Always Learning

In Praise of the Per Diem

Anyone who travels on business is intimately familiar with that bane of all business travelers, the expense report.

It's astounding to me that in these days of digital everything, clients still demand detailed paper receipts for meal expenses -- taped on all four sides to nice uniform sheets of 8-1/2 by 11 inch paper, if you please.  When the economy is down, as now, there is a renewed push by clients to see more and more documentation on how we spend their money. Some call it "accountability", others call it "fiscal responsibility".

I call it bullshit.

Clients who believe they are saving money scrutinizing our receipts from Taco Bell and occasionally Outback Steakhouse are forgetting one simple thing: they are paying people to do this scrutiny, sometimes more than it saves them. I have seen highly paid project managers spend hours trying to find a single alcoholic drink or an overly generous tip on individual consultant receipts, and then joust with consulting firm accountants instead of investing that time in making sure the project is running smoothly.  It also costs the consulting firm to pay people to produce and check this documentation, which translates into higher service rates to cover those costs. And it's totally unnecessary, in most cases.

"So, Bob, what do you want us to do?  Just give you money, and not care how you spend it?"  Actually, that is exactly what I'm saying.  It's called a per diem (Latin, "per day"), and it dramatically streamlines expense report processing for both the consulting firm and the client. Although the per diem has gotten a bad reputation, I believe it is the only sane way to do travel expense reporting. If a client wants to contribute to my upkeep while on the road, they should find a dollar amount per day that they're comfortable with, budget for it, and allow me to charge them that. If they don't, then they should insist on a fixed daily rate and I'll raise my prices accordingly.

Invoices can be prepared more easily, will be shorter, and will be easier to verify by the client. No receipts need be submitted, photocopied, mailed, or checked. All billing can be done electronically and automated, instead of relying on the post office and incurring the resulting delays. The cost is predictable and can be easily budgeted.

There's also a personal privacy issue here: it's not really the client's business to know exactly what I ate and where, whether I'm a junk food junkie or a gourmet, if I eat my dinner or drink it.  If I have a 3 martini lunch and show up plastered for the afternoon session, that's an issue.  But what I do on my own time, as long as it doesn't affect my performance on the job, isn't.  (For that matter, it's not the client's business to require drug tests of consultants, it's the consulting firm's business.  But that's another topic.)

I'd like to make a special comment about alcohol, since it seems to be the hot button issue for many clients. I don't drink on the road as a rule, and very rarely even at home.  But clients who have a moral objection to paying for alcohol should remember that they're not paying for alcohol per se; they're paying for consulting services. A per diem provides such clients with "plausible deniability". Once the money is spent on consulting services, it's not theirs any more; they're not paying for alcohol (or tacos, or anything else they might object to.)

I will, of course, comply with my clients' requirements as long as they aren't illegal or breach the contract we have with them. But I don't have to always like it, and I will be happy to offer the above as a suggestion on how they can save time and money when working with consulting firms.

Business travel tip: Dallas-Fort Worth (DFW)

It took me a while to get used to the cloverleaf sprawl that is Dallas-Fort Worth International Airport (airport code DFW). But now that I've been using it regularly, I find I like its layout a lot.   Besides, the twisty-turny access roads remind me of the old Autopia attraction in Disneyland's Tomorrowland.

Here are some random tips to know about DFW.

It's big.  There are five terminals, A through E.  If you look at a map of the place, you'll see that some of the parking lots are shaped suspiciously like terminals. It looks like they could add three entire new terminals in the future.

A freeway runs through it:  The airport terminals are divided by a north/south freeway, which is also a toll road. You take a ticket when entering, and pay upon leaving. Your car's license plate number is printed on the ticket (it's entered by the tollboth attendant when you enter.) If you just drive straight through, the toll is $2; if you linger a while (like when you drop off or pick up someone), it actually costs less.

To the left, to the left:  All exits to the terminals from the tollway are left exits, no matter which side of the tollway the terminal is on. Cloverleafs spin you around to the terminals on the opposite side.

Parking, lots: There are four types of parking, if you're driving in from the Dallas-Fort Worth area (the "Metroplex"). In order of cost (low to high), they are:

• Remote North and Remote South: These are just outside the tollway, at each entrance. Cheapest parking, large buses take you to the terminals.

• Express North and Express South. These are just INside the tollway, cost a little bit more, but have some nice amenities. Mini shuttles instead of large buses pick you up at your car, and drop you back at your car upon return. There's a free bottle of water when you check in, and the shuttles are dedicated to specific terminals so the trip is shorter.  Express North is the smaller of the two, but nicer; it fills up fast.

• Terminals A-E Infield.  This is an open air parking lot at each of the terminals. Quite a walk from the terminal. The other down side is that sometimes you may leave from one terminal, but your return flight lands at another. So it's a bus ride to get back to your car.

• Terminals A-E Parking Garages. The priciest option, but closest to the terminal.

Central air:  All the rental cars are in a central facility. From the terminal curbs, take the Rental Car Center bus.

