PMP: Sponsorship Arrangements And Cost Constructing

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Question :

EPM5600 Principles of Project ManagementPMP ASSIGNMENT – BRIEF FOR STAGE 1BACKGROUND

The Australian Institute of Project Management (AIPM) is a national body that represents the interests of Project Management as a profession across all sectors and disciplines.  Its focus is on maintaining the professional reputation of Project Management as a philosophy, provides useful information to its members, runs various training courses and upholds industry recognised accreditation standards.

In October 2018, AIPM plans to hold their first event as part of the National Conference to promote Information Technology (IT) professionals and does not have the in-house capacity or expertise to coordinate such an event. As the governing body for Project Management, AIPM acknowledges that this event needs to be meticulously planned and delivered to the highest standard possible.


Assume that your group has been appointed to provide Project Management services to Australian Institute of Project Management  (AIPM) in relation to the Stage 1 - Due Diligence study for its first event.  AIPM requests this due diligence report to be completed and submitted for review and approval by Monday Week 6 on or before 9.00 AM.

If the AIPM board agrees with and accepts the strategy, costs, timing and risk profile set out in the due diligence report. Your group will be commissioned for Stage 2 – Project Delivery.  This will take place in Stage 2 and will include a variety of tasks including, but not limited to, setting the event delivery framework and preparing a Project Management Plan (PMP).  A detailed brief will be released for Stage 2 at a later date. 

This brief for Stage 1 – Due Diligence exercise provides the Project Management group with a more detailed understanding of AIPM’s business operations and project objectives for the proposed National Conference for IT Professionals.


AIPM expects to receive a concise due diligence report which as a minimum covers the following areas:

  •  Marketing strategies to be adopted leading up to the event. 
  • Advice on the optimum venue, format, duration, number of speakers and broad mud-map of the sessions. 
  • Timing associated with the planning, delivery and post implementation review of the event. 
  • Risks to be considered and the provision of a detailed risk matrix and how to manage. 
  • Advice on potential sponsorship arrangements and cost structuring for the event in terms of advertising packages, ticket pricing and offers for international delegates.
  • Costs associated with running the event and the provision of a cash-flow which links to the project programme.  Payment terms with various suppliers should be considered.
  • A summary methodology describing how your group will manage the detailed planning and delivery of the event if the board decides to proceed.  This will be further developed and will form the basis of the PMP in the Stage 2 – Project Delivery exercise.

This due diligence exercise and report should be focused on AIPM’s corporate objectives and project requirements in terms of key satisfaction criteria.  However, in order to properly scope the works and produce an appropriate due diligence report, the following assumptions must be made:

  •  The event is targeted ti IT Professionals at both members and non-members, both individuals and corporations.  AIPM currently has 11,000 individual members and 300 corporate members.  Our assumption is broadly that 60% of attendees will be members and 40% will be non-members. It is expected that total number of 900 delegates to attend.
  • AIPM is not looking to make a profit from this event.  AIPM has sufficient cash reserves to fund the event, but is ultimately seeking full recovery of this through ticket sales and marketing income.
  • The event should preferably be held in a large well know venue, in the central business district of; Melbourne, Sydney, Perth or Brisbane.
  • We envisage the event to run for either 2 or 3 days.  We expect that this will be either over Thursday, Friday and Saturday or Friday and Saturday.
  • We envisage the presentation topics to all be relevant to Information Technology Project Management and primarily be case study based.
  • Each day should be themed and the individual presentations on that day consistent with delivering an overall message
  • We envisage a minimum of 4 speakers per day with at least one of those being a key note speaker.
  • We envisage there to be a gala dinner on the second night if the event is 3 days or on the first night if the event spans only 2 days.
  • We expect there to be a specialist AV/VC consultant provided as part of the cost of the venue.  Therefore the Project Manager only needs to consider the broad technological requirements and layout of the event, not the specifics.


AIPM is a national association that represents the interests of Project Management as a profession.  We are essentially a not for profit organization that has both personal and corporate members, runs training and social events to promote and develop project management and sponsors various project management awards.  We are widely known in the Project Management industry as the Australian version of the Project Management Institute.

We have been in operation for over 30 years and now have the scale and industry support to justify an event of this nature.  Our primary focus is adding value to the attendees, ensuring that they come away with ideas and insight that is directly applicable to their day-to-day work and career development.  Moreover, we want this event to be seen as positively contributing to the development of the Project Management industry, in terms of an opportunity to network with like minded individuals, access to industry leaders and leading edge project case studies and validation of the skills and expertise maintained by project managers, to combat market perceptions caused by the low barrier to entry. 

We want the event to be dynamic, interesting and educational, combining good old fashioned project management principles with social media and cutting edge technology to promote the event and then facilitate an interactive experience for attendees. 

We are seeking your guidance, support and knowledge as specialist consultants to ensure this event is the best it can possibly be.  We hope this will be the first of many AIPM National celebration events.

