewise, sponsors of the Olympic Games carry high expectations for their involvement with this expensive sport property.  Shareholders, board members, and executives are all calling on the corporation to produce a return on investment, achieve stated objectives, and grow business, while operating in leaner times. 

The Olympic Torch Relay – 12,000 torch bearers traversing 45,000 kilometers over 106 days set to kick off October 30^th, 2009 - is a tremendous logistical challenge and another example of a pressure-filled Olympic endeavor.  The successful staging of the OTR will see a well-trained team implement a sound plan, while deftly reacting to expected and unanticipated changes all while operating under the watchful eyes of a global audience.  Now that’s pressure!

SportsMark is proud to be a trusted partner helping clients deal successfully with such challenges, by invoking many of the same fundamentals necessary for athletes to “nail it” in the moment that matters: 

• Developing a sound plan to achieve defined goals
• Recruiting the best members for the team
• Practicing and rehearsing core components
• Executing against the plan

In these challenging and uncertain times, the Olympic and Paralympic Games offer not only the inspiration of athletic performance, cultural celebration and global unity, they also provide their own sort of “economic stimulus package”, which can be seen and felt in Vancouver and across Canada.  True, budgets are being impacted and plans are being revised.  But there are also bright stories to be told for those that develop sound strategies with integrated goals; create strong, experienced teams; and fully commit to excellence in delivery.  The Vancouver 2010 Olympic and Paralympic Winter Games are going to be an incredibly successful celebration and a very special moment in history.  And before you know it they will be upon us.  I can hear the clock ticking…

Allen

P.S.  Please send any topics of interest to us at solutions@sportsmark.com.