Hang up and park: There is no cell phone lot at DFW as at many airports. If you're waiting for someone, use one of the Remote lots: the cost is only $0.50 for the first hour.

Refresh Everything, as long as it's Pepsi:  DFW is a Pepsi place. All the shops and vending machines sell Pepsi products, along with juices and water. If you're a Coke or Diet Coke person, though, don't despair.  The McDonald's outlets in the various terminals sell Coke products.

Take the A(irport) train: A computer controlled elevated train system called SkyTrain goes to all the terminals, and it's inside the secure area so you don't need to go through security again to use it. There are two stops per terminal.  Take the escalator upstairs, board the train, then take the escalator downstairs to reach your gate. If you're outside the secure area, you have to leave the terminal and use buses that load out front at the curb. It's called Terminal Link.

Business Travel Tip: Best Accessory I Own

Sometimes it's the little things that are the most useful, way out of proportion to their size or cost.

The best travel accessory I own is not an expensive iPod, or Bose sound-cancelling headphones, or my Samsonite rolling briefcase that is my office on the road. No, it's a small webbed strap that connects to my Travelpro Crew6 rollaboard (which I use as checked luggage). The strap hangs down and provides a hook to piggy-back my briefcase.

Now one handle effectively pulls both items, and I have one hand free. Flight attendants and pilots have been using these for years, and many higher-end suitcases now come with them as standard equipment. Look for attachment points on your next suitcase or rollaboard.

I didn't realize how much comfort this little strap adds to my trips until one broke.  (My fault: I overloaded it.) Suddenly, I was doing the two-handed thing again, and not liking it. I located a Travelpro repair center locally and now I'm looking forward to my next trip.

Business travel tip: Look for security "fast lanes"

I was recently in Salt Lake City, and finally got a chance to test the experience-based security lanes rolled out on a test basis back in February.

There are three lines, identified by symbols used to mark the experience needed for ski trails:

• Green circle: beginners and families with small children and strollers;
• Blue square: intermediate travelers who don't fly very frequently;
• Black diamond: expert travellers who are very familiar with airport procedures.

The lines were well marked and it was easy to choose one. The families seemed to be using the green circle lane, which got them out of the regular flow nicely. But everyone else seemed to consider themselves an expert.  The intermediate, blue square line was almost empty.

And, wouldn't you know it, the person ahead of me in line in the "expert" lane didn't know to take her laptop out of the computer case before it went through X-ray.

Still, the lines seem to be an improvement.

I fly on American a lot because my home airport is Dallas Fort Worth International, a hub city for American. They've just announced a new program starting next month called Priority AAcess  (they love those AA's) that creates a priority boarding lane for frequent flyers. And for the past month, I've been enjoying early boarding anyway, as I just reached the AAdvantage Gold frequent flyer level and am always in Group 1 for boarding (but still behind First Class passengers and AAdvantage Platinum members).

I don't want to get into the politics of multiple classes of service, but I think the TSA scheme was done correctly. It's not based on how much money you have, but how likely you are to hold up others in the line.

Business travel tip: Gasoline planning

High gas prices affect everyone, not just the airlines. When planning a business trip, make gasoline planning part of your process.

Here are some tips on saving gas (and therefore, saving the customer some money):

• Consider a hybrid. Some rental car agencies now have hybrid cars, which combine a gasoline engine with a battery-powered electric motor drive. When the car is moving slower than a certain threshold miles per hour, the gasoline engine shuts off and the electric motor drives the car.  When moving at a constant rate, the gas engine runs but only charges the batteries, which uses less gas. Only when the car is accelerating does the gasoline engine actually move the car.  Net effect: less gas used.  I spent an entire week driving around at a client site, and when I gassed up at the end of the trip, I had only used 3 gallons.

• Fill the rental car yourself before returning it.  Car rental companies charge at least a dollar per gallon more for refueling. On one recent trip, the area's gas price was $3.59 per gallon, but the refueling rate was over $5.  The prepay options are extra profit for the car rental companies, because they get to charge for the same gas multiple times. Pick the "bring it back full" option and do it yourself.

• Spot the gas station on your way out of the airport. When you arrive at an airport you haven't been to before and you're on your way to the hotel, keep an eye out for the nearest gas stations. Jot down the exit number from the highway so that on the way back, you won't waste time hunting for gas.

• Carpool with colleagues.  If multiple people are attending a conference or other event, use collaboration tools such as SharePoint or a wiki to coordinate car use.

• Consider going without a car. In many places you really do need a car to get around, but urban areas typically have excellent mass transit. Also, some hotels will let you use their shuttle: ask when making reservations.

Business travel tip: Be ready for smaller planes

I've noticed in my flying recently that I'm seeing more of the regional jets, such as the Bombardier CRJ series, on routes that used to have bigger planes, such as the Boeing 737 and McDonnell Douglas S-80.