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Answer :

6.1 Sponsorship arrangements

The sponsorship arrangements for the National Conference to promote Information Technology (IT) professionals by The Australian Institute of Project Management (AIPM) is to be based on the goals of the organization which include promoting  IT Professionals, The objective is to network with sponsors and provide them with an opportunity to participate in this endeavor. They would also obtain better goodwill through promoting the event and showing their support for promotion of IT professionals. They can earn better reputation as potential employers and at the same time find suitable employees for their organizations. It does help increase the company’s exposure and gain higher popularity in the industry. It can help them network, establish strong ties and also share knowledge and experience all of which are strategically important to them.  They can also promote their products and innovative ideas in order to strategically partner with other firms at various levels (Englund, R.L. and Bucero, A, 2006).

Sponsorships shall be provided at 3 different levels called the Star pack, Moon pack and Sun pack. At each level the sponsor shall be provided with the following elements:

a. Company logo and profile shall be put up on the website of the program / conference along with banners at the venue where conference is to be held in arrangement based on sponsorship level opted for 

b. Logo shall be displayed not only on site but also on each of the promotion material 

c. Free entry to the conference based on being given passes in advance 

Sponsorship pricing has been formed based on the idea that various sponsors would want to give in different amounts. Moreover as a wide range of companies participate in the sponsor program, it is quite likely that they should be provided with various options. There are no limitations on number of sponsorships but there are better highlighting options for early participants on the website. 60% of the sponsorship amount is to be given along with the sponsor application and the rest can be given within 15 days of time. This would enable the Master class website to be able to take care of various arrangements to be made to promote the firm on the website and in promotion material (Englund, R.L. and Bucero, A, 2006).



 Sponsor contribution range
 Star (Nickel)
 Moon (Bronze)
 Sun (Silver)
 Above $ 50000
 Community sponsors
 In kind or service

6.2 Established sponsorship patterns

The Australian Institute of Project Management (AIPM) does recognize its ties and partnerships with various members and shall actively seek their support and participation in obtaining sponsorships for this event. The list of APM members include the following:

LIst of APM membersList of APM memebrs

It is important for these firms to participate in this event in order to obtain national level exposure and also obtain a long term benefit in their own industries. It is required that there be effective understanding of their role in the event in order to formulate a valuation of what range they need to participate in the sponsorship. 

Conference budget: Approximated and based on expected revenues and expenses

Target Budget: 5,500’000000 got from sponsors and $30,0000 got from selling products on website 

Collection of money: Through sponsors and selling of their products on website 

Advertising to sponsors: Through strategic partnerships which already exists 

Names of sponsors : Was asked in logos and so has been put in logos 

Actually spent: 6,15162000

Amounts are in (‘000000)


 Revenue source
 Silver sponsors $1000,000


 Bronze sponsors $500,000


 Nickel sponsors $250,000


 Community sponsors $50,000




 Grid hosting and adminsitration


 Keynote speaker honoraria
 $ 700,00
 Conference website and hositng  


 Online schedule org service






 Ava con Inc services


 Streaming software licenses


 Paypal fees


 Bank wire transfer fees


 Complimentary confectionaries




 Budget surplus



6.3 Advertising packages

It is quite evident that there has to be an inclusion of various products as well on the website. This makes it important for the sponsors to bundle their products and sell through the website. This can give an additional income to the conference budget and this can help reduce or overcome the budget deficit that has been estimated. It is important to promote this event based on these aspects and ensure that there is better revenue generated. Only then it would be possible to deliver a substantial and suitable sponsor and budget program for this event. It also requires that  there be a stronger understanding of what products could sell best and ensure that they are well promoted rather than just focusing on the sponsorship level or program opted for by the sponsors. A balance among these aspects is crucial to be able to obtain revenue for the sponsorship and the event. Only then it would be possible to conduct the event without any financial hiccups. Financial feasibility is extremely important for the conference to take place without any disruption (West, D., 2010).

6.4 Ticket pricing 

The conference is based on inclusion of highly qualified and accomplished people whose support is crucial for building higher value in the conference. It is important for the organization to focus on including a discounted ticket price for employees and members. If a member buys the sponsorship, then ticket prices are already included. In case of non registration or confirmation, just to ensure that the head count is known, a nominal amount has been included. The income from tickets are not included in the budget as they would be received only towards the dates of the conference. These amounts would be carried forward into the organizations funds and be used for the next event.

ticket pricing of APM conference

These prices aim to ensure that there is inclusion of all members, from IT and non IT industries. The aim of promoting IT employees can be achieved through this event as the conference is mainly based on IT concepts and employment. An exposure to different cultures would help make it even more valuable an experience and also create better impact in the event. The objective is to build a stronger level of exposure and help IT firms and IT professionals network on this platform. 

6.5 Offers to international delegates

International delegates will be provided with several special options that would enable them to obtain information and support along with bookings for hotels and visa requirements. It is important that they be provided with information pack and that international delegates are supported and encouraged to participate in the event. Only then it would be possible to provide them with appropriate orientation and encourage international participation. Various international IT organizations would be sent an invitation to participate in the conference. This would bring in greater value to the conference and its conduct. It would also benefit the participants to obtain better exposure to knowledge from different countries and cultures.