• Purpose: To explain why EV’s travel and entertainment (T&E) costs are so high and to propose a series of changes to bring them under control.

  • Introduction

  • How we approached the investigation

  • Analysis of spending patterns

  • Impact of profits

  • Solution

  • (Concluding recap)

  • T&E costs above average

  • Pose threat to company’s financial health

  • Four straightforward solutions could save up to $6 million/year

  • Analysis of internal expense reports

  • Comparison of cost data with national averages

  • Analysis of published information on trends and cost-control suggestions

  • Total amount spent on T&E

  • Specifics (What was the money spent on?)

  • Comparison to national average

  • Reasons for such travel expenses

  • T&E costs continue to rise, as do other company costs.

  • revenue projected to decline in coming years

  • Bottom line: we’re headed for trouble

  • institution of tighter spending controls

  • entertaining costs should be reduced

  • lower travel rates should be found

  • technological alternatives for travel

  • last year, $16 million spent on Airfares, hotels, rental cars, restaurants, and entertainment

  • 12% higher than the year before)

  • 3,390 trips at average cost of $4,725 per trip

  • 70% of T&E costs in airfare and lodging

  • Travel expenditures partly due to positioning relative to facilities and customers (spread from coast to coast)

  • Comparison to the competition; expenditures 125% higher than the average

  • first class travel viewed as right by employees (compensates for extensive travel demands)

  • Sales staff encouraged to entertain clients

  • T&E costs are difficult to monitor and manage

  • no central responsibility

    • #1 Hire a travel manager to control costs and negotiate group discounts.

    • #2 Develop a formal, written policy to contain costs

    • #3 Give departmental managers the data they need to make smarter decisions

    • #1 cutting down on discretionary trips (e.g. no more free all-in trip to seminars for staff)

    • conference calls

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expenditures 125% higher than the average"},{"_id":"778bb4ee9fdb7f3188000148","treeId":"778a85f59fdb7f3188000109","seq":9759834,"position":2,"parentId":"778b88059fdb7f318800013d","content":"Reasons for such travel expenses"},{"_id":"778a8d1f9fdb7f318800012c","treeId":"778a85f59fdb7f3188000109","seq":9759872,"position":1.25,"parentId":"778bb4ee9fdb7f3188000148","content":"first class travel viewed as right by employees (compensates for extensive travel demands)"},{"_id":"778bc9439fdb7f318800014d","treeId":"778a85f59fdb7f3188000109","seq":9759874,"position":1.375,"parentId":"778bb4ee9fdb7f3188000148","content":"Sales staff encouraged to entertain clients"},{"_id":"778bc9bb9fdb7f318800014e","treeId":"778a85f59fdb7f3188000109","seq":9759876,"position":1.4375,"parentId":"778bb4ee9fdb7f3188000148","content":"T&E costs are difficult to monitor and manage"},{"_id":"778a8cd29fdb7f318800012b","treeId":"778a85f59fdb7f3188000109","seq":9759815,"position":1.5,"parentId":"778bb4ee9fdb7f3188000148","content":"no central responsibility"},{"_id":"778b885a9fdb7f318800013e","treeId":"778a85f59fdb7f3188000109","seq":9759548,"position":0.96875,"parentId":null,"content":"# Impact of profits"},{"_id":"77c0a0b0b41077c0eb000133","treeId":"778a85f59fdb7f3188000109","seq":9787888,"position":0.5,"parentId":"778b885a9fdb7f318800013e","content":"T&E costs continue to rise, as do other company costs."},{"_id":"778a935c9fdb7f3188000138","treeId":"778a85f59fdb7f3188000109","seq":9759733,"position":1,"parentId":"778b885a9fdb7f318800013e","content":"revenue projected to decline in coming years"},{"_id":"77c0a146b41077c0eb000134","treeId":"778a85f59fdb7f3188000109","seq":9787889,"position":2,"parentId":"778b885a9fdb7f318800013e","content":"Bottom line: we're headed for trouble"},{"_id":"778b89289fdb7f318800013f","treeId":"778a85f59fdb7f3188000109","seq":9759552,"position":0.984375,"parentId":null,"content":"# Solution"},{"_id":"778a8ea49fdb7f3188000130","treeId":"778a85f59fdb7f3188000109","seq":9759699,"position":1,"parentId":"778b89289fdb7f318800013f","content":"institution of tighter spending controls"},{"_id":"77c0a1e0b41077c0eb000135","treeId":"778a85f59fdb7f3188000109","seq":9787893,"position":1,"parentId":"778a8ea49fdb7f3188000130","content":"#1 Hire a travel manager to control costs and negotiate group discounts."},{"_id":"77c0a293b41077c0eb000136","treeId":"778a85f59fdb7f3188000109","seq":9787892,"position":2,"parentId":"778a8ea49fdb7f3188000130","content":"#2 Develop a formal, written policy to contain costs"},{"_id":"77c0a3a9b41077c0eb000137","treeId":"778a85f59fdb7f3188000109","seq":9787894,"position":3,"parentId":"778a8ea49fdb7f3188000130","content":"#3 Give departmental managers the data they need to make smarter decisions"},{"_id":"778a90929fdb7f3188000133","treeId":"778a85f59fdb7f3188000109","seq":9759724,"position":1.5,"parentId":"778b89289fdb7f318800013f","content":"entertaining costs should be reduced"},{"_id":"778a90f29fdb7f3188000134","treeId":"778a85f59fdb7f3188000109","seq":9787895,"position":1,"parentId":"778a90929fdb7f3188000133","content":"#1 cutting down on discretionary trips (e.g. no more free all-in trip to seminars for staff)"},{"_id":"778a8f419fdb7f3188000131","treeId":"778a85f59fdb7f3188000109","seq":9759709,"position":2,"parentId":"778b89289fdb7f318800013f","content":"lower travel rates should be found"},{"_id":"778a8db49fdb7f318800012d","treeId":"778a85f59fdb7f3188000109","seq":9759718,"position":3,"parentId":"778b89289fdb7f318800013f","content":"technological alternatives for travel"},{"_id":"778a8def9fdb7f318800012e","treeId":"778a85f59fdb7f3188000109","seq":9759025,"position":1,"parentId":"778a8db49fdb7f318800012d","content":"conference calls"},{"_id":"778b89f89fdb7f3188000140","treeId":"778a85f59fdb7f3188000109","seq":9759567,"position":0.9921875,"parentId":null,"content":"# (Concluding recap)"}],"tree":{"_id":"778a85f59fdb7f3188000109","name":"Electrovision Oral Report sandpit","publicUrl":"778a85f59fdb7f3188000109"}}