These smaller planes may be cost effective for the airlines, but they're even more cramped than big-jet coach, and have limited storage for carry-on luggage. And since the airlines started charging for checked baggage, the competition for this limited space is intense.

Here are some ways to plan ahead for flying on regional jets:

• Know the equipment. When you check in, you can often tell from the seating chart what type of plane is assigned to the route.
• Check seat assignments during check-in. On planes with 1-2 seating, you can sometimes get the left-hand single seat. They're a bit tighter, but you don't have to sit with a stranger.
• Pack modularly. Regional jets typically use gate-checked luggage. Know what you have to have with you at all times (laptop, medicines, ID) and what can be safely gate-checked. While waiting to board, divide your carry-on into "carry-aboard" and "gate check". A laptop sleeve with handles and an outside pocket is great for this.
• Bring a water bottle and/or snack with you. Small planes typically have only one flight attendant, and because the aisles are narrow, service is difficult.
• Consider a window seat. One side benefit of the smaller planes is that they tend to fly at lower altitudes, resulting in a great view.

Business travel tip: Monitor frequent flyer programs

Several major airlines have recently announced changes to their frequent flyer loyalty programs. The high cost of fuel is cited as the reason for the changes. For example:

• American Airlines announced last week that they will be charging $50 in addition to the normal  15000 miles for upgrades from discount tickets, starting October 1. 
• Delta's fuel surcharge fee on award tickets goes into effect this week (Aug. 15). It's $25 for US and Canada, and $50 international. 
• US Airways, Alaska, Delta, and American have all changed the tier structure of their programs, requiring more points for the same award levels, and discontinuing some award levels.

Monitor your frequent flyer accounts on a regular basis, and don't be so quick to delete the marketing emails these programs send you. Those emails may contain infomation about plan changes that will affect your ability to use your accumulated miles. Also, most carriers have a "what's new" or "updates" page that you can bookmark and check occasionally.

Knowing that the changes at American Airlines come into effect October 1, you might be able to use some upgrades this month and next to avoid the fees.

Business travel tip: Scout the area

When the U.S. Navy Flight Demonstration Squadron, the Blue Angels, arrives in a new city before an air show, they do an aerial survey of the area.  Starting at "show center," the middle of the airfield, they fly out one direction, and note what they see at 1 mile, 2 miles, and so on, up to 5 miles. Then they repeat the process for each of the other three directions. This gives them landmarks they use during their show.

When I travel to a new customer, I do something similar.  First, I find the hotel and check in.  That's my "show center."  Then, I locate the customer, so I don't waste time wandering around lost in the morning. Finally, I do my scouting, checking out what stores and restaurants are in both directions along the road the hotel is on, then up and down the nearest cross streets as well.

In less than an hour, I get some great ideas about where to have dinner, if there's an office supply store nearby, bookstore, and interesting sights. I also find a grocery.  I have to get my water and treats for the class: that's non-negotiable.

All of this prep is for one purpose: To maximize the time I have in the morning to focus on classroom setup. If class starts well because I had time to create the right environment for training, it makes a great first impression, and the odds are pretty good that the rest of the training will go well, too. If I'm rushed and something is not set up right, I'm playing catchup the rest of the week.

Like the Blue Angels, my job is to Wow the Customer. Scouting the area beforehand helps me do it.

Business travel tip: Book flights early, and book an early flight

Book flights early...

It's an odd balancing act: to get the best price on an airline ticket, you have to book early. But in these days of non-refundable fares and hefty fees for changes, booking too early is a risk.

I generally try to confirm a customer visit three weeks in advance. That's plenty of time to purchase airfare to get a 14-day advance rate, but not so far ahead that my class is likely to cancel or be rescheduled.

... and book an early flight

Even though it's a hassle to get to the airport in time for an early flight, there are good reasons to do so. If the flight cancels, there will usually be later ones the same day. Also, you'll arrive at your destination while it's still light, which makes it easier to scout out the class location.

Business travel tip: Use a packing list

This is my first training trip since the airlines started imposing a $15 fee for the first checked bag. Procedurally, it wasn't much of a hassle: just swipe my credit card at the kiosk when I checked in. But on the plane, as I suspected, the overhead storage filled quickly.

It's tempting to try to find a way not to have to check a bag, in order to avoid the fee.  On our vacation this year, we'll get hit for $180 extra just in bag fees (3 people x 4 travel segments x $15). But when I travel on business, it's usually for a three- or four-day class.  I can't live out of my rolling briefcase or even a carry-on, and still bring with me everything I need.

So the next best thing is to use a packing list. I used to forget things on trips.  It was a different thing every time: my cell phone charger, my trainer "emergency kit", some item of clothing.

Now, I use a packing list. It's just a document on my computer that lists what I should have on my person, in my briefcase, and in my suitcase. Even though my packing is pretty much a habit by now, I still print a copy before every trip, and discipline myself to check off the items.

The peace of mind that this simple act generates is amazing. I don't forget things anymore, but more importantly, I know I'm not forgetting something.