An award manager’s guide to cutting program costs

Recognising champions of innovation and advancement through an awards program is an amazing way to ignite some excitement in your community. But, like any marketing or outreach program, it can quickly weigh on your budget.  

Cutting program costs is a reliable way to guarantee continuity and inflation-proof your awards program. Let’s go over some practical steps award managers can take to reduce expenses.  

1. Design a lean program

The first step for cutting program costs is to tailor the program accordingly from the start. It’s important to identify your awards program goals to ensure you use your resources efficiently by spending only on things that guarantee the realisation of defined targets. The clarity of goals can also enhance your understanding of the target audience; you can implement targeted and cost-effective marketing strategies to reach the audience. 

Proper goal definition ensures your team doesn’t deviate from the core mission. Mission drift leads to unnecessary expenses that don’t achieve your original goals. 

Clearly defined goals also help you plan your awards program for the long term. You can establish a lasting model that aligns with the goals of the program and guarantees the achievement of the original targets without excessive expenditure.              

2. Plan a budget

To effectively cut costs, it’s important to create a detailed budget so you know when you are overstretching in any area. Resources should be allocated to activities that positively impact the award program the most. It’s a good idea to itemise all anticipated costs and run a cost-benefit analysis to gauge the cost-effectiveness of the various aspects of your awards program.   

Planning a budget involves precise attention to detail. Here are a few tips to consider when building your budget: 

• Understand what you’re trying to achieve with the program.
• Identify possible sources of funds such as entry fees, sponsorships, donations and grants. Then, calculate the amount you expect to make from each source.
• Create a comprehensive list of all potential expenses associated with running an awards program, and look for pocket-friendly alternatives for each expense. Then, sort them into categories and project the cost of each expenditure category. 
• Sum up the projected income on one part and the estimated costs on the other part; your income should be more than your expenses.
• Communicate the budget to your team and other stakeholders for the sake of transparency and to ensure alignment with financial goals. 
• As the program progresses, make necessary adjustments in the budget and prepare financial reports accordingly.
• At the close of each awards season, evaluate the financial situation, relative to the original budget and use this for insights into your subsequent seasons.   

3. Prioritise efficiency and flexibility

Prioritising smooth operations and adaptability is a sure way to cut costs. Efficiency in your awards program doesn’t just save money; it saves time and enhances the overall experience for entrants, judges and other participants.

To achieve a high-powered performance, it’s essential to ditch your manual setup. A manual setup involves multiple hands—which means greater labour costs. What’s more, it’s prone to different forms of administrative and clerical errors. 

It’s important to use technology to help cut down on expenses.

Leveraging technology in the form of awards management software, such as Award Force, helps save resources in different ways. By automating routine administrative tasks and streamlining the workflow, you reduce the need for additional staff and associated costs. 

Technology also reduces errors which can be expensive to rectify. Furthermore, with awards management software you can reduce overhead costs by cutting back on office supplies, downsizing your office space and reducing utility expenses.

Flexibility saves costs in your awards program by ensuring that resources can quickly be reallocated based on changing circumstances. It also guarantees that the program can adjust promptly to take advantage of cost-saving opportunities. Adaptability imbues the program with agility to handle unforeseen disruptions.  

Be sure to have contingency plans and a risk management structure to absorb the shock that comes with sudden changes. They will lead to cost-saving innovations and save used funds from going down the drain.                  

4. Consider collaboration and sponsorship

You don’t have to do it all alone. 

Consider teaming up with other organisations to split the financial obligations involved in running the program. Joining forces with other entities presents an opportunity to share responsibilities among the various organisations involved. This reduces the expenses on your part and helps the other organisations involved achieve their individual goals. 

To further lighten the financial burden, seek out funding opportunities. Extra support in the form of sponsorship or donations is a vital form of support that will help in cutting program costs. 

Find organisations or individuals that align with your awards program’s mission, values and goals. Pay attention to companies with a vested interest in the awards program’s results or target audience. Conduct in-depth research on these entities and craft a personalised, compelling sponsorship proposal that details information about your awards program and the benefits of sponsoring it.

Keep in mind that sponsorship doesn’t have to be limited to monetary contributions. If the sponsors offer goods, services or even guidance, be sure to take them. The goods can be used as prizes; the expertise can save you from making costly mistakes. 

Learn more about how to attract sponsors to your awards program.     

5. Observe and evaluate the program regularly 

Assess your awards program often to identify any unnecessary expenditures. Take accurate steps to stop any misuse of funds. Gather insights from your program data to gauge the efficacy of every aspect of the awards program.

Awards programs can undoubtedly be an effective way to excite and engage your community. And, by following these tips above, you can keep your awards program under budget and keep costs down.